The Panasonic Corporation of Japan and the UNO Minda Group have entered into a joint venture to develop, manufacture and sell lead acid storage batteries in India.
01 Oct 2014 | 8309 Views | By Shobha Mathur
The Panasonic Corporation of Japan and the UNO Minda Group have entered into a joint venture to develop, manufacture and sell lead acid storage batteries in India. They will float a new joint venture company to address the growing market for lead acid storage batteries for two- and four-wheeler vehicles, ...
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The Panasonic Corporation of Japan and the UNO Minda Group have entered into a joint venture to develop, manufacture and sell lead acid storage batteries in India. They will float a new joint venture company to address the growing market for lead acid storage batteries for two- and four-wheeler vehicles, some for mainly for the aftermarket and UPS in India leveraging the knowhow and technology from Panasonic while tapping the mutual customer base.
By floating the JV company, Panasonic Minda Storage Batteries India in India, Panasonic plans to expand its overseas operations. In addition, UNO Minda will cater to the growing need for batteries of its customers as India has a rapidly growing market for lead acid storage batteries. At present, UNO Minda makes batteries at its Pantnagar plant for two-wheeler applications in the aftermarket but this is on a small scale. With this JV, it will be able to service the requirements of a larger customer base. The new JV company will also be based at Pantnagar, Uttarakhand within the existing premises of UNO Minda that currently manufactures batteries.
UNO Minda and Panasonic expect to achieve additional synergies in areas of product development and technology while making substantive inroads into new customer segments thereby expanding the customer footprint.
Yoshio Ito, senior managing director of Panasonic, said, “Panasonic started the production of lead acid storage batteries in 1937. Since then, we have consistently responded to requirements of various customers and achieved steady progress. We believe our technology over the years will contribute to development of the industry of lead acid storage batteries in India through the joint venture company with UNO Minda.”
The JV company will have a production capacity of 2 million units per annum by 2018 with Panasonic holding the majority stake of 60 percent and UNO Minda the balance 40 percent share. The new company will be started with a share capital of Rs 160 crore to be shared between the two partners according to the stake held by them.
The new company will start production in September next fiscal with full capacity of 2 million units to be achieved by 2018. The first million units will be achieved in 2016. The existing manufacturing facility at Pantnagar for batteries sells 600,000 units annually.
Panasonic Minda Storage Batteries India will recruit 500 employees and will have a board representation of 3 directors from Panasonic and 2 from UNO Minda.
Nirmal K Minda, CMD, UNO Minda added, “The battery market in India is experiencing rising demand from various sectors, thereby providing immense opportunities to manufacturers to grow and operate in the market lucratively. Having a strong footprint in India and with the technical support of Panasonic, a leading name in the industry since 1937, we believe UNO Minda will be able to serve customers in multifarious ways.”
Panasonic and UNO Minda are planning to establish the joint venture company in November 2014 after obtaining regulatory approvals. At present, Panasonic has production units in Japan (Kosai City, Shizuoka Prefecture), Thailand (Samut Prakarn Province) and the People’s Republic of China (Shenyang City).