Tag: Amara Raja Batteries

Amara Raja aims for $3 billion revenue in lead acid batteries within 5-7 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amara Raja, a prominent battery manufacturer, is setting its sights on achieving a substantial milestone in the lead-acid battery industry.

Harshavardhana Gourineni, the executive director of Amara Raja, recently shared ambitious plans with CNBC-TV18, revealing the company’s intention to reach a remarkable $3 billion in revenue within the next 5-7 years.

Gourineni provided insights into their strategic approach, explaining, “In the lead-acid battery sector, we are currently at approximately $1.2 billion in revenue. However, we are committed to expanding this figure to $3 billion over the next 6-7 years.

Our strategy hinges on global expansion, which not only enhances our price competitiveness but also allows us to command a premium for our advanced technologies.”

Expanding on the company’s diversification into the new energy sector, Gourineni emphasised that their success would be contingent on market development but could yield substantial long-term benefits. He highlighted the significant potential for growth in this segment.

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Discussing Amara Raja’s strong presence in the telecom sector, Gourineni stated, “We have been leaders in the telecom market since the late 80s. Our introduction of cutting-edge technology has enabled us to capture a substantial 60 percent market share. In fact, it can be said that every other telecom tower is powered by our batteries.”

Gourineni also recognised the evolving landscape of the telecom industry, particularly with the rollout of 5G technology. He underlined their ability to continue supplying replacements for existing infrastructure while also integrating lithium battery packs into new cell towers.

This move towards lithium technology signifies Amara Raja’s commitment to global expansion and innovation in the telecom sector.

In the ‘Spotlight’ segment, CNBC-TV18’s Nigel D’Souza discussed HEG, a steel ancillary company, delving into their unique strengths and market positioning.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amara Raja Batteries Block Deal: From BNP Paribas to Societe Generale, here’s the list of buyers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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BNP Paribas, Societe Generale and a clutch of domestic mutual funds were buyers in the large block deal that took place in Amara Raja Batteries on Tuesday.

Shares of Amara Raja Batteries dropped on Tuesday after over 16 percent of the company’s total equity exchanged hands in a large trade. Shares worth over Rs 1,800 crore had exchanged hands at Rs 654, according to data available on the exchanges.

Based on the data available, Clarios ARBL Holding sold 2.4 crore shares of the company in the block deal.

Among the buyers, Societe Generale was the biggest buyer, who acquired 42 lakh shares of the company, while BNP Paribas acquired 25 lakh shares in the transaction.

Other buyers in the block deal include Bonanza Commodity Brokers, Kotak Mahindra Mutual Fund, Nippon India Mutual Fund, Pinebridge India Equity Fund, and Tata AIA Life Insurance Company.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amara Raja Batteries shares drop after 16% equity changes hands in a large trade

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Amara Raja Batteries Ltd. dropped as much as 6 percent on Tuesday after over 16 percent of the company’s total equity exchanged hands in a large trade.

As per data available on the exchanges, over 16 percent of the company’s equity, worth over Rs 1,800 crore exchanged hands in a large deal at an average price of Rs 654 per share.

Buyers and sellers in this transaction are not known.

CNBC-TV18 had reported on Tuesday citing sources that Clarios ARBL Holding LP is likely to divest its entire shareholding or 14 percent stake in Amara Raja through a block deal.

Clarios planned on offloading the shares of India’s second-largest automotive battery-maker on Tuesday at a floor price of Rs 651 per share.

Amara Raja caters to automotive and industrial demand for power storage, and manufactures lead-acid batteries, with Maruti Suzuki, Tata Motors, and Bajaj Auto among its clients.

The company reported a 41 percent rise in its net profit during the March quarter, while revenue from operations increased by 11 percent.

Shares of Amara Raja Batteries are trading 5.5 percent lower at Rs 646.95. The stock is correcting from its 52-week high and is currently up 12.5 percent on a year-to-date basis.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Clarios ARBL Holding LP likely to exit Amara Raja Batteries, may sell 14% stake through block deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Clarios ARBL Holding LP is likely to divest is likely to sell its entire 14 percent stake in Amara Raja Batteries, the country’s second-largest automotive battery maker, on Tuesday (July 18), sources in the know told CNBC-TV18

The shares are likely to be offloaded at a floor price of Rs 651 per share, sources privy to the developments told CNBC-TV18.

