Know about the giant Battery industry in India

1. INDIAN BATTERY INDUSTRY
BATTERY OVERVIEW:
INVENTION OF BATTERY:
While constructing a railway in 1936 near Baghdad, workers uncovered what
appeared to be a prehistoric battery, also known as the Parthian Battery. The object dates
back to the Parthian empire and is believed to be 2,000 years old. The battery consisted of a
clay jar that was filled with a vinegar solution into which an iron rod surrounded by a copper
cylinder was inserted. This device produced 1.1 to 2.0 volts of electricity. Not all scientists
accept the Parthian Battery as a source of energy.
One of the earliest methods to generate electricity in modern times was by creating a
static charge. In 1660, Otto von Guericke constructed an electrical machine using a large
sulfur globe which, when rubbed and turned, attracted feathers and small pieces of paper.
Guericke was able to prove that the sparks generated were electrical in nature.
In 1744, Ewald Georg von Kleist developed the Leyden jar that stored static charge in
a glass jar that was lined with metallic foil on the inside and outside of the container. Many
scientists, including Peter van Musschenbroek, professor at Leiden, the Netherlands, thought
that electricity resembled a fluid that could be captured in a bottle. They did not know that the
two metallic foils formed a capacitor. When charged up with high voltage, the Leyden jar
gave the gentlemen an unexplainable hefty shock when they touched the metallic foil.
The first practical use of static electricity was the “electric pistol” that Alessandro
Volta (1745–1827) invented. He thought of providing long-distance communications, albeit
only one Boolean bit. An iron wire supported by wooden poles was to be strung from Como
to Milan, Italy. At the receiving end, the wire would terminate in a jar filled with methane
gas. To signal a coded event, an electrical spark would be sent by wire to detonate the jar.
This communications link was never built.

2. In 1791, while working at Bologna University, Luigi Galvani discovered that the
muscle of a frog would contract when touched by a metallic object. This phenomenon
became known as animal electricity. Prompted by these experiments, Volta initiated a series
of experiments using zinc, lead, tin and iron as positive plates (cathode); and copper, silver,
gold and graphite as negative plates (anode). The interest in galvanic electricity soon became
widespread.
EARLY BATTERIES:
Volta discovered in 1800 that certain fluids would generate a continuous flow of
electrical power when used as a conductor. This discovery led to the invention of the first
voltaic cell, more commonly known as battery. Volta learned further that the voltage would
increase when voltaic cells were stacked on top of each other.
Silver (A) and zinc (Z) metals are immersed in cups filled with electrolyte and connected
in series
.Silver and zinc electrodes are connected in series, separated by paper soaked with
electrolyte.

3. HISTORY OF MODERN BATTERY DEVELOPMENT:
Year Inventor Activity
1600 William Gilbert (UK) Establishment of electrochemistry study
1745 Ewald Georg von Kleist (NL) Invention of Leyden jar. Stores static electricity
1791 Luigi Galvani (Italy) Discovery of “animal electricity”
1800 Alessandro Volta (Italy) Invention of the voltaic cell (zinc, copper disks)
1802 William Cruickshank (UK) First electric battery capable of mass production
1820
André-Marie Ampère
(France)
Electricity through magnetism
1833 Michael Faraday (UK) Announcement of Faraday’s law
1836 John F. Daniell (UK) Invention of the Daniell cell
1839 William Robert Grove (UK) Invention of the fuel cell (H2/O2)
1859 Gaston Planté (France) Invention of the lead acid battery
1868 Georges Leclanché (France) Invention of the Leclanché cell (carbon-zinc)
1881
Camile Alphonse Faure
(France)
Invention of lead grid lattice (current system)
1899 Waldemar Jungner (Sweden) Invention of the nickel-cadmium battery
1901 Thomas A. Edison (USA) Invention of the nickel-iron battery
1932
Schlecht & Ackermann
(Germany)
Invention of the sintered pole plate
1947 Georg Neumann (Germany) Successfully sealing the nickel-cadmium battery
1949 Lewis Urry, Eveready Battery Invention of the alkaline-manganese battery
1970s Group effort
Development of valve-regulated lead acid
battery
1990 Group effort
Commercialization of nickel-metal-hydride
battery
1991 Sony (Japan) Commercialization of lithium-ion battery

