Exide Industries Limited (EIL), a leader in battery manufacturing, has made a significant investment of ₹99.99 crores in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), through a rights issue on 26th November 2024. This capital infusion is part of Exide’s ongoing efforts to support EESL's greenfield project in Bengaluru, aimed at expanding its production of lithium-ion battery cells, modules, and packs. The investment further strengthens Exide’s position in the growing electric vehicle (EV) market and positions EESL as a key player in the production of advanced battery solutions.

The total investment by Exide Industries in EESL now stands at ₹3,052.24 crores, with no change in the shareholding percentage, maintaining Exide Industries' 100% ownership. This capital will primarily fund the setup of battery manufacturing facilities in Bengaluru to cater to India’s burgeoning electric vehicle industry, ensuring EESL can meet the rising demand for lithium-ion batteries for both electric vehicles and stationary applications.

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EESL, incorporated on 24th March 2022, specializes in the production of battery cells, modules, and packs. Despite reporting a loss after tax of ₹149.45 crores for FY 2023-24, the company’s turnover has increased from ₹112.05 crore in FY 2022-23 to ₹239.14 crore in FY 2023-24, driven by its growing role in EV and energy storage solutions.

The decision to invest in EESL reflects Exide’s broader strategy to leverage its leadership in battery technology to participate in the EV revolution. This expansion is a direct response to the increasing demand for sustainable energy solutions and green technologies in India.

The investment will also aid in meeting the increasing demand for electric vehicle batteries and the expanding market for renewable energy storage in India. The greenfield plant in Bengaluru will focus on manufacturing battery cells of advanced chemistry, including cylindrical, pouch, and prismatic cells, essential for both EVs and stationary storage applications.

The rights issue allotted 2,77,77,777 equity shares at ₹10 each with a ₹26 premium to Exide Industries, amounting to a total of ₹99.99 crores. The transaction, conducted at arm's length, ensures that Exide Industries maintains full control over EESL, which is fully integrated within the Exide Group.

The investment does not require any new regulatory approvals and is aligned with Exide’s broader corporate goals. The company has continued to focus on meeting its strategic goals for the electric vehicle battery market and energy storage solutions.

Key financials for Exide Energy Solutions (EESL) are summarized as follows:

• Paid-up equity share capital: ₹1,051.44 crores
• Net worth (as of March 31, 2024): ₹1,981.56 crores
• Turnover (FY 2023-24): ₹239.14 crores
• Loss after Tax (FY 2023-24): ₹149.45 crores

The electric vehicle market and energy storage solutions are expected to grow rapidly in India, and Exide’s strategic investment in EESL positions it to capitalize on these emerging opportunities. This move reflects Exide’s continued commitment to becoming a major player in the green technology space.

Stay tuned for updates on the ongoing developments in the automotive battery industry, and explore more on Exide’s investments and their impact on the EV sector.

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