Amara Raja Batteries posted a 41 percent rise in net profit during the fourth quarter of 2022-23 to Rs 139 crore as compared to Rs 99 crore during the same period of the previous financial year.

The company’s revenue from operations saw an increase of 11 percent to Rs 2,429 crore in the first quarter, from Rs 2,181 crore during Q4 FY22.

Amara Raja caters to automotive and industrial demand for power storage, and manufactures lead-acid batteries, with Maruti Suzuki, Tata Motors, and Bajaj Auto among its clients.

Shares of Amara Raja Batteries Ltd ended at Rs 684.85, up by Rs 0.050, or 0.0073 percent on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s second-largest battery maker highlights these two sectors to drive demand

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amara Raja Batteries, India’s second-largest manufacturer of batteries, believes that telecom and auto are the two sectors that are likely to drive demand for the company going forward. Amara Raja’s telecom battery solutions power over 2,00,000 cell sites across the country in various terrain and weather conditions.

Harshavardhana Gourineni, Executive Director of Amara Raja Batteries, expects the company to report low double-digit volume growth in the financial year 2024 mainly led by strong demand in the telecom segment due to the 5G rollout, along with the automotive production reaching pre-pandemic levels. “Exports business has also seen a good offtake,” he said. Amara Raja has a 60 percent market share in the telecom segment.

An increase in mobile towers in India is driving growth in the telecom sector, which is expected to have a positive impact on India’s lithium-ion battery market in the coming years, according to TechSci Research, which anticipates robust growth in the lithium-ion battery market between 2024 and 2028.

Gourineni said that the company is actively searching for technology partners for the Lithium-Ion business, where the change in technology is pretty rapid. Amara Raja’s Lithium-ion battery packs and chargers segment tripled during the financial year 2023.

For the March quarter, Amara Raja reported revenue growth of 11 percent compared to last year, while the EBITDA margin expanded to 13.9 percent from 10.1 percent last year. However, the margin was lower on a sequential basis. Gourineni expects the margin to remain at current levels as the company brings new capacity onstream.

The global automotive aftermarket industry size is likely to grow at a Compounded Annual Growth Rate of 4 percent between 2023 and 2030, according to Grand View Research. Amara Raja, which has a 35 percent market share in the four-wheeler aftermarket segment is also the market leader in the Singapore and Malaysian markets.

Amara Raja has laid the foundation of its Giga corridor in Telangana, where it plans on spending over Rs 9,500 crore over the next 10 years.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amara Raja unit catches fire, no casualties or injuries reported

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hyderabad-headquartered Amara Raja Batteries Ltd. suffered production loss after a fire broke out at its unit at Nunegundlapalli village of Chittoor District in Andhra Pradesh around 8:05 pm on Monday.

Although there was damage to property and the building, no injuries or casualties were reported in the fire accident. All the employees were safely evacuated from the plant.

The company is yet to find out the cause of the fire accident. However, it has insurance coverage for recovery of actual loss due to the fire.

For the December quarter, the company’s profit before tax rose 9 percent to Rs 302.57 crore from Rs 197.05 crore in the corresponding quarter a year ago. Revenue from operations increased to Rs 2,637.24 crore year-on-year as against Rs 2,365.07 crore in the year-ago quarter.

Amara Raja Batteries Ltd. stock is trading 1.41 percent higher at Rs 578.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Andhra Pradesh High Court extends stay on closure notice for 3 Amara Raja plants

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Amara Raja Batt” isinid=”INE885A01032″ bseid=”500008″ nseid=”AMARAJABAT” sector=”Auto Ancillaries” exchange=”nse”]

The Andhra Pradesh High Court on Tuesday, December 6, extended the stay on the closure notices for three plants of Amara Raja Batteries by eight weeks. The next hearing is scheduled for January 18, 2023.

