Exide Btry

The leadership role of Exide Company in Battery Industry
CHAPTER 1
INTRODUCTION
1.1Introduction
Lead acid batteries were invented in 1859 by Gaston Plant and first demonstrated to the French Academy of Sciences in 1860. They remain the technology of choice for automotive SLI (Starting, Lighting and Ignition) applications because they are robust, tolerant to abuse, tried and tested and because of their low cost. For higher power applications with intermittent loads however, Lead acid batteries are generally too big and heavy and they suffer from a shorter cycle life and typical usable power down to only 50% Depth of Discharge (DOD). Despite these shortcomings Lead acid batteries are still being specified for PowerNet applications (36 Volts 2 kWh capacity) because of the cost, but this is probably the limit of their applicability and NiMH and Li-Ion batteries are making inroads into this market. For higher voltages and cyclic loads other technologies are being explored.
Lead-acid batteries store energy using a reversible chemical reaction between lead plates and dilute sulphuric acid (electrolyte). Lead Acid batteries can be used for different applications such as starter batteries: used to start engines in cars etc, deep-cycle batteries: used in renewable energy applications and camping etc, and marine batteries: used both for starting and for deep cycle applications.
BASICS
The Lead Acid battery is made up of plates, lead, and lead oxide (various other elements are used to change density, hardness, porosity, etc.) with a 35% sulfuric acid and 65% water solution. This solution is called electrolyte, which causes a chemical reaction that produce electrons. Wet Cell (flooded), Gel Cell, and Absorbed Glass Mat (AGM) are various versions of the lead acid battery. The Wet cell can be in two styles; low Maintenance and Maintenance free. The Gel Cell and the AGM batteries are special versions of lead acid batteries superior to a wet cell, suitable for versatile applications such as Marine, RV, Solar, Audio, Power Sports and Stand-By Power. They are also called as Valve Regulated Lead Acid" batteries.
INSIDE A LEAD ACID BATTERY

A typical 12 volt lead acid battery is actually made up of six identical 2 volt cells. In a leadacid cell the active materials are lead dioxide (PbO2) in the positive plate, sponge lead (Pb) in the negative plate, and a solution of sulfuric acid (H2SO4) in water as the electrolyte. Lead dioxide plates react with the acid to form lead sulphate giving up electrons (leaving the plate positive). The pure lead plates (linked to the negative terminal of the battery) react with the sulphate ions to also form lead sulphate. The purelead plates therefore supply two positive charges and so are left negative. The passage of electons from the lead oxide plates to the pure lead plates is the current of electricity generated by the cell which can be used. When the battery is recharged, the lead sulphate in each cell is broken down resulting in lead dioxide being redeposited on the positive electrode, and lead being replaced on the negative electrode.
1.2 WHAT CAN A BATTERY DO?
A battery can do one or more of the following things:First, and most common in the minds of the general public, is to start an engine. Here, the battery delivers a short burst of high amplitude electric current to energize the starter motor that turns the crankshaft on an internal combustion engine. In general, these types of batteries are called SLI, which stands for Starting Lighting & Ignition. Second, the battery can sit for months or years in a stand-by mode waiting to provide back up power when there is a power outage from the utility company. When the battery supplies its power as a backup, it may discharge completely or only very slightly. Then it is recharged when the power comes back on, and then it again sits idle for long periods of time. Actually, this application is very common, particularly now with the literal explosion (not to be confused with rapid disassembly) of new applications within the telecommunications industry. Third, the battery can deliver the majority of its capacity repeatedly, possibly on a daily basis. This is called a deep-cycle application. Typical examples of this type of use are electric vehicles: cars, busses, golf carts, bicycles, and scooters; industrial applications like electric forklifts (also an electric vehicle); and marine applications like running trolling motors. Deep cycle applications where the battery supplies electric power to portable equipment include medical equipment like EKG machines and respiratory monitors, electronic test and data collection equipment used in industrial settings, telecommunications equipment and a wide range of other types of equipment. The electric vehicle (EV) applications are the most strenuous on the battery pack. In some respects, the EV application is like a combination of engine start and deep cycle.

The current draw from the battery pack could be very high, at several hundred amps when the vehicle begins to move from a dead stop, during acceleration, and climbing hills. Other times, the current draw may be steady at a much lower value, possibly less than 50 amps when the vehicle is coasting or traveling at a steady speed. Most batteries do 1 of these 3 things very well, either engine start, standby, or deep cycle. Occasionally, a battery can perform 2 of these functions well. Usually engine start and stand-by are the applications that can be handled by a single battery style. Although there has been much research and development in the last 10 years to optimize battery performance for EV applications, it is very rare that any battery style can do all 3 things equally well.
1.3 CHARACTERISTIC OF LEAD ACID BATTERY

Charge During charging, the cycle is reversed: the lead sulfate and water are electro-chemically converted to lead, lead oxide and sulfuric acid by an external electrical charging source. Many new competitive cell chemistries are being developed to meet the requirements of the auto industry for EV and HEV applications. Discharge During discharge, the lead dioxide (positive plate) and lead (negative plate) react with the electrolyte of sulfuric acid to create lead sulfate, water and energy. Shortcomings Very heavy and bulky. Typical coulombic charge efficiency only 70% but can be as high as 85%to 90% for special designs. Danger of overheating during charging Not suitable for fast charging Typical cycle life 300 to 500 cycles . Must be stored in a charged state once the electrolyte has been introduced to avoid deterioration of the active chemicals.
Gassing is the production and release of bubbles of hydrogen and oxygen due to the breakdown of water in the electrolyte during the charging process, particularly due to excessive charging, causing loss of electrolyte. In large battery installations this can cause an explosive atmosphere in the battery room. Because of the loss of electrolyte, Lead acid batteries need regular topping up with water. Sealed batteries however are designed to retain and recombine these gases. (See VRLA below)

Sulphation may occur if a battery is stored for prolonged periods in a completely discharged state or very low state of charge, or if it is never fully charged, or if electrolyte has become abnormally low due to excessive water loss from overcharging and/or evaporation. Sulphation is the increase in internal resistance of the battery due to the formation of large lead sulphate crystals which are not readily reconverted back to lead, lead dioxide and sulphuric acid during re-charging. In extreme cases the large crystals may cause distortion and shorting of the plates. Sometimes sulphation can be corrected by charging very slowly (at low current) at a higher than normal voltage. Completely discharging the battery may cause irreparable damage. Shedding or loss of material from the plates may occur due to excessive charge rates or excessive cycling. The result is chunks of lead on the bottom of the cell, and actual holes in the plates for which there is no cure. This is more likely to occur in SLI batteries whose plates are composed of a Lead "sponge", similar in appearance to a very fine foam sponge. This gives a very large surface area enabling high power handling, but if deep cycled, this sponge will quickly be consumed and fall to the bottom of the cells.
Decomposition of the Electrolyte Cells with gelled electrolyte are prone to deterioration of the electrolyte and unexpected failure. Such cells are commonly used for emergency applications such as UPS back up in case of loss of mains power. So as not to be caught unawares by an unreliable battery in an emergency situation, it is advisable to incorporate some form of regular self test into the battery.
Applications Automotive and traction applications. Standby/Back-up/Emergency power for electrical installations. Submarines UPS (Uninterruptible Power Supplies) Lighting High current drain applications. Sealed battery types available for use in portable equipment.
Costs Low cost Flooded lead acid cells are one of the least expensive sources of battery Power available. Deep cycle cells may cost up to double the price of the equivalent flooded cells.
1.4 Advantages
Low cost. Reliable. Over 140 years of development. Robust. Tolerant to abuse. Tolerant to overcharging. Low internal impedance. Can deliver very high currents. Indefinite shelf life if stored without electrolyte. Can be left on trickle or float charge for prolonged periods. Wide range of sizes and capacities available. Many suppliers world wide. The world's most recycled product.
1.5 Subsidiaries
1. Chloride International Limited ("CIL"): CIL was incorporated on 31st January, 1947 under the name Exide Batteries (Eastern) Limited which was subsequently changed to Chloride & Exide Batteries (Eastern) Limited on 11th February, 1948. It was later changed to Exide Products Limited on 2nd April, 1981 and lastly changed to Chloride International Limited on 14th November, 2003. The CIN of CIL is L31402WB1947PLC014918. The Registered Office of CIL is situated at Exide House, 59E Chowringhee Road, Kolkata 700 020. CIL is a 100 per cent subsidiary of Exide Industries Limited. It is engaged in non conventional energy business. 2. Chloride Power Systems & Solutions Ltd ("CPSSL"): CPSSL was incorporated on 16th day of June, 1980 and it is engaged in the business of high end chargers for industrial use. The CIN of CPSSL is U29221WB1980PLC032796. CPSSL is a 100 per cent subsidiary of Exide Industries Limited. The Registered Office of CPSSL is situated at Plot No. Y-21, Block EP, Sector V, Salt Lake Electronics Complex, Bidhannagar, Kolkata 700 091. 3. Chloride Metals Ltd ("CML"): The Company acquired 100 % stake of CML making it a wholly owned subsidiary w.e.f. 1st November 2007. CML was incorporated on 14th December, 1998 under the Indian Companies Act, 1956. The Registered Office of CML is situated at Exide House; 59E Chowringhee Road; Kolkata 700020. 4. Chloride Alloys India Ltd ("CAIL"): The Company acquired 51% stake of CAIL (formerly Leadage Alloys India Ltd) in June 2008. The balance 49 per cent stake was acquired in 2010 to make it a 100 per cent subsidiary. CAIL was incorporated on 25th September, 2002 under the Indian Companies Act, 1956. The Registered Office of CAIL is situated at Exide House; 59E Chowringhee Road; Kolkata 700020. Chloride Alloys India is engaged in manufacture and supply of recycled lead.
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5. Chloride Batteries S E Asia Pvt Limited (CBSEA): CBSEA was incorporated on 4th September, 1958 under the laws of Singapore under the name The Chloride Electrical Storage Company Far East Limited on 4th September, 1958 which was subsequently changed to Chloride Batteries S E Asia Pvt Limited on 4th December, 1969. CBSEA is a 100 per cent subsidiary of Exide Industries Limited. The registered office of CBSEA is located at 106 Neythal Road, Jurong Town, Singapore 628 594. The principal activities of CBSEA comprise production and distribution of industrial battery chargers, rectifiers and parts thereof and the distribution of industrial and automotive batteries. 6. Espex Batteries Limited (ESPEX): ESPEX was incorporated on 8th January, 2003 under the Companies Act, 1985 of UK. The Registered Office of ESPEX is situated at Clipper Road, Roath Dock, and Cardiff CF10 4EW, UK. ESPEX is engaged in supply of industrial batteries in UK and its neighboring areas.
7. Associated Battery Manufacturers (Ceylon) Limited (ABML): ABML was incorporated on 6th May, 1960 under the laws of Sri Lanka. The registered office of ABML is situated at 481 T B Jayah Mawatha, Colombo 10, Sri Lanka. ABML is engaged in the manufacture of Lead acid automotive and motorcycle batteries.
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CHAPTER 2
THE INDIAN LEAD ACID BATTERY MARKETOVERVIEW
The past couple of years have been a roller-coaster ride for players in the Indian lead acid battery market. From being powered by a virtual monopoly, this market has witnessed a slew of new product introductions, technology innovations, the emergence of domestic competition, joint ventures, and corporate consolidations that have totally altered its landscape.
2.1 Market Spectrums

