Exide - Analysis Report

EXIDE - Analysis Report

Company Background:

Exide is a leading player in the battery industry which is mature. The future of the battery is promising because of the increase in power deficit. Amara Raja Batteries, Luminous Power Technologies and HBL Power Systems are the three main players apart from Exide.

[pic 1]

The above figure shows the breakup of market share of companies in lead batteries industry.

Current Challenges:

Exide is losing market share to Amara Raja Batteries Limited (ARBL) because of the low-cost and pricing strategy. ARBL increased its market share in organized replacement from 14% in 2010 to 22% in 2013. It also increased its market share in OEM market from 24% in 2010 to 28% in 2013. ARBL poses threat to Exide in the premium segments that compete on quality.

Exide has to reduce its cost and speed up the material movement and implement few supply chain strategies to get back on game.

Analysis of weekly dispatches from Manufacturing Plants:

i)Region 2

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Analysis: The despatches are not happening in few weeks in between intermittently. Despatches from F21 and F22 are positively correlated in few weeks.

ii)Region 3

[pic 3]

Analysis: F31 despatches material throughout the 48 weeks. The materials are dispatched from F32 in the last 4 weeks i.e from 44, 45, 46, 47, 48

iii) Region 4

[pic 4]

Analysis:  F41 despatches inventory throughout the 48 weeks.

iv)Region 5

[pic 5]

Analysis: F53 despatches highest quantity of inventory among all the factory plants. F51, F52 and F53 despatch the material throughout the year.  There is some correlation among the despatches of F51 and F53.

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