Kolkata, Sept 15
Exide Industries Ltd will commence commercial production at its new motor-cycle battery manufacturing facility at Ahmednagar in Maharashtra tomorrow.
According to sources, the new plant can produce four lakh batteries a month, increasing the company's total production capacity of two-wheeler batteries by over 60 per cent to 10 lakh a month.
Exide currently supplies approximately 6-lakh motor cycle batteries a month from its facility at Bawal in Haryana. The capacity had fallen substantially short of the “unexpected” demand growth during the last one year.
In July this year, the company had announced its plan to add fresh motor-cycle battery manufacturing capacity at its once abandoned factory premises at Ahmednagar at an investment of Rs 80 crore. The plant was scheduled to be operational in August this year.
While comments were not available from the company in this regard, sources told Business Line that Exide had completed the construction well in time. However, the plant could not be operationalised due to non-availability of key approval from the pollution control authorities till last week.
Meanwhile, the company is also pumping money to enhance the four wheeler battery manufacturing capacity by 28 per cent during this fiscal. Overall the company is scheduled to spend approximately Rs 400 crores in capacity enhancement in all its existing plants.
Sources said that investments worth another Rs 200-250 crore were already lined up for the next fiscal.