Exide spots lead smelting co for buyout
The company is in the final stages of acquiring a local smelting unit for its foray into this space. It has lined up an investment of Rs 25 crore for this.
By TNN |
KOLKATA: leading storage battery maker Exide Industries has planned to enter the lead smelting and recycling business. The company is in the final stages of acquiring a local smelting unit for its foray into this space. It has lined up an investment of Rs 25 crore for this.
“We’ve zeroed in on a company in the smelting business. We are going to acquire 100% for a Rs 25 crore consideration,” a senior Exide official told ET. He, however, refused to divulge details.
The proposed acquisition would help Exide — which controls over 80% of the automotive battery market — to increase the use of recycled lead and lead alloys for making storage batteries. This would, in turn, reduce the company’s dependence on imports of high-cost lead, the principal raw material for storage batteries.
Managing director & CEO TV Ramanathan called the development a significant step. “Such an acquisition — as and when it materialises — would be a significant step towards enhancing the amount of recycled lead and lead alloys used by the company.
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,” the MD was quoted saying in a company statement.
The Exide board, which met on Thursday, approved an initial investment up to Rs 25 crore for acquiring a local smelter.
“We’ve zeroed in on a company in the smelting business. We are going to acquire 100% for a Rs 25 crore consideration,” a senior Exide official told ET. He, however, refused to divulge details.
The proposed acquisition would help Exide — which controls over 80% of the automotive battery market — to increase the use of recycled lead and lead alloys for making storage batteries. This would, in turn, reduce the company’s dependence on imports of high-cost lead, the principal raw material for storage batteries.
Managing director & CEO TV Ramanathan called the development a significant step. “Such an acquisition — as and when it materialises — would be a significant step towards enhancing the amount of recycled lead and lead alloys used by the company.
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,” the MD was quoted saying in a company statement.
The Exide board, which met on Thursday, approved an initial investment up to Rs 25 crore for acquiring a local smelter.
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