Exide Industries raises stake in Exide Leclanché Energy with ₹20 crore investment

Why did Exide Industries increase its stake in Exide Leclanché Energy with a fresh ₹20 crore investment?

Exide Industries Limited, one of India’s leading storage battery manufacturers, announced on January 23, 2022, that it has invested nearly ₹20 crore in its lithium-ion subsidiary, Exide Leclanché Energy Private Limited. The investment increased Exide Industries’ stake to 84.9 percent in the venture focused on advanced battery technology for electric vehicles and energy storage systems.

The move came through a subscription to fresh equity share capital in Exide Leclanché Energy. Exide Industries confirmed that it purchased additional equity shares at a price of ₹21 per share, which included a premium of ₹11 per share. The incremental 0.9 percent stake highlights Exide’s continued commitment to developing next-generation energy storage solutions at a time when India’s electric mobility ambitions were accelerating.

What is Exide Leclanché Energy and how does it fit into India’s lithium-ion battery landscape?

Exide Leclanché Energy is a joint venture formed in 2018 between Exide Industries and Switzerland-based Leclanché SA. The venture was created to bring advanced lithium-ion battery technology and module-making capabilities to India. While Exide contributes its local manufacturing expertise and extensive distribution network, Leclanché brings in its global experience in lithium-ion cell technology and system integration.

The subsidiary focuses on producing lithium-ion battery packs and modules for electric buses, commercial vehicles, and stationary applications such as grid-level storage and telecom towers. At a time when India was beginning to position itself as a potential hub for electric mobility, Exide Leclanché Energy aimed to reduce dependence on imports by building local assembly and system integration capabilities.

How significant is the ₹20 crore investment for Exide Industries’ long-term EV and energy storage strategy?

The ₹20 crore infusion may appear modest compared to the scale of investment needed for battery gigafactories, but the move signals Exide Industries’ intent to steadily scale up its presence in lithium-ion technology. With this investment, the Indian battery maker not only increased its shareholding but also reinforced confidence in the subsidiary’s growth prospects.

At the time of this development, India’s battery market was heavily reliant on imports, especially from China and South Korea. By strengthening Exide Leclanché Energy, Exide Industries positioned itself to capture opportunities in India’s electric vehicle (EV) supply chain. The focus was not limited to passenger cars but extended to commercial EV fleets, two-wheelers, and stationary applications—all markets projected to grow rapidly with government-backed electrification targets.

What role does the Exide–Leclanché joint venture play in India’s EV ecosystem?

When Exide Industries partnered with Leclanché SA in 2018, the rationale was clear: India’s transition to electric mobility needed localized solutions that combined global technology with domestic scale. Leclanché, headquartered in Switzerland with a long history in advanced battery systems, offered proven lithium-ion expertise. Exide, with decades of leadership in lead-acid batteries, had the manufacturing footprint and distribution clout to commercialize the technology in India.

The joint venture’s strategy included building module assembly lines in Gujarat to serve domestic EV makers and energy storage providers. Exide Leclanché Energy focused on lithium iron phosphate (LFP) chemistry, known for safety and thermal stability—an important factor for Indian climatic conditions. By 2022, this positioned the company as one of the few domestic players with the capability to provide localized lithium-ion solutions, even as large-scale cell manufacturing projects were still in planning stages nationwide.

Why does this matter for India’s push toward electric mobility and energy independence?

The January 2022 investment by Exide Industries must be seen in the context of India’s National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme. The government had set ambitious targets for EV penetration, particularly in public transport and two-wheeler segments, alongside incentives for domestic battery manufacturing.

Exide’s expansion in lithium-ion batteries aligned with these national goals. By investing in Exide Leclanché Energy, the company demonstrated readiness to participate in India’s transition from traditional lead-acid batteries toward lithium-ion storage. Analysts at the time noted that such incremental investments were crucial steps for India to reduce its dependence on imports, secure supply chains, and create local manufacturing jobs in the clean-tech sector.

How are institutional investors and analysts viewing Exide Industries’ strategy?

Market sentiment around Exide Industries in early 2022 reflected cautious optimism. The company remained a dominant player in the conventional lead-acid battery market, catering to automotive OEMs, aftermarket demand, and industrial applications. However, the transition to lithium-ion batteries posed both a challenge and an opportunity.

Industry observers noted that Exide Industries’ gradual capital infusion in Exide Leclanché Energy demonstrated a prudent strategy: rather than committing massive upfront capital, the company opted for staged investments as demand visibility improved. This approach allowed Exide to balance its existing lead-acid business, which continued to generate significant revenue, with the emerging but uncertain EV battery market.

At the same time, competitors such as Amara Raja Batteries Limited were also announcing plans to diversify into lithium-ion technology, intensifying competition in the domestic market. Analysts pointed out that Exide’s partnership with Leclanché gave it a technological edge, though scaling production to competitive levels would require larger investments in the future.

What does this mean for Exide Industries’ financial and operational outlook?

Exide Industries’ stake increase in Exide Leclanché Energy underscored its long-term commitment to the lithium-ion sector. Financially, the ₹20 crore investment represented a small portion of Exide’s balance sheet strength, but strategically, it carried significant weight. The move gave Exide tighter control over its subsidiary and sent a clear message to the market about its direction.

The company continued to explore opportunities to leverage Exide Leclanché Energy’s capabilities for applications beyond mobility, including stationary storage and renewable integration. With India’s solar and wind capacity expanding, the demand for reliable battery storage solutions was expected to rise, making Exide’s move timely.

Can Exide Industries’ lithium-ion bets pay off in India’s competitive battery market?

From an expert perspective, the January 2022 investment by Exide Industries should be viewed as a strategic positioning move rather than a transformative financial commitment. By raising its stake in Exide Leclanché Energy to 84.9 percent, Exide secured greater operational control, which will help it align the subsidiary’s direction with broader corporate priorities.

The timing was also notable. India’s EV ecosystem was still in an early adoption phase, with infrastructure gaps and cost barriers limiting mass uptake. Yet, Exide Industries was making a calculated bet that these challenges would gradually ease, supported by government incentives and growing consumer interest.

The risk, of course, lies in execution. Building lithium-ion capacity in India requires significant investments, not just in assembly but also in raw material sourcing, cell manufacturing, and R&D. Exide Industries’ incremental approach reduces financial exposure but also means that it must scale up aggressively once the market reaches inflection. Overall, this investment reinforces Exide Industries’ position as a serious contender in India’s energy storage transition. While lead-acid batteries will continue to provide steady cash flows, the lithium-ion venture represents the company’s ticket to staying relevant in the age of electric mobility and renewable integ