SAR Silicon ties up with EaglePicher

SAR Silicon Systems, a leading marketer of power products and domestic appliances, has joined hands with the $685 million US-based EaglePicher Inc to manufacture and sell automotive and inverter batteries in the country.

The Delhi-based firm will set up a plant at Baddi, Himachal Pradesh, which will have an eventual capacity of 1 million units annually, managing director Rakesh Malhotra said.

"We have entered into a technology transfer agreement with EaglePicher. The batteries will be launched this month," Malhotra said.

He said the batteries will be available for all automotive segments, including truck, bus, four-wheelers and two-wheelers as well as inverter applications.

Initially, certain battery components will be imported and manufactured under contract by a domestic company. These automotive and valve regulated lead acid (VRLA) batteries will be marketed under the co-brand Luminous-EaglePicher.

Malhotra said Rs 30 crore will be invested to establish the plant, which is expected to go onstream by November 2005. "We expect to generate Rs 100 crore from automotive and inverter battery sales. This should take our turnover to Rs 250 crore in two years from Rs 125 crore now," he said.

SAR Silicon now markets the Luminous and Tez brands of power products and domestic appliances. Founded in 1843, EaglePicher makes industrial products for space, defence, automotive, pharmaceutial and commercial applications.

The entry of SAR Silicon in the Rs 1,240 crore domestic automotive market, which is dominated by Exide Industries and other players like Amara Raja and Tudor.

But, Malhotra claimed that the improved technological features of Luminous-EaglePicher batteries which have 35 per cent more life than other products was expected to help the company achieve sizeable market share.

The company will initially focus on the replacement market for automobile batteries, which comprises 7-8 million units annually.

"In three years, we will come out with new generation products such as a battery called horizon, which is three-time lighter than the current ones. It is currently on trial production in the US," Malhotra said.