Lahore November 2 2021: Spin off Battery segment from Treet Corporation subsidiary First Treet Manufacturing Modaraba (FTMM) to separate Treet Battery Limited is in progress, as per information shared by the company.
Execution of demerger plan is underway. Currently, financial institutions have conveyed their No objection and we are in process of obtaining regulatory and legal approvals from the Regulators.
A L S O || R E A D
MCB Is Eyeing To Acquire 55 Percent State In Telenor Run Fintech “Easypaisa”: PSX
Battery segment reported sales of PKR 3.5 billion during financial year 2021 with hefty growth of 62.95 percent.
“Daewoo Battery continues its successful ascent as a hallmark of quality in both automotive and back-up battery segments in Pakistan. It has established its niche as one of the most premium battery brands with respect to reliability and end-user confidence. Reflective of the same, the steep volume growth in 2020-21 comes at the back of market share gain, satisfied returning user and new innovation. Total Battery Sale for the financial year 2020-21, grew by 39% against last year.” Says Syed Sheharyar Ali Group Executive Director.
He added “Alongside OEM-driven incremental growth, our Sealed Maintenance Free (SMF) battery enjoys great success in the used car segment, latter being the major volume growth driver. Users are gradually switching from conventional design to hassle-free ready to use SMF batteries, a technology pioneered by Treet Group in Pakistan. SMF Daewoo Battery grew by 30% in 2020-21 against the previous year.”
He added that “Alongside automotive battery, our Deep cycle back-up (EB) battery also raised the bar on volume growth. Our EB products grew by an overall 57% against the previous year.”
A L S O || R E A D
Cement Sector To Watch As European Coal Price Drops Below USD100 as China Boosts Output
With costs of solar paraphernalia coming down and electricity costs soaring up, consumer feels incentivized to switch to a hybrid energy system at homes, shops and also industry. This represents an evolving growth potential for Deep cycle battery. With Solar demand rising up, and apparently, load-shedding to continue in the foreseeable future, EB battery is expected to experience continued growth in coming years.
Apropos, a new battery series by the name of DHV (Daewoo Heavy Vehicle) battery has been introduced in March ’21. This is a dual-use battery in the traditional segment to compete in the existing conventional market portfolio. DHV can be used as either back-up storage or in heavy vehicle as SLI battery. A total of 5 different capacity models have been introduced as an initial offering.
As per the debt retirement plan of the group, the conversion of the remaining debt to FTMM will be converted into equity. The Company is also in the process of converting its short term borrowing into long term of approximately PKR 3 billion. Once it is done, this will improve the current ratio of the company.
Related Posts