Exide Industries Ltd has made a substantial investment of over ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL), which specializes in the manufacturing of advanced chemistry battery cells. The investment was made through a subscription in the equity share capital of EESL on a rights basis.
In a regulatory filing, Exide Industries clarified that this investment does not result in any change in the company’s shareholding percentage in EESL.
As of the most recent financial data available, EESL has a paid-up equity share capital of ₹374.40 crore and a net worth of ₹655.20 crore as of March 31, 2023. However, the subsidiary reported a net loss of ₹59.81 crore after tax for the fiscal year ending on the same date.
In a separate regulatory filing, Exide Industries revealed that it has provided a Corporate Guarantee in favor of five banks: ICICI Bank, HDFC Bank, Axis Bank Limited, HSBC Bank, and Kotak Mahindra Bank. These guarantees are for credit facilities totaling ₹2,000 crore sanctioned by the banks for EESL.
Exide Industries operates in the manufacturing of battery cells with advanced chemistry and form factors, including cylindrical, pouch, and prismatic battery cells. The company is also involved in the manufacturing, assembly, and sale of battery modules, battery packs, and related activities.
This significant investment in EESL underscores Exide Industries’ commitment to advancing its capabilities in the battery manufacturing sector, particularly in the development of advanced chemistry battery cells. As the demand for electric vehicles and renewable energy storage solutions continues to grow, investments in battery technology become increasingly important.
Exide Industries is a well-established player in the battery industry and is looking to strengthen its position in the market by expanding its presence in advanced battery technologies.
The investment in EESL aligns with the broader industry trends toward electrification and sustainable energy solutions. Advanced battery cells are a crucial component of electric vehicles, renewable energy storage systems, and various other applications, making them a key focus area for companies in the energy sector.