Top EV Battery Shares in India 2024
PART 1: EV Battery and Component Manufacturers
Note: we are not changing any information and all the information is copied from Equitymaster
India is revving up for a clean energy revolution, with electric vehicles (EVs) leading the charge. According to Bain and Company, EVs made up around 5% of total vehicle sales from October 2022 to September 2023.
They could skyrocket to over 40% by 2030, with significant adoption (45%+) in both two-wheelers (2W) and three-wheelers (3W).
This momentum rides on several factors. First, billions of dollars are being invested in research, manufacturing facilities, and charging infrastructure, paving the way for a robust EV ecosystem.
Second, government initiatives like FAME schemes offer attractive subsidies and incentives, accelerating EV adoption by both manufacturers and consumers.
Unlike their gasoline-guzzling counterparts, EVs rely on a different kind of engine – the lithium-ion battery.
These batteries, which currently account for 40-50% of an EV’s total cost, are predominantly imported from China, the world’s leading producer. However, this trend is shifting gears.
Recognizing the immense potential of the EV battery market, several Indian manufacturers are hitting the gas pedal to build domestic production facilities.
They’re all vying for a sizeable share of the Rs 180 billion (bn) opportunity, aiming to become the key players powering India’s clean mobility future.
Therefore, with this in mind, let’s break down the EV battery value chain.
EV Battery and Component Manufacturers
These businesses have shifted their focus to meet the demands of the EV sector to capture a significant share of this rapidly growing market.
Historically, this market has been dominated by two prominent leaders in the field: Amara Raja and Exide. Even now, these companies continue to play a significant role in shaping the landscape of the EV battery market.
1. Exide Industries
First on our list is Exide Industries.
The 75-year-old plus institution is the largest lead-battery manufacturer in India, offering a wide range of products to the automotive and industrial sectors.
It caters to some of the top OEMs (original equipment manufacturer) in the country. Exide enjoys a strong presence across the entire automotive value chain.
In addition, the company boasts a robust export division, serving over 60 countries, including the GCC nations, the USA, and Canada.
It has partnered with a leading global provider of premium energy storage solutions to manufacture lithium-ion batteries for India’s burgeoning EV market.
It has also established partnerships with major automotive players to provide it with a competitive advantage.
Exide Industries Financial Snapshot (2019-23)
| 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | |
| Revenue Growth % | 14.60% | -1.50% | -28.50% | 23.30% | 18.30% |
| Operating Profit Margin % | 10.88% | 10.50% | 13.79% | 11.46% | 11.39% |
| Net Profit Margin % | 5.76% | 5.27% | 7.08% | 5.43% | 5.46% |
| Return on Capital Employed % | 23.38% | 16.96% | 14.84% | 11.26% | 10.96% |
| Return on Equity % | 14.69% | 12.13% | 10.68% | 7.79% | 7.58% |
Between 2018-2023, the sales and net profits have not grown much, reporting a CAGR of 3.3% and 3.5%.
The bleak growth has affected the return on equity. Over the years, it has fallen from 14.7% in 2018 to 7.5% in the financial year 2023.
In the near term, Exide’s growth will be driven by a combination of innovative product launches, domestic market expansion, a focus on international exports, and continued support for their channel partners to enhance customer experience.
To know more about the company, check out its financial factsheet and latest financial results.
2 Amara Raja
Amara Raja is the second biggest player in the lead-battery space in India.
It enjoys a widespread network, catering to the automotive and industrial segments with its Amaron brand of lead batteries.
The company is positioning itself to benefit from the growing EV market in the country. Back in 2021, the company had set up a technology hub to develop lithium-ion batteries, at its Tirupati facility in Andhra Pradesh.
In 2023, the company has entered into an MoU with the government of Telangana for setting up the lithium-ion (Li-ion) battery gigafactory.
This facility will boast a cell manufacturing capacity of up to 16 gigawatt hours (GWh) and the assembly capacity will be up to 5 GWh.
The company is planning to invest around Rs 95 bn over the next 10 years.