The lead acid battery market can be divided into two broad market spectrums: INDUSTRIAL AND AUTOMOTIVE BATTERIES. INDUSTRIAL BATTERY SEGMENT Compared to the automotive battery market, the industrial market is a steadier, growing market. Batteries here are used as a rugged high-drain standby source of power. These can be used for moving power and stationary applications. Moving power application batteries are used in trains, forklifts, submarines, etc. the demand for stationary batteries is substantially higher and these are used in applications such as ups systems, telecommunication networks, power plants, etc. Industrial batteries are of three types - conventional flooded (lead acid) batteries, valve regulated lead acid (vrla) batteries, and nickel cadmium batteries. Vrla batteries have, within a very short period of time, gained leadership as the highest selling industrial batteries, replacing conventional batteries. The vrla battery works on the principal of valve venting, by which gas discharge produced in chemical reactions inside the battery is safely released thereby averting potential explosions.
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With the emergence of India as an it super power and the liberalization of the wired and wireless telecom sector, there has been a swift rise in deployment of computer and communication networks at infrastructural and organizational levels. This has augmented the demand for industrial batteries, and this trend is only bound to increase as India continues to develop the service sector that includes call centers, data centers, banking networks, etc. The industrial battery market has a few established players as capital investment in technology and the manufacture of these batteries is considerably high, compared to investment in the automotive battery industry. The per-unit realization is also substantially higher than that of automotive batteries, but the frequency of purchase is limited. This also acts as a barrier for players in the unorganized sector to enter this market. Amara Raja Batteries is a strong player in the industrial battery segment.
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AUTOMOTIVE BATTERY SEGMENT Liberalization of the Indian economy in the early 90s brought about a phenomenal change in the Indian automobile industry. Through joint ventures or completely owned forays, a number of leading international auto giants have entered India and established their production bases. Their demand for world-class batteries for their vehicles urged Indian battery manufacturers to tie up with international players or buy technology, so as to upgrade their offerings to meet the high standards expected. With consolidation and growth being the maxim of most auto players today, we are seeing increased participation and partnership of battery manufacturers with auto players in creating battery solutions for new vehicle introductions. The automotive segment contributes in excess of 55 percent of the total turnover of the Indian lead acid battery market. automotive batteries are sli (start, light, and ignition) batteries, though they are expected to fuel a greater number of functions including in-vehicle entertainment systems, power steering, power locking, power window systems, etc. demand for auto batteries can be divided into the oe (original equipment) market and the aftermarket segments. Growth in the former is driven by automobile production in a concerned time frame. This is a difficult segment to service as each automobile manufacturer has different specifications for which the battery has to undertake mass customization. Additionally, margins for battery manufacturers are usually thin in this segment due to the bargaining power of the auto majors. However, inherent advantages such as a steady source of production and revenue, and strong brand recall during battery replacement make this an attractive segment for battery manufacturers.
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The past couple of years have been bumpy in the automotive sector. This has reflected in the performance of the battery market. While there has been a drop in hcv and lcv (heavy and light commercial vehicles) segment sales, there has been an increase in sales in the passenger car and two-wheeler segments. Though this has not offset the sales loss, it has helped soften the blow. The replacement market has a sizeable small player component - as this was traditionally in the realm of the small scale sector. These players have hence been able to offer new/reconditioned unbranded or lesser known branded batteries at very attractive rates. The replacement market is where the margins are, and hence battery majors are now paying a lot of attention to this segment. With the introduction of sealed long-life batteries by these players in the oe and replacement market segments, there could be a drop in battery sales in the replacement market for relatively new vehicles. However, this market is still substantial, considering that the discerning Indian vehicle owner is today more quality and brand conscious and hence willing to pay more to be free from battery problems. The market leader in this automotive battery segment is Exide industries limited. The other players include Tudor India and Amco batteries. Amara Raja batteries, a relatively new player in the auto battery segment, have made very impressive inroads into the market.
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2.2 PROFILE OF MAJOR PLAYERS IN INDIA
EXIDE INDUSTRIES LIMITED (EIL) EIL is the overall leader in the Indian lead acid batteries market. Not to be confused with Exide Corporation of the United States, this organization traces its origins to Chloride Industries U.K. and is currently owned by the Rajan Raheja group.
Being one of the oldest players in the market, EIL's biggest strengths include its strong brand recall, its presence in all business segments of the battery market, and its wide reach of dealers. With timed acquisitions of the lead acid battery business of Standard Batteries in India, and recent acquisitions in Singapore and Sri Lanka, EIL has ensured that it has leadership position in all segments of the market- especially in the OEM segment of the automotive battery market. EIL has forayed into the maintenance-free battery segment with the Exide Freedom range of batteries, which is making impressive inroads into the market. It also acquired a stake in a charger manufacturer to integrate this segment, and is looking to backward integrate its operations by manufacturing separators. EIL entered the VRLA segment of the industrial batteries market later than its competition, but has been able to catch up. This was facilitated by a tie-up with Shin Kobe, with whose assistance they have set up a modern production facility at Mysore in South India recently.
EIL has always adopted innovative marketing and product strategies. Rural and semiurban India is still plagued with power shortage. EIL realized this potential and introduced a range of products to cater to this segment. The company has also realized the commercial potential of the Internet with an online portal -www.autoexide.com. EIL manufactures batteries that find utility in disparate niche applications ranging from lights for miners hats to submarine batteries. With its overseas investments and prestigious orders from APC (American Power Conversion) Corporation to cater to a part of their global requirements, EIL is poised to increase its international exposure.
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AMARA RAJA BATTERIES LTD. (ARBL) A fast growing agile organization that has made rapid strides in the industrial batteries market, with first player advantage in the VRLA segment. ARBL has a considerably big industrial battery business, with supplies to the Department of Telecommunications, the Indian Railways, etc. Realizing the need to create a presence in the automotive segment, ARBL forayed into this segment with advanced high life batteries such as Amaron in the recent past. This was facilitated by Johnson Controls USA taking a stake in this company and the setting up of a state-of-the-art production facility in Tirupati, South India. The company has redefined marketing in the replacement market and focused on building a strong brand image for Amaron through its Pit Stop range of outlets. ARBL has also commenced OE supplies to auto majors.
TUDOR INDIA Tudor India is owned by Exide Corporation of USA through its British subsidiary CMP Batteries. Tudor is a key player in the automotive battery aftermarket with its Prestolite range of automotive batteries.
AMCO BATTERIES LTD A member of the Amalgamation Group of Companies, is a well known and trusted manufacturer of a wide range of Automotive Batteries. AMCO has been a pioneer in this Industry and has been a brand to be reckoned with in the Battery Industry since 1955. The advent of new generation Japanese Motorcycles & Cars in India in 1984, saw AMCO take significant steps in the upgradation of technologies to suit these new generation motorcycles & Cars. The initial collaboration with YUASA of Japan made the AMCO brand the preferred choice for all two wheeler manufacturers. AMCO supplies batteries to all the leading OEs in this industry Honda, Hero Moto Corp India Ltd, Bajaj, TVS, Yamaha, Royal Enfield etc. AMCO also supplies four wheeler batteries to TAFE Tractors, Sonalika Tractors, VST Tiller Tractors Ltd,
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CHAPTER 3
INTRODUCTION TO EXIDE INDUSTRIES LTD
3.1 VISION To win our customer, stakeholders and employees by transferring Quality into Performance Oriented Business, this will secure Market Leadership and Profitable Growth through Effective fulfillment of CUSTOMER NEEDS. The Company was incorporated as Associated Battery Makers (Eastern) Ltd., on 31st January, 1947 under the Companies Act, 1913 to purchase all or any of the assets of the business of manufacturers, buyers and sellers of and dealers in and repairers of electrical and chemical appliances and goods carried on by the Chloride Electric Storage Company (India) Ltd, in India , since 1916 with a view thereto to enter into and carry into effect (either with or without modification) an agreement which had already been prepared and was expressed to be made between the Chloride Electric Storage Co (India) Ltd on the one part and the Company of the other part. The name of the Company was changed to Chloride India Ltd on 2nd August, 1972. The name of the Company was again changed to Chloride Industries Ltd. vide fresh Certificate of Incorporation dated 12th October, 1988. The name of the Company was further changed to Exide Industries Ltd. on 25th August, 1995.
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The Company manufactures the widest range of storage batteries in the world from 2.5 Ah to 20,400 Ah capacity, covering the broadest spectrum of applications. The Company has six factories strategically located across the country two in Maharashtra, one in West Bengal, two in Tamil Nadu and one in Haryana. The Companys predecessor carried on their operations as import house from 1916 under the name Chloride Electrical Storage Company. Thereafter, the Company started manufacturing storage batteries in the country and have grown to become one of the largest manufacturer and exporter of batteries in the sub-continent today. Exide separated from its UK-based parent, Chloride Group Plc., in 1989, after the latter divested its ownership in favour of a group of Indian shareholders. The Company has grown steadily, modernized its manufacturing processes and taken initiatives on the service front. Constant innovations have helped the Company to produce the worlds largest range of industrial batteries extending from 2.5 Ah to 15000 Ah and covering various technology configurations.
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3.2 The vision, mission and core value statement of Exide.
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3.3 EXIDE IN INDIA