4. No new major battery system has entered the commercial market since the invention of Li-
phosphate in 1996. Impressive progress was made from 1990 to 2002.
TYPES OF BATTERIES:
Batteries can be divided into two major categories,
1. Primary Batteries:
A primary battery is a disposable kind of battery. Once used, it cannot be recharged.
Eg: . Alkaline batteries, Mercury batteries, Silver-Oxide batteries, and Zinc
carbon batteries are examples of primary batteries
Alkaline: household electronics
Lithium - Ion: watches, calculators, digital cameras, notebook computers
Zinc Air: hearing aids
Silver Oxide: hearing aids, electronic watches, submarines, missiles,
aerospace
Carbon-Zinc : calculators, home security, penlight, radio toys, remote
controllers
2. Secondary Batteries:
Secondary batteries are rechargeable batteries. Once empty, it can be recharged again.
This charging and discharging can happen many times depending on the battery type .
Eg: Lead-Acid batteries and Lithium batteries are the examples of secondary
battery's.
1994 Bellcore (USA) Commercialization of lithium-ion polymer
1995 Group effort Introduction of pouch cell using Li-polymer
1995 Duracell and Intel Proposal of industry standard for SMBus
1996 Moli Energy (Canada) Introduction of Li-ion with manganese cathode
1996 University of Texas (USA) Identification of Li-phosphate (LiFePO4)
2002
University of Montreal,
Quebec Hydro, MIT, others
Improvement of Li-phosphate, nanotechnology,
commercialization
2002 Group effort
Various patents filed on nanomaterials for
batteries

5. Nickel Cadmium : workhorse, chargeable upto 500 times - Calculators, Digital
Cameras, Photoflash, Music player
Nickel Metal Hydride : 500 recharges; but has memory problem - Cars, cameras,
mobile phones, medical instruments, camcorders, electric razors.
BATTERY INDUSTRY IN INDIA:
The battery industry in India that comprises automobile, scaled maintenance free
(SMF), tubular and lead acid batteries, has been registering an annual growth rate of 25 per
cent year on year. While China still remains the world’s largest battery market, India is
expected to register the strongest growth in sales every year. Demand for Indian batteries
from importers worldwide has increased and to meet this, Indian manufacturers are also
gearing up.
The Top 12 Battery Manufacturers on the basis of their revenues are
Rank Company name
1 Exide Industries Ltd
2 Amara Raja Batteries Ltd
3 Luminous Power Technologies Pvt Ltd
4 HBL Power Systems Ltd
5 Su-Kam Power Systems Ltd
6 Base Corporation Ltd
7 Okaya Power Ltd
8 Southern Batteries Pvt Ltd
9 True Power International Ltd
10 Evolute Solutions Pvt Ltd
11 Greenvision Technologies Pvt Ltd
12 Artheon Electronics Ltd

6. 47.80%
18.20%
8.60%
8.60%
5.20% 5.20%
4.00%
0.86%
0.34%
0.26%
0.17%
0.17%
Revenues Excide
Amara raja
Luminous Power
HBL Power Systems
Su-kam power systems
Base corporation
Okaya Power Ltd
Southern Batteries Pvt Ltd
True Power International Ltd
Evolute Solutions Pvt Ltd
Green vision Technologies Pvt
Ltd
Artheon Electronics Ltd

7. AN INCREASING DEMAND OF ENERGY IN INDIA:
1. POWER NEED:
2. AUTOMOTIVES:
335
120
215
0
50
100
150
200
250
300
350
400
2017 demand current capacity gap
INDIA ENERGYDEMAND SUPPLY SCENARIO
0
2
4
6
8
10
12
2002-03 2004-05 2006-07 2008-09
passenger
commercial
three wheeler
two wheeler
MORE THAN 11 MILLION VEHICLES SOLD EVERY
YEAR (2002-2009)

8. 3. TELECOM TOWERS:
MARKET SIZE AND ITS MARGINS IN INDIA:
The INR 464 billion Indian battery market is expected to grow at 20% CAGR over
the next 4 years
 The domestic battery industry is poised to more than double within four years
1000
4200
5200
0
1000
2000
3000
4000
5000
6000
commissioned to be commissioned total
number of telecom towers to be setup
56
67
81
97
116
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012
organised storage battery market size
(Rs. Billion)

9.  The growth is coming from both automotive and industrial sectors powered by usage
in the telecom, railways, power and other industrial applications
 India is emerging to be the seventh largest automobile market by 2016 and the
world’s third largest by 2030
 Industrial batteries consumption is powered by usage in the telecom, railways, power
and other industrial applications
 Given the market potential, for the first time an International Battery Fair was being
hosted in India, normally hosted in the US, Europe and in the Asia-Pacific markets
 Although the OEMs (Original Equipment Manufacturers) prefer the branded batteries
the unorganized players are predominant in the replacement market
 Unorganized players price batteries at about 20-25% lower than a branded battery
 The unorganized battery makers cater largely to the Commercial Vehicles segment,
which is less quality sensitive and cost sensitive
 Exide dominates the organised replacement market for batteries where it commands
over 40% of the market
 The share of the unorganized battery manufacturers is expected to reduce going
forward with growing awareness among people over the use of inferior quality
batteries, implementation of VAT across states and various initiatives taken up by the
Government.
Organised battery manufacturers Breakup of the market
Passenger vehicles 5% (Branded)
Commercial vehicles 5%(Branded)
Other vehicles 4% (Branded)
Non- automotive 11%(Branded)
Non Branded 75%
Organised battery manufacturers Breakup of the market
Branded Market share Non Branded Market Share
Passenger vehicles 5% Non Branded 75%
Commercial vehicles 5%
Commercial vehicles 4%
Non- automotive 11%
25% 75%

