Indian lead-acid battery maker Amara Raja Batteries is to expand production of its automotive ‘four-wheeler battery’ lines from a new manufacturing plant on an undisclosed “greenfield site” in the country.
The company’s board gave the green light to invest the equivalent of nearly US$120 million in the project— which will have an annual production capacity of six-and-a-half million units.
Production will be “implemented in three phases, staggered over a period of time”, the company said in a National Stock Exchange of India filing. “The first phase is expected to be completed in the next 18 months. The remaining phases will be decided depending upon the then prevailing demand.”
Amara Raja said on completion of the greenfield project, “the existing capacity of four-wheeler battery production will increase to 17 million units per annum”.
The announcement came just days after the battery giant opened a trading base in the United Arab Emirates, and announced plans to consolidate all its businesses within a new corporate entity— RN Galla Family.
The company did not respond to requests for details about the location of the greenfield facility or batteries to be produced there. Amara Raja’s existing auto batteries portfolio includes a range of lead-acid products for the cars and trucks market.
MD Jayadev Galla (pictured) was quoted as telling The Hindu: “The economy of the country is poised to grow and provide opportunities for increasing production and consumption. In line with the growth and demand expectations, we are expanding capacities and adapting new technologies well in time.”