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Our Bureau

Mr. S.B. Ganguly

Kolkata , July 29

EXIDE Industries today described their entry into insurance sector as a "long term investment" of the company, underlined by a "synergy of trust" between Exide and ING.

Exide enjoys the trust of its shareholders and consumers and so does ING, said Mr S.B. Ganguly, Chairman.

Exide will use its distribution network to help market ING Vysya life insurance products.

Talking to newspersons following the 58th annual general meeting of the company, Mr Ganguly promised a long-term association with IVL, but denied that Exide had business interests in the insurance sector.

He indicated that Exide would largely depend on its foreign partner, which had the requisite professional expertise, to run the show on Exide's behalf.

"Exide has generated cash profits of close to Rs 200 crore for the last couple of years. This leaves us with an investment surplus of about Rs 60-70 crore annually. We currently have Rs 410 crore of reserves and surplus. Of the total, Rs 350 crore is free reserves. We are looking at our association with IVL as a long-term investment." On whether the company would enter the general insurance sector, he said no such discussion had taken place with ING.

Earlier, addressing the shareholders Mr Ganguly said, "Exide has a track record of paying dividend for 55 years at a stretch without any interruption. I am sure there are only a few companies in the manufacturing sector which can boast of such a record."

Mr Ganguly said that the current year may augur well for Exide.

"We are expecting 22-25 per cent rise in sales turnover and 30 per cent rise in profit in this year."

While the company will get the full benefit of reduction in import duty on lead in this year, Exide is pinning hope on the softening of lead prices for bottomline growth.

"After more than an year, lead prices have started softening recently. Hopefully it will soften further," he said.

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