CHAPTER 1 INTRODUCTION

1.1Introduction

Lead acid batteries were invented in 1859 by Gaston Planté and first demonstrated to the

French Academy of Sciences in 1860. They remain the technology of choice for automotive SLI

(Starting, Lighting and Ignition) applications because they are robust, tolerant to abuse, tried and

tested and because of their low cost. For higher power applications with intermittent loads

however, Lead acid batteries are generally too big and heavy and they suffer from a shorter cycle

life and typical usable power down to only 50% Depth of Discharge (DOD). Despite these

shortcomings Lead acid batteries are still being specified for PowerNet applications (36 Volts 2

kWh capacity) because of the cost, but this is probably the limit of their applicability and NiMH

and Li-Ion batteries are making inroads into this market. For higher voltages and cyclic loads

other technologies are being explored.

 

Lead-acid batteries store energy using a reversible chemical reaction between lead plates and

dilute sulphuric acid (electrolyte). Lead Acid batteries can be used for different applications such

as starter batteries: used to start engines in cars etc, deep-cycle batteries: used in renewable

energy applications and camping etc, and marine batteries: used both for starting and for deep

cycle applications.

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BASICS

The Lead Acid battery is made up of plates, lead, and lead oxide (various other elements are

used to change density, hardness, porosity, etc.) with a 35% sulfuric acid and 65% water

solution. This solution is called electrolyte, which causes a chemical reaction that produce

electrons. Wet Cell (flooded), Gel Cell, and Absorbed Glass Mat (AGM) are various versions of

the lead acid battery. The Wet cell can be in two styles; low Maintenance and Maintenance free.

The Gel Cell and the AGM batteries are special versions of lead acid batteries superior to a wet

cell, suitable for versatile applications such as Marine, RV, Solar, Audio, Power Sports and

Stand-By Power. They are also called as Valve Regulated Lead Acid" batteries.

INSIDE A LEAD ACID BATTERY

A typical 12 volt lead acid battery is actually made up of six identical 2 volt cells. In a lead-

acid cell the active materials are lead dioxide (PbO2) in the positive plate, sponge lead (Pb) in

the negative plate, and a solution of sulfuric acid (H2SO4) in water as the electrolyte.

Lead dioxide plates react with the acid to form lead sulphate giving up electrons (leaving the

plate positive). The pure lead plates (linked to the negative terminal of the battery) react with the

sulphate ions to also form lead sulphate. The purelead plates therefore supply two positive

charges and so are left negative. The passage of electons from the lead oxide plates to the

pure lead plates is the current of electricity generated by the cell which can be used. When

the battery is recharged, the lead sulphate in each cell is broken down resulting in lead dioxide

being redeposited on the positive electrode, and lead being replaced on the negative electrode.

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1.2 WHAT CAN A BATTERY DO?

A battery can do one or more of the following things:-

First, and most common in the minds of the general public, is to start an engine. Here, the

battery delivers a short burst of high amplitude electric current to energize the starter motor that

turns the crankshaft on an internal combustion engine. In general, these types of batteries are

called SLI, which stands for Starting Lighting & Ignition.

Second, the battery can sit for months or years in a stand-by mode waiting to provide back up

power when there is a power outage from the utility company. When the battery supplies its

power as a backup, it may discharge completely or only very slightly. Then it is recharged when

the power comes back on, and then it again sits idle for long periods of time. Actually, this

application is very common, particularly now with the literal explosion (not to be confused with

rapid disassembly) of new applications within the telecommunications industry. 

Third, the battery can deliver the majority of its capacity repeatedly, possibly on a daily basis.

This is called a deep-cycle application. Typical examples of this type of use are electric vehicles:

cars, busses, golf carts, bicycles, and scooters; industrial applications like electric forklifts (also

an electric vehicle); and marine applications like running trolling motors.

Deep cycle applications where the battery supplies electric power to portable equipment include

medical equipment like EKG machines and respiratory monitors, electronic test and data

collection equipment used in industrial settings, telecommunications equipment and a wide range

of other types of equipment. The electric vehicle (EV) applications are the most strenuous on the

battery pack. In some respects, the EV application is like a combination of engine start and deep

cycle.

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The current draw from the battery pack could be very high, at several hundred amps when the

vehicle begins to move from a dead stop, during acceleration, and climbing hills. Other times,

the current draw may be steady at a much lower value, possibly less than 50 amps when the

vehicle is coasting or traveling at a steady speed. Most batteries do 1 of these 3 things very well,

either engine start, standby, or deep cycle. Occasionally, a battery can perform 2 of these

functions well. Usually engine start and stand-by are the applications that can be handled by a

single battery style. Although there has been much research and development in the last 10 years

to optimize battery performance for EV applications, it is very rare that any battery style can do

all 3 things equally well. 

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1.3 CHARACTERISTIC OF LEAD ACID BATTERY

Charge

During charging, the cycle is reversed: the lead sulfate and water are electro-chemically

converted to lead, lead oxide and sulfuric acid by an external electrical charging source.

Many new competitive cell chemistries are being developed to meet the requirements of

the auto industry for EV and HEV applications.

Discharge

During discharge, the lead dioxide (positive plate) and lead (negative plate) react with the

electrolyte of sulfuric acid to create lead sulfate, water and energy.

Shortcomings

Very heavy and bulky.

Typical coulombic charge efficiency only 70% but can be as high as 85%to 90% for

special designs.

Danger of overheating during charging

Not suitable for fast charging

Typical cycle life 300 to 500 cycles .

Must be stored in a charged state once the electrolyte has been introduced to avoid

deterioration of the active chemicals.

Gassing is the production and release of bubbles of hydrogen and oxygen due to the

breakdown of water in the electrolyte during the charging process, particularly due to

excessive charging, causing loss of electrolyte. In large battery installations this can cause

an explosive atmosphere in the battery room. Because of the loss of electrolyte, Lead acid

batteries need regular topping up with water. Sealed batteries however are designed to

retain and recombine these gases. (See VRLA below)

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Sulphation may occur if a battery is stored for prolonged periods in a completely

discharged state or very low state of charge, or if it is never fully charged, or if electrolyte

has become abnormally low due to excessive water loss from overcharging and/or

evaporation. Sulphation is the increase in internal resistance of the battery due to the

formation of large lead sulphate crystals which are not readily reconverted back to lead,

lead dioxide and sulphuric acid during re-charging. In extreme cases the large crystals may

cause distortion and shorting of the plates. Sometimes sulphation can be corrected by

charging very slowly (at low current) at a higher than normal voltage.

Completely discharging the battery may cause irreparable damage.

Shedding or loss of material from the plates may occur due to excessive charge rates or

excessive cycling. The result is chunks of lead on the bottom of the cell, and actual holes

in the plates for which there is no cure. This is more likely to occur in SLI batteries whose

plates are composed of a Lead "sponge", similar in appearance to a very fine foam sponge.

This gives a very large surface area enabling high power handling, but if deep cycled, this

sponge will quickly be consumed and fall to the bottom of the cells.

Decomposition of the Electrolyte Cells with gelled electrolyte are prone to deterioration

of the electrolyte and unexpected failure. Such cells are commonly used for emergency

applications such as UPS back up in case of loss of mains power. So as not to be caught

unawares by an unreliable battery in an emergency situation, it is advisable to incorporate

some form of regular self test into the battery.

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Applications

Automotive and traction applications.

Standby/Back-up/Emergency power for electrical installations.

Submarines

UPS (Uninterruptible Power Supplies)

Lighting

High current drain applications.

Sealed battery types available for use in portable equipment.

Costs

Low cost

Flooded lead acid cells are one of the least expensive sources of battery

Power available.

Deep cycle cells may cost up to double the price of the equivalent flooded cells.

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1.4 Advantages

Low cost.

Reliable. Over 140 years of development.

Robust. Tolerant to abuse.

Tolerant to overcharging.

Low internal impedance.

Can deliver very high currents.

Indefinite shelf life if stored without electrolyte.

Can be left on trickle or float charge for prolonged periods.

Wide range of sizes and capacities available.

Many suppliers world wide.

The world's most recycled product.

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1.5 Subsidiaries

1. Chloride International Limited ("CIL"):

CIL was incorporated on 31st January, 1947 under the name Exide Batteries (Eastern)

Limited which was subsequently changed to ‘Chloride & Exide Batteries (Eastern)

Limited on 11th February, 1948. It was later changed to Exide Products Limited on 2nd

April, 1981 and lastly changed to Chloride International Limited on 14th November,

2003. The CIN of CIL is L31402WB1947PLC014918. The Registered Office of CIL is

situated at Exide House, 59E Chowringhee Road, Kolkata – 700 020. CIL is a 100 per

cent subsidiary of Exide Industries Limited. It is engaged in non conventional energy

business.

2. Chloride Power Systems & Solutions Ltd ("CPSSL"):

CPSSL was incorporated on 16th day of June, 1980 and it is engaged in the business of

high end chargers for industrial use. The CIN of CPSSL  is

U29221WB1980PLC032796.  CPSSL is a 100 per cent subsidiary of Exide Industries

Limited. The Registered Office of CPSSL is situated at Plot No. Y-21, Block EP, Sector

V, Salt Lake Electronics Complex, Bidhannagar, Kolkata – 700 091.

