Exide setting up new plant at Ahmednagar

KOLKATA - Exide Industries is setting up a new plant in Ahmednagar, Maharashtra, to meet the increasing demand from the automotive sector, the battery maker said here Wednesday.

“The company is expanding its production capacity which includes setting up a new plant at Ahmednagar, Maharashtra, on a fast track mode. Consequent to this, the capital expenditure in the current financial year is expected to be at least Rs.350 crore,” said company chief executive T.V. Ramanathan.

In the January-March quarter of 2009-10 financial year, the company earned a net profit of Rs.200 crore — a growth of 88 percent over the corresponding period of the previous financial year.

“The increase in profitability was partly due to availability of lead and alloys which constitute major raw material for the products from the two captive lead smelters acquired two years ago,” he said.

Also, favourable foreign exchange rates, strict austerity measures and control on costs on all fronts contributed to the sharp rise in the profitabiliy, he added.

The company has achieved a 10 percent volume growth in automotive batteries.

“In the industrial business, inspite of the depressed export markets and significant degrowth in telecom segment, we were able to record a 10 percent volume growth,” Ramanathan said.

The company has entered into technical collaboration agreements for certain new products for the automotive sector.