In a rapidly changing business environment, competing with the multinationals is crucial. As is the ability to adapt. BEST’s technical editor, Dr Mike McDonagh, interviews Ravi Govindan, owner of Microtex Energy to find out how a privately owned SME has been able to compete in a global battery marketplace.
The lead-acid battery industry has seen considerable evolution since the beginning of the 20th century. This has been largely due to advances in the engineering and chemical industries, enabling processing and product improvements unimaginable to the early manufacturers. The last 25 years, however, have seen an unprecedented shift in the global marketing and commercial model, from family and national enterprises to multinational expansion and new applications.
The larger companies with global reach enjoy well-funded R&D facilities, higher levels of capital investment in manufacturing equipment, and lower raw material costs. In fact, almost all have their own lead recycling facilities, which drastically reduces their product cost: lead accounts for roughly 65% of a battery’s manufacturing expenditure. Despite this, there are still some smaller, often family-owned lead-acid battery factories, that are not only surviving but thriving in the present commercial landscape. This article examines one such company.
One company, a long-standing client of mine, Microtex Energy Pvt. Ltd. is an exemplar of how an SME, manufacturing industrial lead-acid batteries, can succeed in an increasingly polarised arena. Based in Bengaluru, in the state of Karnataka, India, they have been manufacturing since 1969. During this time, they have seen a rapidly changing global framework that brought in new market demands, requiring both product and strategic adaptations. Microtex proved that they were up to the challenge. Despite some serious speed bumps, they have managed to find their commercial bearings despite the current anxiety over lead-acid’s future.
It is important not to underestimate the volatility of the present market conditions. Lead-acid is under attack in almost every sector. The once-believed sacred cow of SLI is becoming more and more insecure as increased EV take-up and rapidly declining lithium-ion kWh prices begin to lap closer to lead-acid’s shoreline. This encroaching presence of lithium-ion in all industrial sectors has even reached the forklift truck market. FLT manufacturers see a commercial advantage in tying the truck to the battery for life. This is easily achieved with the electronic controls associated with lithium-ion technology. In such a bleak landscape it is hard to understand how an industrial lead-acid manufacturer could survive, let alone prosper.
But prosper they have. To shed light on their accomplishment, I decided to visit the owner, Ravi Govindan, Chairman and Managing Director and owner of Microtex Energy, at his Bengaluru factory. I stayed for over a week, drawn as I was, into one of the company’s battery development projects. It was also an opportunity to see first-hand how the staff went about resolving the challenges of introducing a new product. On top of this, I was keen to see how the company’s non-manufacturing facilities, e.g. laboratory, purchasing, and development resources would be integrated into the overall project strategy. For this reason, my stay at the factory was extended by a few days so that I could witness the process and outcome first-hand.
As a matter of record, there was a team appointed with VP Production, Madhu, acting as team leader. The new product was a small 12V AGM 7 Ah deep-cycle battery, used mainly for burglar alarms and small standby power systems. The problem was the assembly of components that were smaller than anything ever seen before in this factory. Fortunately, the multi-grid mould had already been made, and the casting, curing, and formation processes were already established. The next phase was to assemble the packs with wrapped AGM into the 3 x 2 layout, then cast on the strap and push the assembled groups into the box for heat sealing, followed by formation and initial testing. Commercial confidentiality prevents me from giving any more detail, but I can reveal that during a period of one week, a couple of COS jigs were made up and modified after the first test. Trials then continued with lug preparation methods and two electrical testing phases. By the end of my stay, a fully functioning, consistently performing, 7.6 Ah battery had been successfully manufactured. As a bonus, the production rates were commercially respectable. Throughout this development programme, the team of engineering, production, technical, and QA gelled perfectly. It is also worth noting that the owner and MD, Ravi Govindan was an integral part of the process, looking at every small detail, as well as making significant contributions to the whole process.
This anecdote sets the scene for the main text which is the interview. In this, I drilled down on Ravi to uncover how, in such a rapidly changing commercial environment, he could identify and then steer the right course for his company. The interview is given below, and whilst redacted, it does clearly indicate what lengths he has been willing to go to, and how much has been invested, to future-proof Microtex.
McDonagh: Ravi, can you give a brief history of how your factory and business were founded?
Ravi Govindan: Microtex was founded in 1969 by Mr A Govindan, a first-generation entrepreneur, founder, and promoter. When the industry was using inefficient and technologically outdated wooden/rubber separators in India, he was a visionary with values. He has several inventions to his credit and is highly regarded in the battery industry. When glass tubes were imported to manufacture tubular plates, he produced the first PT Bags in India. In 1975, he received a patent for his invention. Building a team of highly experienced and committed employees to create better storage batteries was his dream.
