Minda Industries to setup new plant at Uttaranchal

Minda Industries Ltd has announced its plans to set up a new plant at Pantnagar, Uttranchal to manufacture automotive batteries. The Battery project targets automotive batteries for 2, 3 & 4 wheeler vehicles. The Battery project has technical collaboration with Europe´s leading automotive supplier FIAMM S.p.A of Italy.

The company is investing Rs 400 million in setting up the battery plant at Pantnagar. The total capacity of the plant, when fully operational, would be 4 million batteries per annum. The plant is likely to be completed by December year and would commence production in the last quarter of the Financial Year 2006-07.

"We are looking at cornering a substantial part of the Batteries market in India and hope that like all other products of our portfolio, our batteries will also be well received by the OEMs. This Battery project is very close to our heart and is a major milestone in our diversification process", says Mr. Nirmal K Minda, Managing Director, of the company.

Commenting on the tie up with FIAMM, Mr. Minda said, "Minda shares a very strong relationship with FIAMM, which is a leading automotive supplier in Europe known for its quality products through emphasis on technology. Collaboration for the battery project also shows the confidence that FIAMM places in the N K Minda group in terms of absorption of technology and delivering of products of global standards".

The Company will manufacture and market the Valve Regulated Lead Acid Battery (VRLA) a first for India, which is a sealed and leak-proof battery and completely maintenance free. In the 2.5 Ah segment, targeted at kick-start vehicles upto 150 cc, the company will manufacture both the Conventional and maintenance free batteries and in all other segments like 5 Ah to 50 Ah batteries for 2, 3 & 4 wheelers, the Company will manufacture Maintenance Free and VRLA batteries. The emphasis is to create batteries that are more attuned to Indian conditions. All conventional flooded batteries, conventional low maintenance free batteries and VRLA batteries will be manufactured under one roof at the Pantnagar facility.

The Company expects to block revenues of Rs 500 million in the first full year of operation from the batteries i.e. 2007-08 and the projected revenues in the third year is Rs 1250 million. The company will be manufacturing batteries for the 2 Wheeler and 4 Wheeler segments. The range of batteries would be from 2.5 Ah to 50 Ah and would incorporate the latest technological advances in this field.

The collaboration is in the nature of a technical tie up where FIAMM would supply the technology for the product. The agreement also gives the company the exclusive rights over FIAMM automotive batteries in India for sale as well as manufacture for the next 10 years. The company also gets the exclusive rights to market and export 2W / 3W batteries around the world.

Source : Equity Bulls

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