Amara Raja opens new two-wheeler bat­tery plant, in­vests Rs 700 crore

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Amara Raja Bat­ter­ies Lim­ited (ARBL) has in­au­gu­rated In­dia’s largest and most ad­vanced two-wheeler bat­tery plant at Amara Raja Growth Cor­ri­dor in Chit­toor, Andhra Pradesh. The es­ti­mated to­tal investment is Rs 700 crore. The first phase of the plant is com­mis­sioned, and it has a ca­pac­ity of 5 mil­lion units. On com­ple­tion of the other phases, it will have a to­tal ca­pac­ity of 17 mil­lion units, tak­ing the to­tal ca­pac­ity for two-wheeler bat­ter­ies to 29 mil­lion units. The com­pany, which en­tered the two-wheeler bat­tery seg­ment 2 years ago, has a mar­ket share of 11% and in the next 5 years it aims to cap­ture 45%.

Jayadev Galla, Vice Chair­man and Man­ag­ing Di­rec­tor, Amara Raja Group said, “We have en­tered the two-wheeler bat­tery seg­ment late, but it of­fers huge po­ten­tial for growth in In­dia. At present, we have over 11% mar­ket share in this seg­ment. By look­ing at the growth of the seg­ment and with our cut­ting-edge tech­nol­ogy, we are look­ing at in­creas­ing our mar­ket share to 45%, a level we en­joy in four-wheeler seg­ment. Once we com­plete all the 3 phases, the plant will be the largest twowheeler bat­tery man­u­fac­tur­ing fa­cil­ity in In­dia, which will em­ploy close to 1,300 peo­ple. And our to­tal ca­pac­ity of two-wheeler bat­ter­ies will in­crease to 29 mil­lion units a year.”

The com­pany has an­other plant in Tiru­pati with an in­stalled ca­pac­ity of 12.5 mil­lion units. The new plant is claimed to be the most ad­vanced pro­duc­tion fa­cil­ity in the coun­try and it pi­o­neers the use of ad­vanced punched grid-mak­ing tech­nol­ogy for twowheeler bat­tery man­u­fac­tur­ing. The tech­nol­ogy en­sures the bestin-class prod­uct per­for­mance, higher pro­duc­tiv­ity and im­proved en­vi­ron­men­tal stan­dards.

In 1997, the US-based John­son Con­trols in­vested $6 mil­lion in ARBL for a 26% stake. Af­ter inau­gu­rat­ing the new plant, Ge­orge R Oliver, Chair­man and CEO, of John­son Con­trols said, “I am de­lighted that our part­ner­ship has com­pleted 20 suc­cess­ful years. I could not be prouder of this mile­stone in our com­bined his­tory. When John­son Con­trols and Amara Raja first came to­gether in 1997, our goal was simple: de­liver high-qual­ity bat­ter­ies to cus­tomers across In­dia. By con­stantly in­no­vat­ing our prod­ucts, an­tic­i­pat­ing the needs of the mar­ket and de­liv­er­ing value to our cus­tomers ev­ery sin­gle day, we have cer­tainly met our goal.” This ad­vanced bat­tery plant her­alds an­other path-break­ing jour­ney be­tween the 2 com­pa­nies for cre­at­ing new mile­stones, he said.

Dr Ra­machan­dra N Galla, Chair­man, Amara Raja Group said, the new plant would be a step forward in boost­ing the group’s ca­pa­bil­i­ties to match global com­pet­i­tive­ness. “The ad­vanced, high-speed as­sem­bly lines present in this plant will in­crease ef­fi­cien­cies, thereby de­liv­er­ing pro­duc­tiv­ity and reducing de­liv­ery times. John­son Con­trols has al­ways sup­ported our ef­forts to in­tro­duce ad­vanced tech­nol­ogy and innovative prod­ucts.”

The com­pany aims at 10X growth in the next 10 years. The Vice Chair­man said, “We are look­ing at Rs 60,000 crore in rev­enues in 10 years, rep­re­sent­ing a 10-fold jump. We have been fo­cus­ing only on the do­mes­tic mar­ket, but in the next 3-5 years, there will be much more fo­cus on ex­ports, mainly to the In­dian Ocean-rim coun­tries.” Amara Raja Group, which also man­u­fac­tures sheet metal prod­ucts, pre­ci­sion com­po­nents and elec­tronic prod­ucts, has been hav­ing a CAGR (com­pound an­nual growth rate) of 14-15% in rev­enue for the last 5 years. The Group recorded a net rev­enue of around Rs 6917 crore in FY 201617.

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