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

India-based Amara Raja Batteries is running operations at near 100pc capacity post the easing of COVID-19-related lockdowns. The company raised its manufacturing capacities while conforming to a new set of working guidelines amid the pandemic. 


“Manufacturing facilities are running at near 100pc capacity utilization to meet the demand. Post COVID-19, demand for industrial and automotive batteries ramped up for which the company had to increase capacity to cater to the consumers,” said S. Vajayanand CEO Amara Raja Batteries.


Demand from automotive segment, including both OEM and aftermarket rose steeply with vehicle production recovering each month to refill dealer inventories and gear up for the festive season, said Amara Raja. An increase in two-wheeler purchases and entry level passenger vehicles also resulted in increased demand for batteries. 


Telecom and commercial UPS segments’ demand increased too on the back of enhanced priorities to keep data networks up and running to 100pc. Amara Raja also upped their exports of auto batteries and industrial batteries as economies started to recover across geographies. 


The company’s capacity expansion plans were hindered in the past quarter due to COVID-19 restrictions. The company said that they are working on de-bottling supply chain constraints which still exist but will be managed in the coming months. 


In Q2, Amara Raja posted a 14pc increase in operational revenues at Rs19.23bn ($0.262bn) from the year prior driven by healthy demand for batteries across consuming sectors and increased exports. The company’s net profit fell by 8pc to Rs2.02bn from the prior year. 



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