STC starts exporting batteries to India, sees low domestic demand

Post Thumbnail

HETAUDA: STC Energy Industries Pvt Ltd, a battery manufacturing company under the STC Group, has officially begun exporting its products, marking a significant milestone in Nepal’s industrial sector.

The company has established a state-of-the-art production facility at the Hetauda Industrial Area in Makwanpur with an investment of Rs 500 million. The plant is spread over one hectare and is equipped with modern machinery imported from countries like India, China and Japan. Despite its growing footprint in foreign markets, STC, however, is not getting any response from domestic companies in Nepal.

Talking to MeroAuto, officials of STC said they manufacture batteries for a wide range of applications, including two-wheelers, four-wheelers, heavy vehicles, electric rickshaws and inverters. The company sources battery containers from abroad as it is cost-effective to import than produce it locally.

STC employs VRLA (Valve Regulated Lead Acid) technology sourced from China which enables its batteries to compete with international lead-acid battery brands. The company is currently two brands of batteries: Ride and Energy. Both the products are available throughout the country, thanks to STC’s extensive distribution network.

The company, which is currently producing  between 400,000 and 500,000 units across all segments, aims to scale up production to 1.8 million batteries annually—around 150,000 units per month. At present, STC is producing 25,000 two-wheeler batteries and 20,000 automotive batteries monthly.

Focus on Quality
Sundar Murthy, Head of Quality Control and Production at STC, said the company strictly adheres to quality standards. As someone who has worked for leading Indian brands like Exide and Amaron, Murthy said STC offers warranties and performance on par with imported products. “The market response for our products has been encouraging so far,” he added.

Murthy added that STC’s batteries are engineered to perform in extreme temperatures ranging from -18°C to 65°C. Automated testing systems have been implemented to minimize defects and ensure consistency, he added.

Suresh Kumar Upreti, Managing Director of STC Energy Industries Ltd, said the company has been offering high-quality batteries at competitive prices. “Our products come with varying warranty periods—36 months for two- and four-wheelers, 60 months for inverters, and 12 months for rickshaws. We offer full replacement in case of defects during the warranty period,” he added.

Upreti added that the company faced several challenges during its initial phase, particularly due to a lack of skilled labor and limited technological capabilities. “Our first few batches had technical issues, and we had to replace them at a loss,” he said. “However, with the support of skilled Indian professionals and updated technology, our product quality has improved significantly.”

Currently, only about 2.5% of units report technical issues—well below the industry average, according to Upreti. The company is now focused on building a skilled local workforce. Indian technicians are training Nepali staff, who are expected to fully take over operations within a year, he added.

Upreti pointed out that bureaucratic hurdles in importing acid—a key raw material for battery production—has remain a significant obstacle for them. “We need approvals from multiple government agencies, including the Ministry of Home Affairs and the Department of Industry. The lack of coordination among them makes the process complex and time-consuming,” he added.

Lack of Local Support

STC started exporting to India after fulfilling regulatory requirements, including registration with Central Pollution Control Board. The company has also received the necessary Automotive Research Association of India (ARAI) certification to sell its products in the southern neighbor.
Although exports are growing gradually, Upreti expressed disappointment that Nepali vehicle assemblers have not shown interest in sourcing batteries produced locally. “It is ironic,” said Upreti. “While Indian manufacturers are importing and using our batteries, local industries, who enjoy government incentives, are unwilling to support homegrown products. They are missing an opportunity to contribute to genuine value addition.”
STC starts exporting batteries to India, sees low domestic demand

Skoda's small electric SUV Elroq making big impact

Previous article
STC starts exporting batteries to India, sees low domestic demand

Interview: We will launch Nammi 06 before Dashain

Next article