New factory to end import of auto batteries in Ethiopia
By Fikremariam Tesfaye | Daily Monitor
Addis Abeba, Ethiopia — An auto battery products factory constructed with an outlay of 25 million Birr officially inaugurated the beginning of production here in the presence of higher government officials and other dignitaries.
Manufacturing the batteries here means that there will be no need to import the items from abroad, Awash Auto-Battery plc, Indian-owned company said during the inauguration at the Hilton.
The factory in Dukem town 25 kms east of Addis Ababa was built in 2008 to produce the batteries using raw materials entirely from local sources.
The plant also uses modern technology and computerized management techniques for manufacturing the batteries said to meet international standards.
Small automobiles-Cars to heavy duty vehicles including trucks, buses, tractors and bull dozers will be using the batteries.
"Demand for Auto Batteries is very high as compared to the supply that Awash Auto Batteries PLC 100% dependence on imported batteries," Sachin Purohit, Chief Marketing Manager said on the occasion.
The products will have warranty of periods ranging from 6 months to 12 months.
The company has the capacity of manufacturing 20,000 batteries per month in sizes from 35 Amp – 200 Amp and has created job opportunities for 200 peoples also located on the inconsistency of the product in the market rocketing its prices.
Currently due to scarcity of hard currency, imports for battery and other food or non-food items have gone up drastically creating a huge demand and supply gap.
The demand for the car batteries in 2007 year approximately reached 154, 940.
"Because of dependence on import customer may or may not get quality product every time, and even if the product is available it is very costly hence increasing dissatisfied customers. Distributors or retailers have occurred huge opportunity losses because of scarcity of product as a result of hard currency problem," he added.
Kabe Import and Export Plc has been designated to be the sole distributor of the products in the country.
State Minister of Trade and Industry Tadesse Haile, higher government officials, representatives from Indian Embassy and invited guests attended the event.