Automotive battery giant Exide Industries has launched a ₹1,400-crore technology and capacity augmentation programme to be implemented over the next two years, according to MD and CEO Gautam Chatterjee.

Half the amount will be spent on adding a 1 million pieces-a-year automotive battery production line at Haldia, using mechanised punch-grid technology procured from East Penn of the US. The first phase of this project will be completed in January-March 2017.

“These are new-generation batteries manufactured through a mechanised process that ensures high degree of quality consistency, long (10-20 per cent more) life and durability. It will be sold in the after-market. Exide is the first company to introduce such products in India,” Chatterjee told newspersons after the company’s AGM here on Wednesday.

Exide currently has the capacity to produce 12.2 million batteries a year. Haldia — arguably among the most efficient of Exide’s seven battery manufacturing facilities in India — produces over 2 million pieces of automotive and industrial batteries a year.

Future expansion The new production line is coming up at the surplus land available at the existing Haldia facility. Exide has also approached Kolkata Port Trust authorities for an additional 25 acres for future expansion.

Exide also has battery facilities at Shamnagare in West Bengal, Bawal in Haryana, Chinchwad in Maharashtra, Ahmedabad and Hosur. On the demand outlook for automotive batteries, Chatterjee said that after nearly five years the OE demand is looking up but is still behind the previous high. However, demand is increasing in the after market, ensuring 90 per cent capacity utilisation, he added “We are not planning any price rise and would try to increase margins by cutting costs,” he said.

Chatterjee today announced that the company has re-entered the telecom battery segment that it exited three-four years ago in the face of stagnant growth. “We have started introducing products in this segment and hope to capture a good market share by the year end.

Upbeat on GST The introduction of GST will help the company source raw material (lead) from its own smelters, he said. “GST should help us. It should reduce the tax load on batteries manufactured by the organised sector from 28 per cent to 18 per cent and should bring the unorganised sector in the tax net,” he said.

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