3. Chloride Metals Ltd ("CML"):

The Company acquired 100 % stake of CML making it a wholly owned subsidiary w.e.f.

1st November 2007. CML was incorporated on 14th December, 1998 under the Indian

Companies Act, 1956. The Registered Office of CML is situated at Exide House; 59E

Chowringhee Road; Kolkata 700020.

4. Chloride Alloys India Ltd ("CAIL"):

The Company acquired 51% stake of CAIL (formerly Leadage Alloys India Ltd) in June

2008. The balance 49 per cent stake was acquired in 2010 to make it a 100 per cent

subsidiary. CAIL was incorporated on 25th September, 2002 under the Indian Companies

Act, 1956. The Registered Office of CAIL is situated at Exide House; 59E Chowringhee

Road; Kolkata 700020. Chloride Alloys India is engaged in manufacture and supply of

recycled lead.

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5. Chloride Batteries S E Asia Pvt Limited (“CBSEA”):

CBSEA was incorporated on 4th September, 1958 under the laws of Singapore under the

name “The Chloride Electrical Storage Company Far East Limited” on 4th September,

1958 which was subsequently changed to ‘Chloride Batteries S E Asia Pvt Limited on 4th

December, 1969.  CBSEA is a 100 per cent subsidiary of Exide Industries Limited. The

registered office of CBSEA is located at 106 Neythal Road, Jurong Town, Singapore 628

594. The principal activities of CBSEA comprise production and distribution of industrial

battery chargers, rectifiers and parts thereof and the distribution of industrial and

automotive batteries. 

6. Espex Batteries Limited (“ESPEX”):

ESPEX was incorporated on 8th January, 2003 under the Companies Act, 1985 of UK.

The Registered Office of ESPEX is situated at Clipper Road, Roath Dock, and Cardiff

CF10 4EW, UK.  ESPEX is engaged in supply of industrial batteries in UK and its

neighboring areas. 

7. Associated Battery Manufacturers (Ceylon) Limited (“ABML”):

ABML was incorporated on 6th May, 1960 under the laws of Sri Lanka. The registered

office of ABML is situated at 481 T B Jayah Mawatha, Colombo 10, Sri Lanka.

ABML is engaged in the manufacture of Lead acid automotive and motorcycle batteries.

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CHAPTER 2 THE INDIAN LEAD ACID BATTERY MARKET-

OVERVIEW

The past couple of years have been a roller-coaster ride for players in the Indian lead acid battery

market. From being powered by a virtual monopoly, this market has witnessed a slew of new

product introductions, technology innovations, the emergence of domestic competition, joint

ventures, and corporate consolidations that have totally altered its landscape.

2.1 Market Spectrums

The lead acid battery market can be divided into two broad market spectrums: INDUSTRIAL

AND AUTOMOTIVE BATTERIES.

INDUSTRIAL BATTERY SEGMENT

Compared to the automotive battery market, the industrial market is a steadier, growing

market. Batteries here are used as a rugged high-drain standby source of power. These can be

used for moving power and stationary applications. Moving power application batteries are used

in trains, forklifts, submarines, etc. the demand for stationary batteries is substantially higher and

these are used in applications such as ups systems, telecommunication networks, power plants,

etc.

Industrial batteries are of three types - conventional flooded (lead acid) batteries, valve regulated

lead acid (vrla) batteries, and nickel cadmium batteries. Vrla batteries have, within a very short

period of time, gained leadership as the highest selling industrial batteries, replacing

conventional batteries. The vrla battery works on the principal of valve venting, by which gas

discharge produced in chemical reactions inside the battery is safely released thereby averting

potential explosions.

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With the emergence of India as an it super power and the liberalization of the wired and wireless

telecom sector, there has been a swift rise in deployment of computer and communication

networks at infrastructural and organizational levels. This has augmented the demand for

industrial batteries, and this trend is only bound to increase as India continues to develop the

service sector that includes call centers, data centers, banking networks, etc.

The industrial battery market has a few established players as capital investment in technology

and the manufacture of these batteries is considerably high, compared to investment in the

automotive battery industry. The per-unit realization is also substantially higher than that of

automotive batteries, but the frequency of purchase is limited. This also acts as a barrier for

players in the unorganized sector to enter this market. Amara Raja Batteries is a strong player in

the industrial battery segment.

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AUTOMOTIVE BATTERY SEGMENT

Liberalization of the Indian economy in the early 90’s brought about a phenomenal change in

the Indian automobile industry. Through joint ventures or completely owned forays, a number of

leading international auto giants have entered India and established their production bases. Their

demand for world-class batteries for their vehicles urged Indian battery manufacturers to tie up

with international players or buy technology, so as to upgrade their offerings to meet the high

standards expected.

With consolidation and growth being the maxim of most auto players today, we are seeing

increased participation and partnership of battery manufacturers with auto players in creating

battery solutions for new vehicle introductions.

The automotive segment contributes in excess of 55 percent of the total turnover of the Indian

lead acid battery market. automotive batteries are sli (start, light, and ignition) batteries, though

they are expected to fuel a greater number of functions including in-vehicle entertainment

systems, power steering, power locking, power window systems, etc. demand for auto batteries

can be divided into the oe (original equipment) market and the aftermarket segments. Growth in

the former is driven by automobile production in a concerned time frame.

This is a difficult segment to service as each automobile manufacturer has different

specifications for which the battery has to undertake mass customization. Additionally, margins

for battery manufacturers are usually thin in this segment due to the bargaining power of the auto

majors. However, inherent advantages such as a steady source of production and revenue, and

strong brand recall during battery replacement make this an attractive segment for battery

manufacturers.

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The past couple of years have been bumpy in the automotive sector. This has reflected in the

performance of the battery market. While there has been a drop in hcv and lcv (heavy and light

commercial vehicles) segment sales, there has been an increase in sales in the passenger car and

two-wheeler segments. Though this has not offset the sales loss, it has helped soften the blow.

The replacement market has a sizeable small player component - as this was traditionally in the

realm of the small scale sector. These players have hence been able to offer new/reconditioned

unbranded or lesser known branded batteries at very attractive rates. The replacement market is

where the margins are, and hence battery majors are now paying a lot of attention to this

segment. With the introduction of sealed long-life batteries by these players in the oe and

replacement market segments, there could be a drop in battery sales in the replacement market

for relatively new vehicles. However, this market is still substantial, considering that the

discerning Indian vehicle owner is today more quality and brand conscious and hence willing to

pay more to be free from battery problems.

The market leader in this automotive battery segment is Exide industries limited. The other

players include Tudor India and Amco batteries. Amara Raja batteries, a relatively new player in

the auto battery segment, have made very impressive inroads into the market.

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2.2 PROFILE OF MAJOR PLAYERS IN INDIA

EXIDE INDUSTRIES LIMITED (EIL)

EIL is the overall leader in the Indian lead acid batteries market. Not to be

confused with Exide Corporation of the United States, this organization traces its origins

to Chloride Industries U.K. and is currently owned by the Rajan Raheja group.

Being one of the oldest players in the market, EIL's biggest strengths include its strong

brand recall, its presence in all business segments of the battery market, and its wide

reach of dealers. With timed acquisitions of the lead acid battery business of Standard

Batteries in India, and recent acquisitions in Singapore and Sri Lanka, EIL has ensured

that it has leadership position in all segments of the market- especially in the OEM

segment of the automotive battery market. EIL has forayed into the maintenance-free

battery segment with the Exide Freedom range of batteries, which is making impressive

inroads into the market. It also acquired a stake in a charger manufacturer to integrate this

segment, and is looking to backward integrate its operations by manufacturing separators.

EIL entered the VRLA segment of the industrial batteries market later than its

competition, but has been able to catch up. This was facilitated by a tie-up with Shin

Kobe, with whose assistance they have set up a modern production facility at Mysore in

South India recently.

EIL has always adopted innovative marketing and product strategies. Rural and semi-

urban India is still plagued with power shortage. EIL realized this potential and

introduced a range of products to cater to this segment. The company has also realized

the commercial potential of the Internet with an online portal -www.autoexide.com. EIL

manufactures batteries that find utility in disparate niche applications ranging from lights

for miners’ hats to submarine batteries. With its overseas investments and prestigious

orders from APC (American Power Conversion) Corporation to cater to a part of their

global requirements, EIL is poised to increase its international exposure.

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AMARA RAJA BATTERIES LTD. (ARBL)

A fast growing agile organization that has made rapid strides in the industrial

batteries market, with first player advantage in the VRLA segment. ARBL has a

considerably big industrial battery business, with supplies to the Department of

Telecommunications, the Indian Railways, etc. Realizing the need to create a presence in

the automotive segment, ARBL forayed into this segment with advanced high life

batteries such as Amaron in the recent past. This was facilitated by Johnson Controls

USA taking a stake in this company and the setting up of a state-of-the-art production

facility in Tirupati, South India. The company has redefined marketing in the replacement

market and focused on building a strong brand image for Amaron through its Pit Stop

range of outlets. ARBL has also commenced OE supplies to auto majors.

TUDOR INDIA

Tudor India is owned by Exide Corporation of USA through its British subsidiary

CMP Batteries. Tudor is a key player in the automotive battery aftermarket with its

Prestolite range of automotive batteries.

