The Hindu Business Line : Indian battery market set to double by 2011, says Exide chief

The domestic battery industry is poised to more than double within four years given the current rate of growth of over 20 per cent per annum, according to Mr S.B. Ganguly, Chairman, Exide Industries Ltd.

The growth is coming from not just the automotive segment but significantly from the industrial sectors powered by usage in the telecom, railways, power and other industrial applications.

Speaking to Business Line on the sidelines of International Battery Fair India hosted here, Mr Ganguly said that the organised sector accounts for total current turnover of Rs 5,000 crore, and the unorganised sector about three times that of the organised business.

However, with certain mandatory regulations, and the need to make batteries environment friendly, the unorganised sector is likely to follow these norms to sustain their business with regard to recycling of toxic waste such as lead.

India, now, accounts for about 14 major automotive manufacturers, and all of them are growing rapidly in India, and also looking at making India their home for exports. This would further enhance the overall market base. But what is significant is that the industrial batteries consumption is going up with the economy booming.

This will create opportunities for supply of batteries in the telecom towers, railway usage and in the power sector. With the country short of power in several pockets, usage of inverters too, has gone up significantly, and this is not going to come down soon, he said.

Given the market potential, for the fist time an International Battery Fair is being hosted in India, normally hosted in the US, Europe and in the Asia-Pacific markets. This itself shows how the global market is viewing India and its business prospects.

Referring to India also emerging as a small car hub, Mr Ganguly said with Tata Motors launching Nano, and Bajaj and Renault announcing their moves for a small car, the potential for battery industry is significant. The demand from the local market is so huge that the current focus is to address this market rather than look at exports.

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