Exide Industries Limitedhas announced that it has increased its stake in its lithium battery joint venture with Leclanché, a Swiss energy storage company to 80.15 per cent from its previous stake of 77.87 per cent. The battery manufacturer reported that it had invested Rs 331.7 million to purchase equity shares of the JV. The company acquired 13.26 million equity shares at Rs 10 at a premium of Rs 15 each with the new investment. Further, it was reported that the company invested to satisfy its funding requirement, particularly for future capital expenditure to be undertaken by the JV.
The joint venture was formed in June 2018 between the two companies to install lithium-ion batteries and develop energy storage solutions for India’s growing electric vehicle demand as well as grid applications. As per the JV agreement, Exide Industries Limited would use its sales network and brand to promote and distribute the battery storage technologies developed by Leclanché. Further, the JV would set up a module and battery pack assembly line and a lithium-ion cell production plant in Gujarat. As of March 31, 2020, the JV had reported a net worth of Rs 1.45 billion.
In April 2019, Exide Industries Limited entered into a three share subscription and shareholder agreements with Cleantech Solar for the development of captive solar capacities at its factories. In January 2019, the manufacturer announced that it would invest 30 per cent of its share capital for the development of captive solar projects at its manufacturing units.