Agratas Energy Storage Solutions Pvt Ltd, a subsidiary of the Tata Group, has successfully secured over $730 million in loans from various banks, including Axis Bank and DBS Bank, to fund its ambitious battery manufacturing projects. This funding, along with equity contributions from Tata Sons, brings the total financial backing to nearly $900 million. The loans, obtained between January and December 2025, feature an average interest rate of 5.25% and a payback period of approximately three years.

The Tata Group, under the leadership of Chairman Natarajan Chandrasekaran, has been diversifying its portfolio into new energy sectors, with Agratas being the latest venture to approach the $1 billion funding mark. Unlike other Tata ventures that have relied heavily on equity infusions, Agratas is adopting a more asset-backed approach by securing loans against its movable assets. This strategy reflects the financial pressures faced by the group, as other ventures like Air India and Tata Electronics have reported significant cumulative losses.

Agratas is set to build a 40GWh electric battery manufacturing plant in Somerset, UK, and a 20GWh facility in Sanand, Gujarat, with operations expected to commence in FY27. The plants will produce batteries for electric vehicles and energy storage solutions, catering to both internal and external demands. The successful funding is seen as a critical step in ensuring timely project execution and operational readiness, as highlighted by industry experts.