Amara Raja Batteries shares gain on plans to expand into two-wheeler market

Shares of Amara Raja Batteries Limited (ARBL) gained 2 percent to Rs 627 in early trade on August 17. The company plans to expand into the two-wheeler electric vehicle (EV) market as part of a target to triple its lithium-ion business this financial year, according to a recent report by Reuters.

The battery-maker, which currently has customers only in the three-wheeler EV market, gets about 2.5 percent of its revenue from its lithium-ion battery business, and the rest of the chunk originates from its flagship lead acid storage battery-making unit.

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The company, which owns the Amaron battery brand, aims to penetrate into two-wheeler EV market first with chargers and eventually through battery packs as it expands its so-called ‘new energy’ segment.

“This year, we’re looking to grow very aggressively, that is almost going to be three times of last year,” Executive Director Vikramadithya Gourineni told Reuters in an interview last week.

In the first quarter, the company reported a 46 percent spike in net profit at Rs 192 crore for the April-June quarter. The battery manufacturer posted 14 percent surge in revenue from operations to Rs 2,79 crore for the first quarter as against the Rs 2,620 crore reported last year.

ARBL, the flagship company of the Amara Raja Group, is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

The company has prestigious original equipment manufacturers like Maruti Suzuki India Limited, Hyundai Motors India Limited, Ford India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, and many more as its clients. Its industrial and automotive batteries are exported to 32 countries across the globe.

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