Associated Battery Manufacturers (Ceylon) Ltd. (ABM) has increased battery exports to overseas markets bringing in foreign exchange to the tune of $ 324,166 till October this year.
The demand for ABM Exide batteries overseas has been good and the company targets $ 1 m revenue in 2016/17 on battery exports to foreign markets, said ABM CEO/Director M. Ramachandran. The company mustered export revenue of $ 144,081 in the finance year 2015/16.
This year plans have been also made to produce electric three-wheeler, solar application and industrial batteries, he said.
The CEO said by 2020 they target Rs. 5 billion turnover with a 65% local market share and that was part of the expansion plan which had asked for more exports and new products added to the company’s portfolio. The company has also projected a PBT of Rs. 500 million in the same period.
The new office complex building with an investment of Rs. 30 million is now commissioned and the two wheeler battery manufacturing plant with an investment of Rs. 50 million is scheduled to commence manufacturing in January 2017, the CEO said.
Exide has captured close to 60% of the local market in Sri Lanka. An aggressive export campaign has been also launched by ABM after setting up its international marketing division and a good response has been received from different counties, Ramachandran said.
Ramachandran said they were now to enter the Myanmar market and had already started with Singapore and through the company CBSEA enter Malaysia, Indonesia and Cambodia. Myanmar is a huge potential market and they were confident of penetrating that market. Dubai is another potential market and ABM has already sent the first consignment there, the CEO said.
Officials from the Maldives, Singapore, Myanmar, Dubai and Seychelles had earlier visited the ABM factory premises in Ratmalana and were very impressed with the product, the changes and the quality systems of the plant, he said. Orders started to flow in subsequent to these visits, he opined.
Furthermore, a Rs. 76 million assembly line has been ordered from the UK as a part of expansion drive in addition to the investment in the office complex this year, he said. The marine battery project which commenced this year too was gaining momentum with consignments already dispatched to Maldives and Singapore.
The International Marketing Division was formed in April and up to October had exported batteries to the value of $ 324,166 and the projected target for 2016/17 is $ 1 million, said Dharshana Thudewattage, Head –International Marketing and TQM. He said they plan to market the battery under EXLAN and ABMEX brands particularly to Myanmar which is a huge potential market and was in the process of negotiating to appoint exclusive dealers for Myanmar within six months.