- 04 Apr 2022
- ICICIdirect Research
Media reports suggest Exide committing big investment towards Giga factoryEXIDEIND - 212 Change: 0.35 (0.17 %)
News: Media articles suggest that the company intends to incur a capex of ₹ 6,000 crore for setting up of Li-On cell manufacturing plant (Giga factory) for application in Electric Vehicles in the state of Karnataka. It has sought 80 acres of land from the state government near Bengaluru airport with further details on the plan awaited
View: This will be the first mega investment in the Li-On cell manufacturing domain (advance cell chemistry segment). The company has in the recent past has entered into a multi-year technical collaboration agreement with SVOLT Energy Technology Co. Ltd (SVOLT) to license and commercialise technology and know-how owned by them for lithium-ion cell manufacturing in India. This is an interesting development and we await further details to form a decisive view on the company. Exide however was not selected for PLI incentives by the government in the recently announced list of beneficiaries and is presently classified as waitlisted player.