10. INDIAN AUTOMOTIVE BATTERY MARKET:
Definition: An automotive battery is a rechargeable battery that supplies electrical current
to a motor vehicle. Its main purpose is to feed the starter, which starts the engine. Once the
engine is running, power for the car's electrical systems is supplied by the alternator.
The Indian automotive market witnessed tremendous growth during 2009-12 due to
various government initiatives and growing easy loan facilities in the country. The major
government measures such as National Automotive Testing and R&D Infrastructure Project
(NATRiP), Focus Market Scheme (FMS) and Automotive Mission Plan 2006-16 are further
expected to support the sales of passenger cars and commercial vehicles in the country,
contributing to the growing demand for automotive batteries. Also, National Electric
Mobility Mission Plan, 2020 (NEMMP) targets to augment the demand for electric vehicles
to around 5 to 7 million by 2020, which is anticipated to significantly boost the demand for
Li-ion automotive batteries market in India.
According to the “India Automotive Battery Market Forecast & Opportunities,
2018”, the Indian automotive battery market is projected to grow at a CAGR of
approximately 13% during 2013-18, in value terms. The key reason can be attributed to the
recent launches of Medium Utility Vehicles (MUV) and Sports Utility Vehicles (SUV) such
as Renault’s Duster, Mahindra’s XUV, Maruti’ s Ertiga and Ford’s Eco Sports, etc. As a
result, the utility vehicles battery market segment is expected to witness the fastest growth in
automobile battery market, followed by two wheeler batteries and light commercial vehicle
battery market segments, over the next five years. The demand for automotive battery has
largely emerged from northern region of India due to increasing automobile sales in various
states such as Uttar Pradesh, Delhi, Rajasthan, etc., and presence of large automobile
manufacturers like Honda and Tata.
HUGE OPPORTUNITIES, BUT CHALLENGES TOO:
 The battery industry is evolving, led by cyclical slowdown in the auto battery segment
as well as competitive pressures in the industrial battery segment.
 GST would drive consolidation in the replacement market of automotive and inverter
batteries, leading to strong growth of 16-17% for the organized players.
 New segments in industrial batteries –e-rickshaw, motive power, and solar
applications – would drive growth, as conventional drivers of this segment stabilize.
 Electric vehicles (EVs) are unlikely to displace lead acid batteries (LAB), as these are
still preferred for SLI (starter, lighting and ignition) application. Manufacturing of Li-
ion batteries could be a USD42b opportunity by 2030
 While we like both AMRJ and EXID, we prefer EXID over AMRJ due to its cheaper.

11. EVS NOT TO DISPLACE LEAD-ACID BATTERIES; TO CREATE OPPORTUNITY
TO MANUFACTURE LITHIUM-ION BATTERIES:
Contrary to general perceptions, electric cars (EV) have a 12v lead acid battery (LAB)
as auxiliary battery for SLI (starter, lighting and ignition) applications. We believe LAB will
remain relevant even in the EV world. We expect localization of Li-ion battery to be highest
priority for OEMs (Original Equipment Manufacturers) to reduce cost of batteries and lower
for exposure. Given the criticality of the battery and scope of differentiation it offers, we
expect OEMs to manufacture EV batteries in-house. Li-ion batteries could be a ~USD42b
opportunity by 2030. Based on this, the cell manufacturing opportunity would be ~USD15b.
GST TO DRIVE CONSOLIDATION, BENEFITTING AMRJ/EXID:
 Our analysis suggests that non-compliant manufacturers (those who evaded excise
and VAT) enjoyed price advantage as high as >20%.Post income tax (as non-
compliant manufacturers would be evading of income tax as well), this could be22-
26%.
 The share of the unorganized segment in the replacement market has been gradually
declining, but is still 40-50% according to our industry sources.
 While we are yet to see material change in compliance post GST implementation, the
cost of doing business is expected to increase gradually for non-compliant players, as
the government’s focus shifts towards higher compliance.
 Our interactions with channel partners suggest that AMRJ and EXID are increasingly
promoting competitively-priced entry-level brands with shorter warranty period.
 In the battery replacement market, we expect the share of unorganized players to
reduce from ~45% to ~27% by FY22. Organized players like AMRJ/EXID should
grow at 16.7% CAGR over FY17-22 in the auto replacement segment.
INDIA’S ENERGY STORAGE MISSION:
Global battery manufacturing capacity continues to soar, with many companies and
nations announcing plans to build more Giga factory-scale plants. Industry experts expect
global battery manufacturing capacity to more than double from 2017–2021, rising from 119
GWh/y to 273 GWh/y over the period. India’s electric mobility ambitions could drive global
battery demand and manufacturing capacity higher and prices even lower than has been
projected in previous analyses. NITI Aayog, estimate that India would require a minimum of
20 Giga factory-scale battery manufacturing plants, collectively producing approximately 800
GWh of batteries per year by 2030 to support 100 percent EV sales across all types of
personal vehicles. This transformation would significantly increase global installed battery
manufacturing capacity. In fact, India’s 2030 requirement could represent 38 percent of
global capacity by 2030. Given historic and projected learning rates for battery
manufacturing, adding another 800 TWh/y could drive world battery prices down by 8–16

