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Our Bureau

Supply of 4-wheeler batteries

Hyderabad April 3 Tata AutoComp GY Batteries is in parleys with original equipment manufacturers such as Tata Motors, Daimler Chrysler, Fiat, for supply of four-wheeler batteries and is set to expand its facility to roll out new family of batteries for commercial vehicles, tractors and inverters.

The company is slated to commission a two-wheeler battery unit next year.

While the four-wheeler battery unit at Ranjangaon, Maharashtra, which will have capacity to produce about 2 million units, will entail investment of Rs 100 crore, the two-wheeler battery unit would involve an outlay of Rs 70 crore.

The Chief Executive Officer of Tata Autocomp GY Batteries, Mr Yogesh Dhawan, said that the company plans to have a pan-India presence within four months and that will help them pitch for business from OEMs. The launch of four-wheeler batteries would be extended to other products for commercial vehicles and later to two-wheelers.

Addressing a press conference, Mr Dhawan said initially, the company proposes to source the two-wheeler batteries from the Indonesia unit of the company's venture partner, GS Yuasa, which has 28 plants globally. The 50:50 venture between Tata AutoComp Systems Ltd (TACO) and GS Yuasa International (GYIN) would target the replacement market, which accounts for about 60 per cent of the total battery market in the country.

Marketed under the brand name Tata Green, the company claimed that about 90 per cent of the company materials are recyclable. In fact, the company is keen on educating the replacements market to opt for a branded product so that they would also contribute to the ecosystem.

Providing insight into the battery industry, Mr Dhawan said that the four-wheeler market accounts for about 9 million units annually, which includes 2 million from OEMs and 7 million from the replacement market. The two-wheeler industry has a different mix. Of the 13 million sold annually, the OEM and replacement market account for about 6.5 million each.

The battery market was in for change to higher quality, long lasting variants. This is where a player like Taco could play a difference. While the accent is on no maintenance long battery options, the market is preferring these even though they are slightly costlier than the conventional batteries, he said.

More Stories on : Outlook | Automobile Components

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