Exide Industries Limited (EIL) has announced an investment of Rs. 1 billion (US$ 12 million) in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), through a rights issue.

This brings EIL's total equity investment in EESL to Rs. 37 billion. The shareholding of Exide in the subsidiary remains unchanged at 100%.

The investment was made by subscribing to 25 million equity shares of Rs. 10 each, at a premium of Rs. 30 per share. The transaction, categorised as a related-party transaction, was executed at arm's length, according to the company's disclosure filed with Indian stock exchanges.

Incorporated in March 2022, EESL is leading Exide's entry into the lithium-ion battery segment. The company is engaged in the manufacture and sale of battery cells, modules, and packs for electric vehicle (EV) and stationary storage applications.

The latest capital infusion is intended to support the development of EESL's greenfield manufacturing facility in Bengaluru - an important component of Exide's strategy to localise and scale battery cell production in India.

For the financial year 2024-25, EESL reported a turnover of Rs. 1.16 billion and a net loss of Rs. 2.09 billion.

As of 31st March 2025, the company's paid-up capital stands at Rs. 12.29 billion, with a net worth of Rs. 27.38 billion. The current investment also includes previous capital infusions made into Exide Energy Private Limited (EEPL), which has since been merged with EESL.

Exide's strategic commitment to lithium-ion battery technology signifies a major transition for the company, which has traditionally focused on lead-acid batteries. The upcoming Bengaluru facility is expected to bolster the domestic EV supply chain and reduce India's dependence on imported cells.