Top EV Battery Shares in India 2024: EV Battery Companies to Add to Your Watchlist

India is revving up for a clean energy revolution, with electric vehicles (EVs) leading the charge.

According to Bain and Company, EVs made up around 5% of total vehicle sales from October 2022 to September 2023.

They could skyrocket to over 40% by 2030, with significant adoption (45%+) in both two-wheelers (2W) and three-wheelers (3W).

This momentum rides on several factors. First, billions of dollars are being invested in research, manufacturing facilities, and charging infrastructure, paving the way for a robust EV ecosystem.

Second, government initiatives like FAME schemes offer attractive subsidies and incentives, accelerating EV adoption by both manufacturers and consumers.

Unlike their gasoline-guzzling counterparts, EVs rely on a different kind of engine - the lithium-ion battery.

These batteries, which currently account for 40-50% of an EV's total cost, are predominantly imported from China, the world's leading producer. However, this trend is shifting gears.

Recognizing the immense potential of the EV battery market, several Indian manufacturers are hitting the gas pedal to build domestic production facilities.

They're all vying for a sizeable share of the Rs 180 billion (bn) opportunity, aiming to become the key players powering India's clean mobility future.

Therefore, with this in mind, let's break down the EV battery value chain.

EV Battery and Components Manufacturers

These businesses have shifted their focus to meet the demands of the EV sector to capture a significant share of this rapidly growing market.

Historically, this market has been dominated by two prominent leaders in the field: Amara Raja and Exide. Even now, these companies continue to play a significant role in shaping the landscape of the EV battery market.

#1 Exide Industries

First on our list is Exide Industries.

The 75-year-old plus institution is the largest lead-battery manufacturer in India, offering a wide range of products to the automotive and industrial sectors.

It caters to some of the top OEMs (original equipment manufacturer) in the country. Exide enjoys a strong presence across the entire automotive value chain.

In addition, the company boasts a robust export division, serving over 60 countries, including the GCC nations, the USA, and Canada.

It has partnered with a leading global provider of premium energy storage solutions to manufacture lithium-ion batteries for India's burgeoning EV market.

It has also established partnerships with major automotive players to provide it with a competitive advantage.

Exide Industries Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	14.60%	-1.50%	-28.50%	23.30%	18.30%
Operating Profit Margin (%)	10.88%	10.50%	13.79%	11.46%	11.39%
Net Profit Margin (%)	5.76%	5.27%	7.08%	5.43%	5.46%
Return on Capital Employed(%)	23.38%	16.96%	14.84%	11.26%	10.96%
Return on Equity (%)	14.69%	12.13%	10.68%	7.78%	7.58%

Source: Ace Equity

Between 2018-2023, the sales and net profits have not grown much, reporting a CAGR of 3.3% and 3.5%.

The bleak growth has affected the return on equity. Over the years, it has fallen from 14.7% in 2018 to 7.5% in the financial year 2023.

In the near term, Exide's growth will be driven by a combination of innovative product launches, domestic market expansion, a focus on international exports, and continued support for their channel partners to enhance customer experience.

To know more about the company, check out its financial factsheet and latest financial results.

#2 Amara Raja

Amara Raja is the second biggest player in the lead-battery space in India.

It enjoys a widespread network, catering to the automotive and industrial segments with its Amaron brand of lead batteries.

The company is positioning itself to benefit from the growing EV market in the country. Back in 2021, the company had set up a technology hub to develop lithium-ion batteries, at its Tirupati facility in Andhra Pradesh.

In 2023, the company has entered into an MoU with the government of Telangana for setting up the lithium-ion (Li-ion) battery gigafactory.

This facility will boast a cell manufacturing capacity of up to 16 gigawatt hours (GWh) and the assembly capacity will be up to 5 GWh.

The company is planning to invest around Rs 95 bn over the next 10 years.

Amara Raja Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)		0.78%	4.98%	21.26%	19.43%
Operating Profit Margin (%)	14.70%	16.87%	16.83%	12.27%	13.39%
Net Profit Margin (%)	7.11%	9.66%	9.05%	5.71%	6.44%
Return on Capital Employed(%)	21.72%	24.04%	22.25%	16.01%	19.60%
Return on Equity (%)	14.49%	18.91%	16.45%	11.70%	14.10%

Source: Ace Equity

Between 2020-2023, Amara Raja has enjoyed a smooth road to profitability. The company's sales have grown at a 3-year CAGR of 11.2%, while the net profit at 9.5%.

The RoCE and RoE has been strong, averaging 20.7% and 15.1% over four years.

To know more about the company, check out its financial factsheet and latest financial results.

#3 Kabra Extrusion Technik

Kabra Extrusion Technik is India's largest manufacturer of plastic extrusion machines, with a market share of over 40%.