AMCO BATTERIES LTD

A member of the Amalgamation Group of Companies, is a well known and

trusted manufacturer of a wide range of Automotive Batteries. AMCO has been a pioneer

in this Industry and has been a brand to be reckoned with in the Battery Industry since

1955. The advent of new generation Japanese Motorcycles & Cars in India in 1984, saw

AMCO take significant steps in the upgradation of technologies to suit these new

generation motorcycles & Cars. The initial collaboration with YUASA of Japan made the

AMCO brand the preferred choice for all two wheeler manufacturers. AMCO supplies

batteries to all the leading OE’s in this industry – Honda, Hero Moto Corp India Ltd,

Bajaj, TVS, Yamaha, Royal Enfield etc. AMCO also supplies four wheeler batteries to

TAFE Tractors, Sonalika Tractors, VST Tiller Tractors Ltd,

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CHAPTER 3 INTRODUCTION TO EXIDE INDUSTRIES LTD

3.1 VISION

To win our customer, stakeholders and employees by transferring Quality into

Performance Oriented Business, this will secure Market Leadership and Profitable Growth

through Effective fulfillment of CUSTOMER NEEDS.

The Company was incorporated as Associated Battery Makers (Eastern) Ltd., on 31st January,

1947 under the Companies Act, 1913 to purchase all or any of the assets of the business of

manufacturers, buyers and sellers of and dealers in and repairers of electrical and chemical

appliances and goods carried on by the Chloride Electric Storage Company (India) Ltd, in India ,

since 1916 with a view thereto to enter into and carry into effect (either with or without

modification) an agreement which had already been prepared and was expressed to be made

between the Chloride Electric Storage Co (India) Ltd on the one part and the Company of the

other part. The name of the Company was changed to Chloride India Ltd on 2nd August, 1972.

The name of the Company was again changed to Chloride Industries Ltd. vide fresh Certificate

of Incorporation dated 12th October, 1988. The name of the Company was further changed to

Exide Industries Ltd. on 25th August, 1995.

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The Company manufactures the widest range of storage batteries in the world from 2.5 Ah to

20,400 Ah capacity, covering the broadest spectrum of applications. The Company has six

factories strategically located across the country – two in Maharashtra, one in West Bengal, two

in Tamil Nadu and one in Haryana. The Company’s predecessor carried on their operations as

import house from 1916 under the name Chloride Electrical Storage Company. Thereafter, the

Company started manufacturing storage batteries in the country and have grown to become one

of the largest manufacturer and exporter of batteries in the sub-continent today. Exide separated

from its UK-based parent, Chloride Group Plc., in 1989, after the latter divested its ownership in

favour of a group of Indian shareholders. The Company has grown steadily, modernized its

manufacturing processes and taken initiatives on the service front. Constant innovations have

helped the Company to produce the world’s largest range of industrial batteries extending from

2.5 Ah to 15000 Ah and covering various technology configurations.

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3.2 The vision, mission and core value statement of Exide.

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3.3 EXIDE IN INDIA

In India, as in many other erstwhile colonies of Great Britain, Exide batteries were

imported for many years before the Chloride Electrical Storage Company (CESCO) was

finally set up in 1916. It started only as an assembling and manufacturing facility and the first

manufacturing unit was set up in Shamnagar in 1947. This marks the momentous entry of

Associated Battery Makers Eastern Limited (ABMEL) in the Indian industrial scenario.

For road vehicles, ABMEL's principle brands were Exide and Dagenite (used by Rolls

Royce) but the Company was changing its course on other tracks too. Exide "Iron Clad"

batteries powered the Railways and in 1963, following the Chinese aggression, the company

doubled its production of special defence batteries. The same year saw the manufacture of

large stationery batteries for railway track electrification.

The rapid rate of expansion is seen with the establishment of a second factory in 1969 at

Chinchwad, Maharashtra to cater to the growing demand for automobile batteries and was

strategically established near automobile Original Equipment Manufacturers (OEMs).

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3.4 BATTERY MARKET IN INDIA

The Battery Industry in India, which is worth Rs. 1,600 cr, has a market size of 2000

million units. The industry is dominated by dry carbon cell batteries and the demand to a large

extent is from the rural areas. The Industry Focus highlights the classification of the battery

market and the product portfolios of the domestic players in India. It also throws light on the

recent developments like cheaper Chinese products being available and the market for

rechargeable batteries growing at a rapid pace, which have affected the industry players.

The demand for batteries, which has been fuelled by increase in the usage of small pocket radios

and high-powered cameras, has improved dramatically. The shift, in the nature of demand (from

D size batteries to pencil size batteries) has also brought in a drastic change in the demand

pattern.

Eveready Industries leads the Indian dry carbon cell market with over 40% market share. Though

Eveready is a strong national player, Nippo has a prominent presence in the southern region.

Novino, on the other hand, has a strong presence in certain pockets in the northern region, while

BPL, a new entrant, has also managed to garner sizeable market share.

The alkaline battery market only accounts for 5% of the total market. This is because the alkaline

battery costs twice as much as a traditional zinc carbon battery. The higher pricing is due to the

relatively higher cost of production. Contrary to the global trend, the higher price of alkaline

battery has dampened the market's growth in India. Alkaline batteries in developed countries

account for more than 70% of the battery market. The alkaline segment in India is dominated by

the global brands: Duracell and Energizer.

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Lead acid battery technology has been in use for over 100 years, widely used as secondary

storage device. The popularity of lead acid batteries is attributed to

Maturity of the technology

Low maintenance costs

Low cost of materials

Widespread recycling of lead

Relatively wide temperature range for both cycling and non-cycling applications.

The commercial lead acid battery market is almost totally driven by automotive and stand-by

power applications, although they are also used in portable computers and communications

devices. Automotive Market OEM Segment The Indian automobile battery industry is about

Rs.900 crore as on June 20 2009. The automotive battery market is divided into the OEM

market and replacement market. The OEM market is catered to by established companies like

Exide, Amara Raja etc. Rapid increase in demand for automobiles in the recent past has created

higher demand for batteries and will continue to present growth opportunities for lead acid

battery industry. Replacement Market The replacement market is dominated by the unorganized

players. The unorganized players make up about 55% of the market, while the organized players

account for the remaining 45% of the market. The market share for the organized players was

30% in this segment 4 years before. Exide and Amara Raja account for major part of the

organized market. We have analyzed Exide Batteries and Amara Raja Batteries the two largest

players in the Indian battery industry.

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INDUSTRY FINANCIAL PERFORMANCE

Rs. In Crores EXIDE BATTERIES AMARA RAJA BATTERIES

Year 2008 2007 2008 2007

Revenue 3605.9 2382.0 1349.9 745.1

EBITDA 479.1 320.1 184.8 92.9

EBITDA Margin 13% 13% 14% 12%

PAT 250.3 155.3 94.3 47

PAT Margin 7% 7% 7% 6%

Outstanding shares (no) 80.0 80.0 8.5 8.5

EPS (Rs.) 3.1 1.9 11.0 5.5

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3.5 TYPES OF PRODUCT

AUTOMOTIVE BATTERIES

In the domestic market, the Company sells its products under EXIDE, SF, SONIC and Standard

Furukawa Brands.’EXIDE’ and ‘SF” are its flagship brands. In the international market the

products are sold mainly under DYNEX, INDEX & SONIC brands. The Company supplies

batteries to almost all the car and two-wheeler manufacturers in the country.

The Company has a distribution network comprising over 4000 dealer outlets. These outlets are

supported by 4 regional offices and 28 branch offices. The Company also exports batteries to the

Middle East, Japan and CIS countries. The Company has a market share of 72% in case of

Automotive OEM and 70% in case of Organized Retail. The Company also manufactures

submarine batteries.

INDUSTRIAL BATTERIES

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Business

Automobive batteries Industrial batteries Submarine batteries

The Company designs and manufacture its industrial batteries in a wide range from 2.5 Ah to

20,600 Ah in conventional flooded and Valve Regulated Lead Acid (VRLA) design. In domestic

market, the Company sell its products mainly under EXIDE, INDEX, SF, CEIL & POWER

SAFE brands and in the international markets mainly under CEIL, CHLORIDE and INDEX

brands.

Industrial batteries are of three types, Conventional lead acid batteries, VRLA (Valve regulated

lead acid batteries) batteries and Nickel-Cadmium batteries. 

Both organized and unorganized players compete in the OEM and retail industrial battery

markets. Industrial batteries cater mostly to the infrastructure sector such as railways, telecom,

power plants, solar cells and other industrial segments such as uninterrupted power supply,

inverters and traction batteries. Exide’s Inva tubular batteries for Inverter applications were

introduced in 2000 and Tele tubular for Telecom Sector introduced in the year 2007 has created

volume growth.. The Company also manufactures industrial batteries for niche segments such as

miners’ cap lamp batteries and submarine batteries.

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SUBMARINE BATTERIES

The Company also manufactures high-end submarine batteries (Type 1, 2 & 3). The

Company manufactures two to three submarine batteries a year to meet the country’s defence

requirements. The Company is one of the five companies in the World which has the

capability to make submarine batteries for both Russian and German types. With the

government’s permission, in recent years, the Company has exported to Algeria.

