Exide Industries , a leading battery manufacturer, has made a significant move to bolster its presence in the electric vehicle (EV) battery market. The company has invested an additional ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), bringing its total investment in the subsidiary to ₹3,802.00 crore.

Strengthening EV Battery Business

The fresh capital injection is aimed at supporting EESL's ongoing project - a greenfield lithium-ion cell manufacturing plant in Bengaluru. This strategic investment underscores Exide Industries' commitment to strengthening its position in the rapidly growing EV battery segment and aligns with its long-term clean energy growth plans.

Details of the Investment

According to the company's disclosure to the stock exchanges, the investment was made through a subscription to EESL's equity share capital on a rights basis. Exide Industries subscribed to 2,50,00,000 equity shares of EESL at ₹40.00 per share, which includes a premium of ₹30.00 per share.

About Exide Energy Solutions Limited

EESL, incorporated on March 24, 2022, is engaged in the business of manufacturing and selling lithium-ion battery cells, modules, and packs for India's electric vehicle market and stationary applications. The subsidiary has shown promising growth, with a turnover of ₹116.89 crore.

Financial Implications

Despite the substantial investments, EESL reported a loss after tax of ₹209.12 crore. However, the company's net worth stood at ₹2,738.06 crore, indicating a strong financial foundation for future growth.

Market Impact and Future Prospects

This investment is expected to accelerate EESL's progress in setting up the lithium-ion cell manufacturing plant. As the demand for electric vehicles continues to rise in India, Exide Industries is positioning itself to be a key player in the EV battery supply chain.

The move also reflects the company's adaptation to the changing automotive landscape, as it transitions from traditional lead-acid batteries to advanced lithium-ion technology. This strategic pivot could potentially open up new revenue streams for Exide Industries in the burgeoning EV market.

As the project develops, industry observers will be keenly watching how this investment translates into market share and profitability for Exide Industries in the competitive EV battery sector.

Exide Industries , a leading battery manufacturer in India, has reported strong financial results for the quarter, demonstrating resilience in challenging market conditions.

Financial Highlights

Exide Industries reported a 24% year-on-year increase in consolidated net profit to Rs 275.00 crore, compared to Rs 221.00 crore in the same period last year. Consolidated revenue from operations grew 5.9% to Rs 4,695.00 crore from Rs 4,436.00 crore previously.

The company saw significant improvements in its profitability metrics:

The company's EBITDA margin on a standalone basis improved to 12.2% during the quarter, driven by better price realization, favorable product mix, and cost optimization measures.

Business Performance

Exide Industries reported mixed performance across its various business segments:

• The quarter saw double-digit growth in auto replacement, solar, and industrial UPS segments.
• However, demand remained subdued in auto OEM and exports verticals.

Lithium-Ion Project Update

Exide Energy Solutions Ltd (EESL), the company's lithium-ion cell manufacturing subsidiary, invested Rs 300.00 crore in the quarter with an additional Rs 100.00 crore in July. The greenfield facility is expected to begin production by the end of the fiscal year.

Looking Forward

Exide Industries continues to focus on innovation, cost efficiency, and expanding its presence in the emerging lithium-ion market to maintain its leadership position in the Indian battery industry. The company's investments in new technologies and production facilities demonstrate its commitment to long-term growth and adaptation to changing market demands.