Tuesday, August 09, 2005

Exide holds back Malaysian joint venture plan

Exide Industries Limited the leading brand in automobile battery segment has put on hold its proposed smelter plant for recycling lead from battery scrap through a joint venture with the Malaysian Relcamation Industry. The decision was taken in view of the downward fluctuations of lead price in the international market and reduction of duty on the metal, posing viability risk for the project. The lead acid battery major, which had planned to set up the smelter plant in central India through a JV with MRI, had almost finalised investments and capacity for the plant after the lead prices witnessed a steady increase. Besides MRI, the company also had obtained a proposal from a Russian firm in this regard. The brand would also have to chalk out a flaw-less logistics plan for collecting scraps from various locations.