Base Batteries to spend Rs 120 cr on brand building in 3 yrs

NEW DELHI: Battery maker Base Batteries today said it will spend Rs 120 crore in next three years on brand building exercise.

As part of its strategy to expand presence across India and increase its business, the company will be undertaking a campaign named 'Bijlipur' that will be a combination of print, TV commercials and other activities.

"In the next three years, we plan to spend Rs 40 crore each annually for building the brand," Base Batteries COO Aditya Arora told reporters here.

The basic idea is to increase the visibility of Base Batteries through the campaign that is targeted at the rural and semi-urban masses.

Arora said the company has a share of 2.1 per cent in the Rs 28,000 crore battery market in India.

The target is to increase it to around 8 per cent in the next two-and-a-half years, he added,

Base Batteries produces 50,000 batteries per month from its Solan plant. It is looking to touch 4 lakh mark by 2013 and is in the process of investing nearly Rs 430 crore to set up a manufacturing plant at Hosur in Tamil Nadu.

"The first phase of the Hosur plant will produce 1.75 lakh batteries per month. It will become operational in next 18 months," Arora said.

The second phase will add another 1.5 lakh batteries per month for the company. It will get operational in two and half years from now, he added.

"After fully commissioning the Hosur plant, we expect our market share to grow to 8 per cent," Arora said.

Besides, the company is also undertaking capacity expansion at its Solan plant and add another 25,000 units, taking the total to 75,000 units per month.

"Capacity expansion at the Solan plant is going at an investment of Rs 110 crore," Arora said.

The company expects to touch a revenue of Rs 600 crore for the fiscal 2010-11. Nearly 70 per cent of it sales are from batteries and the rest 30 per cent from inverters.