The company will also participate in PLI scheme for “National Programme on Advanced Chemistry Cell battery Storage”
Exide Industries
Shares of Exide Industries were trading higher on December 21 as the company’s board gave its in-principle approval to set up a multi-gigawatt lithium-ion cell manufacturing facility in the country.
“Electric vehicle (EV) penetration in India is expected to become a reality in the near future. As a result, lithium-ion battery-based storage solutions will gain prominence, for both automotive and industrial applications,” MD & CEO Subir Chakraborty said in a press release.
Lithium-ion batteries power EVs and account for almost 5o percent of the vehicle cost. As India pushes for EVs, the demand for batteries is expected to see a big rise.
The company will also participate in the production-linked incentive scheme for “National Programme on Advanced Chemistry Cell battery Storage” issued by the Ministry of Heavy Industries.
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“Cell manufacturing is an integral part of the lithium-ion battery manufacturing chain, and we believe that the setting up of this plant will enable us to be more cost-competitive and better serve our esteemed customers,” the company said.
The government introduced the programme with an outlay of Rs 18,100 crore, which aims at incentivising the setting up of manufacturing facilities in the country for 50 gigawatt-hour of ACC and 5 GWh of ‘niche’ ACC.
The stock hit an intraday high of Rs 163.90 on the BSE, and at 1.16 pm, it was up 2.2 percent at Rs 158.70.
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“Exide is the largest battery manufacturer in the lead acid battery markets, commanding a market share close to 55 percent in the organised market. Having a strong brand equity and extensive distribution network, we expect Exide to grow strongly in the battery industry,” Sharekhan had said in a note after the company’s Q2FY22 earnings.
Exide is also upgrading technology and working on import substitution of raw materials to enable cost reduction, the note said.
The brokerage has a “buy” rating on the stock with a target of Rs 229.
