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Our Bureau

Hyderabad, Oct. 1

Time Technoplast Ltd has announced the acquisition of Hyderabad-based battery maker Ned Energy Systems in a cash-cum-stock deal valued at about Rs 50 crore.

The buyout constitutes 74 per cent stake of NED, which has a manufacturing base at Medchal near Hyderabad, and includes cash component of Rs 45 crore for 71 per cent stake and subscription of shares valued at about Rs 5 crore.

The Managing Director of Time Technoplast, Mr Anil Jain, said that the acquisition presents the company with the option of expanding its presence in batteries market for telecom companies and entry into the automotive sector.

Post this acquisition, Time, which currently has six manufacturing units in the country and two overseas (which have come through acquisitions), plans to invest about Rs 30 crore in the Hyderabad facility to roll out valve regulated lead acid (VRLA) batteries for the automotive sector to cater to original equipment manufacturers and replacement.

Addressing a press conference here on Monday, Mr Jain said that the company, which went public earlier this year, ended last fiscal with revenues of Rs 456 crore and expects to close this year with revenues of about Rs 700 crore. In addition, the newly acquired NED Energy, which has revenues of Rs 45 crore, is poised to contribute about Rs 60 crore during the current fiscal.

The Managing Director of NED Systems, Mr Gautham, said NED has developed battery grids out of special polymers that help replace lead, cutting down weight of the battery by approximately 30 per cent and improving its energy density by over 25 per cent.

“With the Indian automotive and telecom sectors witnessing rapid growth, together we expect to play a larger role apart from foraying into new areas such as manufacture of steel tanks for various industrial applications,” Mr Jain said.

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