Alkaline batteries: A case to think of

Anup Menon

IN INDIA, zinc carbon batteries dominate the market. Not alkaline batteries. Why is this so?

The cost per unit seems to be the main factor. For instance, an alkaline batteries costs more than twice the zinc battery, though it will last longer.

The higher pricing is because of the higher cost of production and the opportunity cost for the greater level of efficiency given by the product. For instance, if a zinc battery will last around eight hours in a gadget, the alkaline battery is likely to have life three times that.

This, no doubt, justifies the higher price. But the user is likely to feel the need for alkaline batteries only for high-drain products such as portable cassette players and cameras. In other products, say, a television remote-control, the zinc battery is likely to last six months, and the need for an alkaline battery is not felt.

But, in contrast, most developed nations use largely alkaline batteries. For instance, the market usage of alkaline batteries as a percentage of total battery use in India is estimated at around 3 per cent compared to the developed nations' 70 per cent.

Looking ahead, the market for alkaline batteries is not likely to take off. There are several factors that go against alkaline batteries in India. For instance, the initial cost involved in setting up an alkaline battery plant is high. BPL invested close to Rs 130 crore to set up a facility with a capacity of around 75 million units. Technology is another key factor. Though Indo National and Lakhanpal have a tie-up with Matsushita Electric, manufacturer of the widest range of batteries in the world, the market potential for the product seems to be weak.