I have shared an answer regarding the battery manufacturers in Dec 2021
Few things can be observed based on the performance
- Both the battery manufacturers have lost stock value by more than 20%
- An increase in Commodity prices has been one of the reasons for the trimming in capital value
- A “Wait and Watch” approach by Exide and Amara Raja has been detrimental to both companies. They are waiting for the evolution of Batteries for Electric Vehicles(2W, 4W), Storage, etc. in the Indian Market
- With the Government of India less keen to completely be dependent on Lithium-based Electric Vehicles, the focus is slowly but surely moving to other alternatives like Sodium Ion-based Batteries, Green Hydrogen, Aluminum Air batteries, Biogas, etc.
Now coming to some developments linked to both the stocks
- A new “Battery swapping policy” was announced in the Indian Budget 2022. It talked about the formulation of interoperability standards which can be beneficial for EV Battery manufacturers in making uniform batteries, thereby reducing infrastructure and maintenance costs
- Exide Industries invested US$2.68 million in its lithium battery joint venture (JV) with Swiss energy storage solutions company Leclanché. This JV was formed in June 2018 to set up a lithium battery pack and module assembly line in Gujarat, followed by a lithium-ion cell production plant, to cater to India’s electric vehicle and grid-based energy storage market
- Amara Raja and Exide are among companies that have reportedly submitted bids under India’s ₹18000 crores Production-Linked Incentive (PLI) Scheme for Advance Chemistry Cell (ACC) Battery
These developments are positive for the incorporation of a deep tech-based industrial hub and both the battery manufacturers are well poised to tap into it.
Despite this, the process of reaching a level of break-even post investments will be a long arduous journey. Do not expect quick returns.
So, plan your investment accordingly
Hope this helps
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