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3.6 EXIDE INTERNATIONAL

The Company’s predecessor began its operations in 1916 as an import house called Chloride

electrical Storage Company. Since then, over the years, the Company has been steadily

progressing by taking necessary initiatives to modernize its manufacturing processes and by

constantly improving its customer services.

In the year 1994, the Company had entered into a technical collaboration with Shin Kobe

Electric Machinery Co. Ltd. of Japan, a subsidiary of the Hitachi Group. The main objective of

entering into this collaboration was accessing technology for the new automotive vehicles

entering the Indian market. Further in the year 1998, with an objective of increasing capacity

without the time lag in setting-up greenfield project the company acquired the Industrial

Undertakings of Standard Batteries Limited as a going concern. This acquisition strengthened its

production base as well as giving the Company access to technology from The Furukawa Battery

Company of Japan. On the marketing front, with an objective to get a global platform to expand

its business the Company acquired a 100% stake in Caldyne Automatics Ltd in July 2007 and

100% stake in Chloride Batteries S E Asia Pte Ltd., Singapore and 49% stake in Associated

Battery Manufacturers (Ceylon) Limited, Sri Lanka in the year 2001. The stake in Associated

Battery Manufacturers (Ceylon) Limited, Sri Lanka was increased to 61.5% by acquiring

additional 12.5% stake in 2004. The company has also acquired a 51% stake in ESPEX Batteries

Limited, U.K. and a 26% shareholding in Ceil Motive Power Pty Limited, Australia.

27

The Company has also acquired a 100% stake in Chloride Metals Ltd in October 2007. In June

2008 the company acquired a 51 per cent stake in Leadage Alloys India Ltd. Through these

continuous innovations and collaborations the Company has gradually risen to become one of the

largest manufacturers and exporters of batteries in the sub-continent today. The Company

manufactures the widest range of storage batteries in the world from 2.5 Ah to 20400 Ah

capacity, covering the broadest spectrum of applications. As on today, the Company has a

domestic market share of 45% in Industrial, 72% in Auto OE and 73% in replacement auto. The

Company being the domestic storage major is also one of the largest power storage solution

company in south East Asia. On the domestic front, the Company has six factories located across

India – 2 in the states of Maharashtra, 2 in the state of West Bengal, 1 in state of Tamil Nadu and

1 in the state of Haryana. The Company power most of the industrial and automotive segments in

the country and the products are used in critical applications in infrastructure and defense

sectors.

28

CHAPTER 4 COMPANY OVERVIEW

4.1 GOVERNANCE PHILOSOPHY OF COMPANY

Exide views Corporate Governance as a systemic process by which Companies are directed and

controlled to maximise their capacity to generate wealth. As large corporates use vast quantum

of societal resources, Exide believes that the governance process should ensure that these

Companies are managed in a manner that meets both stakeholders’ aspirations and societal

expectations.

Exide’s Corporate Governance initiative is based on two core principles:

i. Management must have the executive freedom to drive the organisation forward

without undue restraints; and

ii. ii. This freedom of management, however, should be exercised within a framework of

effective accountability and transparency.

Exide believes that any meaningful policy on Corporate Governance must provide empowerment

to the executive management of the Company, and simultaneously create a mechanism of checks

and balances which ensures that the decision making powers vested in the executive

management are used with care and responsibility and not misused.

Exide’s governance philosophy embraces the tenets of trusteeship, transparency, empowerment

and accountability, control and ethical corporate citizenship. Exide believes that the practice of

each of these tenets would lead to the creation of the right corporate culture in which the

Company is managed in a manner that fulfils the purpose of Corporate Governance.

Trusteeship recognises that large corporations have both an economic and a social purpose,

thereby casting he responsibility on the Board of Directors to protect and enhance shareholder

value, as well as fulfill obligations to other stakeholders.

29

Transparency requires that the Company makes appropriate disclosures where necessary and

explains the basis of its policies and actions to all those who are affected by them. Empowerment

is a process used to unleash creativity and innovation throughout the organisation by

decentralising and delegating the decision making powers at the most appropriate levels.

Control ensures that freedom of management is exercised within a framework of checks and

balances and is designed to prevent misuse of power, facilitate timely response to change and

ensure effective management of risks.

Exide’s Corporate Governance processes continuously reinforce and help actualise the

Company’s belief in ethical corporate citizenship and is manifest through exemplary standards of

ethical behaviour, both within the organisation as well as in external relationships.

30

4.2 GOVERNANCE STRUCTURE

The practice of Corporate Governance in Exide is at three interlinked levels:

i. Strategic supervision - by the Board of Directors

ii. Strategic management - by the Executive Committee

iii. Executive management - by the Divisional Head of the business

This three-tier structure ensures that strategic supervision on behalf of the shareholders being

free from the task of strategic management, can be conducted by the Board with objectivity

thereby sharpening accountability of the management. Further, strategic management being free

from the task of day-to-day executive management, remains focussed and energised. The

structure also ensures that executive management of the divisions, being free from the collective

strategic responsibilities for Exide as a whole, is focused on enhancing the quality, efficiency and

effectiveness of each business.

The core roles of the key entities flow from the structure. The core roles, in turn, determine the

core responsibilities of each entity. In order to discharge such responsibilities, each entity is

empowered formally with requisite powers.

The structure, processes and practice of governance enables focus on the Corporate purpose

while simultaneously facilitating effective management of the diverse businesses within the

portfolio.

31

4.3 CODE OF ETHICS

This Code of Ethics for Board of Directors and Senior Executives – VPs and above (the “code”)

of Exide Industries Limited (“the company”) helps in maintaining and following the standards of

business conduct of the company. The purpose of the code is to deter wrongdoing and promote

ethical conduct in the company. The matters covered in this code are of the utmost importance to

the company, its stakeholders and business partners. Further, these are essential so that we can

conduct our business in accordance with our stated values.

Ethical business conduct is critical to a business. Accordingly, executives of the company are

expected to read and understand this code, uphold these standards in day-to-day activities, and

comply with all applicable laws; rules and regulations and all applicable policies and procedures

adopted by the company that govern the conduct of its employees. For any further clarifications

they may contact Compliance Officer (Company Secretary) of the company.

The Board of Directors will approve this code and it would be applicable to each Director as

soon as it is approved by the Board. However, in case of VP and above executives of EIL, they

should sign the acknowledgment form at the end of this code and return the form to the

Compliance Officer indicating that they have received, read and understood, and agreed to

comply with the code. The signed acknowledgment form will be filed in each Officer’s

personnel files.

HONEST AND ETHICAL CONDUCT

All executives are expected to act in accordance with the highest standards of personal and

professional integrity, honesty and ethical conduct, while working on the company’s premises,

at company sponsored business and social events, or at any other place where executives

represent the companyor deception and conforming to the accepted professional standards.

Ethical conduct includes the ethical handling of actual or apparent conflicts of interest between

personal and professional relationships.

32

CONFLICTS OF INTEREST

An Officer’s duty to the company demands that he or she avoids and discloses actual and

apparent conflicts of interest. A conflict of interest exists where the interests or benefits of one

person or entity conflict with the interests or benefits of the company.

Examples include:

A. Employment / Outside employment. In consideration of employment with the company,

executives are expected to devote their full attention to the business interests of the

company. executives are prohibited from engaging in any activity that interferes with

their performance or responsibilities to the company, or is otherwise in conflict with or

prejudicial to the company. The company’s policies prohibit executives from accepting

simultaneous employment with suppliers, customers, or competitors of the company, or

from taking part in any activity that enhances or supports a competitor’s position.

Additionally, executives must disclose to the company’s Managing Director/ Audit

Committee, any interest that they have that may conflict with the business of the

company.

B. Outside directorships and employment. It is a conflict of interest to serve as a Director /

employee in any other organization which is doing the similar business in which the

company is engaged. Therefore, no Sr. Employee / Director of the company can serve in

any other organization as Employee/ Director of that organization which is doing the

similar business in which this company is engaged. However, any Employee / Director

of the company may with the prior written approval of the Managing Director / Board of

Directors of the company accept position of nonwholetime directors in any other

organization which is doing the similar business in which our company is engaged.

33

C. Related parties. As a general rule, executives should avoid conducting company business

with a relative, or with a business in which a relative is associated in any significant role.

Relatives include spouse, children, parents, grandparents, grandchildren, aunts, uncles,

nieces, nephews, cousins, step relationships, and in-laws. The company discourages the

employment of relatives of executives in positions or assignments within the same

department. Further, the company prohibits the employment of such individuals in

positions that have a financial dependence or influence (e.g., an auditing or control

relationship, or a supervisor / subordinate relationship).

D. Payments or gifts from others. Under no circumstances may executives accept any offer,

payment, promise to pay, or authorization to pay any money, gift, or anything of value

from customers, vendors, consultants, etc., that is perceived as intended, directly or

indirectly, to influence any business decision, any act or failure to act, any commitment

of fraud, or opportunity for the commitment of any fraud. Inexpensive gifts, infrequent

business meals, celebratory events and entertainment, provided that they are not

excessive or create an appearance of impropriety, do not violate this policy. Before

accepting anything which may not qualify as inexpensive or token gift from an

employee of any entity, the Compliance Officer may be contacted. Questions regarding

whether a particular payment or gift violates this policy are to be directed to the

Compliance Officer. Gifts given by the company to suppliers or customers, or received

from suppliers or customers, should be appropriate to the circumstances and should

never be of a kind that could create an appearance of impropriety. However, employees

may accept inexpensive gifts given during festive occasions such as puja/diwali or new

year.

E. Corporate opportunities. Executives may not exploit for their own personal gain the

opportunities that are discovered through the use of corporate property, information or

position, unless the opportunity is disclosed fully in writing to the company.

F. Other situations. Because other conflicts of interest may arise, it would be impractical to

attempt to list all possible situations. If a proposed transaction or situation raises any

questions or doubts, Executives must consult the Managing Director/Compliance

Officer.

34

CONNECTION WITH PRESS/TV/RADIO

The Chairman is the person who would normally interact with the media/ radio/ press other than

those authorities by him. No officer of the company can criticize the company in any article / in

radio/ TV broadcast etc.

DISCLOSURE

The company’s policy is to provide full, fair, accurate, timely, and understandable disclosure in

reports and documents that are filed with, or submitted to any outside agency and in our other

public communications. Accordingly, the executives must ensure that they and others in the

company comply with company’s disclosure controls and procedures, and our internal controls

for financial reporting.

COMPLIANCE WITH GOVERNMENTAL LAWS, RULES AND

REGULATIONS/INTERNAL COMPANY POLICIES

Executives must comply with all applicable governmental laws, rules and regulations.

Executives must acquire appropriate knowledge of the legal requirements relating to their duties

sufficient to enable them to recognize potential dangers, and to know when to seek advice.

Executives must comply with the company’s internal policies. HR Department will arrange

training for those employees who are discharging the functions relating to compliance with the

rules/ laws/ technical know and research & Development activities for their respective

departments.

35

VIOLATIONS OF THE CODE

Part of an Officer’s job and of his or her ethical responsibility, is to help enforce this code.

Executives should be alert to possible violations and report this to the Compliance

Officer/Managing Director. Executives must cooperate in any internal or external investigations

of possible violations. Reprisal, threat, retribution or retaliation against any person who has, in

good faith, reported a violation or a suspected violation of law, this code or other company

policies, or against any person who is assisting in any investigation or process with respect to

such a violation, is prohibited. Actual violations of law, this code, or company’s other policies or

procedures, should be promptly reported to the Compliance Officer/Managing Director. The

company will take appropriate action against any officer whose actions are found to violate the

code or any other policy of the company, after giving him a reasonable opportunity of being

heard. Where laws have been violated, the company will cooperate fully with the appropriate

authorities and regulators.

36

CHAPTER 5 MANUFACTURING

5.1 MANUFACTURING UNITS

With Six factories spread across the country, Exide’s range and scale of manufacturing

operations can be matched by very few companies in the world. Together, they produce an

annual output of 8 Million Units in Automobile batteries (including batteries for motor-cycle

applications), and over 600 Million Ampere-Hours of Industrial Power.

Apart from the conventional Flooded Flat Plate batteries for Automotive application, Exide also

produces industrial range of batteries, which includes, Flooded - Flat plate, Flooded - Tubular

plate, Flooded - Plante and Sealed Maintenance Free VRLA batteries. Miners’ Cap Lamp

Batteries are also produced. Exide is the only producer of Submarine batteries in India and one

of the few in the world. 

37

5.2 MANUFACTURING CAPACITY

Installed/Production Capacity – Factories:

Factories

Installed / Production Capacities

'000 Units Of Plates Million Amp-Hour

Automotiv

e

Motor-

CycleIndustrial Power

Shamnagar

(1946)600 - 140

Chinchwad

(19691,000 2,400 -

Haldia (1981) 1,000 - 160

Hosur (1997) 700 - 270

Taloja (1998) 750 600 -

Kanjurmarg

(1998)- - 15 (Submarine)

Guindy

(1998)- - 15

Bawal (2003) - 1,200 -

TOTAL 4,050 4,200 600

38

Installed/Production Capacity – Product/Applications:

Automotive Batteries 4,00,000 Nos. Per Month

Motor-Cycle Batteries 4,00,000 Nos. Per Month

Industrial Applications

Monoblock Batteries (Flat &

Tubular)30,000 Nos. Per Month

2Volt Tubular Cells 50,000 Nos. Per Month

6V-4Ah SMF VRLA Batteries 1,50,000 Nos. Per Month

12V-7/9Ah SMF VRLA

Batteries4,00,000 Nos. Per Month

Medium SMF VRLA Batteries 70,000 Nos. Per Month

2V Large SMF VRLA Cells 20,000 Nos. Per Month

Submarine Batteries 8 Nos. Per Month

Miners’ Cap Lamp Batteries 27,000 Nos. Per Month

39

5.3 MANUFACTURING PROCESS

In many critical sectors batteries are an essential requirement to start electrically operated

equipments or to keep it going when the mains fail. Railway, Defense, Mining, Hospitals,

Airlines, Tele-Communications, Power Stations and various Utility Industries - All depend on

Exide to fulfill their needs for start up, Motive Power or for Standby Power.

In recent years Exide has used its strength in battery technology to move into high potential areas

such as solar and integrated power systems, and batteries for electrical vehicles.

Exide uses latest world class manufacturing technology to produce Batteries for the above

applications. Its’ factories has all the modern equipments necessary to manufacture world-class

products. It also sources its components from the best Battery Component manufacturers in the

world.

A brief process out-line is as shown as per the diagram.

40

LEAD PROCUREMENT

PROCESS OUTLINE

Vendor Approval

Order

Testing in Receipt

Storage & Issue for Use

TESTING

Spectrophotometric Analysis for Composition and Impurities

41

ALLOY BLENDING

EQUIPMENT

Alloy Blending Pots – Made In India.

PROCEDURE

Lead, Antimony & Other Alloying ingredients are blended

in molten condition with the help of a stirrer. Temperature

of the blend is monitored through out the blending process.

TESTING

‘Optical Emission Spectrophotometry’ checks the composition of the alloy in the

laboratory before use. The Spectrophotometer is procured from Spectro, Germany.

42

OXIDE MANUFACTURING

EQUIPMENT

Ball Mill, Li – Shan, Taiwan & M-40 Mill, India.

PROCESS LAYOUT

Small cylindrical lumps of Pure Lead is fed into the

rotating mill shell. Air is blown over the lead lump

surface. The frictional heat converts the lead

surface of the lumps into Oxide.

PARAMETERS

‘Percentage Oxidation, Apparent Density, Water Absorption characteristics.

TESTING

The shell temperature, The load of the mill is continuously monitored to control the

outgoing Oxide quality.

43

GRID CASTING

EQUIPMENT

Grid Moulds & Casting M/c from WRITZ, USA.

PROCESS

Grids are cast for manufacturing of negative plates.

Antimonial lead made in house in the alloy

blending process is used for the casting.

Molten lead from alloy-blending pots is pumped

into a ladle which pours the molten metal into the moulds. The mould surfaces are coated

with cork.

PARAMETERS

Mould temperature and the Ladle temperature are controlled in the casting process.

TESTING

The weight of the casting is checked throughout the casting process. The castings are also

inspected for physical features.

44

PASTE MIXING

EQUIPMENT

Ox-Master, Simpson Mixer, India & Drums, India.

PROCESS OUTLINE

Lead oxide, expanders, water & sulphuric acid are

mixed in the mixer to form a paste. The mixer has

water & air-cooling arrangement for dissipating the heat generated during the mixing.

The mix on completion is taken in trolley, inspected and used in the plate pasting

operation.

TESTING

The paste mix is checked for the density, moisture content &, temperature.

45

PASTING & FLASH DRYING

EQUIPMENT

Pasting machine - MAC, USA Flash drying machine - MAC, USA Weighing scales – INDIA

Moisture balance equipment – INDIA

PROCESS OUTLINE

Grids are fed into the pasting machine by the

feeder arrangement of the machine. The paste is

added through the hopper.

TESTING

The pasted plate are weighed and tested for moisture content on samples.

46

LATE CURING

EQUIPMENT

Curing Oven, India

PROCESS OUTLINE

The pasted negative plates immediately after

pasting are kept inside the cubicle. The plates are kept for specified duration inside the

cubicle and then outside in ambient condition.

TESTING

The residual free lead in the plates is checked after completion of the curing period.

47

SPINE CASTING

EQUIPMENT

Machine & moulds from Hadi, Austria

PROCESS OUTLINE

Antimonial lead is used. Lead alloy is melted in a pot and then pumped up at high

pressure in a finely machined mould. The spine is trimmed and threaded into the gauntlet.

TESTING

The weight, trimmed height & physical features are checked.

48

Comparative Features of 3 Different Spine Casting Process

Properties High Pressure Low Pressure Gravity

(Vicker’s Micro Hardness, HV) Uniform Micro

Hardness Of 24.3

through out the

sample

Non-Uniform

Micro Hardness

varying from 21.5

to 28.4

Low Micro

Hardness, varying

from 17.5 to 18.2

Grain Size Coarse Coarse & Fine Inconsistent

Grain Orientation Single Directional Random Random

Surface Condition No Voids Voids (Small

Black Spots)

Bigger Voids

Than Low

Pressure

Scanning Electron Microscope

Pictures

Exide Industries makes Spines only by High Pressure HADI Spine Casting M/C

49

OXIDE FILLING

EQUIPMENT

Polypropylene tanks and furniture

PROCESS OUTLINE

Acid pickling of tubular Positive plates

TESTING

The specific gravity of the acid is checked prior to putting the plates; the temperature is

monitored throughout the process. The lead sulphate content in the plates is checked on

samples

50

AMMONIA DIPPING

EQUIPMENT

Plastic Tanks

PROCESS OUTLINE

The oxide filled spines are dipped into aqueous

solution of ammonium sulphate and stay for a

minimum of one minute.

