 "Amara Raja charts Rs 700cr capacity expansion")
As part of this, it is embarking on the largest investment since its inception –– an over Rs 700-crore project comprising both brownfield expansion at the existing facility in Tirupati and a greenfield facility near Chittoor. The proposed expansion is expected to be completed by FY15.
“The commissioning of these facilities would enable to strengthen shareholder value on a sustained basis and form a strong foundation for embarking on the next growth journey –– taking the Amaron brand experience global,” Jay Galla, vice-chairman and managing director of ARBL said at the company’s 28th annual general meeting.
The predicted economic stability and persisting grim national power situation over the medium-term would significantly accelerate the demand for ARBL’s products, he said, adding that with the proposed addition in the two-wheeler batter capacity, the company would now graduate to address the storage battery needs of the two wheeler OEMs (original equipment manufacturers) from a singular presence in the replacement market.
“We have identified home UPS, solar and motive power sectors as potential new opportunities for ARBL to sustain the growth momentum. We will also explore strategic alliances in the industrial batteries business and cater to the dynamic changes in the storage power sector globally,” Galla said.
ARBL witnessed a 28.51 per cent increase in net profit to Rs 97.8 crore for the first quarter ended June 2013, as compared with Rs 76.1 crore in the corresponding quarter last year.