Exide Increase Stake in Li-ion Battery JV With Leclanche to 80.15%

Battery maker Exide Industries has increased its stake in its JV with Swiss firm Leclanche to 80.15 percent with a further investment of Rs 33.17 crore

Battery maker Exide Industries has announced that it has increased its stake in its joint venture (JV) with Swiss firm Leclanche to 80.15 percent with a further investment of Rs 33.17 crore by way of subscription to equity shares of the JV.

In June 2018, Exide Industries had announced the signing of a pact with Leclanche SA for setting up a joint venture company, Exide Leclanche Energy Pvt Ltd, to build lithium-ion batteries and provide energy storage systems for India’s electric vehicle market.

Exide Industries Ltd (EIL) has further invested an amount aggregating to Rs 33.17 crore by way of subscription to the equity share capital of its subsidiary, Exide Leclanche Energy Pvt Ltd, the company said in a regulatory filing.

“With the above investment, the equity shareholding of EIL in JVC (joint venture company) stands increased from 77.87 percent to 80.15 percent of the total paid-up share capital,” it added. EIL said its further investment is “to meet the funding requirement, particularly the capital expenditure projects of JVC”.

The company said that as of date, the paid-up capital of the JV is Rs 128.59 crore. Its net worth as of March 31, 2020, was Rs 144.98 crore with a turnover of Rs 2.19 crore. It posted a loss after tax of Rs 18.95 crore for the year ended March 31, 2020.

In August, we had reported that Exide is planning to start manufacturing lithium-ion (Li-Ion) batteries from its joint venture plant in Gujarat by end of this calendar year, according to a high-level company official. The JV company’s production plant in Gujarat is the first such indigenous facility in the country for manufacturing lithium-ion batteries and provide energy storage systems for the EV market, with the government’s push towards promoting electric mobility.

The key area of focus for the venture will be e-transport, stationary energy storage systems, and specialty storage markets. In e-transport, which is the primary target segment, the venture will work on a fleet of vehicles including electric buses, electric two-wheelers and electric rickshaws.