In India, as in many other erstwhile colonies of Great Britain, Exide batteries were imported for many years before the Chloride Electrical Storage Company (CESCO) was finally set up in 1916. It started only as an assembling and manufacturing facility and the first manufacturing unit was set up in Shamnagar in 1947. This marks the momentous entry of Associated Battery Makers Eastern Limited (ABMEL) in the Indian industrial scenario. For road vehicles, ABMEL's principle brands were Exide and Dagenite (used by Rolls Royce) but the Company was changing its course on other tracks too. Exide "Iron Clad" batteries powered the Railways and in 1963, following the Chinese aggression, the company doubled its production of special defence batteries. The same year saw the manufacture of large stationery batteries for railway track electrification. The rapid rate of expansion is seen with the establishment of a second factory in 1969 at Chinchwad, Maharashtra to cater to the growing demand for automobile batteries and was strategically established near automobile Original Equipment Manufacturers (OEMs).
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3.4 BATTERY MARKET IN INDIA

The Battery Industry in India, which is worth Rs. 1,600 cr, has a market size of 2000 million units. The industry is dominated by dry carbon cell batteries and the demand to a large extent is from the rural areas. The Industry Focus highlights the classification of the battery market and the product portfolios of the domestic players in India. It also throws light on the recent developments like cheaper Chinese products being available and the market for rechargeable batteries growing at a rapid pace, which have affected the industry players. The demand for batteries, which has been fuelled by increase in the usage of small pocket radios and high-powered cameras, has improved dramatically. The shift, in the nature of demand (from D size batteries to pencil size batteries) has also brought in a drastic change in the demand pattern. Eveready Industries leads the Indian dry carbon cell market with over 40% market share. Though Eveready is a strong national player, Nippo has a prominent presence in the southern region. Novino, on the other hand, has a strong presence in certain pockets in the northern region, while BPL, a new entrant, has also managed to garner sizeable market share. The alkaline battery market only accounts for 5% of the total market. This is because the alkaline battery costs twice as much as a traditional zinc carbon battery. The higher pricing is due to the relatively higher cost of production. Contrary to the global trend, the higher price of alkaline battery has dampened the market's growth in India. Alkaline batteries in developed countries account for more than 70% of the battery market. The alkaline segment in India is dominated by the global brands: Duracell and Energizer.
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Lead acid battery technology has been in use for over 100 years, widely used as secondary storage device. The popularity of lead acid batteries is attributed to Maturity of the technology Low maintenance costs Low cost of materials Widespread recycling of lead Relatively wide temperature range for both cycling and non-cycling applications.
The commercial lead acid battery market is almost totally driven by automotive and stand-by power applications, although they are also used in portable computers and communications devices. Automotive Market OEM Segment The Indian automobile battery industry is about Rs.900 crore as on June 20 2009. The automotive battery market is divided into the OEM market and replacement market. The OEM market is catered to by established companies like Exide, Amara Raja etc. Rapid increase in demand for automobiles in the recent past has created higher demand for batteries and will continue to present growth opportunities for lead acid battery industry. Replacement Market The replacement market is dominated by the unorganized players. The unorganized players make up about 55% of the market, while the organized players account for the remaining 45% of the market. The market share for the organized players was 30% in this segment 4 years before. Exide and Amara Raja account for major part of the organized market. We have analyzed Exide Batteries and Amara Raja Batteries the two largest players in the Indian battery industry.
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The leadership role of Exide Company in Battery Industry INDUSTRY FINANCIAL PERFORMANCE
Rs. In Crores Year Revenue EBITDA EBITDA Margin PAT PAT Margin Outstanding shares (no) EPS (Rs.) 2008 3605.9 479.1 13% 250.3 7% 80.0 3.1 EXIDE BATTERIES 2007 2382.0 320.1 13% 155.3 7% 80.0 1.9 AMARA RAJA BATTERIES 2008 1349.9 184.8 14% 94.3 7% 8.5 11.0 2007 745.1 92.9 12% 47 6% 8.5 5.5
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3.5 TYPES OF PRODUCT
Business Automobive batteries Industrial batteries Submarine batteries
AUTOMOTIVE BATTERIES
In the domestic market, the Company sells its products under EXIDE, SF, SONIC and Standard Furukawa Brands.EXIDE and SF are its flagship brands. In the international market the products are sold mainly under DYNEX, INDEX & SONIC brands. The Company supplies batteries to almost all the car and two-wheeler manufacturers in the country.
The Company has a distribution network comprising over 4000 dealer outlets. These outlets are supported by 4 regional offices and 28 branch offices. The Company also exports batteries to the Middle East, Japan and CIS countries. The Company has a market share of 72% in case of Automotive OEM and 70% in case of Organized Retail. The Company also manufactures submarine batteries.
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INDUSTRIAL BATTERIES
The Company designs and manufacture its industrial batteries in a wide range from 2.5 Ah to 20,600 Ah in conventional flooded and Valve Regulated Lead Acid (VRLA) design. In domestic market, the Company sell its products mainly under EXIDE, INDEX, SF, CEIL & POWER SAFE brands and in the international markets mainly under CEIL, CHLORIDE and INDEX brands. Industrial batteries are of three types, Conventional lead acid batteries, VRLA (Valve regulated lead acid batteries) batteries and Nickel-Cadmium batteries.
Both organized and unorganized players compete in the OEM and retail industrial battery markets. Industrial batteries cater mostly to the infrastructure sector such as railways, telecom, power plants, solar cells and other industrial segments such as uninterrupted power supply, inverters and traction batteries. Exides Inva tubular batteries for Inverter applications were introduced in 2000 and Tele tubular for Telecom Sector introduced in the year 2007 has created volume growth.. The Company also manufactures industrial batteries for niche segments such as miners cap lamp batteries and submarine batteries.
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The leadership role of Exide Company in Battery Industry SUBMARINE BATTERIES
The Company also manufactures high-end submarine batteries (Type 1, 2 & 3). The Company manufactures two to three submarine batteries a year to meet the countrys defence requirements. The Company is one of the five companies in the World which has the capability to make submarine batteries for both Russian and German types. With the governments permission, in recent years, the Company has exported to Algeria.
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3.6 EXIDE INTERNATIONAL
The Companys predecessor began its operations in 1916 as an import house called Chloride electrical Storage Company. Since then, over the years, the Company has been steadily progressing by taking necessary initiatives to modernize its manufacturing processes and by constantly improving its customer services. In the year 1994, the Company had entered into a technical collaboration with Shin Kobe Electric Machinery Co. Ltd. of Japan, a subsidiary of the Hitachi Group. The main objective of entering into this collaboration was accessing technology for the new automotive vehicles entering the Indian market. Further in the year 1998, with an objective of increasing capacity without the time lag in setting-up greenfield project the company acquired the Industrial Undertakings of Standard Batteries Limited as a going concern. This acquisition strengthened its production base as well as giving the Company access to technology from The Furukawa Battery Company of Japan. On the marketing front, with an objective to get a global platform to expand its business the Company acquired a 100% stake in Caldyne Automatics Ltd in July 2007 and 100% stake in Chloride Batteries S E Asia Pte Ltd., Singapore and 49% stake in Associated Battery Manufacturers (Ceylon) Limited, Sri Lanka in the year 2001. The stake in Associated Battery Manufacturers (Ceylon) Limited, Sri Lanka was increased to 61.5% by acquiring additional 12.5% stake in 2004. The company has also acquired a 51% stake in ESPEX Batteries Limited, U.K. and a 26% shareholding in Ceil Motive Power Pty Limited, Australia.
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The Company has also acquired a 100% stake in Chloride Metals Ltd in October 2007. In June 2008 the company acquired a 51 per cent stake in Leadage Alloys India Ltd. Through these continuous innovations and collaborations the Company has gradually risen to become one of the largest manufacturers and exporters of batteries in the sub-continent today. The Company manufactures the widest range of storage batteries in the world from 2.5 Ah to 20400 Ah capacity, covering the broadest spectrum of applications. As on today, the Company has a domestic market share of 45% in Industrial, 72% in Auto OE and 73% in replacement auto. The Company being the domestic storage major is also one of the largest power storage solution company in south East Asia. On the domestic front, the Company has six factories located across India 2 in the states of Maharashtra, 2 in the state of West Bengal, 1 in state of Tamil Nadu and 1 in the state of Haryana. The Company power most of the industrial and automotive segments in the country and the products are used in critical applications in infrastructure and defense sectors.
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CHAPTER 4
COMPANY OVERVIEW
4.1 GOVERNANCE PHILOSOPHY OF COMPANY

