Amara Raja Batteries gains on signing MoU with Telgana Govt

Amara Raja Batteries rose 1.28% to Rs 654 after the company signed a memorandum of understanding (MoU) with the Government of Telangana to setup research and manufacturing facilities for lithium-ion battery in Telangana.

Proposed facility situated at Mahbubnagar district in Telangana will have a Lithium Cell Gigafactory with ultimate capacity up to 16 Gigawatt hours (GWh) and a battery pack assembly unit up to 5 GWh. Over the next 10 years, the company intends to invest over Rs 9500 crore, after necessary approvals.

This facility will be equipped with advanced laboratories and testing infrastructure for material research, prototyping, product life cycle analysis and Proof of Concept demonstration.

Further it stated that this will cater to the development needs of the Amara Raja as well as to 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 commercial scale pilot plant and the first giga scale cell production facility.

On 3 November 2022 the company incorporated a subsidiary named Amara Raja Advanced Cell Technologies. 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.

Jayadev Galla, chairman & managing director, Amara Raja Batteries said, "This strategic partnership with the Government of Telangana is a giant leap for Amara Raja and will bring in the impetus for innovations in sustainable technologies for the whole region,in addition to generating employment opportunities.

Vikramadithya Gourineni, executive director, New Energy Business said This latest step is in line with the 'Energy & Mobility' roadmap that we laid out last year. Our ambition is to develop a robust Indian ecosystem with R&D, incubation, testing, and manufacturing - a Giga Corridor for emerging technologies in Energy and Mobility.

Amara Raja Batteries is one of the largest manufacturers of lead-acid storage batteries for industrial and automotive applications in India.

The company's consolidated net profit jumped 39.4% to Rs 201.22 crore on 19.3% rise in net sales to Rs 2,700.47 crore in Q2 FY23 over Q2 FY22.

Powered by Capital Market - Live News