12. percent (relative to current forecasts that do not account for India’s ambitions) to
approximately $60/kWh–$67/kWh.
Domestic manufacturing of batteries and EV components could help India’s OEMs
and technology companies to capitalize on the nation’s aggressive vehicle electrification
goals, bolstering India’s competitiveness on the global stage. Indigenously developed electric
vehicle platforms and solutions that are readily adaptable to Indian use-cases could be
applicable in other developing economies. In the long run, Indian OEMs and battery
manufacturers could eventually grow to serve not just the domestic market but also a
significant share of the global EV and EV-component market.
KEY CHALLENGES TO SCALING INDIA’S BATTERY INDUSTRY:
India’s 100 percent EV goal calls for building a robust and competitive battery manufacturing
supply chain. To do so, however, India must overcome three challenges.
A. LOW MINERAL RESERVES:
India has small reserves of key minerals required for lithium-ion (Li-ion) batteries. In
Li-ion batteries, cathode materials vary, but common formulations include minerals such as
lithium, aluminium, cobalt, manganese, and nickel, while the anode is made of graphite.
India does not have reserves of some of the most important Li-ion components including
lithium, cobalt, nickel, nor, for that matter, of the copper used in conductors, cables, and
busbars. Hence, reliable supply, not just of the raw materials but also of processed
functional materials used in the anode and cathode, poses a challenge.
B. LACK OF COORDINATION AMONG STAKEHOLDERS:
Strong coordination between various stakeholder groups in cell manufacturing and
battery assembly can support the development of a robust and competitive battery
manufacturing supply chain in India. Key stakeholders in the battery manufacturing
ecosystem include material suppliers, battery manufacturers, vehicle manufacturers, local and
central governments, research institutes, and think tanks. Coordination among these parties
can help to define technology pathways, align investment strategies and timing, and guide
policies to help achieve India’s 2030 EV target. The absence of this coordination amongst
key stakeholder groups is a key barrier to streamlining efforts by different industries and
organizations in building India’s battery manufacturing supply chain.
C. HIGH PERCEIVED RISK:
Due to the uncoordinated efforts by different stakeholder groups and the relatively
nascent stage of battery manufacturing in India, investment risks in this sector are considered
to be high. Due in part to the absence of clear long-term policies for manufacturing and
uncertainty around future battery technology, battery and vehicle manufacturers hesitate to
make significant investments. Consistent and transparent policies can help address this
barrier.

13. FUTURE OF BATTERY INDUSTRY:
The battery market in India is projected to reach $8.6 billion by 2022, on account of
growing demand from automobile and industrial sectors.
The battery market in India is mainly driven by growth in power sector, surging
transportation needs, increasing battery integration in consumer electronics and rising fuel
saving initiatives. In India, several government measures such as promotion of solar power
and clean fuel based automobile technologies are anticipated to propel demand for batteries
in the country over the course of next five years. Moreover, rising investments in
infrastructure developments coupled with growing telecom sector is projected to bolster
growth in the country's battery market during 2017-2022.
Emergence of new data transmission technologies such as 4G would require
upgradation of technological infrastructure such as establishment of new telecom towers, etc.
This is projected to buoy growth in the country's battery industry in the coming years, as
batteries form an integral part of operational telecom towers and associated infrastructure.
Strong growth in domestic production and exports of automobiles, coupled with
expanding vehicle fleet is projected to drive demand for batteries from OEMs as well as
replacement segments through 2022. Moreover, rising penetration of two-wheelers in semi
urban and rural India is projected to surge replacement demand for two-wheeler batteries
during the forecast period.
REFERENCES:
www.batteryuniversity.com
www.electronicsb2b.com
www.prnewswire.com (future of battery industry)
www.niti.gov.in (india’ s energy storage mission)
www.techsciresearch.com
www.quora.com (market size of automotive batteries and its margin in india)
www.mothilaloswalgroup.com (opportunities & challenges)
www.redseerconsulting.com (increasing demand of energy in India)