Amara Raja Financial Snapshot (2019-23)
| 2018-2019 | 2019-2020 | 2020-2021 | 2021-2022 | 2022-2023 | |
| Revenue Growth % | 0.78% | 4.98% | 21.26% | 19.43% | |
| Operating Profit Margin % | 14.70% | 9.66% | 16.86% | 12.27% | 13.39% |
| Net Profit Margin % | 7.11% | 22.25% | 9.05% | 5.71% | 6.44% |
| Return on Capital Employed | 21.72% | 24.04% | 22.5% | 16.01% | 19.60% |
| Return on Equity % | 14.49% | 18.91% | 16.45% | 11.70% | 14.10% |
Between 2020-2023, Amara Raja has enjoyed a smooth road to profitability. The company’s sales have grown at a 3-year CAGR of 11.2%, while the net profit at 9.5%.
The RoCE and RoE has been strong, averaging 20.7% and 15.1% over four years.
To know more about the company, check out its financial factsheet and latest financial results.
3 Kabra Extrusion Technik
Kabra Extrusion Technik is India’s largest manufacturer of plastic extrusion machines, with a market share of over 40%.
In 2021, Kabra (KET) recognized the potential of the lithium-ion battery market and strategically ventured into its manufacturing through its newly formed battery division, Battrixx.
This strategic move is already paying off, with Battrixx contributing over half (52%) of the company’s revenue as of the first half of FY24, surpassing the legacy extrusion segment (47%).
Despite holding a 15% market share in the battery market by December 2022, the company anticipates further growth, particularly in the lithium-ion battery sector, driven by its strong presence.
Battrixx acquired Varos Technology in March 2022, a company specializing in IoT tools for EV infrastructure and battery management systems.
Battrixx’s collaboration with OEMs and exploration of energy storage systems in the two and three-wheeler segments indicates promising growth prospects for the company in the EV industry.
Kabra Extrusion Technik Financial Snapshot (2019-23)
| 2018-2019 | 2019-2020 | 2020-2021 | 2021-2022 | 2022-2023 | |
| Revenue Growth % | -2.17% | -15.82% | 25.08% | 46.31% | 64.86% |
| Operating Profit Margin % | 16.56% | 7.02% | 15.79% | 14.09% | 11.53% |
| Net Profit Margin % | 9.98% | 3.39% | 8.89% | 7.40% | 5.60% |
| Return on Capital Employed | 13.54% | 3.01% | 12.24% | 13.40% | 14.99% |
| Return on Equity % | 10.21% | 3.12% | 9.63% | 9.9% | 10.53% |
Between 2018-2023, the company’s revenue and net profit have grown at a 5-year CAGR of 20% and 13.3%, respectively.
The 5-year average RoCE and RoE stand at 11.4% and 8.%, respectively. The balance sheet is strong, with negligible debt on its books.
To know more about the company, check out its financial factsheet and latest financial results.
4 Himadri Specialty Chemicals
Himadri Specialty Chemicals, renowned for its high-quality pipes, fittings, and unmatched expertise in uPVC (unplasticized polyvinyl chloride) technology, is extending its vision beyond traditional building materials.
In December 2023, the company announced that it will invest a massive Rs 48 bn over the next 5-6 years to set up a manufacturing facility for lithium-ion battery components.
The new capacity will boast a total annual production capacity of 200,000 tonnes, either directly or through its subsidiaries.
This move is expected to help in the indigenisation of lithium-ion battery raw materials for global and India’s EV & energy storage system (ESS).
Apart from this greenfield initiative, the company is also making acquisitions. In 2023, the company acquired a 12.7% stake in an Australian startup – Sicona Battery Technologies.
Sicona specializes in high-capacity silicon anode technology for lithium-ion batteries used in EVs.
Himadri is also in talks with the Ministry of Power to apply for the PLI scheme for grid-scale batteries.
Himadri Specialty Chemicals Financial Snapshot (2019-23)
|  | 2018-2019 | 2019-2020 | 2020-2021 | 2021-2022 | 2022-2023 |
| Revenue Growth % | 19.49% | -25.36% | -6.63% | 65.25% | 50.07% |
| Operating Profit Margin % | 23.43% | 15.97% | 6.63% | 5.83% | 10.24% |
| Net Profit Margin % | 13.36% | 11.37% | 2.81% | 1.40% | 5.17% |
| Return on Capital Employed % | 25.49% | 11.46% | 4.13% | 3.59% | 12.45% |
| Return on Equity % | 21.31% | 12.22% | 2.69% | 2.14% | 10.49% |
Between 2018-2023, the sales have reported a 5-year CAGR of 15.6%.
The RoCE and RoE have averaged 11.4% and 9.8%, respectively, over the same period.
To know more about the company, check out its financial factsheet and latest financial results.
