The Amara Raja group has lined up a Rs 200-220 crore capital expenditure plan to achieve its target of $2-billion (Rs 9,070 crore) turnover by 2015, a four-fold increase from the Rs 2,500 crore now. It has also set a target of achieving $25 billion turnover by 2025.
Unveiling its new corporate logo here to mark the silver jubilee celebration, group chairman Ramachandra N Galla said, “Around $1 billion turnover is expected to come from Amara Raja Batteries and the rest from other segments, including power system, electronics and Galla Foods.”
Speaking to the media, managing director of the group Jayadev Galla said the $25 billion turnover by 2025 was aspirational for now "but we have proper plans for the strategic growth of $2 billion revenue by 2015." The investment would be strategic in nature and the company would continue to roll out new products.
"Our compound annual growth rate (CAGR) has been steady at 10-15 per cent over the past two decades. If we sustain our existing annual growth rate, we should be able to reach the target," he said.
Stating that the proposed Amara Raja Digital World City (ARDWC), one of India’s largest integrated electronics manufacturing parks, was still in the concept stage, he said "We are yet to announce the master plan. The formalities have been done and we have received land from the state government."
ARDWC, spread over 500 acres in Chittoor district, is expected to create over 20,000 jobs. The group will be one of the anchor organisations.
The Hyderabad-based diversified conglomerate is also planning to take its total headcount to 10,000, from the current 7,000 in the next four years. Amara Raja Batteries has a 25-30 per cent market share in the organised sector.
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Its two-wheeler and four-wheeler battery manufacturing plants at Chittoor have a production capacity of about 2.5 million and 4.2 million respectively. The company said it could expand up to 8 million and 6 million.
"Both the production facilities should help us meet the market demand in 2011-12. We may look at alternative locations to set up a new facility during the next phase of expansion in 2012-2013," said Ramana Prasad Alam, head (SBU-Automotive Batteries), Amara Raja Batteries Limited.
The new logo has five colours that come together as a swirling mass to form a dynamic circle of unparalleled energy, symbolise five elements of creation and five core values of the group. “The shape and form of the new identity represents a generational change as we transform from a set of individual companies into a diversified group," Jayadev Galla said.
The group has seven companies across the country with 12 manufacturing units. It expects its exports to grow 15 per cent from the current 10-12 per cent over the next 2-3 years.