Energy storage solutions provider Tropical Battery Company Limited (Tropical) has incorporated a new US-based subsidiary, Tropical Battery USA, LLC, to help with pushing the company’s growth plans in the North American market.

The newly formed subsidiary, the company said, was established to serve as a key platform which will grant it access to online marketplaces such as e-commerce giant Amazon, with which it now has a fulfilment by Amazon (FBA) account.

Managing director of Tropical Alexander Melville told the Jamaica Observer on Tuesday that the shipment of its products across the US and to other large markets such as Canada and Mexico, which Amazon services, is expected to begin by September towards the end of the year.

“Amazon has warehouses all over the US, so we will be shipping some of our products to them and they will do the fulfilment for us. We view this as a very cost-effective strategy which allows us, at just a small commission charge, to take advantage of existing infrastructure.

“There are some of our products which we feel will do well in these markets, not just with the diaspora but across other populations, including the Tropical brake fluids and liquid products. We now have the Amazon account open and we have chosen the products, about five product lines, with which we will start,” he told the Business Observer.

Following the establishment of a presence in the Dominican Republic through its acquisition of Kaya Energy Group, Melville said the immediate plan following the start of shipments out of Amazon is for Tropical to bolster inorganic growth.

“We are starting with Amazon but in the hard brick-and-mortar space we are also looking at different acquisition targets. These include companies in the US for sale or partners that already have a footprint in the energy storage/renewable energy space. We are currently looking at some of these and doing the necessary due diligence,” he stated.

Projecting increases in revenues of about 10-20 per cent from its latest venture, Melville said the aim is to add between US$1 million and US$5 million in sales annually over the short to medium term.

At the half-year mark or six-month period ended March, Tropical’s revenues climbed to $1.3 billion and profit to $94 million, this following annual outturns of $2.6 billion in sales in 2022.

“We are excited about this opportunity and I want to urge other local entrepreneurs to look outside for growth as we have great products. Many of our companies are not taking advantage of the new platforms which allow us to sell into other markets and to earn foreign exchange for the country,” he said.

“With the establishment of Tropical Battery USA, LLC, we are positioning ourselves to harness the vast potential of online marketplaces like Amazon. As we take this journey, we are enthusiastic about the growth opportunities and the value we can bring to new markets,” he further stated in a notice posted to the Jamaica Stock Exchange on Tuesday.