TDS Lithium-Ion Battery Gujarat Private Limited

Background

TDS Lithium-Ion Battery Gujarat Private Limited (TDSG) is India's first manufacturer of lithium-ion batteries for hybrid vehicles. Established in 2017, TDSG is a joint venture between three Japanese industry leaders: Suzuki Motor Corporation (50% stake), Toshiba Corporation (40%), and Denso Corporation (10%). The company's mission is to contribute to the development of the Indian economy by producing high-quality, locally manufactured lithium-ion batteries, aligning with the "Make in India" initiative. TDSG aims to support India's hybrid automobile movement and reduce environmental burdens by supplying advanced energy storage solutions.

Key Strategic Focus

TDSG's strategic focus centers on the localization of lithium-ion battery production to meet the growing demand for hybrid vehicles in India. By integrating Suzuki's manufacturing expertise, Toshiba's cell technology, and Denso's module technology, TDSG specializes in producing lithium-ion batteries with enhanced safety, rapid charging capabilities, and high performance. The company primarily targets the automotive sector, supplying batteries to major manufacturers such as Maruti Suzuki India Limited and Suzuki Motor Gujarat.

Financials and Funding

The joint venture represents a significant investment of approximately $180 million, with Suzuki Motor Corporation holding a 50% stake, Toshiba Corporation 40%, and Denso Corporation 10%. For the financial year ending March 31, 2022, TDSG reported operating revenue between INR 1 crore and 100 crore. However, the company experienced a decrease in net worth by 755.22% and a decline in EBITDA by 216.17% during the same period.

Pipeline Development

In 2021, TDSG commenced production of 6Ah battery modules and packs, marking a significant milestone in its product development. The company achieved IATF 16949:2016 certification in 2022, reflecting its commitment to quality standards in automotive manufacturing. In 2023, TDSG received an "Excellent" hygiene rating from the Food Safety and Standards Authority of India (FSSAI) and a 5-star rating under the EAT Right Campus initiative, highlighting its dedication to health and safety standards.

Technological Platform and Innovation

TDSG's technological platform is distinguished by its cell-level localization, producing batteries domestically to reduce reliance on imports. The company utilizes lithium titanate oxide-based materials to enhance safety by preventing thermal runaway caused by physical stress or short circuits. This technology ensures optimal performance in extreme conditions while maintaining fast-charging capabilities. TDSG's manufacturing process incorporates stringent quality control measures, with each battery undergoing extensive testing to ensure reliability and performance.

Leadership Team

Mr. Hisanori Takashiba, Managing Director: Leads TDSG with a focus on innovation in the lithium-ion battery industry, emphasizing the production of high-quality, long-life products to support India's hybrid automobile movement and environmental sustainability.

Mr. Mamoru Shibuya, Director: Plays a pivotal role in strategic decision-making and overseeing the company's operations.

Mr. Shuji Ito, Director: Contributes to the company's strategic initiatives and operational management.

Competitor Profile

Market Insights and Dynamics

The Indian lithium-ion battery market is experiencing rapid growth, driven by the increasing adoption of electric and hybrid vehicles, government initiatives promoting clean energy, and advancements in battery technology. The market is characterized by significant investments from both domestic and international players aiming to establish a robust supply chain and manufacturing infrastructure.

Competitor Analysis

Exide Industries Limited: A leading Indian multinational storage battery manufacturing company headquartered in Kolkata. Exide has diversified into lithium-ion battery production through its subsidiary, Exide Energy Solutions Limited (EESL), which is setting up a 12 GWh greenfield cell manufacturing plant in Bengaluru. The company has a strong presence in both automotive and industrial battery segments.

Wardwizard Innovations & Mobility Limited: An emerging player in the electric vehicle and battery manufacturing sector, Wardwizard has established a lithium-ion battery assembly line with a 1 GWh capacity in Vadodara. The company focuses on producing advanced lithium-ion cells and developing related infrastructure to support the EV market.

Strategic Collaborations and Partnerships

TDSG's formation as a joint venture between Suzuki Motor Corporation, Toshiba Corporation, and Denso Corporation exemplifies a strategic collaboration that leverages each partner's strengths. This partnership combines Suzuki's manufacturing expertise, Toshiba's advanced cell technology, and Denso's module technology to produce high-quality lithium-ion batteries tailored for the Indian market.

Operational Insights

TDSG's competitive advantage lies in its localized production capabilities, allowing for cost-effective manufacturing and reduced dependency on imports. The company's focus on safety, rapid charging, and high-performance batteries positions it favorably in the growing Indian hybrid vehicle market. By supplying major automotive manufacturers like Maruti Suzuki, TDSG has established a strong foothold in the industry.

Strategic Opportunities and Future Directions

Looking ahead, TDSG aims to expand its production capacity to meet the increasing demand for lithium-ion batteries in India and explore opportunities in the export market. The company is committed to continuous innovation, focusing on enhancing battery performance, safety, and cost-efficiency. By aligning with India's "Make in India" initiative and contributing to environmental sustainability, TDSG is well-positioned to play a pivotal role in the country's transition to cleaner energy solutions.