Chennai, May 7, 2007 - Industrial and Automotive Battery major, Amara Raja Batteries, has launched a new retail store format – Powerzone- to cater to the growing need for better technology and better service at affordable price in the rural markets. The first Powerzone store was inaugurated today at Chengalpattu, in Tamil Nadu by Mr. Jayadev Galla, Managing Director, Amara Raja Batteries Limited. The local business partner is Mr. Yegnaraman, M/s.Motor Plazaa.

Powerzone will offer top quality automotive and power related products for the rural households and shops. It is a one stop shop offering a platter of products of global quality at local prices, right from automotive batteries, tractor batteries and home UPS, from the House of Amara Raja. The Company will be leveraging its expertise in lean management techniques, efficient network building and product innovation to bring in the economies for this venture.

Inaugurating the store, Mr. Jay Galla said, “The consumer in the rural markets is today a poor cousin to the urban consumer. He settles for the substandard, local offerings because of the higher price points. At Amara Raja, we have technology and expertise in batteries and inverters and Powerzone is the innovative concept that brings technology at the right price for the rural consumers.”

“Our target is to have at least one Powerzone outlet in every Taluk Head quarters in India in the next two years. The business model for Powerzone has in-built social responsibility components which result in two direct benefits in the local community. One, Powerzone brings a new self employment opportunity to the rural educated youth, who are constantly seeking better opportunities outside. Our franchisee model nurtures and supports entrepreneurial spirit to develop a vibrant business and non-migratory job opportunities. Two, Powerzone will also help reduce lead related pollution in the rural landscape which results from unregulated battery disposal,” he added.

50 Powerzone stores to be opened in one month

50 Powerzone stores will be opened in May 07 across the South, North and West India. The number will reach 500 stores by FY 2007-08. Powerzone products will be priced to match the unorganized sector offerings today. All the Powerzone stores will be connected through an information backbone to the central hub, for efficient planning, management and stocking. The Powerzone network of stores is a franchisee model offering a ready-to-roll packaged business fully supported by ARBL through investment in IT infrastructure, products and brand building, while the local business partner will bring in local infrastructure and product investment. Going ahead, Powerzone will also offer other power related products, which will be sourced from reputed international sources.

Beyond the metros and large cities, the retail consumer is more acutely in need of power solutions and is a frequent buyer of automotive and power related products, whether it is to run his tractor, power his home or his shop. Frequent power cuts add to this quest for alternative power solutions.

“With colourful display and world class products in a minimum area of 250 square feet, Powerzone is a concept which will bridge the urban-rural divide in product offerings and customer experience. It translates into customer comfort in 4 critical areas – One, the shopping experience, two, the price point, three, the comfort of buying a standardized product backed with the best-in-class technology and most importantly the comfort of access to reliable, after sales service network across the country,” elaborated, Mr. G Indeevar, Head, Automotive – Aftermarket, ARBL.

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