The company is also in the process of enhancing its capacity from the current level of two million units per annum to four million units in a phased manner.

Talking to The Financial Express, company executive director Jay Galla said Amara Raja, co-promoted by the Galla group and the Johnson Controls Inc of the US, which is the second largest automotive battery manufacturer in the world with a turnover of over $1.6 billion, has readied a technology update plan by making a major push in the R&D front. The company would be groomed as a `Centre for Excellence' in the automotive battery technology by investing a substantial amount for technology update and innovative research. As part of this, the company is setting up a Battery Technology Centre in its plant in Tamil Nadu.

He said, the new initiative is part of a global strategy worked out by the Johnson Controls and its associate companies around the world. As per the plan, ARBL would undertake research and development work for its own requirement as well as for the Johnson Inc. He said the company is currently spending 2 per cent of its income from sales on its R&D units. "This would be increased substantially in the coming days as part of the new plan", Mr Galla said.

He said, the company would commission its new assembly line with a capacity of two million units per annum in the current fiscal. The plant, he said, would be further updated to four million capacity by adding one million capacity each in a phased manner, he added.

He said, the expansion work has been funded by cash raised from issuing preference shares to the promoters. Both the Galla family and the Johnson Inc have got the shareholders nod to hike their stake by 3 per cent to 26 per cent each recently. The post-preference issue share shareholding of the company would be 26 per cent each for both the promoters while the rest lies with the public.

He said the company supplies batteries to car, multi-utility and light commercial vehicles. The company has also plans to make battery for commercial vehicles in the future. Mr Galla said the company expects to improve its turnover and market share in this fiscal and is looking at a turnover close to Rs 160 crore.