Exide Industries expects its Bengaluru lithium-ion cell plant to start generating revenue by the third quarter of this fiscal year. The company has invested ₹4,800 crore so far and plans to spend an additional ₹1,400 crore to complete the first phase. This transition is a key step for the firm as it looks to reduce reliance on imported cells for the electric vehicle market.
Exide Industries is preparing to shift from its traditional lead-acid battery business toward future-ready technologies with its upcoming lithium-ion cell manufacturing facility in Bengaluru. The company confirmed that this plant is on track to begin revenue generation by the third quarter of the current fiscal year. This transition is essential for Exide as it aims to tap into the rising demand for electric vehicle batteries in India.
Investment and Capacity Details
The project, which focuses on Advanced Chemistry Cell (ACC) technology, has already seen an investment of approximately ₹4,800 crore. To wrap up the first phase of this development, the company has earmarked another ₹1,400 crore for this fiscal year. The facility is designed to produce both Lithium Iron Phosphate and Nickel Manganese Cobalt battery chemistries. Out of its total first-phase capacity of 6 GWh, Exide expects to utilize 3 GWh within this fiscal year. The company plans to start by supplying cells to its own battery pack assembly plant in Gujarat, specifically targeting the three-wheeler segment before expanding into two-wheelers and other original equipment manufacturer applications.
Scaling for the Domestic Market
The domestic demand for lithium-ion cells is projected to reach 130 GWh by 2030, a significant jump from current levels around 20 GWh. Currently, India depends heavily on imported cells to meet these requirements. Exide is already working on supplying samples to various manufacturers for the necessary validation and certification processes, which is a vital requirement before full-scale commercial production can begin. While the company is focusing on this new growth area, it emphasized that it will continue to support its established lead-acid battery business, which remains a core part of its operations.
Financial and Strategic Outlook
The company’s strategic shift comes as the government has provided support through the waiver of import duties on machinery needed for battery cell production. This policy change is aimed at encouraging more domestic manufacturing to build a robust local supply chain. In its most recent financial reports, Exide noted a price correction of 5-6% in the fourth quarter, which was attributed to changes in input costs. Investors may monitor the company’s ability to successfully transition to this new technology, as profitability will likely depend on the company's speed in achieving commercial-scale production and managing the costs of this large capital project. Future updates will likely focus on the commissioning timeline of the Bengaluru facility and the success of its ongoing OEM certification process.