Exide views Corporate Governance as a systemic process by which Companies are directed and controlled to maximise their capacity to generate wealth. As large corporates use vast quantum of societal resources, Exide believes that the governance process should ensure that these Companies are managed in a manner that meets both stakeholders aspirations and societal expectations.
Exides Corporate Governance initiative is based on two core principles: i. ii. Management must have the executive freedom to drive the organisation forward without undue restraints; and ii. This freedom of management, however, should be exercised within a framework of effective accountability and transparency. Exide believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management are used with care and responsibility and not misused. Exides governance philosophy embraces the tenets of trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. Exide believes that the practice of each of these tenets would lead to the creation of the right corporate culture in which the Company is managed in a manner that fulfils the purpose of Corporate Governance. Trusteeship recognises that large corporations have both an economic and a social purpose, thereby casting he responsibility on the Board of Directors to protect and enhance shareholder value, as well as fulfill obligations to other stakeholders.
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Transparency requires that the Company makes appropriate disclosures where necessary and explains the basis of its policies and actions to all those who are affected by them. Empowerment is a process used to unleash creativity and innovation throughout the organisation by decentralising and delegating the decision making powers at the most appropriate levels. Control ensures that freedom of management is exercised within a framework of checks and balances and is designed to prevent misuse of power, facilitate timely response to change and ensure effective management of risks. Exides Corporate Governance processes continuously reinforce and help actualise the Companys belief in ethical corporate citizenship and is manifest through exemplary standards of ethical behaviour, both within the organisation as well as in external relationships.
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4.2 GOVERNANCE STRUCTURE

The practice of Corporate Governance in Exide is at three interlinked levels: i. ii. iii. Strategic supervision - by the Board of Directors Strategic management - by the Executive Committee Executive management - by the Divisional Head of the business
This three-tier structure ensures that strategic supervision on behalf of the shareholders being free from the task of strategic management, can be conducted by the Board with objectivity thereby sharpening accountability of the management. Further, strategic management being free from the task of day-to-day executive management, remains focussed and energised. The structure also ensures that executive management of the divisions, being free from the collective strategic responsibilities for Exide as a whole, is focused on enhancing the quality, efficiency and effectiveness of each business. The core roles of the key entities flow from the structure. The core roles, in turn, determine the core responsibilities of each entity. In order to discharge such responsibilities, each entity is empowered formally with requisite powers. The structure, processes and practice of governance enables focus on the Corporate purpose while simultaneously facilitating effective management of the diverse businesses within the portfolio.
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4.3 CODE OF ETHICS

This Code of Ethics for Board of Directors and Senior Executives VPs and above (the code) of Exide Industries Limited (the company) helps in maintaining and following the standards of business conduct of the company. The purpose of the code is to deter wrongdoing and promote ethical conduct in the company. The matters covered in this code are of the utmost importance to the company, its stakeholders and business partners. Further, these are essential so that we can conduct our business in accordance with our stated values. Ethical business conduct is critical to a business. Accordingly, executives of the company are expected to read and understand this code, uphold these standards in day-to-day activities, and comply with all applicable laws; rules and regulations and all applicable policies and procedures adopted by the company that govern the conduct of its employees. For any further clarifications they may contact Compliance Officer (Company Secretary) of the company. The Board of Directors will approve this code and it would be applicable to each Director as soon as it is approved by the Board. However, in case of VP and above executives of EIL, they should sign the acknowledgment form at the end of this code and return the form to the Compliance Officer indicating that they have received, read and understood, and agreed to comply with the code. The signed acknowledgment form will be filed in each Officers personnel files. HONEST AND ETHICAL CONDUCT All executives are expected to act in accordance with the highest standards of personal and professional integrity, honesty and ethical conduct, while working on the companys premises, at company sponsored business and social events, or at any other place where executives represent the companyor deception and conforming to the accepted professional standards. Ethical conduct includes the ethical handling of actual or apparent conflicts of interest between personal and professional relationships.
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CONFLICTS OF INTEREST An Officers duty to the company demands that he or she avoids and discloses actual and apparent conflicts of interest. A conflict of interest exists where the interests or benefits of one person or entity conflict with the interests or benefits of the company. Examples include: A. Employment / Outside employment. In consideration of employment with the company, executives are expected to devote their full attention to the business interests of the company. executives are prohibited from engaging in any activity that interferes with their performance or responsibilities to the company, or is otherwise in conflict with or prejudicial to the company. The companys policies prohibit executives from accepting simultaneous employment with suppliers, customers, or competitors of the company, or from taking part in any activity that enhances or supports a competitors position. Additionally, executives must disclose to the companys Managing Director/ Audit Committee, any interest that they have that may conflict with the business of the company. B. Outside directorships and employment. It is a conflict of interest to serve as a Director / employee in any other organization which is doing the similar business in which the company is engaged. Therefore, no Sr. Employee / Director of the company can serve in any other organization as Employee/ Director of that organization which is doing the similar business in which this company is engaged. However, any Employee / Director of the company may with the prior written approval of the Managing Director / Board of Directors of the company accept position of nonwholetime directors in any other organization which is doing the similar business in which our company is engaged.
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C. Related parties. As a general rule, executives should avoid conducting company business with a relative, or with a business in which a relative is associated in any significant role. Relatives include spouse, children, parents, grandparents, grandchildren, aunts, uncles, nieces, nephews, cousins, step relationships, and in-laws. The company discourages the employment of relatives of executives in positions or assignments within the same department. Further, the company prohibits the employment of such individuals in positions that have a financial dependence or influence (e.g., an auditing or control relationship, or a supervisor / subordinate relationship). D. Payments or gifts from others. Under no circumstances may executives accept any offer, payment, promise to pay, or authorization to pay any money, gift, or anything of value from customers, vendors, consultants, etc., that is perceived as intended, directly or indirectly, to influence any business decision, any act or failure to act, any commitment of fraud, or opportunity for the commitment of any fraud. Inexpensive gifts, infrequent business meals, celebratory events and entertainment, provided that they are not excessive or create an appearance of impropriety, do not violate this policy. Before accepting anything which may not qualify as inexpensive or token gift from an employee of any entity, the Compliance Officer may be contacted. Questions regarding whether a particular payment or gift violates this policy are to be directed to the Compliance Officer. Gifts given by the company to suppliers or customers, or received from suppliers or customers, should be appropriate to the circumstances and should never be of a kind that could create an appearance of impropriety. However, employees may accept inexpensive gifts given during festive occasions such as puja/diwali or new year. E. Corporate opportunities. Executives may not exploit for their own personal gain the opportunities that are discovered through the use of corporate property, information or position, unless the opportunity is disclosed fully in writing to the company. F. Other situations. Because other conflicts of interest may arise, it would be impractical to attempt to list all possible situations. If a proposed transaction or situation raises any questions or doubts, Executives must consult the Managing Director/Compliance Officer.
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CONNECTION WITH PRESS/TV/RADIO

