Automotive and industrial battery maker, Exide Industries is looking to ramp up exports by increasing penetration in existing geographies and exploring foray into newer markets.
To strengthen its presence in international markets, the company has focused on several key areas including increase in manpower in export destinations, expanding the distributor base, exploring private labelling and contract manufacturing opportunities, introducing new products and technologies, and investing in brand-building with an eye on the future.
Exports accounted for nearly nine per cent of the company’s total turnover on a standalone basis during the year ended March 31, 2022. The company had posted revenues of ₹12,382 crore during FY-22.
According to the company’s latest annual report for 2021-22, export revenues have doubled in the last two years with double-digit growth registered in the previous year.
“Despite lockdowns in many countries, we have reported higher exports to West Asia, Africa, America and other regions. Our exports through our collaborator East Penn, have received encouraging responses from customers. This has enabled our expansion in North American markets (United States and Canada) and helped increase our market share,” the company said in the report.
Exide, the report said, continues to foresee a strong growth momentum in export markets and accordingly it has re-allocated its resources and capital to serve this demand.
“We began exports into new markets such as France and South Korea. We also witnessed growth in market penetration in countries such as Spain, Germany, West Asia and Southeast Asia, Australia, South Africa and other European markets such as the United Kingdom. We aspire to outperform underlying markets by leveraging our industry-leading products and robust sales network. We are raising the bar on profitability by enhancing our offerings through premiumisation and enriching our product mix to focus on the replacement market for IUPS and traction verticals,” the report said.
Despite the challenges posed by Covid-19, the company secured an order for mini-submarine batteries for export during FY-22. It also received an order from the Indian Navy to build submarine batteries along with a full set of accessories and spares for a nuclear submarine.
“We have indicated our readiness to use surplus capacity to produce and deliver submarine batteries to the Indian Navy. We plan to ship one set of Type-I submarine batteries, complete with all accessories and spares, in FY 2022-23. Leveraging our domestic market leadership, we are positioned to secure export orders of submarine batteries in the near-term,” it said.
The company’s automotive battery exports continued to grow and gained momentum during FY-22. It managed to steer through the unprecedented logistic challenges faced and cater to the requirements of the global channel partners.
Despite lockdowns in many countries, the company reported higher exports to West Asia, Africa, America, and other regions. There was, however, some degrowth in Southeast Asia, where the pandemic had slowed down business significantly.
Exide has made significant in-roads into all countries of the Gulf Cooperation Council to become a leading supplier of batteries to the region.
The company expects a huge opportunity in the 2V-battery range standby business in Middle East Asia, Africa, and the South-East Asian market. The market for 2V business will continue to expand in West Asia, Middle East Asia, and the South-East Asian market, it said.