Automotive battery makers to up capacity

With demand from original equipment makers (OEM) and after-market sales increasing, domestic automotive battery makers are on an expansion spree.

All the four majors "� Exide Industries, Amara Raja, Tudor and Amco commanding a market share of nearly 100 per cent in the domestic organised market "� are expanding their existing capacities by 50 per cent by 2008.

Exide "� the country's largest player in the organised market with a share of more than 65 per cent "� is planning to expand its domestic capacity to six million units per annum by 2008.

At present, the company's capacity is 4.8 million. The investment for the expansion is pegged at more than Rs 100 crore, according to P K Kataky, director - automotive, Exide Industries.

In addition, the company will also source an additional three lakh batteries every year from Sri Lanka and Myanmar, he said.

Amara Raja Batteries "� the second largest battery manufacturer "� will invest Rs 88 crore for expanding its capacity to 5.4 million from the existing 3.6 million by 2008. It enjoys about 15 per cent of the domestic market.

"The domestic automotive market is growing annually at a rate of 15 per cent, while the battery market is expanding at 12 per cent," said Madan Kotnala, general manager, Tudor India, the third largest manufacturer.

Tudor, with more than 10 per cent market share, will expand its capacity to 1 million batteries by 2008. Unlike Exide and Amara Raja, Tudor only supplies batteries to the domestic market.

Amco Batteries is also understood to be doubling its capacity from the existing two lakh batteries, according to industry sources.