Exide chairman and chief executive officer SB Ganguly said that the company is setting up its new automotive battery manufacturing plant in Haryana by 2001-02. The plant will be operational by fiscal 2002-03.

With this, Exide's production capacity will go up by another one million units annually from last year's level of 6.5 million units. The management has earmarked around Rs 70 crore for the proposed Haryana project, which will be the company's ninth manufacturing unit.

Exide's Hosur plant in Karnataka is undergoing its first round of expansion, with the production capacity for industrial batteries being enhanced. Since the company has a substantial area of land at its disposal next to its Hosur unit, it is planning an automotive battery manufacturing unit also.

According to Ganguly, this will involve an investment of Rs 60 crore.The battery major posted a 15 per cent growth in sales turnover which increased to Rs 939.69 crore in fiscal 1999-2000 against Rs 816.85 crore in the previous year.

Net profit increased by over 22 per cent to Rs 48.89 crore in the fiscal ended March 31, 2000, up from Rs 39.86 crore in the previous year, despite the replacement automotive battery market decreasing by an average 12 per cent.

Exide will meet the cost of expansion partly through internal accruals and borrowings. It has a total loan component of Rs 413.04 crore on March 31, 2000, and the interest payout on it is about Rs 49.69 crore.

With its operating profits increasing almost five-fold since 1991, over the years the company has been consistently ploughing back its cash profits. The management had recommended a 32 per cent (Rs 3.20 per share) dividend for the fiscal ended March 31, 2000. The company's scrip was quoting at Rs 108 on the Stock Exchange, Mumbai (BSE) with the 52-week high and low being Rs 307 and Rs 97 respectively. Addressing shareholders at the 53rd annual general meeting on friday, Ganguly said, "The company has identifed exports as a focus area for the current year. The promising debut of industrial batteries in the competitive markets of Singapore under our sister company CBSEA, will present further opportunities in the future."

After the AGM, Ganguly noted that the company is still open to the idea of setting up an automotive battery manufacturing unit in Bangladesh, which is estimated to cost around Rs 12 crore. It is looking for a joint venture partner for the project. He pointed out that under the new duty structure in SAARC countries, it is cheaper to manufacture batteries in Bangladesh. The proposed unit will have a manufacturing capacity of between 60,000 and 100,000 batteries annually.

SR Batliboi Consultants undertook a revaluation exercise of its assets during fiscal year 1999-2000. Following the exercise, the asset valuation increased by Rs 56 crore to Rs 524 crore. The company has just completed a voluntary retirement scheme (VRS) for its employees at its oldest plant in Shyamnagar, West Bengal. Company officials said that 200-odd employees accepted the VRS following which the plant's staff strength has come down to 952.

Exide plans rural thrust
Calcutta, Aug 11: Exide Industries Ltd has identified rural markets as its new thrust area, Exide chairman and chief executive officer SB Ganguly told shareholders at their 53rd annual general meeting on Friday.

Ganguly noted that there is a huge market for automotive batteries in rural areas - especially for tractors. The chairman noted that the company's presence is negligible in this sector, which is dominated by players from the unorganised sector. According to Ganguly, 70 per cent of the market is dominated by the unorganised sector. In his speech he said, "I will dwell on tractors and the company's efforts in opening up this vast rural market through `Operation Kissan'".

Ganguly said that he had been to villages in Haryana in person and had picked up first hand information from farmers on problems with rebuilt batteries. He noted, "This has convinced me that this must be a thrust area for your company and presents immense potential for growth". "There is a huge replacement market, and the tractor batteries will be marketed under the 'Tractor' brand", Ganguly said. Exide has appointed nodal agencies for 10 villages, through which the tractor market will be channelised. Nodal agencies have been set up in Haryana, Punjab and in south India.