- 09 Apr 2024
- ICICI Securities
HYUNDAI MOTOR AND KIA FORGE STRATEGIC PARTNERSHIP WITH EXIDE ENERGY
EXIDEIND - 383 Change: -1.35 (-0.35 %)News: Exide Energy Solutions Limited ("EESL"), the wholly owned unlisted subsidiary of Exide Industries Limited, has signed a non-binding memorandum of understanding (MOU) with Hyundai Motor Company ("Hyundai Motors") and Kia Corporation ("Kia") for strategic co-operation in India's EV market. According to this MOU, both the parties will work together for development, production and supply of battery cells (LFP chemistry) for Hyundai Motor's electric vehicles dedicated to the Indian market.
Views: This is an important milestone for the company and validates its ambitious plans in the new energy space. We have a positive view on Exide Industries. Our key investment thesis is based upon margin expansion at its base lead acid battery business and sizeable capex foray into new energy Li-On cell space (~₹ 2,000 crore invested till date out of the total initial investment of ~₹ 4,000 crore, commissioning in CY25). The company is potentially the first Indian company to set up cell manufacturing plant in India and has guided for healthy margins and return ratios profile in this domain.
Impact: Positive