Tafe to invest Rs.1 bn to expand battery capacity
Tractor major and storage battery maker TAFE Ltd will invest Rs.1 billion (Rs.100 crore) for increasing the capacity of its valve regulated lead acid (VRLA) battery at its Maraimalainagar plant near here.
TAFE Power Source (TPS), the company’s manufacturing division, Wednesday signed a technical collaboration agreement with Chinese company B.B. Battery Co Ltd to product VRLA batteries targeting the growing automotive, telecom, inverter and other segments.
The battery division was earlier importing the VRLA batteries from a Chinese company and marketing under the joint brand name AMCO-Best.
According to director Jayshree Venkatraman, the collaboration will see TPS doubling its turnover with an investment of Rs.100 crore over the next two to three years.
Venkatraman said the tie-up will embrace technology transfer for production of entire range of VRLA batteries to be marketed within and outside India under AMCO-Best brand.
TPS has three battery plants near here with a monthly capacity to make 500,000 batteries catering to two/four wheelers original equipment manufacturers (OEM) and retail market as well as other segments.
Speaking to IANS, senior vice president V. Vaidyanathan said: “In the first phase, the company will invest around Rs.30 crore to manufacture around 100,000 units per month and production will be scaled up from second year onwards.”
The division hopes to earn Rs.65 crore in the first year from VRLA batteries.