Exide Industries is allocating ₹1,400 crore this fiscal year to advance its lithium-ion cell manufacturing facility in Bengaluru. The company aims to begin commercial supplies by the third quarter, targeting the growing electric vehicle and energy storage markets in India. This investment follows a significant previous spend of ₹4,800 crore on the same project.
Exide Industries has committed an additional ₹1,400 crore to its greenfield lithium-ion cell manufacturing plant in Bengaluru for the current fiscal year. This capital spending is a continuation of the company's broader expansion strategy, with a total investment in the project now reaching ₹4,800 crore. The facility, which has an initial capacity of 6 GWh, is a central part of the company's efforts to transition toward newer battery technologies as the demand for electric vehicles rises.
Operational Timeline and Revenue Goals
Management expects the Bengaluru plant to begin contributing to revenue by the third quarter of the 2027 fiscal year. The initial output will focus on supplying domestically produced lithium iron phosphate (LFP) cells to the company's existing battery pack facility in Gujarat. These cells are intended for use in the three-wheeler electric vehicle segment. Looking ahead, Exide plans to expand its product range to include nickel manganese cobalt (NMC) cells, targeting two-wheeler manufacturers and original equipment manufacturers later in the year, subject to the necessary regulatory approvals.
Currently, all utility installations for the plant's four production lines are complete. The facility is designed with the flexibility to handle various cell chemistries and form factors, which may allow the company to adapt to changing market requirements. In the current fiscal year, the company expects to utilize approximately 3 GWh of the plant's total 6 GWh first-phase capacity.
Financial Context and Market Outlook
While the company is heavily focused on the lithium-ion space, its established lead-acid battery business remains a significant revenue driver. Exide has set a goal to reach ₹20,000 crore in revenue from this traditional segment by fiscal year 2028. For the previous fiscal year, the company reported standalone revenue of ₹17,269 crore, marking a 4.1% year-on-year growth.
The broader industry trend shows an increasing need for domestic lithium-ion production, with total Indian demand projected to reach 130 GWh by 2030. However, investors may monitor certain risks that could affect the company’s performance. These include potential volatility in input costs, such as the prices of raw materials for batteries, and the impact of geopolitical events on supply chains. Success for this project will depend on how efficiently the company can ramp up production and secure market share among electric vehicle manufacturers. The primary monitorable for investors will be the actual revenue contribution from the Bengaluru plant starting in the third quarter and the company's ability to maintain stable profit margins amid its large capital spending.