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Exide industries
- 2. COMPANY PROFILE BEGAN AS Associated Battery Makers (Eastern) Ltd . Named as Exide Industries Ltd in 1995 Headquartered in Kolkata and offices spread out across all major cities in the country. Leading manufacturer of storage batteries. Manufactures high-end submarine batteries. Leading manufacturer of lead acid batteries in India and South Asia.
- 4. The Firm & Its Business Experiencing humongous growth in last couple of years. Market share 65% -Replacement battery segment. 35% -Industrial battery segment. Major revenue stream Automotive sector- 62% Industrial sector- 37% Growing fast in invertor segment - acute power shortage across the country.
- 5. What went wrong ??? Suppressed margins. Average growth in auto and industry. Weak economic indicators. High cost of raw materials(20%). PEG ratio at close to 2 . Selling an old battery . Sharp depreciation in rupee negates fall in lead prices.
- 6. Diverting from the “KING” Poor after sales service -dealer and customer dissatisfaction. Very LOW Battery BACK UP. BATTERY PROBLEM WARRANTY CLAIM Battery is under warranty still they are not repairing it
- 10. MEASURES TO OVERCOME Reins in costs to lift performance. Satisfaction to customer . Price of lead, a key raw material Until there is some respite in the falling rupee . Factors (mainly policy and liberalization) would impact this sector. Auto and overall industry .
- 11. THANKS BY: DEEPAK JHA
Editor's Notes
- Exide began in India as Associated Battery Makers (Eastern) Ltd in the year 1947. The company was christened as Exide Industries Ltd in 1995. A leading manufacturer of storage batteries, Exide has six manufacturing facilities across India. The company sells automatic batters under the brands Exide, SF, Sonic and Standard Furukawa. As for industrial batteries, it sells products unders brands Index, SF, Ceil and Power Safe. The company also manufactures high-end submarine batteries. Some of Exide’s subsidiaries include Espex Batteries Ltd, Chloride Power Systems and Solutions Ltd, Chloride Alloys India Ltd and Chloride Metals Ltd (CML). Exide is headquartered in Kolkata and has offices spread out across all major cities in the country. The leading manufacturer of lead acid batteries in India and South Asia is the sole supplier for submarine batteries to the Indian Navy. Exide’s products are used in several industries that include Railway, Defense, Mining, Hospitals, Airlines, Tele-Communications and Power Stations. As of 2011, Exide employed over 5,000 people and has over 3000 authorized dealers across the country. In 2011, the company had gross sales of Rs 5,558 crores
- Exide Industries, the leader in industrial and auto battery segments has been experiencing humongous growth in last couple of years. Its market share is 65% in replacement battery segment while 45% in industrial battery segment. Its major revenue stream is automotive sector with 62% of revenue while industrial sector counts for 37% of the segment. Exide industries has gone full-fledged into invertor segment which is growing fast because of acute power shortage across the country.
- have put a dent in the profitability as well as market price of the stock. The PEG ratio at close to 2 is expensive for Exide Industries. The PEG ratio of 1 is sometimes said to represent a fair trade-off between the values of cost and the values of growth, indicating that a stock is reasonably valued given the expected growth. A crude analysis suggests that companies with PEG values between 0 to 1 may provide higher returns. price/earnings to growth ratio Technically speaking: The lower the PEG number, the less you pay for each unit of future earnings growth. So even a stock with a high P/E, but high projected earning growth may be a good value
- Poor after sales service resulting into dealer and customer dissatisfaction. Sales executives did not visit dealers shop resulting into lack of information flow.
- Auto and overall industry depend on the growth of the economy which is expected to take a hit like never before. The auto industry depends on interest rate. Hence unless this is cut to a reasonable level