Exide plans to source batteries from Myanmar

Exide Industries plans to source automotive batteries from Myanmar.

"We are in talks with leading Myanmar-based automotive battery companies for sourcing. If talks materialise, we should be sourcing 15,000 batteries per month from Myanmar by the end of this year," said Paban Kumar Kataky, director, automotive, Exide Industries. The company is open to acquisitions in Myanmar, said Kataky.

The import from Myanmar would meet 10 per cent of the replacement market requirement of Exide, he said.

The company will also source more batteries from Sri Lanka. "Right now we source around 5,000 auto batteries in a month from Sri Lanka, which will be increased to 15,000 by the end of the year and scaled further to 50,000 by 2009," said Kataky. Exide imports battery from its Sri Lanka-based joint venture Associated Batteries Manufacturers.

"Sourcing from countries like Myanmar and Sri Lanka saves 20 per cent of our manufacturing expenses," he said. Right now we import only non-maintenance free batteries from Sri Lanka. In due course of time, we will increase sourcing of maintenance free batteries from Sri Lanka.

"It is logistically easier and economical to import batteries from Sri Lanka to the southern (Indian) market than from our other Indian plants," said Kataky.

In another three years, 40 per cent of its after market requirements will be met by imports from Sri Lanka and Myanmar. Exide has manufacturing facilities in West Bengal, Maharashtra, Tamil Nadu and Haryana.

Exide controls 33 per cent of the auto-battery market in the country. To meet the domestic and global demand, Exide is increasing the manufacturing capacity of its automotive batteries to 6 million units from the present 4.8 million.

Similarly, the motorcycle battery capacity will be increased to eight million from the existing six million.

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