Exide Industries boosts investment in EESL with Rs 450 Crore infusion

​Exide Industries Limited (EIL), India's largest conventional battery manufacturer, has increased its investment in Exide Energy Solutions Limited (EESL) to over Rs 4,800 crore. The company recently infused Rs 450 crore into its wholly owned subsidiary, EESL, through a rights issue of equity shares.

Key Highlights

• Exide Industries invested Rs 450 crore more in Exide Energy Solutions Limited
• Total investment in EESL now stands at Rs 4,802.23 crore
• EESL is building a greenfield lithium-ion battery facility near Bengaluru
• EESL reported a loss of Rs 209.12 crore in FY25 with revenue dropping to Rs 117 crore

Details of the Latest Investment

EIL subscribed to 11,25,00,000 equity shares of Rs 10 each, with a premium of Rs 30 per share. The total issue price was Rs 40 per share, amounting to Rs 450 crore in cash. This rights issue was offered exclusively to EIL, ensuring the parent company retains its 100% ownership in EESL.

EESL was established on 24 March 2022. The subsidiary focuses on manufacturing and selling lithium-ion battery cells, modules, and packs. These products cater to India's electric vehicle market and stationary energy storage needs. EESL produces cylindrical, pouch, and prismatic battery cell formats.

Purpose and Impact of the Capital Infusion

The fresh capital will help fund a greenfield manufacturing facility near Bengaluru. This facility is central to EESL's expansion and operational scale-up. The investment will also support broader operational financing requirements as the subsidiary grows.

EESL's financial results now include figures from the merged Exide Energy Private Limited (EEPL). The company operates as a capital-intensive, pre-scale manufacturing venture. In FY25, EESL reported a loss after tax of Rs 209.12 crore. Its revenue dropped from Rs 239 crore to Rs 117 crore year-on-year. Despite these financial challenges, Exide Industries continues to support EESL's growth and development.

Significance for India's Battery Industry

With cumulative investment now at Rs 4,802.23 crore, EIL has made a major commitment to domestic lithium-ion cell manufacturing. The company aims to strengthen India's electric vehicle battery supply chain and energy storage capabilities. EESL's ongoing projects and new facility are expected to play a key role in this sector.

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Conclusion

With this latest Rs 450 crore investment, Exide Industries reaffirms its dedication to advancing India’s energy transition. The strengthened financial backing for EESL underscores the company’s long-term vision for sustainable energy infrastructure and innovation. This strategic move positions Exide at the forefront of India’s growing energy storage and electric mobility initiatives.