India's Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing allocates ₹18,100 crore to support domestic production of 50 GWh annually by FY28. The winners of this tender — Ola Electric, Reliance, Rajesh Exports, and the Hyundai-backed consortium — have committed to building India's first gigascale cell manufacturing facilities. For existing battery companies like Amara Raja and Exide, the question is existential: adapt or become irrelevant.
Amara Raja: The Giga Corridor Bet
Amara Raja Batteries (now rebranded Amara Raja Energy & Mobility) is investing ₹9,500 crore in its Giga Corridor project in Telangana. The facility will manufacture lithium-ion cells (LFP chemistry), battery packs, and energy storage systems. This is a fundamental business model transformation — from an assembler of imported lead-acid batteries to a vertically integrated lithium-ion cell manufacturer. The capex is significant relative to Amara Raja's current EBITDA of ~₹1,400 crore/year, implying significant leverage and execution risk.
Exide Industries: The Slower Pivot
Exide Industries has taken a different approach — a joint venture with SVOLT Energy Technology (a Great Wall Motor subsidiary) for lithium-ion cell manufacturing. The JV committed ₹6,000 crore. Exide's transition is slower than Amara Raja's, which creates both lower risk (less capex at stake) and lower reward (later to market).
- ACC PLI scheme: ₹18,100 crore for 50 GWh domestic capacity
- Amara Raja Giga Corridor: ₹9,500 crore, Telangana
- Exide-SVOLT JV: ₹6,000 crore commitment
- India currently imports ~95% of lithium-ion cells
- LFP chemistry dominates India's EV mix (two-wheelers, EVs)
🔍 BBS Insight
The battery transition is real but the capex cycle is brutal. Amara Raja and Exide are both betting their balance sheets on lithium-ion at a time when their legacy lead-acid businesses still generate most of the cash. The key metric to track is not the capex announcement — it is the utilisation rate of the new cell capacity once it comes online. A factory running at 40% utilisation destroys more value than it creates. Watch the execution pace, not the ambition.