Industrial Update – Newsletter – August 2024
IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India
Lithium-Ion Battery Space in India-With an accelerating shift towards renewable energy, demand for Li-Ion based energy storage solutions is set to reach 220 GWh+ from ~25 GWh currently, creating a strong opportunity in this space
•These batteries can be further categorised basis technology, with Li-Nickel Manganese Cobalt Oxide (NMC) being the most widely used. Other types include Li-Iron Phosphate (LFP), Li-Manganese Oxide (LMO), Li-Nickel Cobalt Aluminium (NCA), and Li-Titanate (LTO)..
Balance is constantly sought between high energy density with safety and costs. Currently, NMC and LMO batteries remain preferred with a variety of use-cases. With their growing importance, Indian companies are increasingly making investments in this space:
•Amara Raja partnered with Slovakia’s Gotion High-Tech to license LFP technology for Li-Ion cell production.
•Reliance acquired the assets of Dutch cobalt-free LFP battery manufacturer Lithium Werks for ₹466 Cr.
•Exide plans to invest ~₹6,000 Cr. in a Li- Ion manufacturing plant
•Tata group plans to build ₹13,000 Cr Ev battery plant in Gujarat
•Mahindra Electric signed a deal with LG Chem to collaborate on the supply and technology of NMC batteries
Key Players
Some recent transactions
| Aug’24 | Kinetic Green Energy | The EV manufacturer raised ~₹209 Cr. in a fundraise led by Green Pacific Capital |
| Aug’24 | Sterling Biotech | Zydus’ Animal Healthcare division acquired a 50% stake in the API manufacturer for ₹550 Cr. |
| Aug’24 | Renom Energy | Suzlon Energy acquired a 76% stake in the renewable energy EPC player for ₹660 Cr.. |
| Aug’24 | Ethereal Exploration Space | The EV Charger manufacturer raised ₹67 Cr. in a fundraise led by Vertex Ventures |
| Aug’24 | Kazam EV Tech | The hyper delivery unicorn raised ~₹2,850 Cr. In a fundraise led by General Catalyst ventures |
| Aug’24 | Zepto | The EV 2Ws manufacturer raised ~₹ 82 Cr. in a fundraise led by Helena Special Investments Fund |
Recent News
- Gold prices have increased since the start of the year, and surpassed ~₹ 70,000 (per 10 grams); the global surge being largely driven by expected cut in interest rates by the Fed
- Bharat Petroleum plans to invest ₹ 75,000 Cr. over the next 5 years to expand refining and petrochemicals capacity and an additional ₹10,000 Cr. in green energy
- India’s manufacturing PMI fell to 57.9 in Aug’24 from 58.1 in Jul’24; though still high, there was a softening in new orders and output; a PMI value above 50 indicates growth
- August also saw one of the largest takeovers in the snacking space as Mars acquired Kellanova (a spin-off from Kellogs with brands Pringles, Cheez-It, Pop-Tarts, NutriGrain) for US$ 36 billion
- Pure electric and hybrid vehicle sales overtook conventional vehicle sales for first time in July’24 in China
IMAP Industrials Index & Valuation of sub-segments
Commodity Prices Index
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