The Hindu Business Line : Exide picking up 26% stake in Australian co Ceil Motive

Kolkata, July 20 Exide Industries Ltd plans to acquire 26 per cent stake in Ceil Motive Power Pty Ltd, an Australian traction battery marketing company.

The equity participation would help Exide emerge as a leading player in traction batteries segment in Australia. Traction batteries are used in automotive equipment inside factory sheds or warehouses.

Traction Batteries

While the valuation of the Australian company is yet to be finalised, the company Managing Director and CEO, Mr T.V. Ramanathan, said that Exide’s investment in the joint venture would not be less than (Australian) $1 million (Rs 3.5 crore) and might eventually go up to $ 4 million (Rs 14 crore).

He was talking to newspersons after the 60th annual general meeting of the company.

According to Mr Ramanathan, the Australian company sources products from various manufacturers in the world and market the same in Australia.

“We had been exporting traction batteries to Australia through Ceil Motive Power Pty Ltd (CMPPL) for last 18 months. This equity participation would ensure that CMPPL would henceforth be marketing only Exide batteries,” he added.

Market Leader

Mr Gautam Chatterjee, Director (Industrial), said that Exide currently exports 4,00,000 traction batteries a year of which 1,00,000 are exported to Australia.

“Our exports to Australia market will now be doubled. We are also hopeful to be the market leader in traction battery segment in Australia in two years.”

The company is currently setting up a new plant at Haldia with a capacity to produce 1 million batteries a year. Accordingly export of traction batteries is expected to move up to 1 million in the near future.

In another significant move, Exide has firmed up plans to acquire the remaining 49 per cent shareholding in Rs 26-crore joint venture — Caldyne Automatics — manufacturing chargers for large industrial batteries.

Exide acquired 51 per cent stake in the Kolkata-based company five years ago. “We plan to buy the residual stakes from seven other stakeholders and convert Caldyne into a wholly owned subsidiary,” Mr Chatterjee said.

While the current product line will be continued, Exide is considering making Caldyne a R&D centre for power electronics and battery monitoring and enter knowledge process outsourcing business.

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