Indian manufacturer, Amara Raja Batteries plans to set up a greenfield lead recycling unit with an annual capacity of 100,000mt. In Q3, Amara Raja Batteries’ recorded Profit Before Tax (PBT) of Rs2.60bn ($35.81mn), up by 20pc from the prior-year quarter, as per the company release.
The planned lead recycling unit is a part of the company’s strategy of increasing lead procurement. The plant would comply with recycling standards in an environment-friendly manner and consist of advanced technology. The project entails an investment of Rs2.8bn over the next 18 months.
The company management states that the Indian economy and the segments that the company works with recovered well in the quarter with the announcement of PLI schemes. These schemes are likely to push the growth of e-mobility and renewable energy markets.
Amara Raja Batteries’ automotive segment growth was driven by consistent growth in OEM and downstream market segments. Exports also improved and registered healthy growth. Telecom and commercial UPS segments grew in Q3, stated the company. It ramped up manufacturing to the optimum utilization levels across all segments.
Amara Raja supplies automotive batteries to major auto manufacturers including Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The company’s industrial and automotive batteries are exported to countries in the Indian Ocean Rim.
Amara Raja’s revenues from operations grew by 12pc to Rs19.60bn in the December quarter compared to the previous year. Demand uptick resulted in a strong balance sheet growth.
($1 = Rs72.6)