Daewoo Battery’s impressive ascension as a quality brand in Pakistan’s automotive and backup battery industries continues. It has carved out a name for itself as one of the most dependable and trusted battery brands on the market. The strong volume rise in 2020-21 reflects this, with market share gains, pleased returning consumers, and innovation all contributing.
Total battery sales for the fiscal year 2020-21 increased by 39% over the previous year. Since the commencement of sales operations in 2018, volume has grown at a CAGR of 24%, while net sales income has grown at a CAGR of 64%, indicating a steady upward trend.
According to PAMA, the auto sector bounced back in fiscal year 2020-21 following the initial COVID-19 impact, recording a 60 percent YOY growth in car/SUV sales. This year has seen a slew of new OEMs enter the Pakistani vehicle industry, indicating a strong belief in the sector’s future growth.
Daewoo Battery is now selling maintenance-free car batteries to two major OEMs, and talks with a number of additional potential new market entrants are underway. Along with OEM-driven incremental growth, our Sealed Maintenance Free (SMF) battery has had a lot of success in the used car market, which is where the majority of the volume increase is coming from.
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. Alongside the automotive battery, its deep-cycle backup (EB) battery also raised the bar on volume growth.
Our EB products grew by an overall 57% against the previous year. Despite higher electricity generation capacity, load-shedding continues to affect both urban and rural areas. With costs of solar paraphernalia coming down and electricity costs soaring up, the consumer feels incentivized to switch to a hybrid energy system at homes, shops, and industry. This represents an evolving growth potential for Deep cycle batteries. With Solar demand rising, and apparently, load-shedding to continue in the foreseeable future, EB battery is expected to experience continued growth in coming years. While the company enjoys a strong volume growth in its existing portfolio, it is well aware of the importance of continued innovation to tap into potential opportunities.
The company is fully committed to continuing to build upon its strengths of operating a state of the art plant & technology, responsible governance, sustainable resource development and producing high-end products at competitive prices to continue wining in the marketplace. As a part of our growth and innovation strategy, we are also focusing on the latest development in the battery segment and are discussing with the international player of lithium-ion battery manufacturing. (Company annual report for FY2021)