The Hindu : Business : TAFE Power sets up third unit

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Thursday, Jul 05, 2007
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Business

TAFE Power sets up third unit

Special Correspondent

Jayshree Venkatraman

CHENNAI: The Rs. 160-crore turnover TAFE Power Source (TPS), a subsidiary of Tractors and Farm Equipment Ltd., is gearing up to commence commercial production of its third plant at Maraimalainagar to manufacture valve regulated lead acid (VRLA) batteries for industrial applications.

The plant is expected to go on stream on July 6. It will provide jobs to 200 people.

The first plant is catering to the two-wheeler segment and the second one is serving the four-wheeler market. Both are at Maraimalainagar.

A part of the Rs. 4,200-crore Amalgamation Group, TPS has entered into a technology transfer agreement with BB Battery Co. Ltd. of China for VRLA batteries. VRLA batteries made in India will service the needs of not only the domestic market but also export clients in the SAARC region.

These batteries will be marketed under the brand name ‘AMCO Best’.

Additional investment

TPS has thus far invested close to Rs. 70 crore in the Maraimalainagar facility, which will have a capacity to churn out three million VRLA batteries annually.

Addressing a press conference here on Wednesday, Jayshree Venkatraman, Director of TAFE, said TPS had drawn up a proposal to invest an additional Rs. 100 crore into the facility to drive the capacity up to five million VRLA batteries annually by 2010-11. This incremental investment would happen in a phased manner, she added. Ms. Jayshree said TPS was also talking with the Chinese technology partner for a buy-back arrangement. This could see the Chinese company lifting 25-30 per cent production from the Maraimalainagar facility, she added.

Ms. Jayshree said TPS was also open for an equity arrangement with the Chinese company for VRLA battery business. To a question, she said TPS was not averse to hiving off VRLA battery business into an independent entity to facilitate equity participation by the Chinese firm.

The ground for the plant was broken in June last year. In the interim, however, TPS was doing trading of VRLA batteries in the domestic market by importing in CKD and SKD formats from China.

On future plans, she said TPS was working on developing a suitable battery for electric vehicles. It would also get into nickel metal hydride battery, she added. TPS would also pioneer the use of mines cap lamps fitted with VRLA batteries.

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