Exide Industries: A Bet on the Energy Sector

“Moving to our lithium-ion cell manufacturing projects under our subsidiary, Exide Energy Solutions Limited, the project is progressing extremely well. All necessary permissions have been secured and site-enabling work has been completed. On the ground, construction activity has been initiated and foundation linked work is progressing in full swing. We have recruited senior management team comprising experience and senior personnel in functions such as R&D, sales, procurement, quality, IT and others. This team is expected to ensure timely project execution and delivery. We have so far invested INR715 crores in the project. Another subsidiary, Exide Energy Private Limited, which develops and manufactures Lithium-ion based modules and packs is also doing well. The company has received orders of INR600 crores to INR700 crores to be executed in the next 12 to 15 months for its various verticals such as 2- wheelers, 3-wheelers, commercial vehicles and telecom.”

– Mr. Subir Chakraborty, Managing Director & CEO  in Q4FY23 Concall

Stock Data
Ticker	EXIDEIND
Exchange	NSE
Industry	BATTERY

Price Performance
Last 5 Days	-0.29%
YTD	+15.05%
Last 12 Months	+47.80%

*As of 15.06.2023

Company Description:

Exide Industries Limited is one of India’s leading companies in the storage battery industry. Established in 1947, the company has over seven decades of experience in manufacturing and selling a wide range of storage batteries for automotive, industrial, and other applications. Exide Industries is headquartered in Kolkata, West Bengal, and operates globally, exporting its products to more than 90 countries.

Exide Industries operates through four major business segments: Automotive Batteries, Industrial Batteries, Sub-Contracting, and Lead and Lead Alloys. The Automotive Batteries segment primarily manufactures batteries for various types of vehicles, including cars, motorcycles, trucks, and agricultural vehicles. The Industrial Batteries segment focuses on batteries for applications such as uninterrupted power supply (UPS), telecommunications, railways, solar, and other industrial uses. The Sub-Contracting segment involves manufacturing batteries for original equipment manufacturers (OEMs) and other battery companies. The Lead and Lead Alloys segment produces lead, lead alloys, and plastic molding compounds.

Key Strengths:

• Market Position: Exide Industries is a market leader in the Indian storage battery industry, with a strong presence and brand recognition. The company’s extensive distribution network, comprising over 300 branded retail outlets and multiple authorized dealers, allows it to reach customers across India efficiently. Exide Industries has also strategically expanded its presence internationally, enabling it to tap into global markets and diversify its revenue streams.

• Research and Development: Exide Industries emphasizes continuous research and development (R&D) to innovate and develop new battery technologies. The company has established R&D centers equipped with advanced facilities and highly skilled professionals. Through its R&D efforts, Exide Industries aims to enhance the performance, durability, and energy efficiency of its batteries, keeping pace with evolving customer requirements and industry trends.

• Manufacturing Facilities: Exide Industries operates several state-of-the-art manufacturing plants across India, strategically located to cater to regional markets effectively. These facilities are equipped with advanced production technologies and adhere to international quality standards. The company’s manufacturing capabilities enable it to produce a diverse range of batteries to meet the demands of various customer segments.

Financial Performance:

Exide Industries has maintained a robust financial performance over the years. The company’s revenue growth has been consistent, driven by strong domestic and international sales. Financial indicators such as net profit margins, return on assets, and return on equity have remained competitive within the industry. Exide Industries has demonstrated effective cost management and operational efficiency, enabling it to generate sustainable profits.

Sustainability Initiatives:

Exide Industries is committed to sustainable business practices and has implemented various initiatives to minimize its environmental impact. The company focuses on responsible waste management, recycling, and reducing its carbon footprint. Exide Industries has also initiated programs to promote energy efficiency and renewable energy adoption.

Key Challenges Ahead:

The storage battery industry is subject to various challenges, including intense competition, changing customer preferences, and technological advancements. Exide Industries faces competition from both domestic and international players. To maintain its market leadership, the company needs to continue investing in R&D and adapt to emerging trends, such as electric vehicles and renewable energy storage.

Despite the challenges, Exide Industries is well-positioned to capitalize on the growing demand for batteries in India and globally. The company’s strong brand, extensive distribution network, diversified product portfolio, and focus on innovation provide a solid foundation for future growth.

Conclusion:

Exide Industries Limited is a prominent Indian company in the storage battery industry, known for its high-quality products and market leadership. With a strong presence in both domestic and international markets, the company is well-positioned for sustained growth. By leveraging its R&D capabilities, manufacturing expertise, and commitment to sustainability, Exide Industries aims to maintain its competitive edge and continue serving the evolving needs of customers in the battery industry.