Amara Raja Batteries Ltd is poised for significant capacity addition with a new battery plant in Chittoor, Andhra Pradesh, set to go on stream by December-January.
The new facility, set up at an investment of ₹450 crore, will eventually double the company’s capacity to make automotive batteries from 6 million units a year now.
But in the first phase, “we plan to augment three new lines, which will increase capacity by about 40 per cent”, said Ramachandra N Galla, Chairman of Amara Raja.
Speaking on the sidelines of an event here on Wednesday, Galla said: “We are expecting a growth of about 25-30 per cent this year.
As we expand the volumes next financial year, aided by the new plant, it would enable us to cater to a larger market.” The company is also seeking to expand its exports business. At present, 10-12 per cent of the revenue comes from exports.
The Hyderabad-based battery maker had closed last financial year with a turnover of ₹3,437 crore and the last quarter ended June 30, 2014, with ₹1,025 crore.
Besides the upcoming Chittoor plant, the company has an operational facility in Tirupathi.
Amara Raja is also developing a digital city in Chittoor wherein it is setting up four manufacturing units.
In all, the company is investing ₹1000 crore to expand its business in the country.
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