The plates are brushed to remove oxide adhering to

the outer surface of the filled plates.

TESTING

The plates are checked for proper cleaning and Wetting.

51

ACID PICKLING

EQUIPMENT

Polypropylene tanks and furniture

PROCESS OUTLINE

Acid pickling of tubular Positive plates

TESTING

The specific gravity of the acid is checked prior to putting the plates; the temperature is

monitored throughout the process. The lead sulphate content in the plates is checked on

samples.

52

FORMING

EQUIPMENT

Rectiformers, polypropylene tanks & furniture

PROCESS

The +VE & -VE plates are put alternately inside

the tanks in the furniture slots.

The positive & negative plates in each tanks are

connected in parallel. The plates are then immersed in sulphuric acid of specified gravity.

DC power is fed to the circuits at a fixed rate for a specified duration. The tank voltages

are checked at the end of the duration. The connections are then broken off and the plates

are taken out, washed & dried. The specific gravity of the acid at start, the current in

ampere and temperature are monitored throughout the formation process.

TESTING

The plates are checked for lead peroxide content in positive and spongy lead in the

negative.

53

PLATE DRYING

EQUIPMENT

Drying Ovens

PROCESS

The positive plates are dried in hot air oven at 65

Deg C. To a moisture content as specified. The

negative plates are dried in inert gas oven.

TESTING

The positive and negative plates are checked for their moisture content.

54

LUG BRUSHING

EQUIPMENT

Electric driven brushing wheels.

PROCESS OUTLINE

Cleaning of frames and lugs of plates

Lugs are cleaned to remove the oxide coating.

The plates are checked visually for defectives.

TESTING

Physical check of the lugs & the frames.

55

ASSEMBLY

EQUIPMENT

Burning combs & jigs, India.

Heat sealing of lid & cell box.

Bielomatik machine, Germany.

PROCESS

Assembly of traction cells

COMPONENTS

Cell box & lid - from plastam, Italy.

Cell box & lid - from India.

Pe separator - from daramic, Australia.

Lead pillars - from India.

TESTING

The cells are checked on line for screening out defectives.

56

TYPES OF EXIDE INDUSTRIAL BATTERIES:

• EXIDE PLANTE

• EXIDE TUBULAR

• EXIDE VRLA

• EXIDE POWERSAFE

• EXIDE EL TUBULAR

• EXIDE LITE

• EXIDE INVAKING 1500

• EXIDE HSP CLASSIC

57

ADVANTAGES OF DIFFERENT KINDS OF PRODUCT:

The TUBULAR Battery has a very robust construction and can provide 1200 to 1500 cycles of

charge and discharge before its capacity degrades to 80% of its rated capacity and is fit for

replacement.• The TUBULAR Battery provides a life of around 10 to 12 in Power Stations if

maintained properly.

In VRLA Battery there is no topping up with water required during lifetime.

In VRLA Battery there is no acid fume while charging the battery.

The VRLA Batteries are stackable and hence smaller floor area and smaller floor area

and smaller battery room.

The VRLA Batteries has very good high discharge performance and hence smaller

capacity VRLA Battery can do the same job as a larger capacity tubular battery.

The PLANTE Batteries require water topping up only once in three Years if the battery

room is not too hot. Even in higher ambience, once in two years topping up is quite

adequate.

The PLANTE cells do not lose any capacity till the end of their life. Hence, unlike

TUBULAR and VRLA Battery, 20% margin need not be added to the required PLANTE

Battery capacity. This further reduces the cost differential between PLANTE and other

batteries.

The EXIDE INVAKING 1500 has extra heavy duty plates as per exclusive EXIDE

design ensuring durability, resistance to corrosion and inbuilt margins for high ambient

temperature and vibrations.

In EXIDE POWERSAFE Battery, no topping up is required and it is maintenance free.

In EXIDE POWERSAFE battery it enhanced performance that is it is Computer aided

grid design for high power density, excellent deep discharge recovery, and better thermal

management in the module and it is resistance to thermal runaway.

58

TYPES OF AUTOMOTIVE BATTERIES

EXIDE ATB

EXIDE MAX

EXIDE FREEDOM

DAGENITE

INDEX

LUCAS

DYNEX

CONREX

STANDARD FURUKAWA (SF) SONIC

These are the different types of EXIDE Automotive batteries.

59

5.4 QUALITY SYSTEMS

Total Quality Management

In keeping with it’s vision to make customer satisfaction

the core of its business philosophy, Exide Industries Limited, has

implemented an exhaustive ‘Total Quality Management’ program

throughout the organization.

TQM is a strategic initiative of our Company and we have progressed a lot along this unending

journey towards Business Excellence. Our Quality Management System (QMS) is certified to

ISO 9001 for Industrial Division as well as Submarine Division. For our Automotive Division

the QMS is certified to ISO/TS-16949. These certifications although issued in the names of the

different factories, however include all our business processes of R&D, Manufacturing,

Marketing, Sales, After-Sales Support and Corporate functions.

The Environmental Management System (EMS) is certified to ISO 14001.

The Occupational Health & Safety (OH&S) system is certified to OHSAS-18001.

Our certification body is the renowned TUV-NORD headquartered in Germany.

Our TQM efforts are focused around the 3 broad dimensions of:

Customer Orientation

Process Improvements, and

People Involvement.

60

The aim of all our processes is geared towards customer satisfaction, which is periodically

measured to give us feedback about our performance and act as trigger points to undertake

corrections and improvements. Our processes have been mapped and defined in the QMS /

EMS / OH&S systems, and actions are taken to continually improve upon them in order to

improve the quality of products and services, reduce cost, reduce waste and improve efficiencies.

People involvement is ensured through team working such as Quality Circles and Small Group

Activities. From system certifications we have extended to Business Excellence based on the

European Foundation for Quality Management (EFQM) MODEL. Over the last few years we

have won a number of awards and accolades from different Chambers of Commerce, Forums

and Customers. They include the prestigious CII-EXIM Business Excellence Awards, the

Manufacturing Excellence IMEA Awards by Frost & Sullivan , Corporate Environment

Excellence Award from TERI , to name a few .

Our TQM activities also include the initiative of Total Productive

maintenance (TPM). Our state-of-the-art factories are implementing the

rigorous road map given by the Japanese Institute of Plant Maintenance

(JIPM). This is paying rich dividends in the form of improvement in

Production, machine utilization, Reduction of downtime, Reduction of

Cost, etc. one of our factories has already been recommended for the

JIPM-TPM award.

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5.5 VARIOUS POLICIES

Quality Policy:

The aim of the Company is to always provide satisfaction to customers. The Company will

develop, design, produce and market products and services that cater continuously to the needs

and expectations of customers and succeed in gaining/retaining a competitive edge. A Quality

System meeting international standards will be implemented and maintained. Procedures and

processes shall be standardized and effective control systems instituted to eliminate variability

due to non-conformance. The standards and systems shall be continually reviewed and upgraded.

Periodic audits and management reviews shall be carried out. Human resources will be

developed through planned and structured training and development programmes to be

conducted on a regular basis.

Environmental Policy:

Minimize the adverse impact of our activities, products and services by

implementing an environmental management system.

Prevent pollution, through waste minimization at the source,

recovery/treatment of emissions and releases, conservation of

energy, re-cycling and optimum use of resources.

Continually improve our environmental performance through

setting and reviewing associated objectives and targets and periodic evolution. Comply with applicable legal requirements and other requirements related to our

environmental aspects.

Communicate with all interested parties and all people working for or on behalf of our

organization.

62

Total Productive Maintenance (TPM) Policy:

We, the members of Exide Industries Limited in our pursuit of excellence and customer

satisfaction are committed to achieve optimum utilization of all available resources by

implementation of Total Productive Maintenance.

The aim of organization is to:

Improve Overall Equipment Efficiency by eliminating all losses.

Strive for Zero breakdowns, Zero defects and Zero accidents.

Train, Involve and Empower people.

Create a safe and clean working environment.

Occupational Health & Safety Policy:

At Exide Industries Limited, believe in our core values of striving for Excellence and

Responsible Corporate Citizenship and hence are committed to providing a healthy and safe

working environment throughout the organization.

It is the policy of the company to:

Ensure that operations and processes, are safe and free from risk to health.

Comply with all applicable legal and other requirements related to identified OH & S

risks.

Ensure continual improvement in our OH & S Management System and its performance

by setting and reviewing objectives and targets.

Educate and involve persons, working under the control of it, in OH & S activities.

This OH & S Policy shall be made available to interested parties.

