Amara Raja Batteries Limited has said it will be rebranding itself as Amara Raja Energy and Mobility Limited (ARE&M). The company said the strategic change underscores its commitment to its new role as a comprehensive solutions provider in the energy and mobility sector.
Following the news, shares of Amara Raja Batteries rose at the bourses. At 11.10 AM, shares of Amara Raja Batteries were trading at Rs 641.80, up by 0.49 per cent.
Amara Raja Batteries, now Amara Raja Energy and Mobility, is an energy and mobility enterprise and one of the largest manufacturers of energy storage products for both industrial and automotive applications in the Indian battery industry.
It is the preferred supplier to major telecom service providers, telecom equipment manufacturers, the UPS sector (OEM & Replacement), Indian Railways and to the power, oil & gas, among other industry segments, according to a regulatory filing by the company to the stock exchanges.
Amara Raja Energy & Mobility Limited (ARE&M) offers a range of solutions and products, encompassing Automotive Batteries, Industrial Batteries, Battery Energy Storage Solutions, Lithium-Ion Cell Manufacturing, a wide array of EV Chargers, Li-ion Battery Pack Assembly, Renewable Energy Storage Solutions, Battery Management Systems, and Lubricants.
The company said the rebranding marks the culmination of a two-year journey aimed at transitioning from a battery manufacturer to a comprehensive solutions provider in the Energy and mobility sector.
The company’s new approach will be anchored on two pillars: maximising value in the existing Lead-Acid battery business channel along with related products, and fostering the growth of the New Energy Business.
A subsidiary, Amara Raja Advanced Cell Technologies Private Limited (ARACT) was established in November 2022 to house the Li-ion initiatives, as part of which the company is setting up a 16Gwh Gigafactory for manufacturing cells and battery packs, and a state-of-the-art collaborative R&D facility called the E Positive Energy Labs.
Last month, Amara Raja Batteries reported profit before tax of Rs 258.35 crores for Q1 FY24 registering a growth rate of 46 per cent over Q1 of FY23. The Earnings Per Share (EPS) for Q1 of FY 24 is at Rs 11.27.
The revenue growth was aided by healthy volume growth registered in the automotive after-market as well as from the telecom and UPS segments.
The battery manufacturer's revenue from operations during the first quarter of current fiscal stood at Rs 2,795.51 crore, registering a growth of 14 per cent, compared to Rs 2,620.53 crore in the year-ago period.
The company said the revenue growth was aided by strong volume growth registered in the automotive after-market as well as from the telecom and UPS segments.
“We have witnessed significant growth in revenue and profits quarter on quarter, which is a direct testament to the customer's trust in our product's quality and reliability. With our rapid movement in the Li-ion initiatives, we are poised for a strong future," said Jayadev Galla, Chairman and Managing Director, Amara Raja Batteries.
The company is a leading manufacturer of automotive batteries under the brands Amaron and PowerzoneTM, which are distributed through a large Pan-India sales & service retail network. It supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors.
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