Tata AutoComp GY Batteries Ltd (TGYBL) has decided to put in close to Rs120 crore in its existing Pune plant to create 5.5 million pieces a year capacity for primarily four and two-wheeler batteries.
TGYBL, an equal joint venture between Tata AutoComp Systems and GS Yuasa International of Japan, has already put in Rs50 crore for four-wheeler batteries in its 15-acre Pune plant. The capacity for four-wheeler batteries would be ramped up from a mere 5 lakh units a year to 2 million within he next three years at an additional investment of Rs50 crore while another Rs70 crore would be put into the plant for a two-wheeler battery line, chief executive officer Yogesh Dhawan said during the launch of Tata Green range of batteries in Kolkata.
Apart from batteries for two-wheelers, TGYBL plans to cater to commercial vehicles and tractors and even inverters.
Dhawan said in the first year of the launch, the company expects a revenue of Rs150 crore by the end of 2007-08, while in the next three years, it hopes to achieve a top line of Rs500 crore.
Without a national presence in terms of sales and service network, the company couldn't bag an OEM contract till date. However, a beginning has been made recently with an OEM contract with Piaggio for its three-wheelers.
"We expect to roll out our national plan within the next few months when we will start pitching for all major automobile makers including Tata Motors," Dhawan said.