63

CHAPTER 6 RESEARCH AND DEVELOPMENT

6.1 RESEARCH AND DEVELOPMENT

As befits the market leader, Exide keeps India & World abreast of the developments in battery

technology. It’s sophisticated R&D Centre in Kolkata employs the best scientists and

technologists and equips them with the tools of fundamental and applications research.

The center spearheads technology transfer, matched production engineering and complete system

design. Apart from developmental research, it acts as a funnel for absorbing technology and

adopting it to suit operating conditions in respective markets. Ultimately, the effort translates

into complete satisfaction of customers” need

Exide recognizes the importance of technology & innovations. In order to maintain technological

leadership, Exide R&D have been actively developing differentiated battery technologies for

tropical countries. The Exide R&D has been recognized by the Department of Scientific &

Industrial Research, Ministry of Science & Technology, Government of India since April 1977.

R&D work is carried out on various facets of lead-acid battery technology, which include

development of new products for applications such as Automotive, Motorcycle, VRLA,

Telecom, UPS, Railways, Defense, etc. primarily to make the product range internationally

competitive. In addition, the R&D is engaged in projects embracing process technology aimed at

- improving the product quality & consistency, production efficiency and material utilization.

Furthermore, R&D program includes improvement and indigenisation of materials such as

metals, alloys, plastics, etc. R&D emphasis is on studying and improving the environmental

aspects associate with the manufacturing process.

64

6.2 INFRASTRUCTURE/LABORATORIES

Exide R&D Centre is also well equipped with a Tool-Room, CAD facilities, material testing and

laboratories having the modern equipment for testing of the raw materials and components used

for manufacture of batteries. These include optical emission Spectrometer, Particle Size

Analyzer, Porosemeter, Image Analyzer Workstation, Profile Projector, Universal Tensile testing

machine, etc. etc.

6.3 FUNCTIONAL AREAS

All the above specific areas are well administered by a strong group of human assets. The

qualified R&D personnel are Ph.D.'s in Engineering / Applied Science, Post-Graduate / Graduate

in Engineering / Science, MBA's and Diploma in Engineering with broad spectrum of experience

and they work in the following functional areas:

Battery Design & Development

Process Development

Tool Design & Development

Alloy Development

Development of Plastic Components

Hard Rubber / Soft Rubber Components Development

Analytical Services

Battery Testing & Quality Assurance

Environmental Health Monitoring

65

6.4 PATENTS

Patents Place Year

Process for fabricating a grid structure for Cadmium Sulphide / Cuprous

Sulphide cell.India 1978

Improved Dry Charged process for Drying Formed Negative. India 1978

Process for manufacturing micro-porous polymeric material. India 1979

Micro-porous polymeric material for Miners’ Cap Lamp batteries and

Process for preparation thereof.India 1981

Automotive Battery Grid. India 1981

Method of manufacturing lead based alloy. India 1983

Method of making lead acid storage battery grid. India 1986

Method of producing low antimony content tubular grid for positive

electrodes of lead acid storage batteries.India 1988

Design patent on 75D31R/95D31 RMF Battery (Jointly with Shinkobe). India 1998

Design Patent on leak resistant Automotive Battery. India 2001

66

In addition to several innovative patents granted in India, quite a few International Patents have

already been published with details as under:

Details Published No.Published

DatePlace

Range of Products

Covered

Automotive Battery Grid --- 1982 UK ---

Design Patent jointly with

Shin-Kobe1053740

10

November1999Japan

75D31R

MF95D31RMF

Design Patent Design Regn. No.

1163467

20 January

2003

Japan Leak Resistant Design

38B20L/R MF

Patent for leak resistant

automotive batteries

US2003/0017381

A1

23 January

2003USA

Eternity Range (ET40,

ET40L) ATB

Range(MF70Z,

MF50Z, DIN55MF)

DIN-MF

Range(DIN66MF,

DIN74MF) CV Range

(MHD600, MHD800)

P2003-45398A14 February

2003Japan

EP1 280 214 A229 January

2003

Europ

e

Patent for leak retardant

automotive batteries

US2003/0013006

A1

16 January

2003USA

ATB Range(MFS40,

MF40SV, DIN44MF,

55B24LMF) MF

Range for Premium

Cars (55D23LMF,

70D23LMF,

75D23LMF)

P2003-31191A31 January

2003Japan

EP1 278 254 A122 January

2003

Europ

e

67

6.5 PRODUCT TESTING FACILITIES

Product Testing Department acts as the nodal point for product validation through intra R&D

linkage with

Automotive Design Department for Automotive, Motorcycle & EV batteries

Industrial Design Department for VRLA, Plante (Flooded), Tubular (Flooded),

Submarine, Solar, Minars' Cap Lamp, etc.

Process Development Department for change or improvement in manufacturing

processes

MRR for ISO and QS Quality Standards

Product Testing Department also interacts with all the manufacturing units i.e. Shamnagar,

Chinchwad, Haldia, Hosur, Taloja, Ahmednagar & Guindy for testing and quality assurance of

their products from time to time and as per QS Standards.In order to achieve Business

Generation through Type Approval Tests of newly developed products, Product Testing

Department keeps liaison with Industrial & Automotive Marketing Department and carry out

Type Approval Tests which is usually witnessed by the customer / ultimate user at R&D Test

House.

R&D TEST HOUSE IS EQUIPPED WITH STATE-OF-THE ART TEST FACILITIES WHICH

ARE MAINLY;

Microprocessor based computer controlled charge - discharge test system

Environmental test machines e.g. Vibration, Controlled Temperature & Humidity

Chambers, etc.

High Current Discharge Circuits for Automotive & Industrial

Some special testing machines e.g. High Voltage Tester, Spark Tester, Short Circuit

Tester, etc.

68

6.6 TECHNOLOGY FOR TROPICAL COUNTRIES

In tropical countries like India, automotive battery life is adversely affected by the following

conditions:

High ambient temperature

High Vehicle Vibration due to rough roads

Outdated charging system particularly on old vehicles

Sluggish vehicle movement in congested city drives

Frequent start – stop

Weak infrastructure for maintenance

Inferior quality of water for topping up.

Exide R&D centre, therefore, has a special focus on developing the desired automotive battery

characteristics for India / tropical conditions which include the following:

High temperature endurance

Recovery from deep discharge

Resistance to vibration & bumps

High reserve capacity

Good cranking ability at low as well as normal temperature

Heavy load endurance

Resistance to overcharge

Low water loss

Low self discharge

Spill proof / Leak resistant

State-of-charge indication

Spark resistant

69

6.7 MAJOR DEVELOPMENTAL WORK

Some of the major development work done at the R&D Centre and viewed at a glance is as

follows:

Automotive & Tractor batteries as per Indian Standards to suit tropical conditions.

Japanese range of Automotive and Motorcycle Batteries.

DIN range of Automotive batteries suited to vehicles of European origin

Development of Submarine Batteries

Development of special type of poly-ethylene separators for varying applications.

Valve Regulated Lead Acid (VRLA) batteries for Telecommunication & Railway

applications.

Motive Power Batteries for Fork-lift Trucks & Golf Carts.

High energy density battery for Electric Vehicles.

Plante batteries for Power stations.

Furthermore, long-life, maintenance-free batteries for cars have also been developed which are

presently being marketed under the brand name Exide Eternity. Also a new heavy duty, MHD

Range of batteries have been developed and introduced for the entire commercial range of

vehicles. Batteries were also developed for CNG/LPG powered three-wheelers and golf carts.

A range of batteries for Industrial application including new batteries for Telecom, Solar,

Traction and small VRLA for UPS system was also developed.

70

6.8 MAJOR RESEARCH PROJECTS

Development of lead based alloy for battery grids.

Development of a variety of maintenance free batteries for Automotive and Motorcycle

applications.

Development of re-combination type maintenance free batteries (VRLA).

Development of ultra-low maintenance batteries / cells for Solar applications

Development of special batteries for electric vehicle applications

71

6.9 RESEARCH METHODOLOGY

Research Design

Sampling Process

Data Collection Methods

Tools and Techniques

RESEARCH DESIGN

The Research was about analysis of market share of exide batteries. It is a method

ofobtaining information about the movement of consumer products into and out of retail outlets.

Itwas a study conducted to know the market share of the product and the concerned measures

forits development. Research was designed as to guide to enable to keep track of actions in order

to achieve the goals. The selected research design was descriptive research as information

required needed to be about the product promotion characteristics and other data. Statistical

methods were used in collecting them. Since there has been a greater demand by manufacturers

for a complete picture of their market share, this has manifested in collecting careful and correct

data. A descriptive design therefore involves the following steps:

Formulation of objectives

Selecting a sample

Methods of data collection

Analysis of data

72

SAMPLING PROCESS

A sample is a representative of the universe. It is a unit or a portion selected from the

population. It can be defined as the method of selection of a representative portion of the

universe, which could evolve correct and adequate information. Sampling method: The sample

method chosen was systematic random sampling. A systematic random sampling was chosen in

collecting data for the list of battery retailers available. The set universe of retailer was

secondary data and it was from the Retailer Association, Mumbai that was provided by the

company. It was found that the total number of retailers was 400 in Mumbai city. The decided

sample size was 100 implies sampling intervals equal to 4. Therefore the random selection for

every 4 retailers was taken.

Sample size: A sample size is number of units in a sample. A sample size of 100 was chosen.

