Hitachi of Shin Kobe and Exide have entered into a venture whereby the former will outsource batteries from Exide to meet its global requirements.
According to a news report in a leading financial daily, Shin Kobe has been a technical partner for Exide's automotive and industrial batteries.
In anticipation of increased demand from the global markets, Exide plans to invest Rs 800 m in fresh capacities in automotive and industrial batteries over the next few years. The new plant at Bewal (Haryana) will service the increased production once the modalities of supplying to global players is worked out.
This seems to indicate that the Indian batteries market has come of age with international players sourcing their requirements from Indian companies. Indian R&D is getting its due and with cost of production also on the lower side, MNCs are beginning to eye the Indian market with interest more so due to the fact that their markets are unattractive as far as costs are concerned. With auto demand in the global market holding steady and new models being launched with increasing frequency, battery demand from the replacement as well as original equipment manufacturer (OEM) segments will be robust.
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