For those who'd like to delve into our past, a trip down the archives of media memory lane.

Year
Month  




<< Back

Amara Raja 9 months Net Sales up 60 %, PAT up 117%
Board clears investment proposal to manufacture two wheeler batteries


Chennai, 31 January, 2007 - Industrial and Automotive Battery major Amara Raja Batteries Limited (BSE Code: 500008 & NSE Code: AMARAJABAT) today announced plans to manufacture two wheeler batteries and small VRLA batteries for UPS applications. The Board of Directors have approved the investment proposal in this regard. The investment would be Rs.1134 million spread over 3 years. The proposed phase 1 of the two wheeler battery capacity will come up in its existing facility near Tirupati and on completion will have 5.74 million capacity per annum. The product roll out is slated for the 2nd quarter of next fiscal.

“Customers and channel partners have been eagerly awaiting our plans to enter the two wheeler battery market. We will be leading with technology in this segment too. The advanced technology platform will be generations ahead of existing products and will enhance the Innovation Leader image of Brand Amaron,” said Mr. Jayadev Galla, Managing Director.

The Company also announced 60% and 117% growth respectively in top line and bottom line for the 9 months period ending 31 December 2006 at Rs. 4027.04 million (2520.73 million) and Rs. 318.15 million (146.57 million).

The Q3 net sales stood at Rs.1463 million (977.71 million) and PAT at Rs.97 million (68.69 million). Quarter on quarter, the Topline has grown by 50% while PAT rose 41%.Speaking on the company’s performance, Mr Jayadev Galla said, “We have been actively tapping into the soaring demand from both the industrial and automotive segments which has resulted in consistent and better-than- industry-average growth over the last 7 quarters. Our continued focus on improving efficiencies across the enterprise has also paid off.”
Rs. in million
  Qtr Ended Nine Months Ended FY 2005-06
31-Dec-06 31-Dec-05 31-Dec-06 31-Dec-05
Gross Sales 1845.35 1206.54 5036.99 3098.01 4458.30
Net Sales 1462.58 977.71 4027.04 2520.73 3624.31
PBT 150.16 103.41 488.48 229.24 373.46
PAT 96.79 68.69 318.15 146.57 238.47

“We are keeping a close watch on the continuing rise in lead price in international markets. However, lead prices have been steadily climbing over the last two financial years. With strategic price rise and economies of scale, we have addressed this issue sufficiently well in the past and will continue to do so going forward also,” he added.

Mr. Ramachandra Galla, Chairman, said, “It is heartening to see that our ambitious growth plans are on the right track. When our two wheeler battery capacity is ready for commissioning, we are looking to replicate our success in this segment too. ”

Mr. Suresh K, Financial Controller, said, “Our capacity expansion is proceeding as per plan. We are also looking at increasing efficiencies feeding into the margin growth. ”

Speaking on the company’s performance, Mr Jayadev Galla said, “We have been actively tapping into the soaring demand from both the industrial and automotive segments which has resulted in consistent and better-than- industry-average growth over the last 7 quarters. Our continued focus on improving efficiencies across the enterprise has also paid off.”

“We are keeping a close watch on the continuing rise in lead price in international markets. However, lead prices have been steadily climbing over the last two financial years. With strategic price rise and economies of scale, we have addressed this issue sufficiently well in the past and will continue to do so going forward also,” he added.

Mr. Ramachandra Galla, Chairman, said, “It is heartening to see that our ambitious growth plans are on the right track. When our two wheeler battery capacity is ready for commissioning, we are looking to replicate our success in this segment too. ”

Mr. Suresh K, Financial Controller, said, “Our capacity expansion is proceeding as per plan. We are also looking at increasing efficiencies feeding into the margin growth. ”


The Company currently has a pan-India sales and service network with 140 franchisees, 99 PitStops and over 13000 active retailers. Amara Raja continues to focus on increasing export volumes – both in Industrial and Automotive.

About Amara Raja Batteries Ltd

Amara Raja Batteries Limited, an Amara Raja-Johnson Controls Company with 26% equity from Johnson Controls, is the technology leader in the Indian storage battery industry, manufacturing batteries for both Industrial and Automotive applications.

In India, Amara Raja is the preferred supplier to major telecom operators and equipment manufacturers, Indian Railways and a range of industry segments including Power, Oil & Gas and UPS applications. Amara Raja manufactures and sells automotive batteries under the brand name Amaron® which is distributed through a large pan-India sale-service retail network.

The company supplies automotive batteries under OE relationships to Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Mahindra & Mahindra, Maruti, Hyundai & Tata Motors. The company is an exclusive supplier to Daimler Chrysler, Ford and Swaraj Mazda. The Company’s Industrial and Automotive batteries are exported to APAC, Africa and the Middle East.

For the full year period ending March 2006, ARBL had recorded 66% growth in revenues at Rs 4.46 billion (Rs 2.68 billion in FY 2004-05). The PBT shot up by 175% to Rs 373.46 million and PAT 174% to Rs 238.47 million during the same period.

The company is listed on BSE and NSE.

Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise. Johnson Controls (NYSE: JCI), founded in 1885, is headquartered in Milwaukee, Wisconsin. Its sales for 2006 totalled US$ 32.24 billion.

Safe Harbour

Some of the statements in this news release that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our products, the highly-competitive market for the types of products that we offer, market conditions that could cause our customers to reduce their spending for our products, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.