To win our customers, stakeholders and employees by transferring quality into a performance
oriented business, which will secure market leadership and profitable growth through effective
fulfillment of customers’ needs.
– Vision of Exide Industries Ltd.
“Namaskar, gentleman” said Satya Brata Ganguly, Chairman and Managing Director of
Exide Industries Ltd., as he entered the plush meeting room. He moved briskly and seated
himself at the chair reserved for him at the dead of the table. “Yes, they are all present,”
he thought as he glanced around “the VP (Marketing), the VP (Prdt. Development), the
VP (R&D), the VP (Production)”. He deliberately cleared his throat as he began “We are
here gentleman, to make a very strategic decision about the future of our company. Let
us start from our past so that we can have perspective of the future”.
The Company was incorporated on January 4, 1960 at Kolkata,1 under the name of
Associated Battery Makers. Its main thrust was on storage batteries, both for industrial
sector and automobile sector. The Company maintained its position as India’s and South
Asia’s largest Power Solutions Company. Its Haldia factory was set up in 1973 as a 100%
export oriented unit. In 1977, it started another factory near the export unit as the
domestic demand increased. On August 25, 1995, the name of the company was changed to
Exide Industries Ltd. In 1997, the Rajan Raheja-controlled Exide Industries (See Exhibit 1)
became the country’s largest automotive battery manufacturer and was exploring the
acquisition route for stepping up production capacities. Shin-Kobe Electric Machinery Co
Ltd., of Japan, the manufacturers of Hitachi have a technical collaboration with Exide
Industries. The company manufactures products under brand names like Exide, Dynex and
Index. Of these, Exide is the largest selling brand. The company’s performance has ensured
a record sales of Rs. 1200 cr in the year ended March 31, 2004 (See Exhibit 2).
Year 2003 saw a spurt in the performance of the Indian economy. For the quarter ended
December 31, 2003, the economy clocked a GDP growth of 10.4%, the highest since 1990
and one that spiraled India to being one of the highest growth economies in the world.
While the burgeoning deficit continued to be a concern, the high accretion to foreign
exchange reserves, the appreciating rupee, the growth in industry and services sector and
the stock markets finding new highs, made India a very attractive investment proposition.
India’s foreign currency rating has moved up to investment grade, in Moody’s rating scale.
Prices of almost all metals hardened significantly in 2003. |
