KP Group has introduced KP 3.0, a growth strategy targeting 10 GWp of owned renewable energy generation, 10 GWp of third-party engineering, procurement and construction (EPC) execution, and 10 GWh of integrated battery manufacturing capacity by FY2032. Announced at its Investor Day on September 30, 2026, the plan marks a shift toward scaling three distinct business platforms while expanding into energy storage and other clean energy technologies. The group’s targets are separate commitments, not its current operating capacity.
The group reported a renewable energy portfolio of 10.3 GWp as of its latest investor presentation, including projects across solar, wind, hybrid generation, floating solar and battery storage. Its owned independent power producer (IPP) portfolio stood at 2.8 GWp as of June 30, 2026, comprising 1.01 GWp commissioned and 1.81 GWp under execution. Under KP 3.0, KPI Green Energy will lead the expansion of owned generation, while the EPC target will focus on projects for external customers and exclude related-party work. This distinction separates revenue from executing customer projects from the longer-term cash flows generated by assets the group owns.
Battery manufacturing is one of the strategy’s most significant additions. Through its dedicated storage platform, Sun Drops Energia, KP Group plans to establish a roughly 110-acre facility in Gujarat covering battery cell production and battery energy storage system (BESS) assembly. Its published roadmap envisages a 30 MWh pilot line and research and development center in 2027, followed by 5 GWh of BESS assembly capacity in FY2027-28 and a separate 5 GWh cell manufacturing line in FY2028-29. The company targets 10 GWh each of cell and BESS capacity on the same campus by April 2031. These are planned milestones, not capacity already in commercial production.
The proposed cell line is intended to address a key cost and supply-chain issue in India's storage market. KP Group's investor presentation estimates that battery cells account for approximately 55% of a BESS container's cost and that more than 90% of cells used in India's BESS market are imported from China. Bringing cell manufacturing in-house could give the group greater control over supply, costs and product integration, although the expected commercial benefits will depend on manufacturing yields, utilization and market prices. Lithium iron phosphate (LFP) is the first chemistry planned for production, while nickel manganese cobalt, sodium-ion, solid-state and lithium-sulfur technologies feature in its longer-term roadmap.
The storage business is being developed for several customer segments rather than utility-scale projects alone. The group's planned revenue mix includes utility BESS, industrial applications, renewable energy integration, electric mobility, telecommunications, defense, micro-utilities and exports. This diversification could reduce dependence on any single market, while allowing battery systems to serve applications with different capacity, duration and performance requirements. The company also cites rising national storage demand as a key reason for expanding into cell manufacturing and system assembly.
KP 3.0 also includes changes to the group's corporate structure and governance. KP Group says it has realigned businesses around individual segments and project sizes, appointed BDO as statutory auditor for its three listed companies, and introduced caps on royalty payments. It has also set March 2027 as the target for releasing promoter share pledges in KPI Green Energy, subject to the relevant financing and release process. These measures accompany the growth targets by addressing governance and organizational issues as the group expands.
The strategy builds on KP Group's existing engineering and manufacturing base in Gujarat, which includes wind and solar EPC capabilities, transmission infrastructure and galvanized steel structures. The group is also developing floating solar, green hydrogen and international opportunities in markets including Africa and Saudi Arabia. The central execution challenge will be coordinating rapid growth across owned assets, external EPC contracts and a capital-intensive battery manufacturing business while meeting project schedules and maintaining financial discipline.