Throughout the next ten years (2021 onwards), lithium-ion batteries are expected to monopolise the market amidst the many energy storage technologies accessible.
The power sectors and decarbonisation of transportation, which contributed 49% of India’s overall emissions of greenhouse gases (CO2 equivalent) in 2016, are expected to be greatly aided by energy storage technology.
Any investor who puts his money into the stocks of the best battery manufacturing companies in India will get a headstart in this energy storage race of tomorrow.
Also read: Best Green Energy Stocks to Invest in India for 2024.
Overview of the battery industry
Lithium-ion battery technology has surpassed lead-acid batteries in both applications and mobile stationary. The expansion of indigenous battery manufacturers has been aided by measures taken by the supporting legislation and government.
The government has promoted indigenous battery pack manufacture and permitted 100% FDI in electric vehicles.
The rising demand for consumer electronics across the general populace of India has a significant impact on the lithium-ion battery business. Consumer desire for portable and small gadgets is rapidly growing, which has increased the need for effective storage and power backup solutions.
3 best battery manufacturing companies in India
The top battery manufacturers who would be able to make the most of this trend towards sustainable energy storage technologies are ranked below based on their Return on Equity (ROE)
HBL Power Systems Ltd.
HBL Power System Ltd. was founded in 1983. The company produces and provides services for various e-mobility, battery variants and other goods.
HBL’s lead-acid and nickel-cadmium (NiCad) batteries saw improvements in capacity utilisation in FY24, reaching 68% and 85%, respectively. The company’s significant cash accruals of ₹321.45 crore in FY24 have contributed to its good liquidity stance.
The top battery manufacturers have an intensive work capital need. Businesses in this sector are required to follow strict pollution control guidelines. However, the main raw material used to make batteries is lead, a material known for its negative effects on the environment and extreme toxicity.
Eveready Industries India Limited.
Amongst the best battery manufacturing companies in India, Eveready Industries India Limited was founded in 1934 and sells flashlights, home appliances, lighting solutions, as well as batteries.
EIIL has maintained a strong market presence with a sales share of approximately 53% and 75% in the organised battery as well as flashlight markets in FY24. Its profitability and credit status have also improved as a result of a drop in its borrowing.
Goldstar Power Ltd.
Goldstar Power Ltd. was founded in 1999 and produces batteries and battery products. The corporation serves clients in both local and foreign marketplaces by providing batteries for industrial, automotive, as well as renewable energy purposes.
Also read: Best Automobile Penny Stocks in India.
Stock comparisons
| Name | P/E | Mar Cap (₹ Cr.) | Div Yield (%) | NP Qtr (₹ Cr.) | Qtr Profit Var (%) | Sales Qtr (₹ Cr.) | ROCE (%) | ROE (%) |
| HBL Power Systems Ltd | 49.64 | 17186.10 | 0.08 | 87.07 | 26.92 | 520.96 | 35.94 | 27.7 |
| Eveready Industries India Ltd | 37.80 | 2849.78 | 0.26 | 29.56 | 16.19 | 362.61 | 16.15 | 19.1 |
| Goldstar Power Ltd | 87.53 | 269.59 | 0.00 | 1.11 | – | 22.51 | 17.54 | 15.5 |
Factors to consider before investing in the top battery manufacturers
Keep these factors in mind to make the best of investments in the best battery manufacturing companies in India.
Technical developments
Monitor the most recent developments in battery technology. Increased lifetime, quicker charging, and increased energy density are some innovations that can enhance the overall efficiency of the top battery stocks in India and provide them a competitive edge.
Acceptance of electric vehicles
As increasing numbers of people choose electric vehicles, there is a greater need for EV supplies. A few things to consider include customer preferences for EVs, legislative motivations, and the installation of a charging network. The expansion of battery stockpiles may be fueled by these developments.
Development of renewable energy
Battery backup devices, which are frequently battery-powered, are essential to the continued growth of renewable energy. Keep an eye out for laws that encourage renewable energy sources, developments in grid-scale energy retention, and the use of batteries in the electrical industry. The market for lithium battery stocks may be impacted by these changes.
India as a member of BESS
The Global Energy Alliance for People and Planet’s BESS (Battery Energy Storage System) Consortium is a multistakeholder cooperation that seeks to provide neat, inexpensive energy to Africa, Asia, Latin America, and the Caribbean.
India is a member of this consortium. India has committed to securing 5GW of BESS contribution by the conclusion of 2024 as an integral part of the BESS consortium.
Bottomline
If energy is the next big thing, energy storage devices are the guardians of their world. There is no doubt that anyone who invests in energy storage now will get a headstart. However, choosing caution is paramount.
Also read: Long-term investing: A smart strategy for lasting wealth.
FAQs
- Who is the largest manufacturer of battery in India?
Exide Industries provides a variety of batteries for electric cars. The company’s EV batteries are renowned for their excellent performance and dependability.
HBL Power Systems is one of the best battery manufacturing companies in India. The manufacturer’s EV batteries are renowned for their extended lifespan, quick charging, as well as high energy density.
- Which battery is No. 1 in India?
India is home to several leading battery manufacturers, notably those that produce lithium, lead-acid, and numerous additional battery forms:
Exide Industries, Ltd.
The company is a best-selling battery brand in India. It is a widely recognised company that offers high-quality items.
Eveready Industries India Limited.
The company produces and markets batteries as well as lighting equipment.
- Who is the biggest battery manufacturer in India?
Eveready Industries is biggest manufacturer of batteries. It sells over 20 million flashlights a year. Basic lighting supplies and rechargeable batteries are one of the few products it sells.
The company holds a dominant 65% market share in India’s organised flashlight industry. Additionally, it distributes small household appliances, confections, and a variety of electrical items.
- Which company makes batteries for TATA?
Octillion Power Systems, Tata AutoComp, Agratás Energy Storage Solutions Pvt, and Envision AESC are among the firms that supply batteries to Tata Motors.
In Sanand, northern Gujarat, Tata Motors is also constructing an EV battery facility. In the subsequent phase of growth, the plant’s original 20 gigawatt hours (GWh) of manufacturing capacity might be doubled.
- Which is the oldest battery brand in India?
Eveready is the oldest battery company in India. Since 1905, the Eveready brand has operated in India. Originally called UCIL, EIIL is an Indian business that produces and sells lighting and battery goods.
