Date: July 14, 2026

KMP / Board / Auditor Changes

Not Specified

Dividend Declaration or Non-Declaration

Not Specified

Board Meeting Outcomes

Not Specified

Financial Results (Standalone & Consolidated)

Not Specified - Project is under construction

Disinvestment / Strategic Actions

Not Specified

Other Operational / Legal / Strategic Disclosures

Credit Rating Details

  • Rated Entity: TACC Limited (wholly owned subsidiary of HEG Limited)
  • Instrument: Bank loan facilities
  • Rated Amount: INR 12,300 million
  • Rating: IND A-/Stable/IND A1
  • Bank Facilities: State Bank of India - Term loan (INR 12,300 million) and Capex Letter of credit (INR 4,500 million sublimit)
  • Complexity Level: Low

Project Details

  • Project: Manufacturing facility for lithium-ion battery-grade synthetic graphite anode material
  • Capacity: 20,000 tonnes per annum (TPA)
  • Location: Sirsoda Industrial Area, Dewas, Madhya Pradesh
  • Estimated Project Cost: INR 18,927 million
  • Funding Structure: 65:35 debt-equity ratio
  • Commercial Operations Date: Likely April 2027
  • Incorporated: December 26, 2022

Parental Support Details

  • HEG has fully guaranteed TACC's sanctioned term loan of INR 12,030 million
  • HEG extended INR 4,000 million of optionally convertible debentures (OCDs) at 0.01% coupon rate for 10 years
  • HEG infused equity amounting to INR 1,600 million as of end-March 2026
  • Total project funding required from sponsor: INR 6,620 million (88% infused by end-March 2026)
  • HEG's managing director and chief executive officer on TACC's board

Strategic Context

TACC is integral to LNJ Bhilwara group's strategy of building an integrated energy transition platform (HEG Greentech post-amalgamation). The project leverages HEG's decades of experience in graphite electrode manufacturing and high-temperature graphitization.

Demand Outlook

  • Favorable demand supported by government's Production-Linked Incentive scheme for advanced chemistry cells (target 50GWh capacity)
  • Additional 178GWh of battery capacity announced by multiple players
  • Estimated 178,000 TPA anode demand from announced pipeline
  • Significant import substitution opportunity (currently reliant on Chinese imports)
  • Export potential under China Plus One strategy
  • Management indicates demand visibility for complete 20,000TPA capacity

Financial Projections

  • Expected EBITDA margins: ~30% (comfortable at ~20% for debt servicing)
  • Expected gross margins: ~55%
  • Net working capital-to-revenue ratio: 25-30%
  • Average DSCR: ~1.6x
  • Debt repayment: INR 677 million in FY29, INR 1,044 million in FY30
  • Term loan tenor: 12 years (including 1.5 years construction, 1-year moratorium, 9.5 years repayment)

Risk Factors

  • Project execution risks (greenfield nature)
  • Technology and stabilization risks (complex graphitization process)
  • Raw material price volatility (linked to crude oil derivatives)
  • Import dependency for anode-grade low-sulphur green pet coke
  • Working capital intensive operations (4-6 months inventory holding)
  • Customer qualification challenges
  • Foreign exchange and logistics cost exposure

Risk Mitigation

  • Debt service reserve account (DSRA) equivalent to one quarter of debt obligations
  • Cash sweep mechanism triggered if DSCR exceeds 1.2x
  • Multi-supplier procurement strategy across geographies
  • Parental guarantees and support for cost overruns
  • Existing group sourcing relationships

Rating Sensitivities

Positive: Timely project commissioning with performance in line with base case estimates

Negative: Weakening parental support, significant cost/time overruns impacting credit metrics