The Hindu Business Line : Amara Raja Group to realign biz, set up holding co

Chennai, Aug 5 The Amara Raja group has decided to recast targets besides realigning businesses by setting up a holding company. Apart from Amara Raja Batteries Ltd (ARBL), the group includes Amara Raja Power Systems, Amara Raja Electronics, Mangal Precision, Galla Foods and Amara Raja Infra.

At an informal chat, Mr Jaydev Galla, Managing Director, Amara Raja Batteries, said the group’s turnover crossed the Rs 1,400-crore mark. It hopes to reach a turnover of Rs 10,000 crore in five years. About half of the revenue will come from the group’s flagship company ARBL, he indicated.

Each company of the group would be a Rs 1,000-crore company in five years, Mr Galla said.

Biz Rejig

The group is in the process of transferring all the family holdings in various businesses to the yet-to-be-formed holding company, he said. The consolidation of holdings can happen in a year and the group is holding discussions with consultants on legal, tax and other such issues.

In the flagship company ARBL, the Gallas have US-based Johnson Controls as an equal equity partner.

Mr Galla said the promoters would take the foreign partner into confidence while transferring the family holding into the proposed holding or investment company of the group.

Mr Galla hinted at the possibility of a corporate board for the group as a whole. As the family expanded and the next generation getting into the business, there is need for a codified rule book for members to get in and get out of the family business.

Mango wine

Heard of wine made from mangoes? If you haven’t, you will soon. Galla Foods is working towards bringing such product.

Mr Galla said 80 per cent of all fruit drinks sold in the country are mango-based. Galla Foods itself is planning to bring in several varieties of mango-based juices.

These products would differ in the mix of other fruit juices as well as the varieties of mangoes the basic concentrate is made from.

Mango wine would be an alcoholic drink. The company also intends to bring in other mango-based products such as mango fruit bar.

More Stories on : Restructuring | Electrical Goods

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page