Neogen Chemicals Subsidiary Infuses ₹100 Crore into Battery Materials Venture

Neogen Chemicals Limited, via its wholly-owned subsidiary Neogen Ionics Limited (NIL), has approved a ₹100.11 crore investment in its step-down subsidiary, Neogen Morita New Materials Limited (NML). The capital infusion will be executed through a rights issue of 71 lakh equity shares at ₹141 per share, with proceeds earmarked for scaling NML's operations in the lithium-ion battery materials segment. Strategic Rationale: NML, incorporated in July 2025, is focused on capturing opportunities in the electrolyte salts value chain — a critical component for EV batteries and energy storage systems. The funds will support: Acquisition of salt-related businesses CAPEX for manufacturing infrastructure Working capital (OPEX) to meet rising global demand Corporate Structure & Execution: Neogen Chemicals → Neogen Ionics (100% subsidiary) → Neogen Morita (step-down subsidiary) NML's authorized capital will be increased from ₹5 crore to ₹9.90 crore to accommodate the issuance. Subscription and allotment are expected to conclude within 60 days, enabling swift capital deployment. Strategic Significance: This investment underscores Neogen's commitment to diversifying beyond specialty chemicals into high-growth clean energy materials. With global demand for lithium-ion batteries surging under India's EV and renewable energy push, securing a foothold in electrolyte salts positions Neogen as a potential domestic supplier for battery manufacturers. By backing NML with substantial capital, Neogen aims to build an integrated platform for battery-grade chemicals — reducing import dependency and capturing value in India's emerging battery ecosystem. Success will hinge on timely execution, technology partnerships (including with Japan's Morita), and securing offtake agreements with cell makers. This move aligns with the company's long-term vision to become a key player in the sustainable materials transition.