Exide plans to buy lead smelter company

Kolkata: Close on the heels of acquiring 100 per cent interest in Pune-based Tandon Metals at Rs 25 crore, Exide Industries Ltd plans to acquire another lead smelter capacity at an investment of up to Rs 35 crore.

According to an announcement in Bombay Stock Exchange, the board of directors of India’s leading lead-acid battery manufacturer approved the investment in the proposed acquisition. “The company is in discussions to this end with local smelters, to establish yet another strategic alliance,” the notice said.

Acquisition of smelter capacity would help Exide to recycle the used batteries in conformity with the Batteries (Management and Handling) Rules. As per the rule, lead-acid battery manufacturers are supposed to collect the used batteries to ensure recycling of lead and prevent environmental pollution.

Exide’s present drive to acquire smelting capacities is also aimed at having greater control over availability and prices on the main raw material of its products. Lead prices are following extremely volatile trends for last few years.

When contacted, company sources said that Exide’s existing smelter capacity (Tandon Metals) has started producing 2,000 tonnes of lead a month, which will be increased to 3,000 tonne during next couple of months. This is against the company’s monthly lead consumption of 11,000-12,000 tonnes.

According to sources, Exide is looking to have a total of 6,000-7,000 tonnes of smelting capacity, which will meet almost half of the lead requirement of the company.