It further announced that at its Board of Directors' meeting, the management had been authorized to select a local smelter where an initial investment of up to Rs 25 crores by way of equity participation could be made.

T V Ramanathan, managing director and CEO of Exide stated that, "Such an acquisition – as and when it materialises - would be a significant step towards enhancing the amount of recycled Lead and Lead Alloys used by the company, and hence would help to reduce our dependence on imports of high cost Lead. In a scenario where the price of Lead has been highly volatile, having an equity stake in a local smelter would be a significant step towards increasing the reliance on domestic sourcing of recycled Lead."

Commenting on the future prospects of such a move, P K Kataky, director, Automotive, Exide said, "This would open up an opportunity for the company to enhance the volume of scrap battery collection from the dealers – a Battery Handling And Management Rules (regulatory) requirement."

Exide has been at the forefront of the movement to collect scrap batteries as required by the regulatory framework. The foray into smelting will help further its commitment to protect the environment, through use of recycled materials, which is part of its corporate social responsibility initiatives.