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Saturday, July 11, 1998

PT International plans to source dry batteries from BPL group 

K Baburajan  
BANGALORE, July 10: PT International Chemical Industrial Co Ltd of Indonesia plans to source dry batteries from the Nambiars-owned BPL group. The Indonesian firm will enter into a buy-back arrangement with BPL PTI Chemical Industries Ltd, a 50:50 joint venture between BPL Ltd and PT International Chemical Industrial Co, for this purpose.

The Rs 3,000-crore BPL group has made its debut in the domestic dry battery segment by unveiling BPL Ultra cell and BPL Power cell here on June 24. The Rs 1,700-crore PT International is likely to source 10 per cent of the total production on original equipment manufacturer basis from BPL PTI, senior officials in the BPL group said.

The Bangalore-based BPL PTI has drawn up a multi-pronged marketing strategy, aiming for a substantial growth in the segment. As per the strategy, apart from supplying to PT International, BPL PTI will also be exporting to the Saarc region where the BPL group has opened exclusive showrooms. The group has outlets in Bangladesh, Doha, and Muscatand a showroom in Dubai will be opened next month.

Sources said though the company had begun commercial production a few months ago, BPL PTI was waiting for a propitious time to launch the products in the domestic market. BPL Ultra and Power cells, priced at Rs 6.50 and Rs 10 respectively, are being unveiled in a phased manner in other parts of the country. Initially it will be available in Bangalore and some parts of West Bengal. BPL PTI has a dry battery manufacturing facility at Maddur in Karnataka with a capacity of 240 million units per annum.

In dry cell batteries, large-sized batteries account for 70 per cent, medium-sized 4 per cent, and pencil sized 26 per cent of the total production. Eveready Industries dominates the domestic batteries market with a share of about 42 per cent followed by Indo National at 27 per cent, Lakhanpal National 23 per cent, and Geep Industrial Syndicate 8 per cent.

PT International Chemicals is involved in manufacturing and marketing of electronic devices, healthdrinks, toiletries, and crystals. The company, which is said to have about 70 per cent market share in the dry battery segment worldwide, has manufacturing facilities in Thailand, Indonesia, and Singapore.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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