The initial investment for the purpose will be on roping in battery research experts and the proposed centre would come up adjacent to one of the manufacturing facilities of the group. The purpose of setting up the R&D unit will be to bring world class technologies without alliances.

BPL Ltd vice president (soft energy business unit) Ajay Baijal told The Financial Express that primarily the R&D team would focus on bringing advanced versions of alkaline batteries and dry cell batteries suitable for both the domestic and global market.

Currently the group commands a market share of 15 to 16 per cent in the alkaline battery segment in the country, while its dry cells enjoy a 4-5 per cent share within the first complete year of the launch. For dry batteries the group has a 50:50 joint venture with PT InternationalChemcical Industrial Co of Indonesia.

During fiscal 1998-99, BPL Ltd increased the manufacturing capacity of its alkaline batteries by 30 per cent to 15 million units a month. Currently the company exports around 95 per cent of its production from its Dobaspet unit, while the remaining is being consumed by the domestic market.

The expansion of alkaline battery production lines was in line with the set target of Rs 60 crore (90 million unit sale) during the current fiscal against a revenue of Rs 40 crore achieved during 1998-1999 from its alkaline battery business.

The branded product launch of alkaline batteries in the Saarc region is also on the cards. For the purpose, BPL is planning to set up distribution channels in Sri Lanka, Nepal and Bangladesh shortly after completing a brand building effort in these countries.

Apart from a business of 5 million units under a buy-back arrangement with Sanyo of Japan, BPL is also tying up with American firms for supplying batteries under OEM contract. Thepresent OEM partners include Motorola, Eastman Kodak and Casio.

The company was contemplating entry into the lithium iron and polymer batteries segment. ``Globally there is a shift taking place towards the re-chargeable battery segment. With newer technologies available, we will enter the sector shortly,'' Baijal said.

Meanwhile, BPL still awaiting the Supreme Court verdict on the proposed Rs 500 crore battery/CTV producing complex at Dobaspet. Earlier, the Karnataka High Court had directed the Karnataka Industrial Area Development Board (KIADB) to recover the land from BPL leaving out 30 acres of land in accordance with the law, allowing a public interest petition challenging the allotment of 175 acres of land in Dobaspet in favour of the group.

The group had acquired around 149 acres of land from KIADB for Rs 6.45 crore for setting up facilities for lithium, nickel metal hydrate, alkaline batteries, colour picture tube and colour television. In fact the area allotted to BPL by KIADB was about 175acres even though the group had applied for 500 acres.