The company mentioned that there was no loss because of the suspension of the closure orders.

The Andhra Pradesh Pollution Control Board in 2021 had ordered the closure of Amara Raja’s manufacturing facilities at Karakambadi, Tirupati, and Nunegundlapalli in the state for alleged violation of environmental norms.

The leading industrial and automotive batteries maker asserted that it has always placed the highest priority on the environment.

Last week, Amara Raja Batteries signed a memorandum of understanding (MoU) with the Telangana government to set up manufacturing facilities for lithium-ion batteries in the Mahbubnagar district of the state. The company aims to invest Rs 9,500 crore in the facility in the next 10 years.

The Company supplies automotive batteries to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The Company’s Industrial and Automotive Batteries are exported to countries in the Indian Ocean Rim.

The company posted net sales of Rs 2,700 crore in the September quarter as against Rs 2,264 crore in the year-ago period. Its net profit was Rs 201 crore compared to Rs 144.3 crore in the same quarter a year ago.

Shares of Amara Raja Batteries are trading down 1.47 percent at Rs 650.35.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amara Raja Batteries to set up Rs 9,500 crore lithium-ion battery unit in Telangana

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Amara Raja Batt” isinid=”INE885A01032″ bseid=”500008″ nseid=”AMARAJABAT” sector=”Auto Ancillaries” exchange=”nse”]

Amara Raja Batteries Limited (ARBL), one of India’s leading industrial and automotive battery manufacturers, has signed a memorandum of understanding (MoU) with the Telangana government to set up state-of-art research and manufacturing facilities for lithium-ion battery-making.

The new Li-ion battery gigafactory will come up in the Mahbubnagar district of the state, the company said in a release on Friday.

Over the next 10 years, Amara Raja Batteries will invest over Rs 9,500 crore for the same, subject to necessary approvals.

The new facility will have a Lithium Cell Gigafactory with an ultimate capacity of up to 16 GWh and a battery pack assembly unit of up to 5 GWh.

This is also the largest-ever investment in the state of Telangana in the lithium-ion cell manufacturing sector.

On November 3, Amara Raja announced the incorporation of a subsidiary named Amara Raja Advanced Cell Technologies Pvt Ltd, towards setting up the new unit in Telangana. Amara Raja has been working on Li-ion cell chemistries specifically suited for Indian subcontinent conditions, and already supplies lithium battery packs and chargers to many 2 and 3-Wheeler OEMs

The management believes that the strategic partnership is a giant leap for the company and will bring the impetus for innovations in sustainable technologies for the whole region, in addition to generating employment opportunities.

Shares of Amara Raja Batteries ended 0.8 percent higher at Rs 651.05.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amara Raja shares jump most in a decade on strong revenue, margin recovery

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Amara Raja Batt” isinid=”INE885A01032″ bseid=”500008″ nseid=”AMARAJABAT” sector=”Auto Ancillaries” exchange=”nse”]

Shares of Amara Raja Batteries surged the most in a decade after the company’s September quarter results.

Revenue growth for the quarter was nearly 20 percent from last year while the EBITDA margin expanded 140 basis points. The margin is back above the 13 percent mark for the first time in five quarters.

The company said it witnessed robust demand in the automotive sector from the aftermarket as well as OEM (original equipment manufacturer) segments. Exports showed very healthy growth in the Middle East and South East Asian markets. Moreover, industrial battery volumes continued their upswing, especially in the telecom segment driven by 5G rollout preparations in India, the company added.

The management says that business has rebounded from cost pressures of the June quarter and they are hopeful of economic indicators stabilising going forward.

Additionally, the board has also approved an interim dividend of Rs. 2.90 per share. The record date for the same has been set at November 16.

The company will also incorporate a wholly-owned subsidiary that will set up a multi-gigawatt-hour lithium-ion cell manufacturing facility.

At 10:23 am on Friday, shares of Amara Raja were trading at Rs 572.50, up 10.15 percent. Interestingly, the stock has fallen over 21 percent in the last year compared to a nearly 1 percent rise in the benchmark Nifty 50 index.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow