The Hindu Business Line : Exide Ind pares exposure in original equipment segment

Mr S.B. Ganguly, Executive Chairman and CEO of Exide Industries Ltd, with the new brand ambassador of the company, cricketer Mahendra Singh Dhoni, in Kolkata on Saturday. The arrangement is for a period of two years. — A. Roy Chowdhury

Kolkata , Nov. 26

TO enhance profitability, Exide Industries has brought down its exposure in the original equipment (OE) segment and has increased its share in the replacement battery market this fiscal.

OE sales have generated low margins between two and three per cent against 20 to 25 per cent in replacement sales. The company is also gearing up for a renewed branding exercise.

Talking to newspersons here on Saturday, Mr S.B. Ganguly, Chairman, said Exide's market share in the OE segment, which was around 81 per cent, had now dropped to 78 per cent. This was irrespective of a quantum rise in sales in the OE market. The company has stopped bidding for fresh volumes in the segment except in selective cases.

In the replacement segment, Exide's sales grew 16 per cent as against a market growth of 9-12 per cent. "Overall, we have increased our share substantially in the replacement battery market this fiscal."

On the lead prices, which have softened in the first half and have recently been showing an uptrend, Mr Ganguly said prices inOctober-November were much higher compared to those the first half. The prices are expected to remain firm for now.

Dhoni is brand ambassador

Exide Industries has roped in India's batsman-wicketkeeper Mahendra Singh Dhoni as its brand ambassador.

Announcing this on Saturday, Mr Ganguly described Dhoni as a symbol of youth power and vitality. This is the third sponsorship for the new cricketing sensation.

"Cricketers may come and go, but Dhoni resembles power when he executes his shots; it perfectly suits the needs of Exide, which is in the `power' business," he pointed out.

Mr Dhoni, who was also present on the occasion, described Exide as a brand, which is synonymous with batteries in India. Commenting on the corporate visibility issue, the Exide Chairman said that a recent survey had found that the Exide name enjoys a very high brand recall.

"This does not call for an immediate media splash of our advertisements. However, in tune with our ongoing business consolidation and entry into newer pastures, and as insurance, we are working on a fresh brand re-positioning exercise," he said.

He added that the company's ad spend now was around Rs 15-16 crore for both corporate campaigns and sponsorships.

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