The announcement was widely expected.
Earlier in September 2021, Company had already informed that it’s exploring such possibility.
Besides the Company is also into consolidation mode and had recently decided to sell the non core HDFC Life.
On the subject, Company has announced –
“We have now planned to setup a multi-gigawatt lithium-ion cell manufacturing plant and to participate in the Production-Linked Incentive Scheme for Advanced Chemistry Cell manufacturing as proposed by Government of India. Cell manufacturing is an integral part of the Lithium-ion battery manufacturing chain, and we believe that the setting up of this plant will enable us to be more cost-competitive and better serve our esteemed customers”.
For me, it’s difficult to further analyse the announcement and I would wait for more details.