The Chairman is the person who would normally interact with the media/ radio/ press other than those authorities by him. No officer of the company can criticize the company in any article / in radio/ TV broadcast etc. DISCLOSURE The companys policy is to provide full, fair, accurate, timely, and understandable disclosure in reports and documents that are filed with, or submitted to any outside agency and in our other public communications. Accordingly, the executives must ensure that they and others in the company comply with companys disclosure controls and procedures, and our internal controls for financial reporting. COMPLIANCE WITH GOVERNMENTAL LAWS, RULES AND
REGULATIONS/INTERNAL COMPANY POLICIES Executives must comply with all applicable governmental laws, rules and regulations. Executives must acquire appropriate knowledge of the legal requirements relating to their duties sufficient to enable them to recognize potential dangers, and to know when to seek advice. Executives must comply with the companys internal policies. HR Department will arrange training for those employees who are discharging the functions relating to compliance with the rules/ laws/ technical know and research & Development activities for their respective departments.
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VIOLATIONS OF THE CODE Part of an Officers job and of his or her ethical responsibility, is to help enforce this code. Executives should be alert to possible violations and report this to the Compliance Officer/Managing Director. Executives must cooperate in any internal or external investigations of possible violations. Reprisal, threat, retribution or retaliation against any person who has, in good faith, reported a violation or a suspected violation of law, this code or other company policies, or against any person who is assisting in any investigation or process with respect to such a violation, is prohibited. Actual violations of law, this code, or companys other policies or procedures, should be promptly reported to the Compliance Officer/Managing Director. The company will take appropriate action against any officer whose actions are found to violate the code or any other policy of the company, after giving him a reasonable opportunity of being heard. Where laws have been violated, the company will cooperate fully with the appropriate authorities and regulators.
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CHAPTER 5
MANUFACTURING
5.1 MANUFACTURING UNITS
With Six factories spread across the country, Exides range and scale of manufacturing operations can be matched by very few companies in the world. Together, they produce an annual output of 8 Million Units in Automobile batteries (including batteries for motor-cycle applications), and over 600 Million Ampere-Hours of Industrial Power.
Apart from the conventional Flooded Flat Plate batteries for Automotive application, Exide also produces industrial range of batteries, which includes, Flooded - Flat plate, Flooded - Tubular plate, Flooded - Plante and Sealed Maintenance Free VRLA batteries. Miners Cap Lamp Batteries are also produced. Exide is the only producer of Submarine batteries in India and one of the few in the world.
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5.2 MANUFACTURING CAPACITY
Installed/Production Capacity Factories: Installed / Production Capacities Factories '000 Units Of Plates Automotive Shamnagar (1946) Chinchwad (1969 Haldia (1981) Hosur (1997) Taloja (1998) Kanjurmarg (1998) MotorCycle Million Amp-Hour Industrial Power
600
140
1,000 1,000 700 750 -
2,400 600 1,200 4,200
160 270 15 (Submarine) 15 600
Guindy (1998) Bawal (2003) TOTAL 4,050
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Installed/Production Capacity Product/Applications: Automotive Batteries Motor-Cycle Batteries Industrial Applications Monoblock Batteries (Flat & Tubular) 2Volt Tubular Cells 6V-4Ah SMF VRLA Batteries 12V-7/9Ah Batteries Medium SMF VRLA Batteries 2V Large SMF VRLA Cells Submarine Batteries Miners Cap Lamp Batteries SMF VRLA 30,000 50,000 1,50,000 4,00,000 70,000 20,000 8 27,000 Nos. Per Month Nos. Per Month Nos. Per Month Nos. Per Month Nos. Per Month Nos. Per Month Nos. Per Month Nos. Per Month 4,00,000 4,00,000 Nos. Per Month Nos. Per Month
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5.3 MANUFACTURING PROCESS

In many critical sectors batteries are an essential requirement to start electrically operated equipments or to keep it going when the mains fail. Railway, Defense, Mining, Hospitals, Airlines, Tele-Communications, Power Stations and various Utility Industries - All depend on Exide to fulfill their needs for start up, Motive Power or for Standby Power. In recent years Exide has used its strength in battery technology to move into high potential areas such as solar and integrated power systems, and batteries for electrical vehicles. Exide uses latest world class manufacturing technology to produce Batteries for the above applications. Its factories has all the modern equipments necessary to manufacture world-class products. It also sources its components from the best Battery Component manufacturers in the world. A brief process out-line is as shown as per the diagram.
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LEAD PROCUREMENT
PROCESS OUTLINE Vendor Approval Order Testing in Receipt Storage & Issue for Use
TESTING Spectrophotometric Analysis for Composition and Impurities
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ALLOY BLENDING
EQUIPMENT Alloy Blending Pots Made In India.
PROCEDURE Lead, Antimony & Other Alloying ingredients are blended in molten condition with the help of a stirrer. Temperature of the blend is monitored through out the blending process.
TESTING Optical Emission Spectrophotometry checks the composition of the alloy in the laboratory before use. The Spectrophotometer is procured from Spectro, Germany.
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OXIDE MANUFACTURING
EQUIPMENT Ball Mill, Li Shan, Taiwan & M-40 Mill, India.
PROCESS LAYOUT Small cylindrical lumps of Pure Lead is fed into the rotating mill shell. Air is blown over the lead lump surface. The frictional heat converts the lead surface of the lumps into Oxide.
PARAMETERS Percentage Oxidation, Apparent Density, Water Absorption characteristics.
TESTING The shell temperature, The load of the mill is continuously monitored to control the outgoing Oxide quality.
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GRID CASTING
EQUIPMENT
Grid Moulds & Casting M/c from WRITZ, USA.
PROCESS
Grids are cast for manufacturing of negative plates.

Antimonial lead made in house in the alloy blending process is used for the casting.
Molten lead from alloy-blending pots is pumped

into a ladle which pours the molten metal into the moulds. The mould surfaces are coated with cork.
PARAMETERS Mould temperature and the Ladle temperature are controlled in the casting process.
TESTING
The weight of the casting is checked throughout the casting process. The castings are also
inspected for physical features.
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PASTE MIXING
EQUIPMENT
Ox-Master, Simpson Mixer, India & Drums, India.
PROCESS OUTLINE Lead oxide, expanders, water & sulphuric acid are mixed in the mixer to form a paste. The mixer has water & air-cooling arrangement for dissipating the heat generated during the mixing. The mix on completion is taken in trolley, inspected and used in the plate pasting operation.
TESTING
The paste mix is checked for the density, moisture content &, temperature.
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PASTING & FLASH DRYING

EQUIPMENT
Pasting machine - MAC, USA Flash drying machine - MAC, USA Weighing scales INDIA Moisture balance equipment INDIA
PROCESS OUTLINE
Grids are fed into the pasting machine by the

feeder arrangement of the machine. The paste is added through the hopper. TESTING
The pasted plate are weighed and tested for moisture content on samples.
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LATE CURING
EQUIPMENT
Curing Oven, India
PROCESS OUTLINE
The pasted negative plates immediately after

pasting are kept inside the cubicle. The plates are kept for specified duration inside the cubicle and then outside in ambient condition.
TESTING The residual free lead in the plates is checked after completion of the curing period.
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SPINE CASTING
EQUIPMENT Machine & moulds from Hadi, Austria
PROCESS OUTLINE Antimonial lead is used. Lead alloy is melted in a pot and then pumped up at high pressure in a finely machined mould. The spine is trimmed and threaded into the gauntlet.
TESTING The weight, trimmed height & physical features are checked.
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Comparative Features of 3 Different Spine Casting Process Properties (Vickers Micro Hardness, HV) High Pressure Uniform Low Pressure Gravity Low Micro
Micro Non-Uniform
Hardness Of 24.3 Micro
Hardness Hardness, varying
through out the varying from 21.5 from 17.5 to 18.2 sample Grain Size Grain Orientation Surface Condition Coarse to 28.4 Coarse & Fine Inconsistent Random (Small Bigger Than Pressure Scanning Pictures Electron Microscope Voids Low
Single Directional Random No Voids Voids
Black Spots)
Exide Industries makes Spines only by High Pressure HADI Spine Casting M/C
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OXIDE FILLING
EQUIPMENT
Polypropylene tanks and furniture
PROCESS OUTLINE
Acid pickling of tubular Positive plates
TESTING
The specific gravity of the acid is checked prior to putting the plates; the temperature is
monitored throughout the process. The lead sulphate content in the plates is checked on samples
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AMMONIA DIPPING
EQUIPMENT
Plastic Tanks
PROCESS OUTLINE
The oxide filled spines are dipped into aqueous

solution of ammonium sulphate and stay for a minimum of one minute.
The plates are brushed to remove oxide adhering to

the outer surface of the filled plates. TESTING
The plates are checked for proper cleaning and Wetting.
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ACID PICKLING
EQUIPMENT
Polypropylene tanks and furniture

