Eveready to integrate Chennai battery lines  ( December '30,2004, BS)

Eveready Industries India has decided to integrate its battery manufacturing facilities in Chennai to improve productivity and save on production costs.

At present, the company has two battery manufacturing facilities, Tiruvottiyur in north Chennai, set up in 1952 with a capacity of 210 million batteries per annum and another at Guindy, established in 1971 with a production capacity of 240 million batteries.

A company spokesperson said the company has decided to shift the entire facilities at Guindy to Tiruvottiyur and integrate the same with the facilities existing there.

The integrated plant will have a capacity of up to 450 million batteries per annum and this consolidation exercise is envisaged to result in a higher economy of scale and improved level of productivity with consequent reduction of production cost.

The project would be implemented in stages and would be completed by January 2005.

As a result of this shifting, 8.39 acres of land at Guindy would be released and the company has entered into an agreement with Khivraj Tech Park of Chennai for development of the site as a building complex particularly suitable for the information technology sector, having a built-up area in excess of 10,00,000 sq. ft., at the cost and expenses of the developer.

In consideration, the developer would make an upfront payment of Rs 25 crore and would deliver 20 per cent of the built-up area together with proportionate car parking spaces, for Eveready to dispose of the same.

However, Eveready spokesperson clarified that the company would not be involved in the development of property.