Exide Industries Limited: history, ownership, mission, how it works & makes money

A Brief History of Exide Industries Limited

Exide Industries Limited, established in 1947, is one of the leading manufacturers of lead-acid storage batteries in India. The company was originally a joint venture with the American company, Exide Corporation, before becoming a fully Indian-owned entity in the early 2000s.

Over the decades, Exide has expanded its product portfolio to include automotive batteries, industrial batteries, and a variety of specialized battery solutions, catering to sectors such as telecommunications, railways, and renewable energy.

As of March 2023, Exide Industries reported a total revenue of ₹14,839 crores (approximately $1.8 billion), indicating a substantial growth trajectory. The net profit for the same period was ₹1,021 crores, showcasing a healthy bottom line.

Exide's production capacity has increased significantly over the years, with factories located in key regions across India. The total production capacity now exceeds 15 million batteries annually. This growth has been fueled by continuous investment in technology and R&D, focusing on innovative battery solutions like Lithium-ion technologies.

The company's strong distribution network facilitates a presence in over 100 countries, making it a notable player in the global battery market. Exide has a market share of approximately 40% in the Indian automotive battery sector as of 2023.

In recent years, Exide has also ventured into Electric Vehicle (EV) batteries, reflecting the global shift towards sustainable energy solutions. They anticipate launching a new range of EV batteries by 2024, with an expected investment of around ₹2,000 crores.

Dividends have been a focus for Exide, with a consistent payout ratio of approximately 30% in recent years. For the financial year 2023, the board approved a dividend of ₹1.50 per share, continuing its commitment to shareholder returns.

Exide Industries also emphasizes corporate social responsibility, investing in community welfare programs and promoting green practices in manufacturing. Their initiative of adopting best practices in sustainability has led them to be recognized as one of the top battery manufacturers globally.

A Who Owns Exide Industries Limited

Exide Industries Limited is a prominent player in the battery manufacturing sector in India, primarily focusing on lead-acid batteries for both industrial and automotive applications. Understanding the ownership structure of Exide Industries is essential for assessing its strategic direction and corporate governance.

As of the latest data available, Exide Industries has a diverse ownership structure that includes both institutional and individual shareholders. The following table elucidates the major shareholders and their respective stakes in the company:

The largest shareholder is the promoter group, which holds a majority stake of 51.36%. This level of ownership provides significant control and influence over company decisions and strategy.

In addition to the major shareholders, Exide Industries has witnessed active participation from institutional investors, with notable holdings from Life Insurance Corporation of India (LIC) at 7.95% and Harris Associates LLC at 5.02%.

The overall market capitalization of Exide Industries Limited as of October 2023 stands at approximately ₹ 16,300 crores (about $2 billion), reflecting its robust position in the battery manufacturing industry.

Exide Industries has also shown a consistent performance in terms of financial metrics. For the fiscal year ending March 2023, the company reported a revenue of ₹ 13,750 crores (around $1.65 billion) and a net profit of ₹ 905 crores (approximately $109 million), indicating a solid financial footing.

The company's board structure further illustrates ownership dynamics, with a mix of executive and independent directors providing governance oversight. The presence of independent directors is essential for ensuring that the interests of minority shareholders are safeguarded.

Exide's strategic initiatives and investments, particularly in electric vehicle batteries and renewable energy applications, reflect its adaptability in a changing market landscape. As the company pivots to cater to emerging demands, ownership stability is crucial in navigating this transition effectively.

Exide Industries Limited Mission Statement

Exide Industries Limited is a leading manufacturer of lead-acid storage batteries in India. Established in 1947, the company has a robust mission statement focusing on quality and customer satisfaction. Their mission emphasizes the delivery of high-performance products tailored to meet the evolving needs of the market.

The company aims to lead the storage battery market by leveraging technology and innovation in manufacturing processes, while also ensuring sustainable practices. This commitment reflects in their investments in research and development, aiming to enhance product efficiency and lifespan.

As of the fiscal year 2023, Exide Industries reported a revenue of ₹12,723 crores (approximately $1.5 billion), highlighting a year-on-year growth of 12%. The company’s operational capabilities are complemented by a market presence across various segments including automotive, industrial, and UPS batteries.

Exide's mission reflects their strategic focus on sustainability as well. In the past year, the company invested ₹300 crores in green initiatives aimed at reducing its carbon footprint and enhancing recycling processes. This is in line with their goal to become a more environmentally responsible player in the battery industry.

The commitment to innovation is exemplified through their introduction of advanced lithium-ion batteries, which cater to both renewable energy storage and electric vehicle markets. In fact, Exide aims to capture 10% of the lithium-ion battery market by 2025, representing a significant growth opportunity.

Furthermore, Exide's emphasis on customer-centric solutions is seen through the development of tailor-made products for various industry needs, reinforcing their mission to maximize customer satisfaction across all segments.

