Exide Industries Infuses ₹450 Crore into EESL for Bengaluru EV Battery Plant

In a significant move to bolster India’s domestic battery manufacturing ecosystem, Exide Industries Limited has announced a fresh investment of ₹450 crore into its wholly owned subsidiary, Exide Energy Solutions Limited (EESL).

The investment, executed through a rights issue, is specifically directed toward the development of EESL’s greenfield lithium-ion cell manufacturing facility in Bengaluru. This infusion brings Exide’s total investment in its EV battery arm to a staggering ₹4,802.23 crore.

Scaling Lithium-Ion Capacity in India

The Bengaluru plant is a cornerstone of Exide’s transition from traditional lead acid batteries to advanced chemistry cells. The facility is designed to produce high performance lithium-ion magnetic cells, modules, and packs tailored for two wheelers, three wheelers, and four wheelers, as well as stationary energy storage applications.

According to regulatory filings, EESL allotted 11.25 crore equity shares (face value of ₹10 each at a premium of ₹30) to its parent company on March 25, 2026. Despite the massive capital infusion, Exide Industries maintains its 100% ownership stake in the subsidiary.

Financial Performance and Market Outlook

EESL, incorporated in 2022, is currently in a high growth phase. While the company reported a turnover of ₹116.89 crore for FY25, it is currently focusing on capital expenditure to scale its manufacturing capabilities. As of March 2025, the subsidiary's net worth stood at ₹2,738.06 crore.

The Indian electric vehicle market is witnessing a rapid shift toward localization. By establishing a domestic "Gigafactory" in Bengaluru, Exide aims to reduce the industry's reliance on imported cells, primarily from China, thereby lowering the total cost of ownership for EV manufacturers in India.

Key Highlights of the Investment:

• Total New Investment: ₹450 Crore (INR 4.5 Billion).

• Primary Objective: Funding the Bengaluru Lithium-ion Gigafactory.

• Total Capital Deployed to Date: ₹4,802.23 Crore.

• Target Sectors: Electric Vehicles (EV) and Stationary Energy Storage.

• Ownership Structure: Wholly owned (100%) by Exide Industries.

With the EV sector in India projected to grow exponentially over the next decade, Exide’s aggressive investment strategy positions it as a primary contender in the global race for battery supremacy, ensuring a "Make in India" solution for the future of mobility.