Products to go on sale at CP Axtra's Makro hypermarkets and online channels

First shipment to depart mid-September; sales expected to begin as early as October

Strategic MOU with CP Axtra to follow once brand establishes local foothold

Vexcel alkaline batteries to be supplied by SM Vexcel's battery business division to Makro hypermarkets and online channels operated by CP Axtra, a retail affiliate of Thailand's CP Group. [Provided by SM Group]
Vexcel alkaline batteries to be supplied by SM Vexcel's battery business division to Makro hypermarkets and online channels operated by CP Axtra, a retail affiliate of Thailand's CP Group. [Provided by SM Group]

Vexcel, a South Korean battery brand, is entering an overseas market for the first time.

SM Vexcel's battery business division announced Monday that it will supply Vexcel batteries to CP Axtra, a retail affiliate of Thailand's CP Group. The products will be carried at Makro, a hypermarket chain operated by CP Axtra, as well as through its online sales channels.

This marks the first time Vexcel batteries have been exported. The company plans to expand its primary battery business — previously focused on the domestic market — into Southeast Asia, starting with Thailand.

The first shipment is scheduled to depart South Korea in mid-September. After clearing local distribution procedures, Thai consumers are expected to be able to purchase the products in stores and online as early as October.

CP Axtra is one of Thailand's leading retail companies, operating the Makro warehouse store chain and the Lotus's supermarket chain. It also has operations across Southeast Asia, including in Malaysia and the Philippines.

SM Vexcel plans to first build a local sales base through Makro and online channels before gradually expanding its supply chain. The company is also pursuing a strategic MOU with CP Axtra for further business cooperation.

The export is significant in that SM Vexcel will directly supply alkaline batteries manufactured in South Korea to a major overseas retail network. The company also plans to explore entering other Southeast Asian countries after gauging sales performance and consumer response in Thailand.

"The fact that Vexcel batteries have secured placement in CP Axtra's channels — which lead Thailand's retail market — is a meaningful achievement that reflects global recognition of our quality and technology," said Choi Se-hwan, chief executive of SM Vexcel's battery business division. "Through this, we aim to surpass our domestic revenue in the primary battery segment, which is SM Vexcel's core cash cow, and will continue to expand and strengthen our cooperation with CP Group to significantly grow our market share in the Southeast Asian battery market."

SM Vexcel is also expanding its industrial battery business alongside its existing consumer battery operations. Last month, through a government-funded research project, it secured technology for manufacturing and evaluating all-solid-state batteries using a nano-membrane-based polymer electrolyte. The company is targeting a pilot production run in 2028 and full mass production by 2030.

Also last month, SM Vexcel successfully developed a primary and emergency battery pack for a 100-kilogram cargo delivery drone. The company plans to leverage its battery manufacturing capabilities — built through its consumer battery business — to expand into high-performance battery packs and battery management systems for use in drones, robots and humanoid robots.


kwater@heraldcorp.com