The combined overhead expenses and after market two wheeler battery industry is currently pegged at Rs 500 crore and is growing at a CAGR of 8 per cent. In addition to the traditional segments, the growth is being fueled by the increasing popularity of high end two wheelers among the youth.
"Two wheeler riders traditionally were not required to pay much attention to the battery in the kick start models. However with increasing shift to self start , the battery technology and choice is becoming critical," Jayadev Galla, MD, Amara Raja batteries Ltd said.
The company hopes to capture 20 per cent market share in five years. "In 2008-09 we have earmarked 25 per cent of our overall communications budget for brand building and marketing promotions," Ganesh Swaminathan, head- Automotive division said.