He cared for the environment very early on and took measures to ensure that battery manufacturing was done with clean and green processes. He always kept abreast with the latest battery-making machinery and techniques. He employed world-leading battery consultants to passionately update manufacturing processes.
In recognition of his contributions, he has received various awards including the prestigious Udyog Patra from the President of India. He started the production of lead-acid batteries in 1977 and exported annually over 4,000 traction batteries to the USSR.
And what about the company? Please tell me more about it.
Microtex achieved accreditation as an ISO 9001 and 14001 manufacturing company. It has had approvals since 1994 for supplies to Indian Railways for the entire range of batteries used by them. Microtex supplies TSEC (technical specification approval centre)-approved batteries for the telecom industry.
The factory has a covered area of 26,700ft2 on six acres of land, with 200 expertly trained people. Microtex manufactures specially designed lead alloys, lead oxides, grid castings, pasted plates, injection-moulded containers, multi-tubular gauntlets, and PVC separators in-house, and produces the complete battery using state-of-the-art industry-standard battery-making machinery.
Are there any stand-out moments that defined your present course?
That is a difficult question, there have been quite a few. I think it is best to give a brief timeline for Microtex.
Mr A Govindan, our founder, and first-generation entrepreneur obtained a patent for the Pluri Tubular Bags in 1975. He established Microtex pioneering as the manufacturer of battery separator’s tubular bags, which were import substitutes at the time.
Feb 1977 – The company started exporting traction batteries to the USSR. Only a handful of companies in the world have manufactured and exported traction batteries since 1977. Microtex supplied over 4,500 traction batteries a year during that period.
March 1985 – Approval gained for the supply of 2V batteries for the telecom industry and started supplies of 2V flooded LMLA batteries to the erstwhile state-owned P&T.
April 1994 – We were approved for the supply of batteries for rolling stock and stationary batteries for signalling applications to Indian Railways.
July 2003 – The INtelliBATT 12v tall tubular inverter battery was launched. The Microtex 12V flooded range was designed for the huge inverter battery market and is highly successful.
Feb 2005 – Microtex establishes the manufacture of VRLA batteries for various applications. Obtained TSEC approvals for VRLA batteries from 2V 200Ah to 2V 5000Ah in a very short time. Supplies to BSNL, Idea, Airtel, Indus Towers, Huawei, Bharti Infratel, Viom, etc.
Apr 2006 – Dr Wieland Rusch, battery expert from Germany and inventor of copper stretch metal submarine batteries, joins Microtex to upgrade and bring our batteries to world-class designs for the complete range of batteries including traction. With him, we developed the complete range of OPzS and OPzV gel batteries. Microtex was the first company to launch gel batteries in India.
Apr 2008 – Began production of OPzS and OPzV batteries. Microtex started supplying 2V OPzS batteries to nuclear facilities in India and exported gel batteries for various applications including telecom and solar energy storage.
Mar 2011 – Dr Mike McDonagh joins Microtex as CTO. With his rich manufacturing experience in various leading battery companies, Dr McDonagh established strong process controls in Microtex.
What products do you manufacture?
I think it best to refer to the catalogue to get the full picture.
In general terms, we are an industrial lead-acid battery manufacturer. Microtex is probably one of the few companies that have an entire range of lead-acid types in flooded AGM and gel variants.
We supply 110V 1100Ah VRLA train-lighting and air-conditioning batteries to Indian railways. In addition to 2V signalling cells, we supply diesel locomotive starter batteries, end-on-generation, TRD, EMU, and electric locomotive batteries. The Microtex Diesel locomotive range is highly regarded by Indian Railways as a reliable diesel loco starter battery. These loco batteries are also exported to South America, Africa, and the Far East.
OPzS and OPzV batteries are supplied to mission-critical users like Bhabha Atomic Research Centre, Nuclear Power Corporation of India, National Thermal Power Corporation of India, and Indian Oil Corporation. OPzS and OPzV batteries are available in the complete international range of 100Ah to 3000Ah. With the complete gel plant imported from Germany, our 2V OPzV gel batteries have very high performance and have seen over 12 years’ life.
Microtex has also developed 2V gel batteries from 100Ah to 5000Ah, in heat-sealed PPCP containers housed in steel modules to offer the same quality to cost-conscious users.
Microtex forklift batteries are supplied as OEM to Nilkamal forklifts and are very popular in the forklift replacement markets. Microtex offers traction cells in HS PPCP containers, constructed in accordance with internationally accepted dimensions. They are available in both weld-on and bolt-on designs from 40Ah to 1550Ah in BS & DIN designs. Microtex traction batteries have seen a performance of 11+ years as well. Customer testimonials on our website https://microtexindia.com/about-us/testimonials
Can you briefly describe the markets that you are supplying
Why are you in these markets?
