New Delhi, Oct 4 (UNI) Exide Industries Ltd (EIL) is planning to enter the lead smelting and recycling business in the country and said it is in discussions with local smelters to enter into a strategic alliance, including equity participation.
EIL, is the largest Lead Acid Storage Batteries manufacturer in South Asia.
The management had been authorised to select a local smelter, where an initial investment of up to Rs 25 crores by way of equity participation could be made.
''Such an acquisition, as and when it materialises, would be a significant step toward enhancing the amount of recycled lead and lead alloys used by the company, and hence would help to reduce our dependence on imports of high cost lead,'' EIL Managing Director and CEO T V Ramanathan said.
In a scenario where the price of Lead has been highly volatile, having an equity stake in a local smelter would be a significant step towards increasing the reliance on domestic sourcing of recycled lead, he added.
''This would open up an opportunity for the company to enhance the volume of scrap battery collection from the dealers, which is a Battery Handling And Management Rules (regulatory) requirement,'' said EIL Director-Automotive P K Kataky.
With seven manufacturing plants strategically located across the country, EIL produces batteries for both automotive and industrial applications.
In the automotive batteries, the company controls a market share of over 80 per cent in the OE business and above 75 per cent in the branded replacement market.
In the Industrial batteries segment, the EIL enjoys more than 50 per cent market share.
EIL's clientele includes names like Toyota, Honda, General Motors and APC. The company also exports to Western Europe, Far East, West Asia, Australia and Africa.