Notes from Exide AGM
Gst neutral as of now in terms of price impact.
Substantial share expected from unorganised because of GST. Using Dynex brand.
7 technology partners. 2 Japan and us. 1 China and Australia
Entered erickshaw market. Using warranties there as a lure. 2.5 million by 2019. And 500000 electric buses. HUGE!
Power rates have substantially increased in some states. Which??
4-6% advantage of price cost by using smelters.
Big guys estimates like Johnson and Hitachi say electric vehicle not to exceed 12% of population by 2030.
Collaboration with American and U.K. Company for energy storage for solar batteries. Major thrust!!
Power excess because discoms don't have finance to buy it!! So actually no excess.
Metro demand will come down. Tier 2-3 demand will keep strong.
Have got orders for Scorpene submarines. Order next month. Always in touch. Expect orders.
Last year market size in submarine 100 cr. this year size come down. Supply to others like Algeria Chile also. But not very big market. Technologically they have capacity. Very good margins.
Focus on after sales. Say that want to be best in after sales including FMCG. Is that possible??
Nothing final as of now for Exide technology US name dispute.
85% of organised market between top two. Current size of unorganised about 35-40%. A SUBSTANTIAL part should come in about two months?!!
New smelter plant at Haldia. Plants cater to 35% of overall lead requirement. Higher prices better for gaining market share.
Amar raja does have cost advantage due to factories in just two locations.
Business no longer like invest 100 cr and go off to sleep. Have to keep investing continuously. 150-200 cr maintenance Capex. But total expenses to be 400-500 cr average over years.
No plans to sell even part of insurance. Feel this is a sweet spot. So why share profits with anyone. No incremental capital required.
Solar batteries a major segment in future. Prepared for it. No need for more investment.