Business Daily from THE HINDU group of publications
Tuesday, Jul 25, 2006
Business Daily from THE HINDU group of publications Tuesday, Jul 25, 2006 |
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Corporate
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New Projects Minda plans battery plant in Uttaranchal Our Bureau
New Delhi , July 24 Minda Industries Ltd, the flagship company of the Rs 545-crore NK Minda Group, today announced its plans to set up a new plant in Uttaranchal to manufacture automotive batteries. The project, which is targeted at the two-, three- and four-wheeler segments, is in technical collaboration with FIAMM SPA of Italy. Minda would be investing Rs 40 crore in setting up the plant, the total annual capacity of which would be four million batteries. The plant is likely to be completed by December this year and production would commence in the last quarter of 2006-07. "We are looking at cornering a substantial part of the batteries market in India and hope that our batteries will be well received by OEMs. This project is very close to our heart and is a major milestone in our diversification process," said Mr Nirmal K. Minda, Managing Director. On the tie-up with FIAMM, he said: "Minda shares a very strong relationship with FIAMM, which is a leading automotive supplier in Europe. Collaboration for the battery project also shows the confidence that FIAMM places in our group in terms of absorption of technology and delivering of products of global standards." Minda will manufacture and market valve regulated lead acid batteries (VRLAs), a first for India; the battery is a sealed and leak-proof one that is completely maintenance-free. Minda expects to clock revenues of Rs 50 crore from its batteries business and has projected revenues of Rs 125 crore in 2009-10. While FIAMM would supply the technology, the agreement also gives Minda the exclusive rights over FIAMM automotive batteries in India for sale as well as manufacture for the next 10 years. The company also gets the exclusive rights to market and export 2W/3W batteries around the world.
Expansion plans
Meanwhile, Minda has said that it has earmarked Rs 200-250 crore for its expansion plans. They include setting up new plants, diversifying into new product categories, acquisitions and expansion of current capacities.
More Stories on : New Projects | Automobile Components
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