Microtex decided a long time ago to look at the higher-margin, niche applications for lead-acid batteries. We predominantly made industrial application flooded batteries from the beginning. We then decided to play to our strengths and took steps that included the use of well-known international consultants to assist in strengthening and widening our product range to cover wider markets. The result was the launching of products that are world-class, with improved manufacturing methods to ensure high-quality, cost-effective solutions for most deep-cycle applications. We specialise in VRLA designs for both AGM and gel chemistries and are industry-leading in these products. I can give some examples:
Microtex INtelliBATT inverter batteries are designed to deliver the rated capacity with trouble-free extra performance and longer life. Customers prefer INtelliBATT due to its assured lifetime. Microtex is currently setting up a countrywide dealership distribution channel, and the response has been overwhelming.
Microtex has a very strong presence on Indian Railways. Its batteries are proven in service and are considered failproof.
Microtex Limitless forklift batteries are the customers’ choice – they inevitably become loyal clients after the first purchase. With extremely good designs, robust 3.3mm positive grid spine diameters, woven gauntlets, and a combination of selected and balanced active materials, Microtex traction batteries exceed customer satisfaction. The specific details can be found on our website.
Microtex Caddy golf cart batteries have become synonymous with good quality, especially with the robust tubular plate construction, which is the most ideal for semi-traction applications
Could you describe your processes and equipment?
We have the standard range of manufacturing equipment that you would find with any lead-acid manufacturer. However, in addition, we have equipment for manufacturing specialist materials that most companies would purchase from suppliers. We have not invested in strip casting as we are mostly industrial, and I believe that the conventional gravity-cast flat plate grid, plus a tubular design, is still the most reliable way to meet cycle and calendar life requirements. In brief:
Gravity casting
We have 10 standard grid sizes, and 3 Industrial machines.
PDC – 300mm 5 nos, 500mm – 1 no, 700mm – 2 nos
Oxide production
We have 2 oxide mills: a 24-tonne Sanhuan mill and a 12-tonne Sanhuan mill. Both are modified in-house to have a water scrubber before the outlet stack.
Paste mixer
2 nos. These are 1-tonne per hour Sanhuan paste mixers with programmable, automatic loading and mixing control.
Pasting machines
We produce a wide range of sizes and have appropriate pasting resources. These are IndustroMac 23 inch, a Ganglih 300mm, and 2 Sunlight pasters with a 300mm grid capability.
Curing and drying chambers
We have 11 curing chambers, all large-sized to take several skids.
The formation process and rectifiers
Microtex ensures the complete formation of all plates before assembly. We have 30 banks for formation with approximately 2,300 jars, 10 Jinfan chargers/dischargers, and 10 other charge/discharge rectifiers.
Plate washing
Microtex regards this as a critical process to ensure premium quality plates. Due to this, we employ a 6-tank plate washing process with aerated DM water (recycled into the process after reaching 1.05 SG). There are two sets complete with overhead cranes.
Assembly lines
Because of our diverse range, we have a lot of assembly lines; these consist of two lines for 2V VRLA, around 240 cells (2V x 1100Ah) per shift, four lines of 12V SMF, giving 400 batteries per shift, two lines for 2V traction cells producing 400 cells per shift, one line for 12V flooded inverter batteries capable of 400 batteries/shift and one line for 2V flooded cells at 500 cells per shift.
Battery charging
Again, we have a very large capacity with more than 20 chargers/dischargers, each with 6-8 channels.
Inspection and packing
All products are washed with demineralised water before packing and are automatically 100% pressure tested after heat sealing. Between the machine-washing process and wrapping/dispatch procedures, we do final checks to ensure quality and consistency. These are mostly conducted with hand-held instruments such as HRD, IR, and conductance testers.
Electrical lab
Our electrical test lab is constantly in use to validate designs and ensure product consistency. We have Digatron 4 channels LCT and Bitrode 13 channels LCT.
Pollution control equipment
For airborne particulates, we have well-designed fume extraction and scrubbers. To maintain clean reusable wastewater, our effluent treatment plant relies on well-known physical and chemical processes to provide water quality that exceeds local and national regulatory requirements
What do you think makes Microtex uniquely placed to compete in your chosen markets?
