Atul Auto to enter battery manufacturing

Atul Auto Ltd, makers of three- and six-seaters, will enter into battery manufacturing by the next fiscal year.

The company will set up a manufacturing unit with an investment of up to Rs 60 crore to make 'Mark' brand of batteries for industrial and automobile use, the company's managing director Jayantibhai Chandra said.

Chandra said there is a huge demand for batteries in India with the increase in the number of vehicles.

"We have decided to enter into battery manufacturing in technical collaboration with some firms in Thailand and Japan. At present, we import these batteries from Thailand," Chandra said.

"Our company is poised to create a global presence with our new maintenance-free batteries.

"Our vision is to win the trust of our customers with these batteries which will be priced 10 to 15 per cent lesser than the batteries in the market now," Chandra said.

Initially, the company will focus on marketing in Gujarat, Rajasthan and some parts of Punjab and Maharashtra where the company has a network of 180 dealers.

"We have a service station every 30 km in Gujarat. They will provide service to the customers of our batteries also," Chandra said.

There is a good demand for batteries from states such as Madhya Pradesh, Rajasthan and Andhra Pradesh.

"We produced around 9,000 vehicles in the last fiscal year.

"The company has set a target to sell 14,000 to 15,000 vehicles in the next fiscal year," Chandra said.

Atul Auto posted a net profit of Rs 146.33 lakh for the period nine month period between April, 2003 and December, 2003.

The company's flagship product is Atul Shakti four-stroke diesel rickshaw, which gives an average of 35 kms per litre.

The company also makes the 7.5 HP Khushbu Road Master.