Exide Industries Invests Rs.100 Cr For Bengaluru’s Lithium-ion Plant

Exide Industries Invests Rs.100 Cr For Bengaluru's Li-ion Plant

Kolkata-based battery manufacturing company Exide Industries Limited recently announced infusion of about ₹100 crores into its subsidiary, Exide Energy Solutions Limited (EESL), to manufacture and sell lithium-ion battery cells, modules, and packs. The company has made a total investment of ₹2,852.24 crore. The equity investment in EESL, on a rights basis, aims to fund this greenfield project and meet its various funding requirements. With the current investment, Exide Industries Limited’s shareholding in EESL remains unchanged at 100%.

Exide Energy Solutions Limited (EESL), incorporated in 2022, is a wholly owned subsidiary of Exide Industries Limited (EIL). It is engaged in manufacturing and selling lithium-ion battery cells, modules, and packs for India’s electric vehicle market and stationary applications. As of now, the total investment by Exide Industries Limited in the equity share capital of EESL, including share premium, stands at ₹2,852.24 crore, which also accounts for the investment made in the erstwhile merged subsidiary Exide Energy Private Limited (EEPL).

EESL was incorporated on March 24, 2022, and its business objectives are outlined in point c above. The turnover for the last three years ranges from nil in FY 2021-22 to ₹112.05 crore in FY 2022-23 and ₹239.14 crore in FY 2023-24. The company has allotted 2,77,77,777 equity shares of ₹10 each at a premium of ₹26 per share, totaling ₹99,99,99,972 on a rights basis to EIL.

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Regarding related party transactions, the paid-up equity share capital currently stands at ₹995.88 crore. The net worth as of March 31, 2024, is ₹1,981.56 crore, with a turnover of ₹239.14 crore. The loss after tax for the year ended March 31, 2024, is ₹149.45 crore.

Exide Energy to Set Up Li-Ion Battery Manufacturing in Bengaluru

Exide Industries initially announced its plans to set up a lithium-ion battery cell manufacturing facility of gigawatt scale in Bengaluru, Karnataka, in 2022. The company is the largest lead-acid battery manufacturer in India, and this information was revealed in a regulatory filing by the company. To accomplish this plant, Exide joined hands in partnership with SVOLT Energy Technology Co Ltd (SVOLT) in 2022 as part of its new lithium-ion manufacturing scheme. SVOLT will provide Exide with the rights and licenses to use, exploit, and commercialize SVOLT-owned technology and know-how for lithium-ion cell manufacturing in India. This is part of a legal agreement, and Exide’s rights will be irrevocable.

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