Amara Raja Batteries Limited, India’s leading industrial and automotive lead-acid battery major, has announced its strategy to reposition itself as an ‘Energy & Mobility’ player. Under this strategy, it would invest in new green technologies, including lithium-ion batteries, while focusing on value maximization in its core business of lead-acid batteries.
Setting up a strategic business unit for ‘new energy’ is part of the transition strategy. This business unit would encompass lithium cells and battery packs, electric vehicle (EV) chargers, energy storage systems, advanced home energy solutions, and related products and services.
The New Energy business will build on technological innovations such as lithium and other new-age chemistries that are enabling accelerated transformation in renewable energy, electric mobility, microgrids, etc.
“The advanced chemistry cell (ACC) production-linked incentive (PLI) scheme announced recently by Government of India…provides a significant impetus for building a domestic supply chain for lithium and other advanced cell chemistries to serve the fast-growing EV and renewable energy sectors. Amara Raja Batteries Limited plans to invest in a bouquet of products and services to accelerate its transformation to an Energy and Mobility solutions provider,” read a statement by the company.
Amara Raja Batteries Limited reported a profit-before-tax of INR 873.33 crore (US$ 119 million) for the financial year 2020-21, with revenues for the year at INR 7,149.68 crore (US$ 976 million) compared to INR 6,839.46 crore (US$ 934 million) during FY 20. It has been recording strong volume growth in both automotive and industrial applications across all customer segments.
The company believes that the lead-acid batteries business will continue to grow in India owing to the buoyant demand from automotive, industrial, telecom, and new emerging segments like data centers.
Keeping up with the demand, the company would continue to invest and expand the lead-acid batteries business. It would tap opportunities in the home inverter, motive power, and unorganized segments, further consolidating its existing strengths and market share.
Amara Raja Batteries Limited will further invest in advanced process technologies to maintain its technological edge and recycling to enhance critical raw material security and expand its commitment to environmental responsibility.
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