Exide Industries Ltd, which saw both its revenues and net profit grow by nearly 18 per cent in 2022-23 on a year-on-year basis, is expecting a higher growth in business backed by a good demand in the automotive and industrial sectors and its expanding presence in the lithium-ion technology space.

Expectation of strong growth in vehicle sales and shift towards technologically advanced batteries will drive demand in automotive division. Increasing investment across multiple sectors will support demand in industrial division for the company’s core lead-acid battery business, it said in the latest annual report (2023).

According to Subir Chakraborty, Managing Director & CEO, Exide, the company’s subsidiary - Exide Energy Private Ltd has secured orders worth around ₹700 crore for lithium-ion packs and modules during FY23.

Exide Energy Solutions Ltd (EESL), a wholly owned subsidiary, specialising in lithium-ion cell manufacturing, has already made a “head-start” in setting up the country’s single site multi giga-watt lithium-ion cell manufacturing factory at Karnataka. The commercial production under Phase-1 is expected to commence by the end of next year.

The estimated investment for lithium-ion cell manufacturing facility is expected to be close to ₹6,000 crore over the next eight-10 years. During the FY23, the company has invested around ₹715 crore through equity in EESL for setting up the greenfield unit. 

“As we move forward, with the right tailwinds, demand in the automotive and the industrial sectors is expected to remain high. In lead-acid battery and storage solutions business, we continue to leverage our global collaborations and work towards introducing products and solutions with advanced features based on market demand. We are also undertaking capex for increasing capacities for niche technology applications,” Chakraborty said in his message to shareholders in the annual report.

The company’s automotive division recorded double-digit topline growth and market share expansion in the domestic market in FY23. While the replacement market continued its healthy demand momentum, the company also witnessed a substantial rebound in demand from Original Equipment Manufacturers (OEMs).

In the industrial division, more than 70 per cent of the vertical comprising Industrial UPS, traction and solar energy sectors, grew in high double digits, he said. However exports, for both automotive and industrial divisions delivered a modest performance, as a result of being impacted by low demand from developed nations, especially from Europe and the USA.

But the company is looking to expand into new markets and tailor its product portfolio to meet the needs of customers worldwide to grow exports.

Strong demand

The increasing preference for personal mobility, greater inter and intra-state connectivity, escalating demand for technologically advanced products and government initiatives will drive vehicle sales and subsequently, the demand for lead acid batteries. In the industrial division, several downstream sectors are expected to receive huge investments from both public and private sectors (such as IUPS, solar, telecom, traction, railways, etc).

“Exide, with its innovative product portfolio, strong customer relationships and pan-India presence will continue to reach new heights in the relevant markets,” Bharat Dhirajlal Shah, Chairman, Exide said in the report.

India intends to increase Electric Vehicle market penetration by 2030 with an aim to decarbonise the transport sector. Exide is a frontrunner in this emerging sector, with its existing state-of-the-art facility for supplying packs and modules, he added.

The upcoming lithium-ion cell manufacturing facility will give the company a “distinct competitive edge”.

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