Sep 13, 2011

Exide Industries plans prices cut to boost sales


There is a buzz in the market that Exide Industries is planning to cut prices by 10% for car batteries and, by 15% for inverters in an effort to boost its sales. The talk, however, led to concern over prospects of the company, which was also reflected in a weak movement in the stock.

On Thursday, Exide underperformed the market to end 2.4% down at Rs 142.7 on the BSE. When contacted, the company spokesperson declined to comment on the possibility of price reduction.

Analysts, however, feel the price cut was necessary as it will help the company combat loss of market share to Amara Raja Batteries.

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