Calcutta, May 26: Amara Raja Batteries Ltd (ARBL) has planned to invest Rs 70 crore in two phases to set up an automotive battery manufacturing facility at Tirupati in Tamil Nadu.Construction of this fully integrated facility is scheduled to begin in June 1999 and will be completed by the third quarter of 2000, according to a company release.
The plant will have an installed capacity of one million units in first phase that will be doubled during 2003-2005. This plant is expected to commence production in September 2000.
Chairman and managing director of ARBL, Raja Ramachandran N Galla said that the company's strategic alliance with Johnson Controls Inc of USA, the largest manufactureres of lead acid batteries in north America, has given it access and OEM relationships in the SLI battery segment.
A Fortune 500 company, Johnson Controls is a leading player in automotive systems and building controls worldwide. ARBL posted a 29 per cent growth in sales in 1998-99 over the previous fiscal. The netearnings of the company stood at Rs 43.89 crore translating into an increase of 40 per cent over the financial 1997-98.
The battery major at present supplies its batteries to Ford, General Motors for their Opel diesel cars and Mercedes Benz `E' class vehicles. ARBL is also targetting major exports to south Asia and Weast Asia for VRLA batteries in the current year and plans to emerge as the leading player in the Indian Ocean rim, the statement said.
ARBL was the first company in the country to manufacture maintainence-free valve-regulated lead acid (VRLA) batteries for industrial applications. ABRL's partnership with JCI covers the areas of R&D, product and manufacturing technology and best business practices.
At present, Johnson Controls of US holds 23 per cent equity stake in Amara Raja. According to Galla, "The ARBL-JCI relationship is built on a shared commitment to excellence and innovation and similar customer orientation. ARBL is committed to being at the forefront of technology and fosteringlong term growth of the Indian economy."
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.