For more than six decades, Exide has been one of India’s most reliable brands, enjoying unrivalled reputation and recall. Its emphasis on innovation, extensive geographic footprint, strong relationship with marquee clients and technology upgradation with global joint ventures have made the company a distinct front-runner in the lead-acid storage battery space for both automotive and industrial applications.
Exide’s products cover a wide spectrum of applications, touching people’s lives across more than 39 countries globally. The company is also the largest power storage solutions company in South East Asia.
Exide Industries recorded net sales of Rs. 6,874.21 crores in 2014-15 as compared to Rs. 5,964.24 crores in 2013-14, with a corresponding profit before tax of Rs. 798.49 crores as against Rs. 723.08 crores the previous year.
Automotive segment
Sales of automotive batteries grew at 10 per cent by value in 2014-15 as compared to the previous year. Aftermarket sales of four-wheeler batteries witnessed an overall growth of 17 per cent in units over the previous year. In the two-wheeler aftermarket, the growth rate during the year was nearly 11 per cent. Sales of batteries in the four-wheeler OEM segment were however lower by about two per cent during the year. In the OEM two wheelers, the company witnessed a five per cent growth in sales as compared to 2013-14.
In spite of the competitive market condition, Exide continues to remain the preferred supplier to most of the vehicle manufacturers in the country.
Exide Industries has one of the robust networks of authorized distributors and dealers, driving higher growth across various markets. The company’s tertiary distribution network comprises garages called ‘humsafar’ partner network. It has a dedicated dealer network for heavy commercial vehicles (C Dealer network) and tractor owners (Kisan dealer network). Its web-based CRM initiative (exidereachout.com) enables customers to register their batteries online with paperless warranty programmes, among other features.
Project Highway is another on-going service programme of Exide to serve the truck segment. Under the scheme, the company provides battery servicing facility on highways, availed by truck drivers.
Upswing in exports
Exports of automotive batteries recorded a remarkable growth of 64 per cent in quantity and 42 per cent in value compared to the previous year, whereas exports of industrial batteries, Home UPS and Solar Systems registered an impressive growth of 40 per cent in value compared to 2013-14.
The automotive growth is due mainly to the commendable expansion of 45 per cent for four-wheeler batteries and 100 per cent for motorcycle batteries in Bangladesh and Sri Lanka, whereas the industrial growth is primarily due to the extraordinary growth of 240 per cent in standby business with the company’s greater focus on the African Continent where it grew by 139 per cent.
Technology upgradation
Exide Industries has entered into technical collaboration and assistance agreements with East Penn Manufacturing Company Inc. USA, (East Penn), a leading manufacturer of high quality lead-acid battery and ancillary products. Under these arrangements, East Penn is providing technical assistance and support for the manufacture of automotive, motive power, standby, telecom, UPS, solar and traction batteries for Exide’s various plants in India. East Penn is also providing technical assistance and support to the two captive smelters of Exide located near Pune and Bangalore.
Apart from the above, Exide has on-going agreements with Furukawa Battery Company Ltd. of Japan for lead-acid storage batteries, including VRLA motorcycle batteries and maintenance-free batteries for four-wheelers and for Idle Stop-Start (ISS) Automotive batteries. The manufacturer has also entered into agreements with Shin-Kobe Electric Machinery Co. Ltd. of Japan, a part of the HITACHI Group, for a variety of lead-acid batteries and components used for starting, lighting and ignition of automobile and VRLA batteries for industrial applications.
Established in 1976, Exide Industries’ proprietary research and development centre in Kolkata is driving consistent innovation for better processes and products. The best-in-class facility is recognized by the Department of Scientific & Industrial Research, Ministry of Science & Technology, since April 1977. The centre has a fully computerized and automated product testing laboratory (battery), a state-of-the-art analytical laboratory for carrying out chemical or physical tests of battery materials, components, advanced research instruments, including Auto Labs, XRD analyzer and Gas Chromatograph, among others, a pilot plant for prototype battery production and a fully equipped mechanical workshop with CNC machines for the development of proto moulds and dies.
Elevating customer service
Exide Care represents the manufacturers’ flagship outlets, which reinforces its commitment to superior customer care and service. These outlets offer auto power solutions through a wide range of products. Exide Care outlets are designed to maintain specified service standards and offer complete customer delight and experience of the brand through a combination of state-of-the-art design, pleasant ambience, cutting-edge service technology and customer focus.
While the automotive segment primarily includes sale to major vehicle manufacturers and aftermarket sales, Exide primarily sells automotive batteries in the domestic market under brand names like Exide, SF and Sonic, among many others. It concentrates on the Dynex, Index and Sonic brands for the export segment. The company has a significant market share of automotive OEM and organized retail and also manufactures submarine batteries.
Market strategy
Exide Industries has clear-cut goals, and its competitiveness is growing day by day in respect of the organized sector, with the unorganized sector steadily losing market share. The company’s strategies are to ensure that it enhances its market share and revolves around products, pricing, placement and promotion.
Lead, the most critical raw material in a lead acid storage battery, is recyclable. Recycling an old battery to reclaim its lead content is not only socially and environmentally desirable, but also makes perfect economic sense for everyone involved in the value chain.
The company buys back old batteries as a part of its commitment to help protect the environment and also to reduce the share of the unorganized market.