PROCESS OUTLINE
Acid pickling of tubular Positive plates

TESTING
The specific gravity of the acid is checked prior to putting the plates; the temperature is
monitored throughout the process. The lead sulphate content in the plates is checked on samples.
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FORMING
EQUIPMENT
Rectiformers, polypropylene tanks & furniture
PROCESS
The +VE & -VE plates are put alternately inside

the tanks in the furniture slots.
The positive & negative plates in each tanks are connected in parallel. The plates are then
immersed in sulphuric acid of specified gravity. DC power is fed to the circuits at a fixed rate for a specified duration. The tank voltages are checked at the end of the duration. The connections are then broken off and the plates are taken out, washed & dried. The specific gravity of the acid at start, the current in ampere and temperature are monitored throughout the formation process. TESTING
The plates are checked for lead peroxide content in positive and spongy lead in the
negative.
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PLATE DRYING
EQUIPMENT
Drying Ovens
PROCESS The positive plates are dried in hot air oven at 65 Deg C. To a moisture content as specified. The negative plates are dried in inert gas oven. TESTING The positive and negative plates are checked for their moisture content.
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LUG BRUSHING
EQUIPMENT Electric driven brushing wheels.
PROCESS OUTLINE Cleaning of frames and lugs of plates Lugs are cleaned to remove the oxide coating. The plates are checked visually for defectives.
TESTING Physical check of the lugs & the frames.
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ASSEMBLY
EQUIPMENT Burning combs & jigs, India. Heat sealing of lid & cell box. Bielomatik machine, Germany.
PROCESS Assembly of traction cells
COMPONENTS Cell box & lid - from plastam, Italy. Cell box & lid - from India. Pe separator - from daramic, Australia. Lead pillars - from India.
TESTING The cells are checked on line for screening out defectives.
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TYPES OF EXIDE INDUSTRIAL BATTERIES:

EXIDE PLANTE EXIDE TUBULAR EXIDE VRLA EXIDE POWERSAFE EXIDE EL TUBULAR EXIDE LITE EXIDE INVAKING 1500 EXIDE HSP CLASSIC
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ADVANTAGES OF DIFFERENT KINDS OF PRODUCT: The TUBULAR Battery has a very robust construction and can provide 1200 to 1500 cycles of charge and discharge before its capacity degrades to 80% of its rated capacity and is fit for replacement. The TUBULAR Battery provides a life of around 10 to 12 in Power Stations if maintained properly. In VRLA Battery there is no topping up with water required during lifetime. In VRLA Battery there is no acid fume while charging the battery. The VRLA Batteries are stackable and hence smaller floor area and smaller floor area and smaller battery room. The VRLA Batteries has very good high discharge performance and hence smaller capacity VRLA Battery can do the same job as a larger capacity tubular battery. The PLANTE Batteries require water topping up only once in three Years if the battery room is not too hot. Even in higher ambience, once in two years topping up is quite adequate. The PLANTE cells do not lose any capacity till the end of their life. Hence, unlike TUBULAR and VRLA Battery, 20% margin need not be added to the required PLANTE Battery capacity. This further reduces the cost differential between PLANTE and other batteries. The EXIDE INVAKING 1500 has extra heavy duty plates as per exclusive EXIDE design ensuring durability, resistance to corrosion and inbuilt margins for high ambient temperature and vibrations. In EXIDE POWERSAFE Battery, no topping up is required and it is maintenance free. In EXIDE POWERSAFE battery it enhanced performance that is it is Computer aided grid design for high power density, excellent deep discharge recovery, and better thermal management in the module and it is resistance to thermal runaway.
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TYPES OF AUTOMOTIVE BATTERIES EXIDE ATB EXIDE MAX EXIDE FREEDOM DAGENITE INDEX LUCAS DYNEX CONREX STANDARD FURUKAWA (SF) SONIC
These are the different types of EXIDE Automotive batteries.
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5.4 QUALITY SYSTEMS

Total Quality Management In keeping with its vision to make customer satisfaction the core of its business philosophy, Exide Industries Limited, has implemented an exhaustive Total Quality Management program throughout the organization. TQM is a strategic initiative of our Company and we have progressed a lot along this unending journey towards Business Excellence. Our Quality Management System (QMS) is certified to ISO 9001 for Industrial Division as well as Submarine Division. For our Automotive Division the QMS is certified to ISO/TS-16949. These certifications although issued in the names of the different factories, however include all our business processes of R&D, Manufacturing, Marketing, Sales, After-Sales Support and Corporate functions. The Environmental Management System (EMS) is certified to ISO 14001. The Occupational Health & Safety (OH&S) system is certified to OHSAS-18001. Our certification body is the renowned TUV-NORD headquartered in Germany. Our TQM efforts are focused around the 3 broad dimensions of: Customer Orientation Process Improvements, and People Involvement.
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The aim of all our processes is geared towards customer satisfaction, which is periodically measured to give us feedback about our performance and act as trigger points to undertake corrections and improvements. Our processes have been mapped and defined in the QMS / EMS / OH&S systems, and actions are taken to continually improve upon them in order to improve the quality of products and services, reduce cost, reduce waste and improve efficiencies. People involvement is ensured through team working such as Quality Circles and Small Group Activities. From system certifications we have extended to Business Excellence based on the European Foundation for Quality Management (EFQM) MODEL. Over the last few years we have won a number of awards and accolades from different Chambers of Commerce, Forums and Customers. They include the prestigious CII-EXIM Business Excellence Awards, the Manufacturing Excellence IMEA Awards by Frost & Sullivan , Corporate Environment Excellence Award from TERI , to name a few . Our TQM activities also include the initiative of Total Productive maintenance (TPM). Our state-of-the-art factories are implementing the rigorous road map given by the Japanese Institute of Plant Maintenance (JIPM). This is paying rich dividends in the form of improvement in Production, machine utilization, Reduction of downtime, Reduction of Cost, etc. one of our factories has already been recommended for the JIPM-TPM award.
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5.5 VARIOUS POLICIES

Quality Policy: The aim of the Company is to always provide satisfaction to customers. The Company will develop, design, produce and market products and services that cater continuously to the needs and expectations of customers and succeed in gaining/retaining a competitive edge. A Quality System meeting international standards will be implemented and maintained. Procedures and processes shall be standardized and effective control systems instituted to eliminate variability due to non-conformance. The standards and systems shall be continually reviewed and upgraded. Periodic audits and management reviews shall be carried out. Human resources will be developed through planned and structured training and development programmes to be conducted on a regular basis.
Environmental Policy: Minimize the adverse impact of our activities, products and services by implementing an environmental management system. Prevent pollution, through waste minimization at the source,
recovery/treatment of emissions and releases, conservation of energy, re-cycling and optimum use of resources. Continually improve our environmental performance through setting and reviewing associated objectives and targets and periodic evolution. Comply with applicable legal requirements and other requirements related to our environmental aspects. Communicate with all interested parties and all people working for or on behalf of our organization.
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Total Productive Maintenance (TPM) Policy: We, the members of Exide Industries Limited in our pursuit of excellence and customer satisfaction are committed to achieve optimum utilization of all available resources by implementation of Total Productive Maintenance. The aim of organization is to: Improve Overall Equipment Efficiency by eliminating all losses. Strive for Zero breakdowns, Zero defects and Zero accidents. Train, Involve and Empower people. Create a safe and clean working environment.
Occupational Health & Safety Policy: At Exide Industries Limited, believe in our core values of striving for Excellence and Responsible Corporate Citizenship and hence are committed to providing a healthy and safe working environment throughout the organization. It is the policy of the company to: Ensure that operations and processes, are safe and free from risk to health. Comply with all applicable legal and other requirements related to identified OH & S risks. Ensure continual improvement in our OH & S Management System and its performance by setting and reviewing objectives and targets. Educate and involve persons, working under the control of it, in OH & S activities. This OH & S Policy shall be made available to interested parties.
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CHAPTER 6
RESEARCH AND DEVELOPMENT
6.1 RESEARCH AND DEVELOPMENT

As befits the market leader, Exide keeps India & World abreast of the developments in battery technology. Its sophisticated R&D Centre in Kolkata employs the best scientists and technologists and equips them with the tools of fundamental and applications research. The center spearheads technology transfer, matched production engineering and complete system design. Apart from developmental research, it acts as a funnel for absorbing technology and adopting it to suit operating conditions in respective markets. Ultimately, the effort translates into complete satisfaction of customers need Exide recognizes the importance of technology & innovations. In order to maintain technological leadership, Exide R&D have been actively developing differentiated battery technologies for tropical countries. The Exide R&D has been recognized by the Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India since April 1977. R&D work is carried out on various facets of lead-acid battery technology, which include development of new products for applications such as Automotive, Motorcycle, VRLA, Telecom, UPS, Railways, Defense, etc. primarily to make the product range internationally competitive. In addition, the R&D is engaged in projects embracing process technology aimed at - improving the product quality & consistency, production efficiency and material utilization. Furthermore, R&D program includes improvement and indigenisation of materials such as metals, alloys, plastics, etc. R&D emphasis is on studying and improving the environmental aspects associate with the manufacturing process.
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6.2 INFRASTRUCTURE/LABORATORIES
Exide R&D Centre is also well equipped with a Tool-Room, CAD facilities, material testing and laboratories having the modern equipment for testing of the raw materials and components used for manufacture of batteries. These include optical emission Spectrometer, Particle Size Analyzer, Porosemeter, Image Analyzer Workstation, Profile Projector, Universal Tensile testing machine, etc. etc.
6.3 FUNCTIONAL AREAS

