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