The Hindu Business Line : NK Minda Group set for rolling out automotive batteries

Automotive component manufacturer NK Minda Group is set to commence commercial operations of its batteries division being set up in Pantnagar, Uttaranchal, with an outlay of Rs 40 crore in partnership with European major Fiamm Spa, Italy.

The Gurgaon-based company has signed up with two OEMs (original equipment manufacturers — Bajaj Auto for two wheelers and Tata Motors for four wheeler batteries). In fact, the company has secured a letter of intent for supply of some electrical components and batteries from Tata Motors for their much-awaited Rs 1-lakh car.

The Managing Director of NK Minda Group, Mr Nirmal Kumar Minda, said that the company’s two-wheeler battery unit is going commercial later this month and the four wheeler batteries are set for roll out in couple of months. The company is planning additional investment of Rs 10 crore in the expansion plan once this phase gets completed in a couple of months.

Speaking to Business Line after his recent visit to the US, Mr Minda, whose group had a turnover of Rs 832-crore last fiscal, said that they are bullish on the battery segment for both two and four wheelers. Apart from the OEM suppl ies, the company is particularly targeting the after market, which is fragmented and also served by the unorganised sector. The after market is estimated at over Rs 1,700 crore.

Mr Minda said that they are introducing advanced Valve Regulated Lead Acid (VRLA) batteries that are 100 per cent maintenance free. With the car engine designs changing by the day, the current day batteries do not allow the flexibility of positioning batteries other than the conventional mode in the limited engine space. The VRLA batteries allow car makers to place them in a tilted mode without impacting its performance.

New markets

As a part of its strategy to penetrate new markets, the company plans to build on its existing network of dealers spread across the country and is also looking at the FMCG retail model.

The company has roped in advertising agency Percept for a pan-India media campaign to reach out its new products from the batteries division.

The company is targeting sales of about Rs 50 crore in the remaining part of this fiscal from the batteries division.

More Stories on : New Projects | Automobile Components | Tata Motors Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page