Taco JV to add power to aerospace, defence

Tata Autocomp GY Batteries (TGY), a 50:50 joint venture between Tata Autocomp Systems (Taco) and GS Yuasa International (GYIN), apart from catering to the country's booming auto industry, is also evaluating the aeronautical industry.

A NEW FRONT

The company is close to supplying its top-end automotive batteries to the Indian Army's fleet of light and medium vehicles

The supply of 25,000 batteries at an estimated value of Rs 12 crore is expected to commence in the first quarter of FY09

The company is also in the process of being nominated as a supplier to the Indian Railways

TGY's current capacity is 500,000 batteries a year for four-wheelers, which will be upgraded to 2 million units by 2010

"We are evaluating the aerospace industry," was all Yogesh Dhawan, CEO, Tata Autocomp GY Batteries, had to say.

Further, the company is close to supplying its top-end automotive batteries to the Indian Army's fleet of light and medium vehicles. The supply of 25,000 batteries at an estimated value of Rs 12 crore is expected to commence in the first quarter of FY09.

The company is also in the process of being nominated as a supplier to the Indian Railways. "While defence deals are concluded in less than a year, it takes a longer time for the Railways to finalise its vendors' list," said an executive from TGY.

Set up in February 2006, TGY is a subsidiary of Tata Autocomp Systems that offers a range of products and services in the field of auto components to auto manufacturers, both in India and abroad, through its 17 group companies. Taco is a part of the $28.9 billion Tata Group.

With its manufacturing plant in Ranjangaon (Pune), TGY's current capacity is 500,000 batteries a year for four-wheelers, which will be upgraded to 2 million units by 2010.

"We have plans to expand our capacity further to an extra 3 million batteries for two-wheelers," said Raman Nanda, director, Tata Autocomp GY Batteries. While the company's turnover for FY07 was Rs 80 crore, it expects to end FY08 at Rs 250 crore, a 212.5 per cent increase.

With the country's auto component makers setting up plants in China to tap that booming auto market since the last five years, Tata Autocomp GY Batteries is also following suit.

"Our foray into China will become operational in the next 3 months and the plant will be located at Nanjing," said Yogesh Dhawan, CEO, Tata AutoComp GY Batteries.

"Eastern Europe is also another potential plant site," he added. The company hopes to supply its batteries to Ford and GM in China.

Speaking to reporters at the launch of the company's inverter batteries, a recent addition to the company's range of green, low-maintenance automotive batteries, Nanda said the company was in talks with Bajaj and Yamaha to supply batteries for their line of two-wheelers.

While being selected as the supplier for the Nano car "" expected to hit Indian roads in a few months "" Nanda said operating margins had not been affected by the entry of the small car.

"We were asked to design a battery for the Nano at a particular price level and we have achieved that," said Nanda. He declined to state the price.

The Indian automotive battery market is dominated by grey battery makers, having a market share of 50-55 per cent due to lower prices than that in the organised sector.