Exide Invested USD43.8 Million to Expand its Plant Capacity
Exide
Industries Limited plans to manufacture advanced motorcycle batteries at its
plant in Haldia, West Bengal
India: Exide Industries, India’s
leading battery maker has its manufacturing facilities located in West Bengal,
Tamil Nadu, Ahmednagar, Maharashtra, Haryana, Pune, Uttaranchal
and Bengaluru. The company is running on an annual production capacity of 2.2
million for automotive batteries and is expected to reach 3.5 million in coming
2 years after a huge investment. The company has witnessed a dip of 30% in OEM
battery sales during last month, due to demonetization, however, the sales of
batteries in replacement market have not been impacted.
Exide Industries have recently
made technical collaboration with East Penn Manufacturing Company based in USA,
with the capital investment of around USD102.3 million, for manufacturing
advance lead acid storage batteries in India.
As per TechSci Research, Exide
ranks among the top players in the country’s automotive battery market. Moreover,
the investment by the company would
eventually infuse the sales of Exide automotive batteries, thus impacting the
overall revenue generation of India’s automotive battery market. Further, this
factor is likely to penetrate the automotive component market in coming years,
as well.
According to a recent report published by TechSci Research, “India
Automotive Battery Market Forecast & Opportunities, 2018”, the
Indian automotive battery market is projected to grow at a CAGR of
approximately 13% during 2013-18, in value terms. The key reason can be
attributed to the recent launches of Medium Utility Vehicles (MUV) and Sports
Utility Vehicles (SUV) such as Renault’s Duster, Mahindra’s XUV, Maruti’s
Ertiga and Ford’s Eco Sports, etc. As a result, the utility vehicles battery
market segment is expected to witness the fastest growth in automobile battery
market, followed by two wheeler batteries. and light commercial vehicle battery
market segments, over the next five years.