Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Amara Raja Batteries has shut two manufacturing plants in India’s southern state of Andhra Pradesh after receiving orders from the state’s Pollution Control Board (APPCB).


The battery maker is complying with the order and is working towards contingency plans to avoid the gap in battery supplies to its customers across the various segments including defence, hospitals and telecom. The order was received on April 30 while the company announced the same on May 1.


Amara Raja is in talks with the APPCB to avoid disruption in supplies to their largest clients operating in vital and sensitive sectors during the time of a pandemic, stated the company in a release. A supply disruption could have calamitous effects to essential services such as telecom.


The company claims all its manufacturing units have received awards for safety and environmental stability and observe the highest norms of health, safety and environment. The company remains hopeful of a satisfactory resolution with the APPCB.


The pollution control board’s contention is the company is responsible for severe pollution in villages surrounding its plants. The board officials have found high levels of lead in the blood samples of these villagers.


Amara Raja is India’s one of the largest lead-acid battery manufacturers serving industrial and automotive needs. Even a slight dip in Amara Raja’s production could hurt the demand for raw materials such as secondary lead ingot and in turn, lead batteries (drained) scrap in India. 

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