New Delhi: Tata AutoComp GY Batteries, a joint venture between Tata Autocomp Systems and Japan’s GS Yuasua, is embarking on a capacity expansion programme to touch a total of six million batteries in the next two years.
The company, which started operations last year, plans to take its four wheeler battery production capacity to two million by 2009, while it is gearing up to set up a production unit of two-wheeler batteries.
“As of now we have been importing two-wheeler batteries from Thailand but by 2009 we intend to start producing it here in India,” said Yogesh Dhawan, chief executive officer, Tata AutoComp GY Batteries (TAGB).
He said the company intends to set up a new line at its existing plant at Ranjangoan near Pune.
“Initially, the two-wheeler battery production will be about two million, which will be expanded to four million,” he said, adding the same for four wheeler batteries would be increased to two million.
The company’s current four wheeler battery production is 0.5 million units. It would touch one million by the end of this year.
On the investments, Dhawan said the company had earmarked Rs100 crore, while starting operations last year, of which Rs60 crore has already been spent.
“In the next two years Rs40 crore will be spent on the four-wheeler battery capacity expansion, while another Rs20-25 crore would be invested in setting up the two wheeler battery production line,” he said.
Dhawan said TAGB, in which the partners have equal stake, would also be aiming for more original equipment and other institutional supplies in India.
“We have bagged an order for supplying 25,000 batteries from the Indian Army (estimated to be valued around Rs12 crore) in March-April this year,” he said.
TAGB is OE supplier to Tata Motors’ Ace, Nano and Indica and also to Piaggio’s mini truck Ape.
The company today introduced its new invertor battery range priced between Rs9,478 and Rs10,280.
It is expanding its dealer network to 5,000 from the current 4,000 as part of its plan to capture 10% of the organised four wheeler battery market of about 13 million units.