Murata Wants To Increase Automotive Revenue With Sony Battery Unit Purchase
Earlier we had highlighted Sony Corp’s plan to supply batteries to the automotive industry, and the latest news is Murata Manufacturing Co Ltd, the Kyoto-based electronics components supplier which already owns some shares in Sony’s battery division, has agreed to buy most of the Sony’s battery business with plans to boost automotive-related revenue.
The purchase is expected to be completed by the end of March 2017 for an undisclosed amount. In the year ending March 2016, the battery division racked up sales of 160 billion Yen (approximately US$ 1.56 billion).
Murata supplies components to the smartphone industry and calls Apple, Inc and Samsung Electronics Co Ltd its clients. Approximately 60% of its revenue comes from this industry but Murata is seeking alternative revenue streams to safeguard itself from industry downturns.
CEO Tsuneo Murata aims to have the automotive battery business contribute 20% – 30% of group revenue in 10 years’ time, from the current 13%.
