The Hindu Business Line : Exide plans increasing industrial battery exports

Big plans
The company’s export share in total production may move up from 13% to 20% in next two years.
‘We are planning to enter the US market in 2008-09’

Pratim Ranjan Bose

Kolkata, Feb 19

With its dedicated greenfield facility for manufacture of one million traction batteries annually set to begin production in April 2008, Exide Industries is now planning a major increase in exports of industrial batteries.

On cards are entry into the US market and a major increase in exports to Europe, namely Germany and Scandinavian countries, and improving market share in the existing markets like Australia. The company’s export share in total production is expected to move up from 13 per cent to 20 per cent in the next two years.

“We are planning to enter the US market in 2008-09,” Director – industrial, Mr Gautam Chatterjee, told Business Line. “We are in dialogue with a few distributors there, however, things are yet to be firmed up,” he added.

Not yet…

The company, however, does not expect any major exports to the US in the next fiscal as its product range still needs to undergo certain compliance tests as per US laws. “Exports are likely to take place in 2009-10,” he said.

Meanwhile, Exide is gearing up to clock a major export growth in European markets in 2008-09. “Europe, especially Germany and Scandinavian countries, will be the biggest contributor to our export growth in the next fiscal. We are currently setting up a distribution network in the Continent,” Mr Chatterjee said.

The company’s discussions with some German manufacturers on an equity-based joint venture, however, have not yet matured, it is learnt.

Consolidating further

The next fiscal is likely to witness further consolidation of Exide’s market share in Australia, where it had entered into an equity joint venture with Ceil Motive Power Pty Ltd.

“We are aiming to emerge as the second largest traction battery brand in Australia in 2008-09,” the company official said. Exide is said to be the third largest player in the traction battery segment in Australia. This apart, Exide also exports to South Korea, Japan, the UK and others.

The company posted 58 per cent growth in industrial battery segment, including (traction and stand-by batteries) so far this fiscal. The company also claims to be the world’s fourth largest player in this segment after NSS, Exide Technologies and GS Yuasa of the US.

The share of industrial batteries in the company’s total production has improved from 19 per cent to 40 per cent in the last 10 years.

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