Microtex is probably one of the few companies in the world that manufactures the entire battery in-house. We are always adapting to change, and this has been our greatest strength. It is the benchmark of our philosophy to constantly improve. Moreover, we are flexible, and lean and have a wonderful team. If we make a mistake, we learn, change and adapt to improve the situation at all costs. As well as our team, we have acquired state-of-the-art equipment, to ensure that all our sub-components are manufactured in-house, to the highest standards. In this way, we can keep control over the quality and cost of all aspects of our battery manufacture. I can describe this equipment as follows:
A 100-tonne per day lead alloying plant, ensures high-quality batteries with its ultra-low maintenance lead alloys, designed to withstand corrosion, and provide extra-long life battery performance. We were fortunate to have Dr Mark Stevenson of Global Lead Technologies design all our alloys way back in 2000.
An in-house plastic injection moulding facility, with the following IM machines – 60, 180, 200, 480, 650, 720, 850, and 1,300-tonne capacities to cater to the requirements of the smallest vent-plugs to the largest 730mm traction jars.
We manufacture in-house woven pluri-tubular gauntlets. From the manufacture of defect-free high-tenacity fabrics on modern high-speed rapier looms to the strongest woven gauntlets with extreme porosity and fine structure to provide instantaneous power at the plates.
We also manufacture PVC battery separators specially designed for long-life tubular gel batteries. The large pore size is a great advantage for the gel battery. PVC separators usually outlive the gel battery, which is more than 15 years. Only PVC separators can last that long.
We have our own toolroom facility for the repair and maintenance of all our equipment. This is equipped with high-quality surface grinding, milling, lathe, and vertical drilling machines. We also have other necessary equipment to produce the tools, jigs, fixtures, and battery-making equipment and machines. Microtex has taken some unique measures to ensure that our H&S and environmental standards are as high as possible. These include:
- Installing heavy-duty high-performance stainless-steel scrubbers to the bag house exhaust outlets of oxide mills, thus ensuring clean exhausts from the ball mill
- Granite flooring in charging areas, with lead poured into the joints to seal off any acid spills. Chemical resins eventually give way at the joints and Microtex recommends using this time-tested method of pouring lead in the gaps to seal the acid ingress
- Plate wash water is processed back into the system
- A unique system of washing the footwear as you enter or exit the filling and oxide mill area with recirculating water and tank to catch any lead dust
- Zero effluent discharge plant
- Commercially, Microtex has been providing a tree sapling along with every traction battery supplied in India. The customer gets an additional 1-year warranty as an incentive when they plant the sapling and share a photo of it. This has been a great success and over the last four years, we have supplied more than 4,000 tree saplings with our traction batteries
We have been providing free lunch/dinner to all employees since 1974. The kitchen is hygienically staffed by our own employees. The organic kitchen waste is composted daily along with the fallen leaves from over 103 trees inside our premises, producing clean natural organic compost, free from any synthetic chemicals
What special features do you have to gain and keep customers?
We are a family-owned business. We listen to the customer carefully, and we hear what they have to say in full. We are easily accessible, unlike large companies where the customer cannot obtain small product design changes. With larger companies, it is not possible to connect to the decision-makers if specific changes are required for regular fast-moving batteries. Because of this, we can offer better value for money in our pricing compared to the large multinationals.
We believe our battery must perform to the complete satisfaction of the customer and we stand by this promise. It is a matter of great pride to hear from the customer that they are delighted with the battery performance.
Microtex batteries are prototype tested for life cycle before releasing to the market. Our modern electrical testing laboratory is complete with Bitrode and Digatron LCTs. All products are validated for performance and capacity, meeting international standards.
Microtex batteries have been TSEC approved from 2V 200 Ah to 2V 5000 Ah for supply to the telecom market. OPzS batteries are tested, approved, and supplied to the Nuclear Power Corporation of India, the Bhabha Atomic Research Centre, the National Hydro-Electric Power Corporation, and the National Thermal Power Corporation. OPzV batteries are also supplied to the solar power industry. Microtex is a Part-1 supplier to Indian Railways and has been approved since 1994 for almost all rail applications.
Manufacturing practically all the components that make up the battery places a lot of quality control in our hands, and our dependence on outside suppliers is minimised. This gives us an edge over other battery manufacturers in ensuring complete control of battery quality.
How do you see the future for you and the industry?
Both lead-acid batteries and lithium-ion batteries will be the dominant chemistries in the future. While lithium-ion has seen the fastest growth in the last decade, it will not replace lead-acid completely. We are a flexible company and willing to adapt to newer chemistries.
Microtex is positive about the lead-acid battery business as the global energy requirements will continue to surge. We engage the best European consultants to keep our processes intact and to develop new products at regular intervals. This ensures the continuity of business.
And there you have it, a company that looks for niche applications, is willing to adapt its standard designs to clients’ individual needs and manufactures practically all the battery components in-house to ensure control over supply and quality. Add to this a flexible dedicated team, led by a hands-on, philanthropic MD, a belief in the capability of the company to embrace change and to invest in the future, and you have a recipe for success. What could be simpler?
