Chandigarh: Battery maker Exide Industries Ltd would invest Rs300 crore on expansion of its production capacity, besides entering new overseas markets with an aim to double its exports this fiscal.
“We will be investing Rs300 crore this year to augment production capacity in our plants located at several locations in the country,” Exide Industries Vice President S Kalla said.
The company would invest Rs150 crore in two of its plants in West Bengal, while the rest would be injected in Maharashtra and Tamil Nadu. “The entire investment will be funded through internal accruals,” he added.
With an aim to consolidate its exports, the company has identified new overseas markets, including Europe, South Africa and the Middle East for its tubular batteries, which are used in UPS system.
“There is a tremendous potential for our tubular batteries in these countries ... we will double our exports to Rs500 crore in 2008-09,” he said.
The company, which is aiming at sales of Rs4,500 crore in 2008-09, gets 55% of revenue from automotive batteries and 45% from industrial batteries.
On being asked about the impact of rising input prices, Kalla said the company has inserted a price evaluation clause in the agreement signed with its institutional buyers.
“With this clause the buyers will have to pay the increased price if there is an escalation in lead rates and if prices falls, then they will pay the reduced prices,” he said.
The lead prices have tripled from $1,200 per tonne in 2004 to $3,800 per tonne in 2007.
Exide manufactures storage batteries from 2.5 AH to 20,400 AH capacities from the company has nine production facilities.