The plant, set up at a cost of Rs 50 crore, would have a capacity of one million batteries per annum which could be increased to 1.5 million units in future, a company release said.

The plant being set up in cooperation with the technical collaborator Shin Kobe (Japan), would supply high-quality products to automobile giants like Hyundai Motors, Mitsubishi Lancer, Ashok Leyland and Toyota, it said.

It would also supply replacement batteries for all new cars which came on the roads in the last few years. Speaking on the occasion, company chairman and chief executive SB Ganguly said the Hosur Automotive plant would supplement product ranges of the recently acquired firms in Singapore and Sri Lanka. He said given the sluggish domestic market, the company should focus on export markets.