Exide Industries will invest ₹1,400 crore by FY27 to expand its lithium-ion cell manufacturing in Bengaluru. This move aims to capture the growing demand for electric vehicle batteries in India. The company has already begun sending samples to potential customers and expects initial revenue from domestic cells by the third quarter of FY27.
Exide Industries is accelerating its move into the electric vehicle battery market by committing an additional ₹1,400 crore to its cell manufacturing facility in Bengaluru. This capital spending, planned through the 2026-27 financial year, is part of a larger strategy to reduce reliance on imported battery cells as India's electric vehicle sector continues to expand.
During the company’s annual general meeting, leadership confirmed that the first phase of the Bengaluru project is designed to provide 6 GWh of manufacturing capacity. The company has already reached the stage of sending product samples to potential customers as of the first quarter of the 2026-27 financial year, with commercial supplies expected to contribute to revenue starting in the third quarter.
Financial Commitment and Strategic Focus
The company is aggressively scaling its investment in its subsidiary, Exide Energy Solutions Ltd. Including the recent commitment, the total equity investment in this venture has reached ₹4,802 crore. This follows an earlier investment of ₹1,500 crore made during the 2025-26 financial year. While focusing on these next-generation energy solutions, the company also aims to grow its traditional lead-acid battery business, targeting revenue of over ₹20,000 crore from that segment within the next three years, up from ₹17,200 crore in the previous year.
The broader shift toward electric vehicles has created a significant market for lithium-ion batteries, estimated at approximately 20 GWh in India. Currently, a large share of this demand is met through imports. Management noted that the government's decision to remove import duties on machinery needed for cell manufacturing provides a necessary boost for local production efforts.
Market Outlook and Execution
The success of this initiative will depend on the company's ability to ramp up its 6 GWh capacity efficiently and maintain product quality as it transitions to commercial production. Because the domestic EV market is expected to grow rapidly, the company plans to add another 6 GWh of capacity in a later phase.
Investors may monitor the progress of these production targets and the company's ability to secure long-term supply contracts with automotive manufacturers. While the lead-acid business remains a steady source of cash, the lithium-ion project represents a major transition requiring sustained capital allocation. Monitoring the timeline for commercial supplies and the impact of these heavy investments on the company's balance sheet will be important in upcoming quarterly reports.