Amara Raja Batteries Ltd is a joint venture between the Amara Raja Group and world leader Johnson Controls Inc, US, with each holding a 26% stake in the company. The company is the largest manufacturer of VRLA batteries in the country, offering an extensive range of powerful zero maintenance batteries for both the automotive and the industrial sectors. Amara Raja Battery has a fully integrated world class manufacturing facility, situated in Tirupati in Andhra Pradesh. The company claims that its Amaron brand has changed the mindset of the Indian consumer about purchasing batteries. Amaron incorporates the latest technology in the field of advanced captive power and is on par with batteries manufactured and marketed elsewhere in the world.
After spending decades as an ignored part under the hood, the automotive battery has finally found a place in the minds of demanding consumers, thanks to Amaron. The company introduced striking black looks for its batteries and transformed the industry with this change. But the real change was inside the next generation battery, with cutting edge technology. Amaron’s zero maintenance battery was a hit with consumers, as it left the factory fully charged for use. This meant that batteries were not subject to inconsistent charging at the dealerships. Therefore, customers were rest assured that all Amaron batteries were created equal and would perform equally. The other big change brought in was by offering the longest warranties for batteries. Amaron car batteries with 36-60-month warranties are twice as long against other competitors.
Despite a decline in industrial production, the company’s revenue grew around 7% year on year for the second quarter of the current financial year, while the automotive segment witnessed double digit growth, led by both the four and two wheeler markets. The management expects demand growth for FY2018 to be robust across all sectors, except telecom. It is, meanwhile, evaluating opportunities and tie-ups for the lithium ion battery space, as this is used by e-rickshaw and in the telecom segment. With its unflagging commitment towards high technology quality, Amara Raja Battery has earned rich dividends in the marketplace and in the eye of its loyal customers. It is also the preferred supplier to all major original equipment suppliers. The company has also made significant inroads in international markets such as Singapore, where every third car is powered by Amaron batteries. It has recently commissioned a new two wheeler battery facility at Chittoor in Andhra Pradesh, showcasing another milestone in the successful joint venture between Johnson Controls and the Amara Raja Group. This plant would have an ultimate capacity of 17 million units with an estimated investment of Rs 700 crore, taking the total capacity for two wheelers batteries to 29 million units. Most analysts and brokerage houses are bullish on the Amara Raja scrip, currently quoting at Rs 860 on the Indian stock exchanges for it to climb by around 20% from the present levels in six months.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.