HEG Advanced Materials subsidiary Replus Engitech Private Limited has signed a Memorandum of Understanding (MoU) with Indus Towers Limited to collaborate on Battery Energy Storage System (BESS) solutions for telecom infrastructure in India. The agreement outlines the intent to deploy dedicated production capacity to meet the sector's evolving energy needs.

Under the terms of the MoU, Replus intends to make available dedicated BESS production capacity of 1.5 GWh over a two-year period. This initiative aims to support the critical power requirements of telecom infrastructure while strengthening domestic manufacturing capabilities.

Strategic focus and technology

Replus plans to expand its portfolio of telecom energy storage solutions, including higher-capacity battery systems. The company is also exploring emerging technologies such as sodium-ion batteries, which are expected to enhance reliability, energy efficiency, and lifecycle performance across various telecom applications.

Riju Jhunjhunwala, Chairman, Managing Director and CEO of HEG Advanced Materials, stated that the initiative reflects the opportunity to build a strong, made-in-India energy storage ecosystem for critical infrastructure. He noted that through Replus, the group is building the manufacturing scale and technology capabilities required to address these evolving requirements and contribute to India’s energy transition.

Hiren Pravin Shah, Managing Director & CEO of Replus Engitech, emphasized that the initiative goes beyond supplying batteries. He highlighted the ambition to combine innovation, reliability, and Indian engineering to create future-ready energy storage solutions that address the specific needs of telecom infrastructure.

What the numbers show

The commitment of 1.5 GWh in dedicated production capacity over two years signals a significant scale-up for Replus Engitech. Given that the company has already deployed over 1 GWh of energy storage capacity across BESS, electric mobility, and telecom power solutions, this new MoU represents a substantial expansion of its installed base and market reach within the telecom vertical.

About the companies

HEG Advanced Materials Ltd. is a platform spanning advanced battery materials with a strong foundation in manufacturing, R&D, and innovation. It is developing a large-scale anode materials business and future material development, including silicon-based anodes, serving the evolving EV, BESS, and energy-storage ecosystem.

Replus Engitech Private Limited is an integrated energy storage and clean energy company focused on advanced battery technologies, Battery Energy Storage Systems (BESS), telecom energy solutions, and e-mobility. The company designs, manufactures, and deploys Advanced Chemistry Cell (ACC)-based lithium-ion battery systems.

HEG Advanced Materials Limited issued guidance to shareholders regarding the apportionment of the cost of acquisition of equity shares following the demerger of its graphite business. The company advised that pre-demerger costs must be split between the parent entity and HEG Graphite Limited based on specific percentages.

Demerger structure and share allotment

The National Company Law Tribunal, Indore Bench, sanctioned the Composite Scheme of Arrangement on August 13, 2026. The scheme facilitated the demerger of the graphite undertaking from HEG Advanced Materials (formerly HEG Limited) into HEG Graphite Limited. It also included the amalgamation of Bhilwara Energy Limited into HEG Advanced Materials.

In relation to the demerger, shares were allotted on September 11, 2026. The ratio was one fully paid-up equity share of ₹2 each in HEG Graphite Limited for every one equity share of ₹2 each held in HEG Advanced Materials as on the record date of September 7, 2026.

Cost of acquisition apportionment

For tax purposes, the demerger is considered tax neutral under Section 70(k) of the Income-tax Act, 2025. Consequently, the cost of acquisition of shares in both entities must be adjusted. The company provided a clear breakdown for shareholders holding these shares as capital assets.

The cost of acquisition for HEG Graphite shares is determined by the proportion of the net book value of assets transferred relative to the net worth of the demerged company immediately before the transaction. The remaining cost is attributed to HEG Advanced Materials.

Tax implications and shareholder guidance

The date of acquisition for the new HEG Graphite shares will be deemed to be the same as the date of acquisition of the original HEG Advanced Materials shares. This continuity ensures that the holding period for capital gains tax purposes remains unaffected by the corporate restructuring.

HEG Advanced Materials emphasized that this communication serves solely as general guidance. The company noted that determining cost of acquisition involves complex applications of Sections 90(7) and 198 of the Income-tax Act, 2025. Shareholders are advised to seek independent professional advice, as regulatory or judicial authorities may interpret these provisions differently.