India: Exide Industries invests INR 200 crore in battery subsidiary

• Bengaluru plant enters commissioning, customer validation
• Exide targets revenue contribution from Q3 FY27

Exide Industries has invested INR 200 crore in wholly owned subsidiary Exide Energy Solutions Ltd (EESL), taking its total investment in the battery business to INR 5,102.23 crore. The latest rights-based infusion, completed on 18 August 2026, is part of a broader INR 1,400 crore funding commitment for EESL’s greenfield lithium-ion cell project in Bengaluru.

Bengaluru project enters commissioning

The facility is being developed in two phases of 6 GWh each, with total planned capacity of 12 GWh. Phase I will manufacture cylindrical and prismatic cells using LFP and NMC chemistries for electric mobility and stationary applications.

The project has progressed into commissioning, with equipment across four production lines installed and utilities operational. EESL has also started supplying locally manufactured cell samples to customers for validation. Management expects the facility to begin contributing revenue from Q3 FY27, with around 3 GWh of Phase I capacity targeted for utilisation during FY27.

Customer qualification remains key milestone

EESL has started customer sampling for NMC cylindrical cells targeting two-wheelers and LFP prismatic cells for three-wheelers and telecom applications. The company is also engaging with original equipment manufacturers across two-wheelers, three-wheelers, four-wheelers and stationary energy storage.

Commercial supplies will depend on customer homologation and qualification. The company has indicated that initial production could also replace imported LFP cells used at its Gujarat module and pack facility.

Funding supports commercial ramp-up

The latest INR 199.99 crore infusion follows the board’s January approval for additional investment of up to INR 1,400 crore in EESL. The funding is intended to support the Bengaluru project and its associated requirements. Exide Industries’ ownership in EESL remains unchanged at 100%.

The investment therefore comes at an important transition point for EESL, with the project moving from equipment installation towards customer validation and commercial production. The pace of qualification and capacity utilisation will determine how quickly the battery business begins contributing to Exide’s revenues.