In 2021, Kabra (KET) recognized the potential of the lithium-ion battery market and strategically ventured into its manufacturing through its newly formed battery division, Battrixx.

This strategic move is already paying off, with Battrixx contributing over half (52%) of the company's revenue as of the first half of FY24, surpassing the legacy extrusion segment (47%).

Despite holding a 15% market share in the battery market by December 2022, the company anticipates further growth, particularly in the lithium-ion battery sector, driven by its strong presence.

Battrixx acquired Varos Technology in March 2022, a company specializing in IoT tools for EV infrastructure and battery management systems.

Battrixx's collaboration with OEMs and exploration of energy storage systems in the two and three-wheeler segments indicates promising growth prospects for the company in the EV industry.

Kabra Extrusion Technik Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	-2.17%	-15.82%	25.08%	46.31%	64.86%
Operating Profit Margin (%)	16.56%	7.02%	15.79%	14.09%	11.53%
Net Profit Margin (%)	9.98%	3.39%	8.89%	7.46%	5.60%
Return on Capital Employed(%)	13.54%	3.01%	12.24%	13.40%	14.99%
Return on Equity (%)	10.21%	3.12%	9.63%	9.97%	10.53%

Source: Ace Equity

Between 2018-2023, the company's revenue and net profit has grown at a 5-year CAGR of 20% and 13.3%, respectively.

The 5-year average RoCE and RoE stand at 11.4% and 8.%, respectively. The balance sheet is strong, with negligible debt on its books.

To know more about the company, check out its financial factsheet and latest financial results.

#4 Himadri Specialty Chemicals

Himadri Specialty Chemicals, renowned for its high-quality pipes, fittings, and unmatched expertise in uPVC (unplasticized polyvinyl chloride) technology, is extending its vision beyond traditional building materials.

In December 2023, the company announced that it will invest a massive Rs 48 bn over the next 5-6 years to set up a manufacturing facility for lithium-ion battery components.

The new capacity will boast a total annual production capacity of 200,000 tonnes, either directly and/or through its subsidiaries.

This move is expected to help in the indigenisation of lithium-ion battery raw materials for global and India's EV & energy storage system (ESS).

Apart from this greenfield initiative, the company is also making acquisitions. In 2023, the company acquired a 12.7% stake in an Australian startup - Sicona Battery Technologies.

Sicona specializes in high-capacity silicon anode technology for lithium-ion batteries used in EVs.

Himadri is also in talks with the Ministry of Power to apply for the PLI scheme for grid-scale batteries.

Himadri Specialty Chemicals Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	19.49%	-25.36%	-6.63%	65.25%	50.07%
Operating Profit Margin (%)	23.43%	15.97%	8.63%	5.85%	10.24%
Net Profit Margin (%)	13.38%	11.37%	2.81%	1.40%	5.17%
Return on Capital Employed(%)	25.49%	11.46%	4.13%	3.59%	12.45%
Return on Equity (%)	21.31%	12.22%	2.69%	2.14%	10.69%

Source: Ace Equity

Between 2018-2023, the sales have reported a 5-year CAGR of 15.6%.

The RoCE and RoE have averaged at 11.4% and 9.8%, respectively, over the same period.

To know more about the company, check out its financial factsheet and latest financial results.

EV Battery Chemical Manufacturers

The EV revolution is sparking a paradigm shift within the chemical industry.

EV chemical players are actively developing and manufacturing critical components like cathode materials, electrolytes, and separators.

This targeted approach allows them to optimize performance and efficiency, crucial factors for success in the EV battery space.

#1 Neogen Chemicals

Neogen Chemicals has solidified its position as a leading manufacturer of bromine and lithium-based speciality chemicals.

Over the past three decades, the company has been the primary importer of lithium carbonate and lithium hydroxide, fostering strong relationships with top lithium miners and processors globally.

While Neogen doesn't directly produce EV batteries, it serves as a key supplier of raw materials, including electrolyte and lithium electrolyte salts.

Neogen Chemicals Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	48.05%	27.82%	9.90%	45.10%	41.43%
Operating Profit Margin (%)	17.19%	16.73%	16.09%	17.99%	16.92%
Net Profit Margin (%)	8.20%	8.24%	7.82%	9.16%	7.28%
Return on Capital Employed(%)	25.52%	21.93%	16.75%	14.33%	13.25%
Return on Equity (%)	34.73%	25.31%	18.47%	14.34%	10.84%

Source: Ace Equity

The business has performed admirably. Between 2018 2023, the sales and net profit have reported a 5-year CAGR of 33.6% and 35.3%, respectively.

The RoCE and RoE have been strong, averaging at over 18.4% and 20.7%, respectively, over the same period.

In a strategic move, Neogen is expanding its operations with plans to increase electrolyte production capacity to 30,000 KTPA from the previous 10,000 KTPA. Additionally, it aims to ramp up lithium salt capacity units from 1,000 TPA to 4,000 TPA.

