Amara Raja announces capex worth Rs. 700 crore

India’s largest supplier of industrial storage batteries and second largest automotive battery manufacturer, Amara Raja Batteries (ARBL), is looking to spend almost Rs. 700 crore for expansion of its capacity by setting up greenfield facilities at Chitoor, Andhra Pradesh. 

In the first phase, the company would be building facilities with capacity of around 6.5 million units. Later. it aims to ramp up this capacity to 10.8 million units, which would make it India’s largest facility under one roof. 

Last month, the company informed that it has collaborated with Johnson Controls Technology Company (JC), USA, for obtaining the licence for manufacturing advanced stamped grid plate making technology. Further, it also entered into technology collaboration agreement with JC which will enable the company to manufacture advanced lead acid batteries.  JC is the global leader in lead-acid automotive batteries and advanced batteries for start-stop, hybrid and electric vehicles. 

During Tuesday’s trading session, the stock of Amara Raja which opened at Rs. 769 was  trading on a positive note. At 15.05 hours, the stock was trading at Rs. 766, up by almost 0.5 per cent from previous close f Rs. 763.6.