Amara Raja Sees Gains From Johnson Controls German Buy

Amara Raja Batteries, the Tirupati-based industrial and automotive batteries manufacturer, hopes to gain from the acquisition of German firm Hoppecke Automotive Gmbh by Johnson Controls Inc of the US.

Amara Raja has a strategic alliance with Johnson Controls. The acquisition, which is likely to be concluded by October 1, 2001, will provide Johnson Controls with new battery technology called Vlies.tec.

Amara Raja Batteries in a press release said that the Vlies.tec is a core technology in the emerging 42-volt vehicle electric systems, which will become a dominant automotive standard in the years ahead.

"As a result of the acquisition, Amara Raja will have access to new battery technology, anticipated to cover the broadest range of cycling requirements for high voltage automobiles. Vlies.tec technology also provides more power and longer life than traditional batteries," the release added.

 

Hoppecke Automotive manufactures automotive batteries for DaimlerChrysler, Ford, MAN, Peugeot, Volkswagen and other automakers in Europe.

Amara Raja Batteries, on the other hand, is part of a global supply alliance that includes Johnson Controls Inc, Varta AG of Europe and Enertec of Mexico. Johnson Controls holds 26 per cent stake in Amara Raja Batteries.

"We are pleased with the agreement between Hoppecke Automotive and Johnson Controls. Hoppecke's intelligent battery management systems will enable us to be on the forefront of the industry conversion to 42-volt automotive systems," said Ramachandra N Galla, the chairman & managing director of Amara Raja Batteries.