Exide Industries rose 2.09% to Rs 151.10 after the company said it entered into a long-term technical collaboration with SVOLT Energy Technology (China) for lithium-ion cell manufacturing.
China-based SVOLT is a global high-tech company and is engaged in the production and development of lithium-ion batteries and battery systems for electric vehicles as well as for energy storage. SVOLT's comprehensive one-stop product portfolio includes battery materials, cells, modules, packs, and battery management systems as well as energy storage products.As part of the agreement, SVOLT will grant Exide an irrevocable right and license to use, exploit and commercialise necessary technology and know-how owned by them for lithium-ion cell manufacturing in India. Additionally, SVOLT will also provide the support required for setting up of a state-of-the art green field manufacturing plant on a turnkey basis.
Exide is in the process of forming a Special Purpose Vehicle (SPV) by way of a wholly owned subsidiary for carrying out the said lithium-ion cell manufacturing business. It is in a fairly advanced stage of discussions for finalising the land parcel for this facility. The company has participated in the Production-Linked Incentives (PLI) Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage, issued by the Ministry of Heavy Industries.
Subir Chakraborty, MD & CEO, said: "Exide is excited to partner with SVOLT as this collaboration is a major step forward in Exide's aspiration of becoming a leading player in the rapidly emerging new-age electric mobility and stationary application businesses in India. With SVOLT's strong technical expertise, R&D capabilities and rich experience in manufacturing lithium-ion batteries, Exide plans to set-up a multi-gigawatt lithium-ion cell manufacturing facility. Spread out across two popular cell chemistries and three cell formats, this unit shall be uniquely placed to cater to the diverse requirements of customers in India. This strategic partnership is in line with Exide's commitment to provide best-in-class batteries and energy storage solutions for automotive and industrial applications."
Exide Industries designs, manufactures, markets and sells the widest range of lead acid storage batteries in the world from 2.5Ah to 20,200 Ah capacity, to cover the broadest spectrum of applications. The batteries are manufactured for the automotive, power, telecom, infrastructure projects, computer industries, as well as the railways, mining and defence sectors. The company enjoys leadership position in India and its exports span 60 countries across six continents.
On a consolidated basis, net profit of Exide Industries declined 26.15% to Rs 178.32 crore on 14.54% rise in net sales to Rs 3311.71 crore in Q3 December 2021 over Q3 December 2020.
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