IMAP India: Industrials Update August 2024
Recent News
- 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
- Gold prices have increased since the start of the year, and surpassed $86 per gram; the global surge being largely driven by expected cuts in interest rates by the Fed
Selection of Recent Transactions
DATE TARGET ACQUISITION
Aug’24 Kinetic Green Energy The EV manufacturer raised $25mn 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 $60mn
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 space-tech startup raised ₹42 Cr. in a fundraise led by Golden Sparrow and Bluehill Capital
Aug’24 Kazam EV Tech The EV Charger manufacturer raised ₹67 Cr. in a fundraise led by Vertex Ventures
Aug’24 Zepto The hyper delivery unicorn raised ~₹2,850 Cr. In a fundraise led by General Catalyst ventures
Recharging the 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 $61mn
- Exide invested $700mn in a Li- Ion manufacturing plant in India
- Tata group is building a $1.6bn Ev battery plant in Gujarat
- Mahindra Electric signed a deal with LG Chem to collaborate on the supply and technology of NMC batteries