The company foresees securing orders from three to four battery manufacturers in 2024, with capacities ranging from 0.5 GW to 1 GW, anticipating substantial demand.

To know more about the company, check out its financial factsheet and latest financial results.

#2 Uno Minda

Uno Minda, a leading Indian automotive technology company, has been a key player in the traditional vehicle (4Ws, 2Ws and PV) space for over six decades.

The company is renowned for its expertise in various automotive components, including switching systems, lighting systems, acoustics systems, seating systems, and alloy wheels.

The company, recognizing the burgeoning EV market, has made a strategic move to become a significant player in the EV battery ecosystem.

The company supplies seating products and other products to EV OEMs.

Additionally, it is actively developing and manufacturing critical EV components like battery management systems (BMS) and canisters.

BMS plays a crucial role in optimizing battery performance, safety, and lifespan, making it a vital component in any EV.

Canisters provides a secure and reliable housing solution for battery packs.

Uno Minda Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	31.78%	5.52%	2.53%	30.45%	34.74%
Operating Profit Margin (%)	12.73%	11.45%	12.11%	11.37%	11.46%
Net Profit Margin (%)	5.43%	2.81%	3.52%	4.95%	6.21%
Return on Capital Employed(%)	21.62%	11.55%	12.52%	16.44%	19.88%
Return on Equity (%)	20.74%	9.82%	10.90%	14.57%	18.55%

Source: Ace Equity

Between 2018-2023, the sales and net profit have grown at a CAGR of 20.2% and 17.8%, respectively.

The RoCE and RE have averaged at 16.4% and 14.9%, respectively. Looking ahead, Uno Minda is setting up a greenfield plant at Farrukhnagar Haryana, to cater to the anticipated demand for EV components.

To know more about the company, check out its financial factsheet and latest financial results.

#3 Tata Chemical

Tata Chemicals, a longstanding name in India's chemical sector, is undergoing a metamorphosis.

The company's dominance in traditional chemicals like soda ash and fertilizers is undisputed.

Soda ash is used to manufacture lithium carbonate, a key active material used in the manufacturing of EV batteries.

The company expects the share of newer sustainable application segments of Soda Ash (EV battery, solar power etc) to increase from about 11% in 2022 to over20% by 2030.

Apart from this, the company is actively investing in building a robust EV battery ecosystem and establishing a dedicated Battery Pack Engineering Centre.

But its ambitions extend further, with plans for manufacturing plants encompassing active materials, cells and complete battery packs.

Tata Chemicals has launched a pilot project for lithium-ion battery recycling, promoting a circular economy and ensuring a steady supply of raw materials.

Moreover, the company has collaborated with ISRO, to leverage ISRO's expertise in space-grade lithium-ion cell technology.

Tata Chemical Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	2.98%	-0.89%	-2.19%	23.45%	32.02%
Operating Profit Margin (%)	20.97%	20.37%	15.73%	19.17%	22.85%
Net Profit Margin (%)	11.05%	9.27%	3.95%	10.48%	13.87%
Return on Capital Employed(%)	10.13%	8.18%	4.84%	8.57%	12.37%
Return on Equity (%)	9.92%	8.15%	3.21%	8.60%	12.91%

Source: Ace Equity

Between 2018-2023, the company's primary business registered a sales and net profit CAGR of 10.2% and 9.4%, respectively.

The RoCE and RoE have been improving at 12.4% and 12.9% in the financial year 2023.

To know more about the company, check out its financial factsheet and latest financial results.

#4 Gujarat Fluorochemicals

Gujarat Fluorochemicals, among the top five global players in the fluoropolymer market, is renowned for its fluoropolymers.

These unique polymers are capable of enduring harsh acids, solvents and bases, while providing excellent electrical insulation essential for high-voltage applications.

Originally utilized in refrigeration, non-stick cookware and chemicals, fluoropolymers are highly sought-after across diverse sectors, including semiconductors, Li-ion batteries, 5G data, automotive components, aircraft, and the emerging green hydrogen sector.

The company has already made inroads into the EV battery business through its subsidiary, GCFL.

GCFL's EV products offer a diverse portfolio catering to the EV/ESS ecosystem.

Current offerings include electrolyte salts, additives, cathode active materials, and specialized solutions for sodium-ion batteries.

This product range addresses a significant portion, around 40%, of the cost of an LFP battery, a popular EV battery type.

Gujarat Fluorochemicals Financial Snapshot (2019-23)

	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)		-0.26%	46.73%	45.94%
Operating Profit Margin (%)	24.97%	30.17%	33.85%	38.20%
Net Profit Margin (%)	7.57%	-9.01%	20.25%	24.07%
Return on Capital Employed(%)	15.82%	11.18%	20.59%	30.38%
Return on Equity (%)	10.29%	-6.38%	20.15%	27.82%

Source: Ace Equity

The parent company has performed well, with sales and net profit growing at a CAGR of 28.8% and 92.5% respectively, between 2020-2023.

