Exide Industries has added an extra ₹200 crore to its wholly owned lithium-ion battery subsidiary, Exide Energy Solutions, as part of its strategic expansion into cell manufacturing in India, aiming to become a ₹20,000 crore company within the next two to three years.
Exide Industries has added another INR 200 crore to its investment in Exide Energy Solutions, the battery maker’s wholly owned lithium-ion subsidiary, as it steps up work on a new cell manufacturing plant in India.
According to pv magazine India, the latest infusion came through a rights-based equity subscription on 18 August, when Exide bought 57,142,857 shares at INR 35 each, including a face value of INR 10 and a premium of INR 25. The publication said Exide’s total investment in the unit now stands at INR 5,102.23 crore, with its ownership unchanged at 100%.
Exide Energy Solutions was incorporated in March 2022 and is building a greenfield facility in Bengaluru to make lithium-ion battery cells, modules and packs for electric vehicles and stationary storage. The project is initially planned at 6 GWh of capacity, with the option to double that to 12 GWh, and is expected to include four production lines across cylindrical and prismatic formats for lithium iron phosphate, or LFP, and nickel manganese cobalt, or NMC, chemistries.
The fresh capital follows earlier funding rounds. Investywise reported in February that Exide had injected INR 100 crore into the subsidiary, while Renewable Watch said in March the company had made a further investment of INR 4.5 billion, both through equity subscriptions. Exide’s board also approved up to INR 1,400 crore of additional investment in January to support the project in one or more tranches.
The battery push fits into a wider expansion plan at Exide. The Economic Times reported in May that managing director Avik Roy said the company aimed to become a INR 20,000 crore business within two to three years, up from INR 16,588 crore at the end of March, with the Bengaluru lithium-ion project central to that growth strategy.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
