Exide AR FY24-25

Notes on AR of Exide for FY24-25

Disclaimer: These are my notes from the report. I may have misunderstood some points or gotten numbers wrong. Happy to correct any errors.

Products of Exide

Exide products

Notes from AR

  • Portfolio now comprises of 3 main categories: Trade (B2C): after market service, Industrial (B2B): to OEMs, and International (Exports): to global markets.

  • India has low vechile penetration, which co touts as an opportunity for growth in the domestic market. Also opportunities in energy storage and energy with growing demand. Uninterrupted power supply is a key requirement for the country.

  • Core business: lead acid batteries.

  • Investment in Li-ion batteries for ev through subsidiary Exide Energy Solutions Limited (EESL), commerial productions by end of FY25-26

  • EESL has strategic partnership with Indian passenger vechile OEM to jointing develop and supply LI-ion battery cells. Also MOU with e-2wheeler, e-3wheeler and e-4wheeler OEMs.

  • For lead acid battery, sourcing more than 50% of lead from recycling through its subsidiary Chloride Metals Limited (CML).

  • Opportunities for growth: rural connectivity, rural consumption.

  • Subdued demand for passenger vehicles, home ups and industrial batteries in EU market.

  • we have moved a substantial part of our 2-wheeler motor-cycle (MC) battery manufacturing to Punched Technology. What is the efficieny gain from this technology? Ans: 10-15% improvement in battery performance and 20% reduction in manufacturing cost.

  • internal combustion engine (ICE) vehicles continuing to rely on lead-acid technology

  • leading provider of auxiliary batteries which is used in EVs. So auxillary battery is a smaller battery that powers the vehicle’s electrical systems, such as lights, infotainment, and other accessories, while the main battery powers the electric motor. So this auxillary battery is still a lead-acid battery usually 12V.

  • Started commerical production of absorbent glass mat (AGM) and enhanced flooded battery (EFB)

  • Peers of exide: Amara Raja, Luminous, Bosch in exports.

  • The government aims for EVs to account for 30% of total passenger vehicle sales by FY 2030. In Fy25 what is the current market share of EVs in passenger vehicle sales? Ans: around 5-6%.

  • Partnership with SVOLT for technology transfer and joint development of Li-ion batteries for EVs. SVOLT is a Chinese battery manufacturer.

  • Another chinese batter manufacturer, CATL.

  • Exide also provides e rickshaw exide neo.

  • Under institutional segment, exide provides batteries for automotive OEMs, telecom, power backup, solar and railways and we also serve niche segments like submarines.

  • For submarines they provide batteries for Indian Navy. Scorpene and 636 class submarines.

  • Telecom sector, which is witnessing technological shift towards Li-ion batteries for power backup to its towers. Also increasing usage in energy storage. Amara Raja has strong presence here.

  • Parts of li-ion battery: cells -> modules -> packs -> system integration

  • Prantij, gujarat facility does li-ion modules and packs. New devanahalli, bangalore facility will do cells, modules and packs.

  • Work on Google My Business (GMB) listing to improve visibility and customer engagement.

  • R&D centre has built a strong foundation in material science, cell chemistry and structural optimization.

  • Exide has clocked double-digit growth in the Industrial-UPS trade vertical

  • traditional limitations of lead acid batteries such as heavy weight and slow charging capabilities.

  • Industrial UPS business affected due to shift towards Li-ion batteries.

  • Fastest 5g rollout in the world in India. 99% of districts covered.

  • Even if 99% of districts have 5g coverage then why network is still slow and not always upto 5g speeds? AI Ans: because of the lack of infrastructure and the need for more cell towers and fiber optic cables to support the increased data traffic.

  • India’s energy storage capacity is projected to expand twelvefold to 60 GW by FY 2031-32. The potential of Battery Energy Storage System (BESS) as the next growth area

  • Acting like a giant power bank, BESS stores surplus electricity generated from renewable sources during periods of low demand and releases it when demand peaks.

  • new train models such as the Vande Bharat Express adopt lithium-ion technology.