All the above specific areas are well administered by a strong group of human assets. The qualified R&D personnel are Ph.D.'s in Engineering / Applied Science, Post-Graduate / Graduate in Engineering / Science, MBA's and Diploma in Engineering with broad spectrum of experience and they work in the following functional areas:

Battery Design & Development Process Development Tool Design & Development Alloy Development Development of Plastic Components Hard Rubber / Soft Rubber Components Development Analytical Services Battery Testing & Quality Assurance Environmental Health Monitoring
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6.4 PATENTS
Patents Place Year
Process for fabricating a grid structure for Cadmium Sulphide / Cuprous Sulphide cell. Improved Dry Charged process for Drying Formed Negative. Process for manufacturing micro-porous polymeric material. Micro-porous polymeric material for Miners Cap Lamp batteries and Process for preparation thereof. Automotive Battery Grid. Method of manufacturing lead based alloy. Method of making lead acid storage battery grid. Method of producing low antimony content tubular grid for positive electrodes of lead acid storage batteries. Design patent on 75D31R/95D31 RMF Battery (Jointly with Shinkobe). Design Patent on leak resistant Automotive Battery.
India India India India India India India India India India
1978 1978 1979 1981 1981 1983 1986 1988 1998 2001
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In addition to several innovative patents granted in India, quite a few International Patents have already been published with details as under: Published Date 1982 10 November1999 Range Covered --75D31R MF95D31RMF of Products
Details Automotive Battery Grid Design Patent jointly with Shin-Kobe Design Patent
Published No. --1053740
Place UK Japan
Design Regn. No. 20 1163467 2003
January Japan Leak Resistant Design 38B20L/R MF January USA Eternity Range (ET40, ET40L) Range(MF70Z, Japan MF50Z, DIN-MF DIN55MF) ATB
Patent for leak resistant US2003/0017381 23 automotive batteries A1 P2003-45398A 2003 14 2003
February
EP1 280 214 A2
29 2003
January
Range(DIN66MF, Europe DIN74MF) CV Range (MHD600, MHD800)
Patent for leak retardant US2003/0013006 16 automotive batteries A1 P2003-31191A 2003 31 2003 22 2003
January
USA
ATB
Range(MFS40, DIN44MF, MF Premium
MF40SV,
January
55B24LMF) Japan Range Cars for
(55D23LMF,
EP1 278 254 A1
January
Europe 70D23LMF, 75D23LMF)
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6.5 PRODUCT TESTING FACILITIES

Product Testing Department acts as the nodal point for product validation through intra R&D linkage with Automotive Design Department for Automotive, Motorcycle & EV batteries Industrial Design Department for VRLA, Plante (Flooded), Tubular (Flooded), Submarine, Solar, Minars' Cap Lamp, etc. Process Development Department for change or improvement in manufacturing processes MRR for ISO and QS Quality Standards
Product Testing Department also interacts with all the manufacturing units i.e. Shamnagar, Chinchwad, Haldia, Hosur, Taloja, Ahmednagar & Guindy for testing and quality assurance of their products from time to time and as per QS Standards.In order to achieve Business Generation through Type Approval Tests of newly developed products, Product Testing Department keeps liaison with Industrial & Automotive Marketing Department and carry out Type Approval Tests which is usually witnessed by the customer / ultimate user at R&D Test House. R&D TEST HOUSE IS EQUIPPED WITH STATE-OF-THE ART TEST FACILITIES WHICH ARE MAINLY; Microprocessor based computer controlled charge - discharge test system Environmental test machines e.g. Vibration, Controlled Temperature & Humidity Chambers, etc. High Current Discharge Circuits for Automotive & Industrial Some special testing machines e.g. High Voltage Tester, Spark Tester, Short Circuit Tester, etc.
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6.6 TECHNOLOGY FOR TROPICAL COUNTRIES

In tropical countries like India, automotive battery life is adversely affected by the following conditions: High ambient temperature High Vehicle Vibration due to rough roads Outdated charging system particularly on old vehicles Sluggish vehicle movement in congested city drives Frequent start stop Weak infrastructure for maintenance Inferior quality of water for topping up.
Exide R&D centre, therefore, has a special focus on developing the desired automotive battery characteristics for India / tropical conditions which include the following: High temperature endurance Recovery from deep discharge Resistance to vibration & bumps High reserve capacity Good cranking ability at low as well as normal temperature Heavy load endurance Resistance to overcharge Low water loss Low self discharge Spill proof / Leak resistant State-of-charge indication Spark resistant
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6.7 MAJOR DEVELOPMENTAL WORK

Some of the major development work done at the R&D Centre and viewed at a glance is as follows: Automotive & Tractor batteries as per Indian Standards to suit tropical conditions. Japanese range of Automotive and Motorcycle Batteries. DIN range of Automotive batteries suited to vehicles of European origin Development of Submarine Batteries Development of special type of poly-ethylene separators for varying applications. Valve Regulated Lead Acid (VRLA) batteries for Telecommunication & Railway applications. Motive Power Batteries for Fork-lift Trucks & Golf Carts. High energy density battery for Electric Vehicles. Plante batteries for Power stations.
Furthermore, long-life, maintenance-free batteries for cars have also been developed which are presently being marketed under the brand name Exide Eternity. Also a new heavy duty, MHD Range of batteries have been developed and introduced for the entire commercial range of vehicles. Batteries were also developed for CNG/LPG powered three-wheelers and golf carts. A range of batteries for Industrial application including new batteries for Telecom, Solar, Traction and small VRLA for UPS system was also developed.
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6.8 MAJOR RESEARCH PROJECTS

Development of lead based alloy for battery grids. Development of a variety of maintenance free batteries for Automotive and Motorcycle applications. Development of re-combination type maintenance free batteries (VRLA). Development of ultra-low maintenance batteries / cells for Solar applications Development of special batteries for electric vehicle applications
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6.9 RESEARCH METHODOLOGY

