Exide Industries Ltd, the storage battery maker, has planned to tap the Russian market for its submarine batteries and has earmrked Rs 60 crore (Rs 600 million) for capacity expansion.
"We are eyeing the Russian market for submarine batteries. We are going to that country next week and will sign an agreement with Russian Navy for the purpose," Exide chairman S B Ganguly told reporters after the annual general meeting in Kolkata.
"Russian market for submarine batteries is quite large. We are going to sign the MoU so that we get some orders from them for battery installation in submarines," he said.
The Russians had visited Exide's facilities and were satisfied with the quality of batteries, he said.
"We will be given a certificate from Russian authorities once the MoU is signed. After that we can take up the job of battery fitment in submarines brought either at Vizag or Mumbai ports," Ganguly said.
Exide, the only Indian manufacturer of submarine batteries, had a cheaper price as compared to German or Russia firms, he said.
Meanwhile, the company has earmarked a capital expenditure of Rs 60 crore for capacity expansion in its automotive and industrial battery segments.
While Rs 40 crore (Rs 400 million) would be invested in automotive segment to enhance capacity from current 4.8 million to 5.5 million units per annum, Rs 20 crore (Rs 200 million) would be put in for capacity expansion for traction batteries at Haldia, Hosur and Taloja plants.
