India Battery Market Overview

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AGENDA

Indian Battery Market

27 April 2018 © 2009 RedSeer Consulting Confidential and Proprietary Information. www.redseerconsulting.com . 2
AGENDA

Indian Battery Market: An overview

Indian Battery Market: Competitive Benchmarking

Going Global

Emerging Trends in Battery Market

Key takeaways for Battery Manufacturers

27 April 2018 © 2009 RedSeer Consulting Confidential and Proprietary Information. www.redseerconsulting.com . 3
 There is an increasing demand of energy in India

1 Gap in the Power-Demand and Supply 2 More than 11 Million Vehicles Sold every Year
400
(2009-2017) (2002-2010)
215 12 11.1 11.1
335

India Production of Vehicles

10
In Giga Watts

300 8.5
8
6.3

(in Million)
200 6 Two Wheelers
120
4
100 Three Wheeler
2 Commercial
Passenger
0 0
2017 Demand Current Capacity Gap 2002-03 2004-05 2006-07 2008-09
India Energy Demand Supply Scenario

3 Number of Telecom Towers to be Setup 4 Other Demands

6000 5200
4200
5000
Demand Through Industrial Batteries
Telecom Towers

4000
Railways and Other heavy industries
3000

2000 Home UPS and power support

1000
1000

0 After Sales Market of Automotive

Commissioned To Be Total
Commissioned

Source: Literature Search (SIAM, Telecom Department, Indian

© 2009 RedSeer Power
Consulting Ministry)
Confidential and Proprietary Information. www.redseerconsulting.com . 4
The INR 224 billion Indian battery market is expected to
grow at 20% CAGR over the next 4 years
• The domestic battery industry is poised to
Organised Storage Battery Market Size more than double within four years
(Rs. Billion)
• The growth is coming from both
140 automotive and industrial sectors
powered by usage in the telecom,
120 116
railways, power and other industrial
applications
100 20% CAGR 97

81 – India is emerging to be the seventh

80 largest automobile market by 2016 and
67 the world’s third largest by 2030
60 56
– Industrial batteries consumption is
powered by usage in the telecom,
40 railways, power and other industrial
applications
20
• Given the market potential, for the first
0 time an International Battery Fair was
being hosted in India, normally hosted in
2008 2009 2010 2011 2012 the US, Europe and in the Asia-Pacific
markets

Source: Literature Search (Interview by Exide’s©CEO, dated

2009 RedSeer March
Consulting 12, 2008);
Confidential Industry
and Proprietary reports
Information. www.redseerconsulting.com . 5
Just 1/4th of the Indian battery market is organized

• Although the OEMs prefer the branded

batteries the unorganised players are
Total Storage Battery Market in India (FY predominant in the replacement market
2008); 100% = INR 224 billion
Passenger
(5%) • Unorganised players price batteries at about
Commercial
(4%)
20-25% lower than a branded battery
Others
(4%) • The unorganised battery makers cater largely
to the Commercial Vehicles segment, which is
Organized less quality sensitive and cost sensitive
(25%)
Non Automotive
(11%) • Exide dominates the organised replacement
market for batteries where it commands over
40% of the market
Unorganized
(75%) • The share of the unorganised battery
manufacturers is expected to reduce going
forward with growing awareness among
Potential of up to INR 168
Billion for players who can people over the use of inferior quality
offer value based products batteries, implementation of VAT across states
and various initiatives taken up by the
organised battery manufacturers

Source: Literature Search © 2009 RedSeer Consulting Confidential and Proprietary Information. www.redseerconsulting.com . 6
55% of the organized battery demand comes from the
automotive sector
Replacement market OEM

Organized Storage Battery Market in India

(FY 2008); 100% = INR 56 billion
34%
`

66%
Organised
Automotive
batteries
45%
55%
Cars and Utility vehicles
Commercial vehicles
Others
Other
Organised
batteries
33% ` 38%

Industrial segment commands

better margins then the 29%
automotive OEM segment

Source: Industry reports © 2009 RedSeer Consulting Confidential and Proprietary Information. www.redseerconsulting.com . 7
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