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The board of directors of Amara Raja Batteries Ltd has approved a ₹700-crore greenfield automotive battery plant with a capacity of 6.5 million units per annum.
This project will be implemented over three phases and this is in addition to ₹500-crore investment that the batteries major has lined up during the year.
Jayadev Galla, Vice-Chairman & Managing Director, Amara Raja Batteries, said: “The economy of the country is poised to grow and provide opportunities for increasing production and consumption. In line with the growth and demand expectations, we are expanding capacities and adapting new technologies well in time.”
S Vijayanand, CEO, said, “We are encouraged by the significant growth across all businesses in domestic as well as export volumes both in automotive and industrial products. The ongoing capacity expansion programme and regular capex with investment of ₹500 crore for the current financial year are on track and the board has now approved an investment of ₹ 700 crore to set up a greenfield automotive battery plant with a capacity of 6.5 million units per annum.”
Meanwhile, Amara Raja posted a profit of ₹113 crore, up 13 per cent for the first quarter ended June 30, 2018 against ₹100 crore for the corresponding quarter of previous year.
The batteries major logged net revenue of ₹1,779 crore against ₹1,497 crore, a growth of 19 per cent.
The automotive battery business has achieved strong volume growth across its business segments. Sales to original equipment customers grew at a rate higher than that of new vehicles.
During the year demand for batteries in replacement market saw growth in all vehicles categories, including two wheelers. Both the brands, Amaron and Powerzone, continued to perform exceptionally well, thereby increasing market share. South-East Asia and Middle-East contributed to phenomenal growth in the company international business.
The demand from telecom segment continues to be under stress owing to overall Telecom scenario prevailing in the market. Barring this all other segments of the Industrial business registered double digit growth.
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