Amara Raja to invest Rs. 700 crore for greenfield plant

The plant will be set up in three phases with a total capacity of 6.5 million units per annum. The company's board approved the plan which will be funded through internal accruals.

First phase of the automotive battery unit is scheduled to be completed in 18 month. The company will decide on the remaining phases based on prevalent market demand. On completion of the project, Amara Raja's existing capacity for four-wheeler battery will reach 17.00 million units per annum.

The company reported results for the quarter ended June 30, 2018 on Saturday. Net revenue for the quarter grew by 19 per cent at Rs. 1,779 crore as against Rs. 1,497 crore in Q1FY18. The company's Profit after tax (PAT) was at Rs. l13 crores Q1FY19 as compared to Rs 100 crores in Q1FY18, which is a growth of 13 per cent.

Reacting to the development, at 14:05 hours, the stock of Amara Raja Batteries was at Rs. 833.00 per share, up by 1.10 per cent on Monday, despite the benchmark index BSE Sensex trading in the red zone at 37,699.19, down 170.04 points or 0.45 per cent.