This company signed MoU with Telangana state for the first lithium-ion battery gigafactory with an investment of Rs 9500 crore
Interestingly, the 1-month delivery volume has increased by 211.01 per cent and the stock is trading at PE (TTM) of 19.1 per cent with a dividend yield of 0.53 per cent
Amara Raja Batteries Limited (ARBL), one of India’s leading industrial and automotive battery majors, signed a memorandum of understanding (MoU) with the Government of Telangana to set up state-of-the-art research and manufacturing facilities for lithium-ion battery-making in Mahbubnagar district, Telangana. Over the next 10 years, the company intends to invest over Rs 9500 crore, after necessary approvals.
As the latest in its pivot to becoming an ‘Energy & Mobility’ enterprise, Amara Raja Batteries has chosen the State of Telangana to house the Amara Raja Giga Corridor. The initial facilities would include a first-of-its-kind advanced energy research and innovation centre in Hyderabad, dubbed the Amara Raja E-hub.
This facility will be equipped with advanced laboratories and testing infrastructure for material research, prototyping, product life cycle analysis and Proof of Concept demonstration. This will cater to the development needs of the Amara Raja as well as provide a range of facilities open to other players in the energy and mobility ecosystem.
Amara Raja envisions the E-hub to serve as a much-needed catalyst for multi-stakeholder collaboration and fostering entrepreneurship in these emerging sectors, in line with the ‘Atmanirbhar Bharat’ vision of the Government of India. In addition, as part of its journey towards Giga scale manufacturing of advanced cell technology products, Amara Raja would be establishing a commercial scale pilot plant and the first Giga scale cell production facility.
Towards this, the company had on November 03 2022 announced the incorporation of a subsidiary named Amara Raja Advanced Cell Technologies Pvt. Ltd. Amara Raja has been working on Li-ion cell chemistries specifically suited for Indian subcontinent conditions, and already supplies lithium battery packs and chargers to some 2 and 3-Wheeler OEMs.
Talking about the stock performance, the stock is up by 35.75 per cent since October till date, while the BSE Sensex is up by 10.71 per cent, which clearly indicates that the stock has outperformed the frontline gauge. Interestingly, the 1-month delivery volume has increased by 211.01 per cent and the stock is trading at PE (TTM) of 19.1 per cent with a dividend yield of 0.53 per cent.