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Battery maker Amara Raja Batteries Ltd has drawn up plans to enter new geographies and tap verticals such as solar and motive power.
While the batteries for the solar sector are aimed at the storage market, motive power batteries will supply power to a wide variety of electric powered transportation systems, including the railways. With the company commissioning a major manufacturing facility in January in Chittoor, Andhra Pradesh, and gearing up to start production at an automotive battery plant in the same area by December 2014, it is also seeking to increase exports.
The thrust so far has been on Indian Ocean Rim countries, especially in the African continent. Its batteries are now marketed in Nigeria, Uganda, Tanzania and Egypt. According to a research report by Motilal Oswal, the company’s exports were up 20 per cent during the first quarter, accounting for about 5 per cent of the total revenue of ₹893.8 crore.
During the recent annual general meeting, MD Jaydev Galla said: “We will continue to leverage the rich intellectual capital of Johnson Controls Inc (its partner) for attaining leadership position in the automotive batteries space. We will also continue to explore the possibilities for forging strategic alliances in the industrial batteries business and cater to dynamic technology changes in the storage power sector globally.”
Land acquisition Meanwhile, the company is seeking shareholders’ nod to acquire 62 acres in Chittoor, on lease for 99 years. This entails a payment of ₹40 crore. During a meeting earlier this month, the Board had approved the move to take the land on lease which now belongs to Amara Raja Infra Pvt Ltd, and is located adjacent the automotive battery plant.
The infra arm of the group holds 482 acres of industrial park which is now being developed.
On Tuesday, the company’s shares closed at ₹558.55 on the BSE, up 2.24 per cent.
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