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Exide in talks with Austrian firm

India's number one storage battery-maker Exide Industries Ltd said on Monday it was in talks with an Austrian firm to make polyethylene separators in the country.

"We're mulling a joint venture with Jungfer AG of Austria to make these separators for use by India's lead acid battery industry," Exide chairman S B Ganguly told reporters after the company's annual meeting of shareholders.

Ganguly said Exide would be the minor partner in the proposed joint venture with Jungfer.

He did not give details on when the joint venture company would start operations. "But the chances of it starting in the current financial year are very small," Ganguly said.

A team of representatives of Exide and Jungfer was conducting a study on where the separator plant would be located.

"The report is expected in a few months...all I can say is the plant, costing about Rs 300 million ($6.37 million), is likely to be established somewhere in Maharashtra," he said.

The chairman said Exide had postponed its plan to set up an automotive battery plant in Bangladesh till elections took place in that country. Polls in Bangladesh are to be held in October. Ganguly had told Reuters last year that the Bangladesh facility would come up in June. "We're keen to enhance our presence internationally to emerge as a global player," he said on Monday but did not elaborate.

In the last financial year, Exide acquired two companies, one in Singapore and the other in Sri Lanka. "These initiatives will start showing results in the current financial year," Ganguly said but did not give details.

Exide's sales totalled Rs 9.54 billion in 2000-2001 (April-March) and net profit was Rs 415.51 million. The company's shares were last traded on the benchmark Bombay Stock Exchange on Friday and closed at Rs 59.20.

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