With a comprehensive portfolio and an unwavering commitment to quality, Exide Industries Limited aims to maintain its leadership position in the battery manufacturing sector while aligning with global standards for safety and environmental sustainability.

How Exide Industries Limited Works

Exide Industries Limited is a leading battery manufacturer in India, operating across various sectors, including automotive, industrial, and renewable energy. As of 2023, the company generates substantial revenue through its diverse product lines, with operations spanning manufacturing, distribution, and after-sales services.

Business Segments

Exide's operations can be divided into several key segments:

• Automotive Batteries
• Industrial Batteries
• Home Inverters and Batteries
• Solar Batteries
• Specialty Batteries

Each segment contributes significantly to the company's revenue, with the automotive batteries segment being the largest contributor.

Financial Performance

For the financial year ending March 2023, Exide Industries reported a revenue of ₹12,617 crore, marking a growth of approximately 5% from the previous year. The company's net profit for the same period was ₹1,572 crore, reflecting a net profit margin of around 12.5%.

Segment Revenue Breakdown

Market Position

As of 2023, Exide Industries holds a market share of approximately 40% in the lead-acid battery segment in India. The company competes with other players such as Amara Raja Batteries and Luminous Power Technologies.

Key Financial Metrics

Exide's key financial metrics as of March 2023 include:

• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): ₹2,800 crore
• Debt-to-Equity Ratio: 0.5
• Return on Equity (ROE): 15%
• Current Ratio: 1.5

Production and Capacity

Exide Industries operates multiple manufacturing plants across India with a total production capacity of around 10 million batteries annually. The company has made significant investments in technology and automation to enhance production efficiency.

Research and Development

Exide invests approximately 1.5% of its annual revenue in research and development to innovate on battery performance and sustainability. The company is focusing on developing lithium-ion batteries to compete with the market shift towards electric vehicles.

Supply Chain Operations

Exide's supply chain operations are extensive, involving raw material procurement, manufacturing, and distribution. The company sources raw materials like lead and sulfuric acid globally to maintain quality and cost-effectiveness. Exide's distribution network encompasses over 1,200 dealers and service centers across India.

Recent Developments

In July 2023, Exide announced a new venture into the lithium-ion battery market, anticipating a potential revenue boost of ₹1,000 crore over the next three years. This move aligns with the global trend towards electrification and renewable energy solutions.

How Exide Industries Limited Makes Money

Exide Industries Limited is one of the largest lead-acid storage battery manufacturers in India. Established in 1947, the company primarily generates revenue through manufacturing and selling a variety of batteries and related products. Their revenue streams can be broadly categorized into several segments.

1. Product Segments

• Automotive Batteries
• Industrial Batteries
• Special Batteries
• Battery Accessories

Exide’s product portfolio is diversified, which helps mitigate risks associated with dependency on a single revenue source. As of the fiscal year 2023, the company reported a total revenue of ₹14,532 crore, with automotive batteries contributing approximately 64% to the overall sales.

2. Automotive Batteries

The automotive battery segment includes batteries for two-wheelers, three-wheelers, and passenger vehicles. In FY 2023, the automotive battery sales were estimated at ₹9,300 crore, reflecting a growth of 15% year-on-year.

3. Industrial Batteries

This segment caters to sectors such as telecommunications, power, and railways. In FY 2023, industrial battery sales accounted for about ₹4,200 crore of Exide's total revenue, making up approximately 29% of the overall sales, with a year-on-year increase of 10%.

4. Special Batteries

Special batteries include applications in renewable energy solutions and specialized equipment. The revenue from this segment was around ₹900 crore in FY 2023, constituting 6% of the total revenue, and showing a 20% growth compared to the previous year.

5. Battery Accessories

Battery accessories, including chargers and battery management systems, contributed ₹132 crore to total revenue in FY 2023. This segment has seen a 8% increase in sales.

6. Key Partnerships and Distribution Network

Exide has a robust distribution network with over 3,500 dealers and a presence in more than 5,000 retail outlets. Partnerships with OEMs (Original Equipment Manufacturers) like Maruti Suzuki, Tata Motors, and Ashok Leyland enhance its market reach.

7. International Sales

Exide also exports its products to over 75 countries, which provides a significant revenue boost. The export sales accounted for approximately 10% of total revenue in FY 2023.

8. Financial Performance

This table summarizes vital financial metrics showcasing the company's steady growth trajectory. The net profit increase to ₹2,172 crore in FY 2023 signifies a growth of 16%.

9. Future Growth Prospects

With the shift towards renewable energy sources, Exide Industries is investing in lithium-ion battery technology. The company announced plans to allocate around ₹1,000 crore in R&D over the next three years, projecting significant growth potential in the electric vehicle market.

In summary, Exide Industries Limited channels its revenue through a broad array of battery products, strategic partnerships, and an expansive distribution network, ultimately positioning itself for continued growth in the evolving energy landscape.