Amara Raja Batteries Ltd (ARBL) on Monday announced energy and mobility as its strategic focus going forward to capitalise on emerging opportunities.
It announced expansion of lead acid batteries business and establishment of a new energy strategic business unit encompassing lithium cell and battery pack, EV chargers, energy storage systems, advanced home energy solutions and related products and services.
"The company is well poised to build on its strengths and create multiple new growth engines in new energy space," said Vice Chairman Jayadev Galla who is poised to become the new Chairman as Founder Chairman Ramachandra Galla has decided not to seek reappointment after 36 years at the helm.
The company's board of directors has also inducted gen-next leaders Harshavardhana Gourineni and Vikramadithya Gourineni as executive directors to actively drive the transition to 'Energy & Mobility' initiative.
S Vijayanand, with his proven track record of performance, will take charge as President (New Energy).
Jayadev Galla said the board unanimously believes new energy will provide substantial thrust over the coming decade. However, there remains a strong conviction on long-term potential of lead acid batteries business.
The vital role played by lead acid technology across a variety of applications provide significant growth opportunity in both the domestic and international markets. On the other hand, the emergence of lithium as an alternative energy storage technology opens up new and exciting growth opportunities.
"The ARBL board has decided to future-proof our business by repositioning ARBL as an energy and mobility player. The board believes that ARBL has to invest in a portfolio of businesses to maintain its technological and business leadership," he said in a statement.
ARBL said the government's Rs 18,000 crore production linked incentive (PLI) scheme for advanced chemistry cells provides a significant impetus for building a domestic supply chain for lithium and other advanced cell chemistries to serve the fast-growing EV and renewable energy sectors.
The company said it plans to invest in a bouquet of products and services to accelerate its transformation to an energy and mobility solutions provider.
In the quarter ended March, ARBL reported profit before tax of Rs 259 crore, up from Rs 178 crore in the year-ago period.
The company supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki and Tata Motors. Its industrial and automotive batteries are exported to countries in the Indian Ocean Rim.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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