Owned by TDK corporation, a Japanese multinational technology company, ATL has acquired the land from Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) through a bidding process.
“We had invited online applications for allotment of a plot of about 180 acres of industrial land in IMT Sohna. ATL was the only company, which participated in the auction. The land has been allotted to them last week and they have 90 days to make the full payment,” said a HSIIDC official.
A global leader in supplying LIP batteries across the world, ATL has two cell manufacturing facilities in China but because of India-China border tension, it has decided to invest in an Indian manufacturing unit by the name of ATL India technology private ltd.
The reserve price of Rs 3.05 crore per acre was fixed for allotment of the site lies about 46.6 km away from International Airport, New Delhi.
According to a report by Savills, industrial landlords in India are reporting an uptick in industrial occupation in their parks after manufacturers starting diversifying operations from China.
The report highlights that trade conflict between US and China will influence cross-border activity for many years regardless of US leadership, thereby strengthening opportunities for real estate investment in markets including India, Vietnam and mainland Europe.
ATL did not respond to email query till press time.
A person aware of the deal told ET that this will be the biggest manufacturing hub of ATL in India and its a strategic investment by the Japanese company.
The company plans to invest Rs 7000 crore in next few years to supply batteries to industries including smart phones, two and three wheeler e-vehicles.
Headquartered in Hong Kong, ATL operates factories in Dongguan and Ningde, in the People’s Republic of China.
From being a manufacturer in Southern China in 1999, ATL grew into a LIB power-house. In 2005, TDK corporation, an electronic MNC acquired ATL.
While the ongoing trade conflict between the US and China will be overshadowed by the impact of the Covid-19 pandemic this year, it has already accelerated shifts in global trade patterns, says Savills.
Major beneficiaries of companies moving away from China include Vietnam, where manufacturing exports to the US rose by almost 36% in 2019 making it the US’s fastest growing trade partner last year, and India, Malaysia, Thailand and South Korea, according to Savills.