Exide Industries Limited (EIL), a leading battery manufacturer in India, has made a significant move to bolster its presence in the advanced battery technology sector. The company has invested ₹100 crore (1 billion rupees) in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), to support the manufacturing of advanced chemistry battery cells.

Investment Details

According to a recent disclosure filed with the stock exchanges, Exide Industries has subscribed to 2,50,00,000 equity shares of EESL at ₹40.00 per share, which includes a premium of ₹30.00 per share. This investment, made on a rights basis, brings the total investment by Exide Industries in EESL to ₹3,702.23 crore.

Purpose of Investment

The funds are earmarked for EESL's ongoing project to establish a greenfield plant in Bengaluru. This facility will focus on manufacturing and selling lithium-ion battery cells, modules, and packs, primarily targeting India's growing electric vehicle market and stationary applications.

Subsidiary Overview

Exide Energy Solutions Limited, incorporated on March 24, 2022, is wholly owned by Exide Industries. As of March 31, 2025, EESL reported:

Strategic Importance

This investment underscores Exide Industries' commitment to expanding its capabilities in advanced battery technology. By focusing on lithium-ion batteries, the company is positioning itself to meet the increasing demand for high-performance energy storage solutions in the rapidly evolving electric vehicle and renewable energy sectors.

Market Implications

The move by Exide Industries reflects the growing importance of advanced battery technologies in India's industrial landscape. As the country pushes for greater adoption of electric vehicles and renewable energy, companies like Exide are playing a crucial role in developing the necessary infrastructure and technologies.

This strategic investment not only strengthens Exide's position in the market but also contributes to the broader goal of enhancing India's capabilities in advanced energy storage solutions.

Exide Industries Ltd , a leading battery manufacturer in India, may face significant challenges in its production process following reports that China has stopped exporting magnets to India. These magnets are crucial components in battery manufacturing, and the export halt could potentially disrupt Exide's supply chain.

Impact on Exide's Operations

Exide Industries, known for its wide range of automotive and industrial batteries, heavily relies on magnets sourced from China for its production process. The reported export stoppage could have far-reaching implications for the company's manufacturing capabilities and output.

Broader Implications for India's Battery Industry

This development highlights the vulnerability of India's battery manufacturing sector to international supply chain disruptions. As China is a major global supplier of rare earth magnets, which are essential for various high-tech applications including battery production, this export halt could affect not just Exide but potentially the entire Indian battery industry.

Potential Responses and Alternatives

In light of this situation, Exide Industries and other affected companies may need to:

• Seek alternative suppliers from other countries
• Explore domestic sourcing options
• Investigate potential stockpiling strategies
• Consider investing in research and development for magnet alternatives or production technologies

Market Reaction

Investors and industry analysts will be closely watching how Exide Industries responds to this challenge. The company's ability to secure alternative supply chains or adapt its production processes could be crucial for maintaining its market position and financial performance in the coming months.

While the full extent of the impact remains to be seen, this situation underscores the importance of diversified supply chains and reduced dependency on single-source suppliers for critical components in the manufacturing sector.