Careful techniques were applied to gain unbiased answers. This sample of 100 was the source of

adequate answers for the market share analysis.

DATA COLLECTION METHODS

Primary data had to be collected and they were collected using as structured questionnaire.

The Questionnaire contained multiple choice questions as well as open questions. It was taken

care to get relevant and unbiased response using this method. Thus data were collected and

analysis had to be applied. For our purpose it was decided that the investigation to meet the

specific requirement to be collected out hand. Retail outlets were chosen for the appropriate

collection of information. A pilot study of sample 20 was done prior to this.

Pilot study: A pilot study was conducted to find the feasibility of the questionnaire. The

sample of 20 dealers from Chennai city was randomly selected and administered the

questionnaire. Any modification that is felt essential was carried out to make the questionnaire

understandable.

73

TOOLS AND TECHNIQUES

In the process of data analysis, certain tools and techniques were applied to reach the inferences.

The statistical tools used were weighted average method and chi-square analysis and percentage

method. The data collected were scrutinized using the above stated tools. All the inference was

based on the data collected and were evolved from the application of tools and techniques.

LIMITATIONS

The retailers were found to be non-cooperative at times.

There might be some biases in the response regarding margins.

The study was restricted to mumbai and suggestions given may not apply for other areas.

74

CHAPTER 7 DATA ANALYSIS AND INTERPRETATION

7.1 QUESTIONNAIRE

1. KINDS OF BATTERY HAVING MORE SALES

INFERENCE

Table I shows that 93%of the market is captured by automobiles followed by industrial with

7%.,submarines has no market in chennai area.

75

2. DIFFERENT BRAND CATEGORIES OF AUTOMOTIVE BATTERIES SOLD

INFERENCE

From the table it is inferred that 65% of the retailers offerExide,60% of the retailers offer

amco,52% offer amaron29%offers Panasonic,25% offers speed and 20%offers prestolite

3. FASTLY MOVING PRODUCT OF EXIDE

76

4. CUSTOMERS DEMAND FOR A SPECIFIC BRAND

INFERENCE

55% of the customers demand Exide, 24% demand amaron, 10% demand amco, Prestolite with

8%Panasonic with 2% and speed with 1%.

77

5. BAR DIAGRAM SHOWING RETAILER’S PREFERENCE

INFERENCE

From the above table it can be seen that 53% of retailers push Exide followed my Amco 20%,

Amaron 18%, Prestolite 6%, Panasonic 2% and Speed 1%. If a customer does not ask for a

particular brand most of the retailer offer Exide

78

6. BRAND OFFERING THE HIGHEST MARGIN

In the above table weighted average of different brand is used to get a better idea of the highest

margin offered.

X =∑ WiXi/wi

Where X is the weighted average for each brand.

W is the weightage given to ith brand

W1 for rank I =4 W3 for rank III =2

W2for rank II =3 W4 for rank IV =1

INFERENCE:

Therefore from the above table we are able to state that retailers feel amaron offers the highet the

highest margin followed by amco,Panasonic,Prestolite,exide,speed.

79

7. ATTRIBUTES THAT CUSTOMERS LIKE IN EXIDE

INFERENCE

From the above table it is clear that 61% like quality in exide,22% like the brand name and 17%

like the easy maintenance.

80

8. ATTRIBUTES THAT CUSTOMERS DOES NOT LIKE IN EXID

INFERENCE

From the above table it is clear that 79% of the customers does not like cost (high cost), 14 does

not like cutting of leads ,4 % does not like life time and 3% does not like maintenance.

81

9. SATISFACTION OF RETAILERS ABOUT AFTER SALES SERVICE

INFERENCE

From the table it is clear that 50% of the retailers feel that after sales service is good 19%

fair,17% excellent and 14 poor.

82

10. RANKING OF BRANDS ACCORDING TO SALES QUALITY AND

AVAILABILITY

INFERENCE

Exide is ranked I ,Amco is ranked II.amaron is ranked III,Prestolite is rankedIV,Speed is ranked

V and Panasonic is ranked VI

83

11. APPEALING TENDENCY OF BRANDS SALES PROMOTION/ADVERTISEMENT

INFERENCE

From the table it is obvious that amaron’s advertisement/sales promotion tools are most

appealing with 41%,followed by exide with 22%,amco with 18%,Panasonic with 9%,speedn

with 7%and crestolite with 3%.

84

12. LEVEL OF SATISFACTION ON THE OFFERS MADE BY EXIDE

INFERENCE

53% of the respondents are not satisfied with the offers made by Exide and only 47%are satisfied

with the offers made by Exide

85

7.2 FINDINGS

On analysis of the primary data following findings were identified.

From the study it can be seen that 93% of the market has been captured byautomotive

batteries of Exide.

From the study it can be inferred that 52%of the market is captured max which is a

product of exide.

From the study it can be seen that exide is the fastly moving brand in the market with a

share of 55%

61% of the respondents feel that quality of Exide is excellent.

Most retailers are not satisfied with the profit margin they get they expect a margin of

20-39% when compared to the existing 10-15%margin." Most of the retailers prefer exide

to customers due to easy maintenance.

55% of the customers prefer to buy only exide battery which in turn increases the market

share ultimately.

Since a majority of market is occupied by automotive batteries industrial batteries seems

to capture a very low market share .

Another major hindrance affecting the fast movement of goods is that Price of exide

battery is high when compared to the competitors.

33% of the respondents are not satisfied with the after sales service offered by exide.

7.3 SWOT ANALYSIS86

SWOT ANALYSIS OF EXIDE BATTERIES

Strength

Exide’s high Brand equity among

customers

Established brand name

Weakness

High price when compared to

competitors

Necessary promotional tools are not

sufficient

Opportunities

Market growing at a rate of 40%

Increasing use of automobiles

Threats

Competing brands in the market

Product known by brand name

87

7.4 SUGGESTIONS AND RECOMMENDATION

Majority of the market is captured by automative batteries of Exide, so more

concentration should be made on industrial and submarine segments also.

It should maintain and increase the market share from 55%.

Exide should maintain the same quality as now.

Most of the respondents are not satisfied with the margin offered by exide when

compared to that of the competitors. so a margin of 20-30% may be given.

Leads in batteries should be made of good quality material so that it does not get cut off

soon.

The price is high when compared to that of the competitors, so the price should be fixed

in such a way that price is in tandom with that of the competitors.

Quality of after sales service should be improved

Advertisements and sales promotional tools should be in such way that they appear more

appealing in minds of the customers.

Life time of the battery should atleast be 3 years

88

7.5 CONCLUSION

From this project we can draw the conclusion that Exide is the unbeatable brand in battery

industry its policies and corporate structure is unique and well organized as compare to its

competitors. The quality of the exide product is way better then its competitive brands

The manufacturing units are well equipped with latest machinery and very much capable of high

scale production.

A research on MARKET AND BRAND SHARE ANALYSIS OF EXIDE has helped in arriving

at valuable conclusion through the analysis of primary data collected. The study revealed that the

company can maintain its market leadership position by improving the quality of leads,

following competitive pricing strategy, improving after sales service and lifetime.

It can also increase its market share by giving more margins to the retailers. More brand

awareness should be created by presenting advertisements in such a way that it is more

appealing.

If the company implements the above ideas I’m sure that market share of Exide will surely

increase and it will continue to be the market leader as now in future also.

89

I. APPENDIX

QUESTIONAIRE

Name of the retailer: _______________________________

Address:______________________________________________________________________

______________________________________________________________________________

_____________________________________________________________________________.

1. Which kind of battery has more sales?

1. Automotive

2. Industrial

3. Submarine

2. Different products of Exide batteries available in the market?

1. Xpress

2. Freedom

3. Max

4. Which product of Exide is fast moving in the market?

1. Xpress

2. Freedom

3. Max

6. Which particular brand of battery does a customer specifically ask for ?

1. Exide

2. Amco

3. Amaron

4. Panasonic

5. Speed

6. Prestolite

90

91

7.a) If the customer does not specify a particular brand, which brand do you offer

1. Exide

2. Amco

3. Amaron

4. Panasonic

5. Speed

6. Prestolite

7.b) Reasons for offering the above brand based on your perception ?

1. Quality

2. Economical

3. Easy maintenance

4. Availability

8. What is the average margin offered by different brands of batteries and which offers highest

margin?

92

9. Are you satisfied with the above margin given by Exide?

1. Satisfied 2.Not satisfied

10. What margin do you expect from exide battery

a. 10 – 15 %

b. 15 – 20 %

c. 20 – 30 %

d. above 30 %

11. What are the attributes do to customers like in Exide battery?

1. Easy maintenance

2. Quality

3. Brand name

4. Any other

12. What are the attributes do the customers does not like in Exide battery ?

1. Maintenance

2. Life time

3. Cost

4. Cutting of leads

14.How is the after sales service offered by Exide?

1. Excellent

2. Good

3. Fair

4. Poor

93

15. Rank the brands according to sales, quality & availability ?

16. Among all brands whose sales promotion / advertisement is most appealing ?

1. Exide

2. Amco

3. Amaron

4. Panasonic

5. Speed

6. Prestolite

17. Are you satisfied with the offers made by Exide ?

1. Satisfied 2. Not satisfied

18. Give your suggestions and recommendations to Exide industries limited?

94