Kolkata-based storage battery giant Exide Industries is projecting a significant boost in its export revenues, anticipating an increase of approximately Rs 500 crore. This optimistic forecast comes on the heels of back-to-back trade agreements secured with the United States and the European Union. Managing Director Avik Roy shared these insights during a recent press briefing held in Kolkata.
Export Recovery and Ambitious Growth Targets
Despite experiencing a decline in exports during the current fiscal year, Exide Industries is now poised for a strong rebound. The company has set an ambitious long-term goal of achieving a turnover of Rs 25,000 crore by the year 2030. This target is closely tied to the full operationalization of its lithium-ion battery subsidiary, Exide Energy Solutions Limited (EESL).
According to Roy, exports currently constitute between 5% to 7% of the company's total turnover, with the remaining majority stemming from domestic sales. "Our exports previously accounted for 8-9% of our turnover; they then experienced a dip, but we are hopeful of returning to those earlier levels in the upcoming fiscal year," Roy elaborated. The company presently exports its products to a network of 60 countries worldwide.
Market Dynamics and Future Outlook
Roy provided further analysis of the market segments, predicting robust growth in the next fiscal year. He indicated that the automobile replacement market is expected to expand at a double-digit rate, while the Original Equipment Manufacturer (OEM) segment is anticipated to remain strong. "In the first half of this fiscal year, OEM growth was relatively slow," he noted, adding that a significant reduction in Goods and Services Tax (GST) rates subsequently led to a considerable uptick in automobile sales, thereby driving increased demand for OEM batteries.
Strategic Investments in Lithium-Ion Technology
Pravin Saraf, the Managing Director and CEO of EESL, detailed the subsidiary's strategic initiatives. For four-wheelers, EESL is actively collaborating with Hyundai. The initial product rollout will focus on batteries designed for two-wheelers and three-wheelers. "By April of next year, we plan to provide samples to manufacturers for testing and evaluation," Saraf stated.
In a significant financial commitment, Exide Industries is injecting Rs 4,800 crore into EESL during the current fiscal year. An additional investment of Rs 1,400 crore is earmarked for the subsequent fiscal year, underscoring the company's strategic focus on advancing its lithium-ion battery capabilities and capturing emerging market opportunities.
