Exide eyeing German companies,Rs 120 cr for capacity expansion

Kolkata, Jul 21 (UNI) Exide Industries is exploring possibilities for acquisitions in Germany and has earmarked a capex of Rs 100-120 crore for capacity expansion and setting up of a new plant in Haldia during the current fiscal.

" We have already received proposals from a few firms in Germany.

Now we are examining the viability, " Exide Chairman and Chief Executive Officer S B Ganguly said at the sidelines of the company's Annual General Meeting today.

" However, nothing has been finalised yet, " he added.

Mr Ganguly said the company would invest about Rs 40 crore to set up a new plant at Haldia near its existing factory.

" The new facility at Haldia is expected to start production in 2006-07 at an initial capacity of 25,000 cells annually to be expanded to 45,000 units later, " he said adding that the new unit would mainly cater to the export markets in the UK and Australia.

" The rest of the fund will be invested in expanding capacities of the company's factories in Pune, Shamnagar, Hosur and Taloja during the current fiscal, " Mr Ganguly said.

Exide, targeting about 30-35 per cent growth in topline in 2006-07, would increase exports to 40,000 units annually from the present level of 20,000 units, Ganguly said.

Exports account nearly 10 per cent of Exide's total business, he added.

The Chairman said Exide has planned to increase focus on two of its overseas subsidiaries - Singapore-based CBSEA and Sri Lanka-based ABML - during the current financial year. " The company is now examining and closely aligning the production plans of ABML with the overall strategy, " he said.

Exide also has plans to catch the export market in Japan through the Singapore-based subsidiary, he informed.

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