Exide Industries Limited, one of India’s most established and trusted battery manufacturers, has taken a significant strategic step in strengthening its electric mobility and energy storage ambitions. On December 23, 2025, the company disclosed two material developments to the stock exchanges — a ₹180 crore equity infusion into its wholly owned subsidiary Exide Energy Solutions Limited (EESL) and a change in top leadership at the subsidiary level.

These developments come at a crucial phase for Exide’s long-term transformation strategy as the company aggressively positions itself in the lithium-ion battery ecosystem, a core pillar of India’s electric vehicle (EV) and renewable energy transition.

Leadership Transition at Exide Energy Solutions

In a key managerial update, Mr. Mandar V Deo, Managing Director and Chief Executive Officer of Exide Energy Solutions Limited, resigned from his position on December 22, 2025. The resignation was formally acknowledged by both the Nomination and Remuneration Committee (NRC) and the Board of Directors of Exide Industries Limited.

Following due consideration, the Board recommended the appointment of Mr. Pravin Ramchandra Saraf (DIN: 10137023) as the new Managing Director & CEO of EESL. Mr. Saraf currently serves as an Executive Director at Exide Industries Limited and was also a non-executive director on the board of EESL, ensuring continuity in leadership and strategic alignment.

The Board of Directors of Exide Energy Solutions Limited approved the appointment with immediate effect, accepting Mandar Deo’s resignation on the same day. This swift transition reflects Exide’s intent to maintain momentum in its ambitious lithium-ion manufacturing plans without operational disruption.

₹180 Crore Equity Infusion: Strengthening the Battery Growth Engine

Simultaneously, Exide Industries announced a fresh equity investment of ₹180 crore in EESL on a rights basis, subscribing to 4.5 crore equity shares of ₹10 each at a premium of ₹30 per share.

Importantly, since EESL is a wholly owned subsidiary, this capital infusion does not alter Exide Industries’ shareholding, which remains at 100% post-investment.

With this latest infusion, Exide Industries’ total investment in EESL has reached ₹4,202.23 crore, including capital invested in the erstwhile subsidiary Exide Energy Private Limited (EEPL), which has since merged into EESL.

This move underscores Exide’s unwavering commitment to building a domestic, large-scale, advanced battery manufacturing ecosystem in India.

About Exide Energy Solutions Limited (EESL)

Exide Energy Solutions Limited was incorporated on March 24, 2022, as a strategic vehicle for Exide Industries’ entry into advanced chemistry lithium-ion battery manufacturing.

The company is engaged in:

• Manufacturing lithium-ion battery cells

• Producing battery modules and battery packs

• Catering to electric vehicles (EVs) and stationary energy storage applications

EESL is currently in the process of establishing a greenfield manufacturing facility in Bengaluru, aimed at producing battery cells of multiple form factors, including cylindrical, pouch, and prismatic cells.

Financial Snapshot of EESL

As per disclosures made to stock exchanges, EESL’s financial metrics are as follows:

• Paid-up equity capital (current): ₹1,354.21 crore

• Net worth (as of March 31, 2025): ₹2,738.06 crore

• Turnover FY25: ₹116.89 crore

• Loss after tax FY25: ₹209.12 crore

Turnover history post-merger:

• FY23: ₹112.05 crore

• FY24: ₹239.14 crore

• FY25: ₹116.89 crore

The losses are reflective of the capital-intensive nature of battery manufacturing, with substantial upfront investments in technology, plant, equipment, and R&D.

Purpose of the Investment

According to Exide Industries, the ₹180 crore rights issue investment will be used to:

• Fund the greenfield lithium-ion battery manufacturing plant

• Meet working capital and project funding requirements

• Support technology development and scale-up activities

The company clarified that no governmental or regulatory approvals were required for this investment.

Regulatory Compliance and SEBI Disclosure

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para A of Part A of Schedule III, along with reference to SEBI Master Circular dated November 11, 2024.

Exide confirmed that:

• The transaction qualifies as a related party transaction, as EESL is a wholly owned subsidiary

• The transaction has been carried out at arm’s length

• Promoter and promoter group entities have no additional interest beyond shareholding

Strategic Importance for Exide Industries

This investment and leadership reshuffle form part of Exide’s broader strategic roadmap to transition from a traditional lead-acid battery manufacturer to a future-ready energy storage company.

India’s EV market is witnessing exponential growth, supported by:

• Government incentives

• Faster EV adoption

• Rising demand for grid-scale energy storage

By strengthening EESL’s capital base and leadership, Exide is positioning itself to capture a meaningful share of this emerging market.

Market Perspective

While EESL is currently loss-making, analysts view the investments as long-gestation but strategically critical, particularly given India’s dependence on imported battery cells.

Exide’s early-mover advantage, combined with scale, technology partnerships, and capital commitment, could allow the group to emerge as a dominant domestic lithium-ion battery manufacturer over the next decade.

Conclusion

The ₹180 crore equity infusion and appointment of a new MD & CEO mark another decisive step in Exide Industries’ transformation journey. As India accelerates toward electric mobility and renewable energy integration, Exide’s investments in Exide Energy Solutions Limited reflect a long-term vision anchored in self-reliance, innovation, and scale.

While short-term financial pressures persist, the strategic foundation being laid today could define Exide’s leadership position in India’s next-generation energy ecosystem.

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