Daewoo Battery continues its successful ascent as a hallmark of quality in Pakistan’s automotive and backup battery segments. It has established its niche as one of the most premium battery brands concerning 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 users and innovation.
Total Battery Sales for the financial year 2020-21 grew by 39% against last year. This constitutes a CAGR of 24% volume growth since the start of sales operations in 2018, while net sales revenue grew by 64%, representing a solid upward trajectory.
The fiscal year 2020-21 saw a bounce-back of the auto sector after the initial COVID-19 impact, delivering a ~60% YOY increase in Car/SUV sales as reported by PAMA. Many new OEMs have entered the Pakistani car market this year, reflecting solid confidence in the growth of the automotive sector.
Daewoo Battery is already successfully supplying Maintenance-free automotive batteries to two significant OEMs, while the discussion is already in progress with multiple other new market entrants. Alongside OEM-driven incremental growth, our Sealed Maintenance Free (SMF) battery enjoys great success in the used car segment, the latter being the primary 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. 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)