Research Design Sampling Process Data Collection Methods Tools and Techniques RESEARCH DESIGN The Research was about analysis of market share of exide batteries. It is a method
ofobtaining information about the movement of consumer products into and out of retail outlets. Itwas a study conducted to know the market share of the product and the concerned measures forits development. Research was designed as to guide to enable to keep track of actions in order to achieve the goals. The selected research design was descriptive research as information required needed to be about the product promotion characteristics and other data. Statistical methods were used in collecting them. Since there has been a greater demand by manufacturers for a complete picture of their market share, this has manifested in collecting careful and correct data. A descriptive design therefore involves the following steps: Formulation of objectives Selecting a sample Methods of data collection Analysis of data
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SAMPLING PROCESS A sample is a representative of the universe. It is a unit or a portion selected from the population. It can be defined as the method of selection of a representative portion of the universe, which could evolve correct and adequate information. Sampling method: The sample method chosen was systematic random sampling. A systematic random sampling was chosen in collecting data for the list of battery retailers available. The set universe of retailer was
secondary data and it was from the Retailer Association, Mumbai that was provided by the company. It was found that the total number of retailers was 400 in Mumbai city. The decided sample size was 100 implies sampling intervals equal to 4. Therefore the random selection for every 4 retailers was taken. Sample size: A sample size is number of units in a sample. A sample size of 100 was chosen. Careful techniques were applied to gain unbiased answers. This sample of 100 was the source of adequate answers for the market share analysis. DATA COLLECTION METHODS Primary data had to be collected and they were collected using as structured questionnaire. The Questionnaire contained multiple choice questions as well as open questions. It was taken care to get relevant and unbiased response using this method. Thus data were collected and analysis had to be applied. For our purpose it was decided that the investigation to meet the specific requirement to be collected out hand. Retail outlets were chosen for the appropriate collection of information. A pilot study of sample 20 was done prior to this. Pilot study: A pilot study was conducted to find the feasibility of the questionnaire. The sample of 20 dealers from Chennai city was randomly selected and administered the questionnaire. Any modification that is felt essential was carried out to make the questionnaire understandable.
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TOOLS AND TECHNIQUES In the process of data analysis, certain tools and techniques were applied to reach the inferences. The statistical tools used were weighted average method and chi-square analysis and percentage method. The data collected were scrutinized using the above stated tools. All the inference was based on the data collected and were evolved from the application of tools and techniques. LIMITATIONS The retailers were found to be non-cooperative at times. There might be some biases in the response regarding margins. The study was restricted to mumbai and suggestions given may not apply for other areas.
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CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
7.1 QUESTIONNAIRE
1. KINDS OF BATTERY HAVING MORE SALES
INFERENCE Table I shows that 93%of the market is captured by automobiles followed by industrial with 7%.,submarines has no market in chennai area.
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2. DIFFERENT BRAND CATEGORIES OF AUTOMOTIVE BATTERIES SOLD
INFERENCE From the table it is inferred that 65% of the retailers offerExide,60% of the retailers offer amco,52% offer amaron29%offers Panasonic,25% offers speed and 20%offers prestolite
3. FASTLY MOVING PRODUCT OF EXIDE
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4. CUSTOMERS DEMAND FOR A SPECIFIC BRAND
INFERENCE 55% of the customers demand Exide, 24% demand amaron, 10% demand amco, Prestolite with 8%Panasonic with 2% and speed with 1%.
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5. BAR DIAGRAM SHOWING RETAILERS PREFERENCE
INFERENCE From the above table it can be seen that 53% of retailers push Exide followed my Amco 20%, Amaron 18%, Prestolite 6%, Panasonic 2% and Speed 1%. If a customer does not ask for a particular brand most of the retailer offer Exide
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6. BRAND OFFERING THE HIGHEST MARGIN
In the above table weighted average of different brand is used to get a better idea of the highest margin offered. X = WiXi/wi
Where X is the weighted average for each brand. W is the weightage given to ith brand W1 for rank I =4 W2for rank II =3 INFERENCE: Therefore from the above table we are able to state that retailers feel amaron offers the highet the highest margin followed by amco,Panasonic,Prestolite,exide,speed. W3 for rank III =2 W4 for rank IV =1
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7. ATTRIBUTES THAT CUSTOMERS LIKE IN EXIDE
INFERENCE From the above table it is clear that 61% like quality in exide,22% like the brand name and 17% like the easy maintenance.
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8. ATTRIBUTES THAT CUSTOMERS DOES NOT LIKE IN EXID
INFERENCE From the above table it is clear that 79% of the customers does not like cost (high cost), 14 does not like cutting of leads ,4 % does not like life time and 3% does not like maintenance.
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9. SATISFACTION OF RETAILERS ABOUT AFTER SALES SERVICE
INFERENCE From the table it is clear that 50% of the retailers feel that after sales service is good 19% fair,17% excellent and 14 poor.
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10. RANKING OF BRANDS ACCORDING TO SALES QUALITY AND
AVAILABILITY
INFERENCE Exide is ranked I ,Amco is ranked II.amaron is ranked III,Prestolite is rankedIV,Speed is ranked V and Panasonic is ranked VI
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11. APPEALING TENDENCY OF BRANDS SALES PROMOTION/ADVERTISEMENT
INFERENCE From the table it is obvious that amarons advertisement/sales promotion tools are most appealing with 41%,followed by exide with 7%and crestolite with 3%. with 22%,amco with 18%,Panasonic with 9%,speedn
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12. LEVEL OF SATISFACTION ON THE OFFERS MADE BY EXIDE
INFERENCE 53% of the respondents are not satisfied with the offers made by Exide and only 47%are satisfied with the offers made by Exide
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7.2 FINDINGS
On analysis of the primary data following findings were identified. From the study it can be seen that 93% of the market has been captured byautomotive batteries of Exide. From the study it can be inferred that 52%of the market is captured max which is a product of exide. From the study it can be seen that exide is the fastly moving brand in the market with a share of 55% 61% of the respondents feel that quality of Exide is excellent. Most retailers are not satisfied with the profit margin they get they expect a margin of 20-39% when compared to the existing 10-15%margin." Most of the retailers prefer exide to customers due to easy maintenance. 55% of the customers prefer to buy only exide battery which in turn increases the market share ultimately. Since a majority of market is occupied by automotive batteries industrial batteries seems to capture a very low market share . Another major hindrance affecting the fast movement of goods is that Price of exide battery is high when compared to the competitors. 33% of the respondents are not satisfied with the after sales service offered by exide.
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7.3 SWOT ANALYSIS

SWOT ANALYSIS OF EXIDE BATTERIES Strength Exides high Brand equity among customers Established brand name Weakness High price when compared to competitors Necessary promotional tools are not sufficient Opportunities Market growing at a rate of 40% Increasing use of automobiles Threats Competing brands in the market Product known by brand name
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7.4 SUGGESTIONS AND RECOMMENDATION

Majority of the market is captured by automative batteries of Exide, so more concentration should be made on industrial and submarine segments also. It should maintain and increase the market share from 55%. Exide should maintain the same quality as now. Most of the respondents are not satisfied with the margin offered by exide when compared to that of the competitors. so a margin of 20-30% may be given. Leads in batteries should be made of good quality material so that it does not get cut off soon. The price is high when compared to that of the competitors, so the price should be fixed in such a way that price is in tandom with that of the competitors. Quality of after sales service should be improved Advertisements and sales promotional tools should be in such way that they appear more appealing in minds of the customers. Life time of the battery should atleast be 3 years
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7.5 CONCLUSION
From this project we can draw the conclusion that Exide is the unbeatable brand in battery industry its policies and corporate structure is unique and well organized as compare to its competitors. The quality of the exide product is way better then its competitive brands The manufacturing units are well equipped with latest machinery and very much capable of high scale production. A research on MARKET AND BRAND SHARE ANALYSIS OF EXIDE has helped in arriving at valuable conclusion through the analysis of primary data collected. The study revealed that the company can maintain its market leadership position by improving the quality of leads, following competitive pricing strategy, improving after sales service and lifetime. It can also increase its market share by giving more margins to the retailers. More brand awareness should be created by presenting advertisements in such a way that it is more appealing. If the company implements the above ideas Im sure that market share of Exide will surely increase and it will continue to be the market leader as now in future also.
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I.
APPENDIX
QUESTIONAIRE
Name of the retailer: _______________________________ Address:______________________________________________________________________ ______________________________________________________________________________ _____________________________________________________________________________. 1. Which kind of battery has more sales? 1. Automotive 2. Industrial 3. Submarine 2. Different products of Exide batteries available in the market? 1. Xpress 2. Freedom 3. Max 4. Which product of Exide is fast moving in the market? 1. Xpress
2. Freedom 3. Max 6. Which particular brand of battery does a customer specifically ask for ? 1. Exide 2. Amco 3. Amaron 4. Panasonic 5. Speed 6. Prestolite
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7.a) If the customer does not specify a particular brand, which brand do you offer 1. Exide
2. Amco 3. Amaron 4. Panasonic 5. Speed 6. Prestolite 7.b) Reasons for offering the above brand based on your perception ? 1. Quality 2. Economical 3. Easy maintenance 4. Availability 8. What is the average margin offered by different brands of batteries and which offers highest margin?
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9. Are you satisfied with the above margin given by Exide? 1. Satisfied 2.Not satisfied
10. What margin do you expect from exide battery a. 10 15 % b. 15 20 % c. 20 30 % d. above 30 % 11. What are the attributes do to customers like in Exide battery? 1. Easy maintenance 2. Quality 3. Brand name 4. Any other 12. What are the attributes do the customers does not like in Exide battery ? 1. Maintenance 2. Life time 3. Cost 4. Cutting of leads 14.How is the after sales service offered by Exide? 1. Excellent 2. Good 3. Fair 4. Poor
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15. Rank the brands according to sales, quality & availability ?
16. Among all brands whose sales promotion / advertisement is most appealing ? 1. Exide 2. Amco 3. Amaron 4. Panasonic 5. Speed 6. Prestolite
17. Are you satisfied with the offers made by Exide ? 1. Satisfied 2. Not satisfied
18. Give your suggestions and recommendations to Exide industries limited?
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The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

INSIDE A LEAD ACID BATTERY

The leadership role of Exide Company in Battery Industry

1.2 WHAT CAN A BATTERY DO?

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

1.3 CHARACTERISTIC OF LEAD ACID BATTERY

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

THE INDIAN LEAD ACID BATTERY MARKETOVERVIEW

2.1 Market Spectrums

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

2.2 PROFILE OF MAJOR PLAYERS IN INDIA

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

INTRODUCTION TO EXIDE INDUSTRIES LTD

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

3.2 The vision, mission and core value statement of Exide.

The leadership role of Exide Company in Battery Industry

3.3 EXIDE IN INDIA

The leadership role of Exide Company in Battery Industry

3.4 BATTERY MARKET IN INDIA

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

3.5 TYPES OF PRODUCT

Business Automobive batteries Industrial batteries Submarine batteries

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry SUBMARINE BATTERIES

The leadership role of Exide Company in Battery Industry

3.6 EXIDE INTERNATIONAL

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

4.1 GOVERNANCE PHILOSOPHY OF COMPANY

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

4.2 GOVERNANCE STRUCTURE

The leadership role of Exide Company in Battery Industry

4.3 CODE OF ETHICS

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

CONNECTION WITH PRESS/TV/RADIO

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

5.1 MANUFACTURING UNITS

The leadership role of Exide Company in Battery Industry

5.2 MANUFACTURING CAPACITY

1,000 1,000 700 750 -

2,400 600 1,200 4,200

160 270 15 (Submarine) 15 600

Guindy (1998) Bawal (2003) TOTAL 4,050

The leadership role of Exide Company in Battery Industry

The leadership role of Exide Company in Battery Industry

5.3 MANUFACTURING PROCESS