Exide Industries is accelerating its push into India’s rapidly expanding lithium-ion battery market by planning an investment of approximately ₹1,400 crore in FY27 for its cell manufacturing facility in Bengaluru. The move comes as electric vehicle (EV) adoption continues to gain momentum across the country. Managing Director and CEO Avik Roy informed that Exide has already dispatched sample lithium-ion cells to customers during the first quarter of FY27. This development marks an important step toward commercial production.
Phase-One Capacity: 6 GWh
Exide is currently establishing a 6 GWh lithium-ion cell manufacturing capacity in the first phase of the project. “I don’t foresee demand as a challenge for us. Our focus will be on ramping up capacity at our plant,” said Roy. Following the completion of phase one, Exide plans to add an additional sixGWh capacity in the second phase. According to the company, India’s EV lithium-ion battery market is currently estimated at around 20 GWh, with a substantial share of demand still being met through imports.
Import Duty Relief to Support Domestic Manufacturing
Roy welcomed the Government of India’s decision to eliminate import duty on machinery used for battery cell manufacturing. He emphasized that India will need multiple domestic manufacturers to meet future battery demand and build a strong local supply chain. “India’s automotive market is too large for a single manufacturer. Even our 6 GWh capacity cannot cater to the entire industry. We need several domestic players to build a robust battery ecosystem,” believes Roy.
Lithium-Ion Business Seen as Strategic Transformation
Exide views its lithium-ion venture as a strategic transformation initiative that will position the company for long-term growth in next-generation energy storage technologies. At the same time, the company continues to strengthen its leadership in the conventional lead-acid battery business. Exide aims to increase revenue from its core lead-acid battery operations to more than ₹20,000 crore within the next two to three years, compared with ₹17,200 crore in FY26. The company expects continued demand from automotive, industrial, and infrastructure segments to support this growth.
Strategic Outlook
As reported by telegraphindia.com, with a planned ₹1,400 crore FY27 investment, expanding manufacturing capacity, and the launch of domestically produced lithium-ion cells, Exide Industries is positioning itself as a major player in India’s evolving EV battery manufacturing ecosystem. The company’s dual focus on lithium-ion technology and lead-acid batteries is expected to provide both growth opportunities and business stability in the years ahead.
