The Hindu : Business : Amara Raja Batteries to increase capacity

Online edition of India's National Newspaper
Saturday, Oct 29, 2005

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Business

Amara Raja Batteries to increase capacity

Special Correspondent

Expansion programme to cost Rs. 51 cr.

CHENNAI: Amara Raja Batteries Ltd. (ARBL) has decided to expand its automotive/monobloc capacity further to three million units involving an investment of Rs. 11.60 crore. This comes on top of its earlier announcement in January this year to expand the capacity from 1.5 million units to 2.4 million units.

The Rs. 50 crore expansion programme is expected to be completed by the second quarter of next year.

A decision on further expansion of the capacity was taken at a board meeting held in the U.S. on October 27. Johnson Controls of the U.S. has 26 per cent equity stake in ARBL.

The company reported net sales of Rs. 87 crore for the three-months ended September 2005, up from Rs. 51.68 crore in the same period last year. The profit after tax was Rs. 4.58 crore (Rs. 3.76 croe).

The company has ongoing OE (original equipment) agreements with Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Mahindra and Mahindra, Maruti, Hyundai and Tata Motors.

It is an exclusive supplier to Daimler Chrysler, Ford and Swaraj Mazda.

ARBL struck an OE agreement with Hyundai Motor India Ltd. in June this year to supply 60,000 zero-maintenance AmaronTM range of batteries.

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