Auto battery manufacturer Exide Industries is in the process of increasing the total limit of corporate guarantees to be availed by its subsidiary Exide Energy Solutions Limited (EESL), by Rs 1,000 crore.
The corporate guarantee limit for its wholly-owned subsidiary Exide Energy Solutions will be increased from Rs 2,000 to Rs 3,000 crore.
As part of the exercise, the company has executed a deed of corporate guarantee with ICICI Bank Limited, thus totaling an overall limit of Rs 750 crore in proportion to their sanctioned facility, which is valid until the facility gets repaid in full.
The company is in the process of executing the agreements for balance amounts with various other banks, the company said in a regulatory filing.
The Kolkata-based Exide Energy Solutions Limited (EESL), which was incorporated in March 2022, is in the business of manufacturing battery cells of advanced chemistry and form factor, including cylindrical, pouch, prismatic, and battery cells, as well as manufacturing, assembling, selling battery modules, battery packs, and other related activities.
The development comes even as Exide Industries has been taking strides in the electric vehicle (EV) space with the establishment of a 6 GWh lithium cell manufacturing facility in collaboration with SVOLT.
This move aligns with the company's anticipation of a surge in lithium battery demand, projected to reach 40–50 GWh by 2025 and 150–160 GWh by 2030. The facility is expected to commence pilot production by Q4 FY25, with a vision for an eventual ramp-up to 12 GWh.