Exide Industries Limited (EIL), a leading manufacturer of batteries, has announced a significant investment of ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL). This investment is aimed at enhancing EESL’s capabilities in the burgeoning electric vehicle (EV) market in India.
According to a disclosure filed with stock exchanges, Exide Industries subscribed to equity shares of EESL on a rights basis, raising its total investment in the subsidiary to ₹2,752.24 crore. Despite this substantial infusion of capital, EIL’s shareholding percentage in EESL remains unchanged at 100%.
EESL, incorporated on March 24, 2022, is engaged in manufacturing and selling lithium-ion battery cells, modules, and packs, targeting both India’s EV market and stationary applications. The company reported a turnover of ₹239.14 crore for the financial year ending March 31, 2024, despite a net loss of ₹149.45 crore for the same period.
The investment will primarily fund the establishment of a greenfield manufacturing plant in Bengaluru. This facility will focus on producing advanced chemistry battery cells and related components, aligning with India’s push towards EV adoption and sustainable energy solutions.
Jitendra Kumar, Company Secretary and President (Legal & Corporate Affairs) of Exide Industries, emphasized the strategic importance of this investment. “The government’s commitment to promoting electric vehicles and sustainable energy solutions presents a significant growth opportunity for Exide. Our investment in EESL is a step towards capitalizing on this potential, ensuring we remain at the forefront of innovation in the battery manufacturing sector.”
