Tata GY to pump in Rs 70 crore for two-wheeler batteries
Business Standard — March 20, 2007

Tata AutoComp GY Batteries (TGY), a 50:50 joint venture between Tata AutoComp Systems and GS Yusa International of Japan, plans to pump Rs 60-70 crore by the middle of the next year to add facilities for the manufacture of two-wheeler batteries at its Pune plant.

TGY has set up a greenfield plant at Ranjangaon near Pune to manufacture the 'Tata Green' range of batteries initially for passenger cars and utility vehicles, which together will make up about 50 per cent of the automotive battery market in India.

With an investment budget of about Rs 100 crore spread over three years, the plant will initially have a capacity of half a million units, which can be scaled up to 2 million units per annum for four-wheelers.

The plant went on stream in December 2006.

The company has launched its 'Tata Green' batteries for the four-wheeler aftermarket segment, which is estimated to be seven million units per annum.

While the company is engaged in discussion with automotive OEMs for tie-ups, it will commence supply of its products only after establishing a pan-India sales and service network, expected to be put in place over the next six months.

The company also plans to launch batteries for two-wheelers, commercial vehicles and farm vehicles this year. Yogesh Dhawan, chief executive officer, Tata AutoComp GY Batteries, said the company would launch its two-wheeler batteries in May, and initially import the batteries from Thailand.

The Pune plant would have an annual peak capacity of 2 million units for four-wheelers and 4 million units for two-wheelers over a period of time, he added.

The market for two-wheeler batteries is estimated to be 13 million per annum.

Motorcycles make up a bulk of this market, with a share of 84 per cent. In value terms, the market is estimated to be about Rs 3,000 crore, which includes both the two-wheeler and four-wheeler markets in the organised segment.

Dhawan said the Indian battery market had been dominated by the unorganised segment, which holds a market share of 60 per cent in the aftermarket.

However, the share of the unorganised segment is gradually coming down due to consumer awareness and stringent regulations, affording a huge opportunity for new players such as TGY, he added.

In its first full year of operation, TGY aims to sell half-a-million batteries and garner a turnover of Rs 150 crore.