To our Shareholders
It's time to reflect on the year's journey and share insights
into our performance and strategic direction. As we look back on the past year, at Exide,
we focused on new initiatives across verticals with an objective to re-energise ourselves
as a driving force for a sustainable future.
Evolving economic and industry landscape
Reflecting on the past year, the global economic landscape presents a
complex picture marked by geopolitical uncertainties and a restructuring of trade
relations. Global GDP achieved a growth rate of 3.3% in calendar year (CY) 2024 as per the
IMF, with growth driven by United States and emerging markets. For the next two years,
global growth is projected to be moderate with countries trying to maintain a balance
between inflation and economic growth.
Amid this evolving global scenario, India continues to register growth
ahead of other nations. The country's consumption story continues to gather momentum
with budgetary and non-budgetary support from the government. Going ahead, with ambitious
targets to become a $7 trillion economy by 2030, India is projected to maintain its
position as one of the fastest-growing major economies. This encouraging domestic
performance provides a strong foundation for our operations and future prospects.
The global energy landscape is also evolving, with increasing emphasis
on sustainability and diversification. While the shift towards electric vehicles (EVs) is
undeniable, the past year revealed a more nuanced picture. Compared to the global
scenario, India has a relatively low vehicle penetration. The scope of growth in this area
is strong, as India's economic trajectory is creating a conducive environment for
vehicle ownership.
Given the sheer scale of the addressable gap in vehicle penetration in
India vs. other developed nations, along with growing infrastructure and business demand,
opportunities for energy and energy storage solutions are large. Therefore, our businesses
are poised for continued growth, with demand remaining steady and resilient. Our core
lead-acid battery business continues to bring us great value and we are strategically
investing significant capital in emerging technologies like lithium-ion batteries to
leverage opportunities. In line with this vision, we undertook a comprehensive business
realignment to sharpen our go-to-market approach. The portfolio has been reorganised
across three focused clusters: Trade (B2C), Institutional (B2B) and International. The
senior leadership team, comprising the best talents in the industry, has been put in
place. We have complemented this structure with cost optimisation initiatives, factory
automation, supply chain improvements and process digitisation to strengthen our
operational foundation and drive execution excellence.
Upholding resilient performance
Our focus on creating a financially sustainable and profitable
organisation is well established. Despite the backdrop of global economic shifts and
geopolitical uncertainties, as previously mentioned, Exide has exhibited resilience and
stability in its financial performance during the current financial year. In FY 2024-25,
we registered standalone revenues of H 16,588 Crore and delivered PBT of H 1,441 Crore,
We undertook a comprehensive business realignment to sharpen our
go-to-market approach. The portfolio has been reorganised across three focused clusters:
Trade (B2C), Institutional (B2B) and International.
Our investments in lithium-ion technology, coupled with the enduring
strength of our lead-acid battery business, position us uniquely to cater to the evolving
energy needs of the market.
showcasing our ability to navigate potential headwinds.
Marching on strategically
Beyond our core business, we are determined to secure the future both
for ourselves and our stakeholders. In India, demand for lithium-ion batteries is being
driven by rising demand for electric vehicles with the objective to build a
sustainability-conscious population. Government policies and initiatives also aim to
support domestic manufacturing and secure critical mineral supply chains. Exide is
invested in the lithium-ion cell manufacturing business, through its wholly owned
subsidiary, Exide Energy Solutions Limited (EESL). The Project is at an advanced stage and
is expected to complete in the next few months. Commercial production will start by the
end of FY 2025-26.
As part of our long-term energy transition strategy, EESL has forged
strategic partnership with a leading Indian passenger vehicle manufacturer to jointly
develop and supply lithium-ion battery cells. We also have a range of commitments secured,
ranging from MOUs to packs-in-production to co-investments, with the leading e-2wheeler,
e-3wheeler and e-4wheeler OEMs.
Playing a greater societal role
Beyond our business operations and financial performance, we recognise
the significant societal role that Exide plays. As a critical component supplier to the
mobility business, we are an essential contributor to India's manufacturing
ecosystem, contributing to its growth and development.
Our Corporate Social Responsibility initiatives emphasise sustainable
development and community empowerment. We focus on education, healthcare, employability,
environmental stewardship and inclusivity. Through targeted programs, we have positively
impacted more than 3.75 lakh people across seven states during the year, aligning with
national development goals and the Sustainable Development Goals. By investing in
communities surrounding our operations and beyond, we strengthen our social fabric and
contribute to a more equitable future.
Aligned with our broader societal role, we continue to strengthen our
environmental performance with measurable outcomes. Our ESG journey continues to be shaped
by a systemic approach to circularity and resource optimisation. 75% of our total lead and
lead-alloys requirements were met through recycled inputs. We source more than 50% of our
total lead requirement through the recycled lead from our subsidiary Chloride Metals
Limited epitomising our belief in circularity in operations and lowering our environmental
impact. In parallel, we are advancing renewable energy use and strengthening workplace
health, safety and environmental standards across sites. We are also working to change the
traditionally male-dominated manufacturing sector by increasing the representation of
women in key roles. This is supported by dedicated safety protocols and inclusive
facilities that ensure a secure and enabling environment for our female workforce.
Looking Ahead
Looking ahead, we are filled with optimism and a clear sense of
direction. Our focus on building a sustainable and future-proof organisation permeates
every aspect of our operations, from product development to manufacturing processes. We
anticipate significant opportunities arising from the global shift towards sustainability
and India's ambitious growth trajectory. Our investments in lithium-ion technology,
coupled with the enduring strength of our lead-acid battery business, position us uniquely
to cater to the evolving energy needs of the market. Over the decades, Exide has earned
its position through enduring brand strength, a wide-reaching distribution network,
consistent product quality and dependable after-sales support. These core elements
continue to underpin our performance and stakeholder trust.
In conclusion, I extend my sincere gratitude to all our stakeholders,
including our investors, customers, employees and channel partners for your sustained
confidence, continued partnership and your invaluable collaboration. We are confident that
Exide Industries is strongly positioned to navigate the evolving energy landscape and
deliver sustained value creation. We look forward to your continued support on this
exciting journey.
| Regards, |
| Sridhar Gorthi |
| Chairman |