The $17.6-billion Tata group today announced its entry in the automotive battery business, with the setting up of a 50:50 joint venture between its parts making group company, Tata AutoComp Systems Ltd (Taco), and Japan's GS Yuasa International Ltd (Gyin), a subsidiary of the $2.2- billion GS Yuasa Corporation. The joint venture company, Tata AutoComp GY Batteries Pvt Ltd, with an investment of Rs 90 crore, will set up an automotive battery greenfield plant in Pune by November with an annual pea capacity of 2 million units.
A Tata AutoComp spokesperson said an estimated Rs 45 crore would be the equity component, shared equally between the joint venture partners. And the balance would be debt capital, which had already been arranged, he said. The output from this plant will address the growing demand in the four-wheeler market catering to both the automobile manufacturers and the replacement market. "Apart from our own group company Tata Motors, we will address other automobile manufacturers in the country," the spokesperson said.
Though details of the market potential were not available, the Tata AutoComp spokesperson said the joint venture aimed at gaining market leadership in the near term. However, the exact time-frame for this goal was not made available. To address the replacement market, the joint venture will set up a national sales and service network.