TCPL Packaging is expanding beyond its established packaging business with an entry into lithium-ion battery separator film manufacturing. The company’s board has approved plans to enter the advanced chemistry cell battery materials segment through a subsidiary proposed to be incorporated for the project.
The company plans to invest INR 125 crore in the venture over the next 18 months, with project implementation scheduled across 2026 and 2027. Commercial production is targeted for early 2028. The proposed business is intended to leverage the TCPL Group’s capabilities in specialized films, polymer processing, precision manufacturing, research and development, process control and quality assurance.
Targeting a rapidly expanding battery materials market
TCPL’s move comes as demand for lithium-ion batteries is expected to increase across electric vehicles, energy storage systems, consumer electronics, telecom, data centers, railways and power backup applications.
According to data cited by TCPL from India’s Ministry of Heavy Industries, global battery demand is projected to rise from 197 GWh in 2020 to 5,881 GWh by 2035. In India, total battery demand is projected to increase from 0.5 GWh in 2020 to 255.7 GWh by 2035, with passenger EV battery demand projected to reach 91.9 GWh and stationary storage demand potentially reaching 72.5 GWh over the same period.
The company said it expects the expansion of domestic cell manufacturing to create demand for locally produced separator films. According to the company presentation, India’s ACC Cell Manufacturing PLI Scheme carries an incentive outlay of INR 18,100 crore, with a target of 50 GWh of domestic ACC manufacturing capacity, of which 40 GWh has already been awarded. A separate grid-scale battery program proposes 10 GWh of domestic manufacturing capacity for battery energy storage systems.
Separator film: a critical battery component
Separator film accounts for around 4–6% of battery cell cost but plays a role in battery safety, performance and longevity. In a lithium-ion cell, the separator is a porous insulating film positioned between the cathode and anode, preventing direct contact between the electrodes while allowing lithium ions to pass through during battery operation.
The separator also contributes to battery safety through its thermal shutdown function: at high temperatures, its pores close to stop ion flow, helping prevent thermal runaway. Its functions therefore extend beyond physical separation to supporting energy density, thermal stability, battery life and overall reliability.
Wet process and phased value-chain expansion
The TCPL Group plans to adopt a wet manufacturing process for lithium-ion battery separators. The proposed value chain begins with polyethylene granules and additives, followed by blending and extrusion, stretching, pore formation through solvent extraction, coating, slitting and winding, and testing before the finished separator is supplied to battery cell manufacturers.
The company intends to build its presence in the separator value chain in phases, with the first phase focused on coating and conversion using sourced separator film, and the second phase involving backward integration into specialized film manufacturing. TCPL said its existing capabilities in specialized film processing, advanced polymer handling, precision manufacturing, process control, quality assurance and research and development provide a foundation for developing and scaling the new business.
70 million sq. m. initial capacity planned
The proposed INR 125-crore project will be funded through a combination of internal accruals and debt. The initial facility is planned with installed separator film capacity of 70 million sq. m., which the company said could support lithium-ion battery cell production of approximately 6–8 GWh.
The project roadmap includes land acquisition, technology and process finalization, project planning and equipment ordering in 2026. Facility construction, equipment installation and product validation are planned for 2027, followed by commercial production, customer qualification and phased ramp-up from early 2028.
TCPL has also outlined a longer-term ambition to reach 500 million sq. m. of separator film capacity, equivalent to approximately 50 GWh, over the next five to seven years.
Diversification beyond packaging
The entry represents a diversification for TCPL Packaging, which currently operates across paperboard and flexible packaging solutions, producing folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs and shelf-ready packaging, along with flexible packaging products including printed cork-tipping paper, laminates, sleeves and wrap-around labels.
For TCPL, the battery materials venture is positioned as a long-term growth platform combining its existing manufacturing capabilities with specialized technical inputs. The company said it expects the move to provide an opportunity to participate in the localization of India’s lithium-ion battery supply chain while establishing a scalable new business alongside its existing operations.