Looking ahead, GFCL has planned an investment of Rs 60 bn over the next 4-5 years to significantly increase its production capacity of EV battery materials.

To know more about the company, check out its financial factsheet and latest financial results.

#5 Tatva Chintan Pharma

Next on the list is Tatva Chintan Pharma.

The company operates in a niche space of speciality chemicals and is a globally recognised speciality chemical player with several market-leading products.

It's the largest and only commercial manufacturer of structure-directing agents for zeolites in India (second globally).

Its core strength lies in a diverse portfolio of over 150 speciality chemicals, catering to industries like pharmaceuticals, agrochemicals, and sustainable paints and coatings.

Tatva Chintan Pharma Revenue Mix (2023-24)

The company's expertise in electrolyte salts positions it well to play a vital role in this clean transportation revolution. This is required during the start and while accelerating a vehicle.

Presently, the company's electrolyte salt segment has seen a decline in revenue due to the completion of debottlenecking activities at a customer's plant.

However, over the next two years, the company is expecting significant growth in revenue and margins on account of launching new products and a subsequent increase in volumes.

Tatva Chintan Pharma Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	47.46%	27.96%	15.47%	44.87%	-3.01%
Operating Profit Margin (%)	16.78%	21.52%	23.90%	27.09%	15.70%
Net Profit Margin (%)	9.96%	14.36%	17.38%	22.10%	10.73%
Return on Capital Employed(%)	22.78%	28.40%	28.04%	25.75%	8.35%
Return on Equity (%)	28.95%	38.29%	36.85%	30.01%	9.21%

Source: Ace Equity

Between 2018-2023, the sales and net profit have grown at a CAGR of 25% and 28.4%, respectively. The RoCE and RoE have averaged at 22.6% and 28.6%, respectively.

To know more about the company, check out its financial factsheet and latest financial results.

Gravita India

Last on our list is Gravita India.

Gravita boasts the largest battery recycling company in India, with facilities in India and abroad.

It works with the top players in the industry, such as Amara Raja, Exide, Tata Batteries, Panasonic, HBL Power Systems, etc.

Its deep-rooted global procurement network allows it to procure material cheaper and along with an established and diversified client base, offers entry barriers.

89% of the revenues come from lead-based products, with the rest from aluminium, plastic and turnkey projects.

The value-added products account for more than 44% (financial year 2024).

The company's capacity is to grow by 67% by FY27 with a planned capex of around Rs 6 bn, mainly financed from internal accruals.

Half of this would be for existing verticals and the rest for new verticals such as lithium, steel and paper recycling.

The company is increasingly focusing on the EV battery recycling business to become a prominent supplier in the EV battery value chain.

Gravita India Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	22.39%	8.15%	5.05%	56.94%	30.13%
Operating Profit Margin (%)	5.42%	7.53%	8.65%	10.04%	10.51%
Net Profit Margin (%)	1.56%	2.71%	4.02%	6.68%	7.27%
Return on Capital Employed(%)	12.79%	16.54%	19.92%	31.19%	31.76%
Return on Equity (%)	10.01%	17.27%	23.00%	45.27%	41.83%

Source: Ace Equity

Between 2018-2023, the sales have expanded at a CAGR of 22.2%, and the net profits have grown at 33.8%.

The average return on equity (RoE) and return on capital employed (RoCE) stand at 27.4% and 22.9%, respectively.

However, it could be the opportunity for almost vertical growth for early entrants. Gravita is working on a pilot project for Lithium-ion batteries to become market-ready.

With a vast sourcing network and existing client relationships with prominent players in the battery segment, the company has an edge.

To know more about the company, check out its financial factsheet and latest financial results.

It Doesn't End Here

We've explored the established EV battery giants and the critical role of the other companies in the value chain. But this landscape is a sprawling highway, with more players to discover.

Hero MotoCorp, the two-wheeler giant, is revving up with in-house battery development.

Meanwhile, Bharat Electronics Limited (BEL), a defence electronics leader, is electrifying its portfolio with EV batteries.

Maruti Suzuki, the car market leader, isn't lagging behind, collaborating for advanced EV battery solutions.

Finally, HBL Power Systems Ltd., a seasoned battery manufacturer, is shifting gears to explore lithium-ion production.

Joining this electrifying race is Pondy Oxides, a leading Indian lead manufacturer, strategically leveraging their expertise in metals to establish themselves in the lithium-ion battery game.

Just like their counterparts in the EV ecosystem, these companies are quietly but significantly shaping the future of mobility in India.

As EV adoption explodes, so will demand for powerful, clean energy solutions, making Indian battery manufacturers key drivers in the race to a sustainable future.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...