E-rickshaws (ER) are proliferating like anything in small towns with populations as low as 30000. I casually checked with one ER owner whether he is using Chinese/ local battery and he was quick to response that all ER use only Exide/ Amaraja. Local batteries are not able to hold charge for long. For me this speaks of potential opportunity. At another place I read now even fork lifts are battery operated. So, for me opportunity is large and uncertainty about future of battery may be an opportunity in disguise.
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I had been a patient investor in this stock but the movement has been very slow from the past 1.5yrs .
Reading through the AR and their financials , i dont see anything out of order.
If anything they seem to be increasing their reach big time.
Any idea about this stock, anyone?
Exide to make EV batteries.
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This is not only an inevitable move but something that I am sure even Amara Raja will also get into. The technology for EV is available through tie-ups and these entrenched players have the distribution already setup in India.
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Looking at the PL and Balance sheets i see that they have made good top line but it isn’t translating into Profits.
I’m not sure why. Any opinions guys.
Secondly what i observed was that their revenue growth has been spectacularly even 
But the price action hasn’t been much. I"m a bit confused if i have to stay invested or not.
Can someone please pour some light on this
High revenue not turning into great profit is the reason of high Lead price around 60% goes in raw material. Increasing price to OEM is always difficult.With increasing improvement in Lead acid battery technology the replacement cycle is getting longer. Both Exide and Amara have product in market with minimum 3 year warrenty period.Sluggies demand from Telecom base station, Jio has rollout its network on Li-ion battery and telecom tarrif is at multi year low due to Jio entry.Suzuki is setting up Li ion manufacturing unit in Gujarat.So all these having effect in Exide and Amara.Recently lme lead price has come down companies have taken multiple price hike,gst roll out, increasing cv sales , solar industry,e rickshaw will start to show up in upcoming result.But technology disruption and move to li-ion ,I am not sure.Need to wait few years beyond 2020 to get clear picture.Lithium supply itself a issue.
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Suzuki coming up with the battery plant is going to be a big disruptor for exide and amararaja, if the Maruti cars are going to be powered by the suzuki batteries. They are planning to make lithium batteries for starting application for the Swift. Iam sure other Japanese manufacturers will also have an inclination to buy from them. This will be an ideal base for them to launch the batteries for the future EV’s.
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Some more info on the new plant and its implications that i could gather
- Joint venture between suzuki,toshiba and denso, plant should be ready in Gujarat by 2020.
- All models including swift and above will have lthium ion battery supplied by this factory from 2021. This takes out a sizeable OEM market for Exide and Amara. Toyota also could follow.
- Suzuki plans to roll out electric scooter with batteries supplied by same plant.
- At present lead acid is cheaper, however the economics are expected to change.
- This plant will also supply the batteries for the EV’s expected to be launched by Maruti, which might come out sooner than expected as they always try to stay ahead of others.
Iam invested in both Exide and Amararaja.
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ISRO passing on its Li-Ion technology for only Rs. 1 crore.
Intention is for the betterment of industry.
Not sure., how is the practical applicability of this technology., but it has received an overwhelming response from prospective buyers.
Link attached below
Positive for the EV segment.
Also found this:
Made in India Li-Ion batteries to cut dependence on China: Anant Geete
Look like India is gearing up for EV market.
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This is a very valid concern.
& i feel this point is going to be very crucial in the future., specially for the battery manufacturers.
That is a good point. Will try to cover that aspect a bit here.
The list of EV battery manufacturers can be found in the Wiki link here. If there are battery suppliers, seems like the EV manufacturers are willing to collaborate with them. Currently, we don’t have a strong player in Lithium battery manufacturing in India.
Few points that I thought are worth mentioning:
- Given the complexity in terms of manufacturing Lithium batteries and safety, it is likely that the EV manufacturers would rely on another established entity to manufacture these batteries.
- Global EV battery leaders are all foreign entities. The EV manufacturers could setup a joint venture with these entities. Else, the Indian leaders like Exide could setup a JV with other players (which is already happening)
- India is not having Lithium resource and would depend on China, Australia etc. Hence, we either import Lithium and make the battery in India or import Li Battery itself.
- Any safety issues in terms of battery explosion etc. would significantly affect the brand. Lately, there are increasing news in terms of personal mobility vehicles (segway kinds) catching fire when charging.
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Stable set of numbers from Exide
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Exide has partnered with Swiss Leclanche for manufacturing Li-ion for etransport and Other stationary Storage. JV has been named as Nexcharge. Q3 fy 20 from where they will assemble li-ion pack for India. Brand new Gujarat plant will start manufacture from mid 2020. Ashok Leyland is already a client of Leclanche.Company has credible history as energy storage provider in Li-ion platform. Listed company anyone can gothrough the presentation and AR
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Hi All, I have a basic question. Does the Li-Ion batteries have the same battery life as Lead-Acid or do they last longer. This will impact the replacement cycle for Exide once EV gains momentum.
Apologies it is already discussed previously in the thread or reports shared on the thread.
Thanks
Li-Ion currently has declared life span of 7 year around. Lead-Acid around 3-4 Year. E-Vehicles will require both Li-Ion and Lead-Acid to run. Lead-Acid require for light, power window ,Power steering,infotainment mainly. So Li-Ion may not abolish the Lead-Acid directly. This info is from both Exide and Amara.
For Nissan Leaf the Battery Pack with about 300 V run the traction motor for the car. But lighting and other accessary run by 12 V Lead-Acid pack
I have not researched how a Tesla run.
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