The Board of Amara Raja Batteries Ltd. (ARBL) has launched several strategic initiatives to take advantage of fast emerging new opportunities to accelerate growth and enhance stakeholder value. Driven by the transformative changes in its key markets and in keeping with its motto of ‘Gotta be a Better Way’, ARBL has announced ‘Energy and Mobility’ as the strategic focus for the Company going forward.
The company has announced an expansion of the Lead Acid Batteries business and the establishment of a New Energy SBU encompassing Lithium cell and battery pack, EV chargers, Energy Storage Systems, Advanced Home Energy Solutions and related products and services.
While the Board unanimously believes New Energy will provide substantial thrust over the coming decade, there remains a strong conviction on the long-term potential of the Lead Acid Batteries business. The vital role played by lead acid technology across a variety of applications provide significant growth opportunity in both the domestic and international markets.
On the other hand, the emergence of lithium as an alternative energy storage technology opens up new and exciting growth opportunities, the company said in the filing.
The stock is currently trading at Rs756.75 down by Rs0.7 or 0.09% from its previous closing of Rs757.45 on the BSE.
Speaking on the evolving ‘Energy & Mobility’ strategy, Vice Chairman, Mr. Jayadev Galla said: “After a careful review of the global business opportunities, the ARBL Board has decided to future-proof our business by repositioning ARBL as an Energy and Mobility player. The Board believes that ARBL has to invest in a portfolio of businesses to maintain its technological and business leadership. Over the years, we have built an active distribution network, customer trust and relationship with clear emphasis on maximizing value within lead acid technology. The Company is now well poised to build on these strengths and create multiple new growth engines in the New Energy space.”
The Board has agreed that the Company should continue to invest and expand the Lead Acid Batteries business in which the Company is a significant player in many customer segments. The new strategy, aimed at tapping opportunities in home inverter, motive power and unorganized segments, is expected to further consolidate the Company’s existing strengths and market share. The Company believes that the Lead Acid Batteries business will continue to grow in India owing to the buoyant demand from automotive, industrial, telecom and new emerging segments like data centres, the company added.
ARBL will further invest in advanced process technologies to maintain its technological edge as well as recycling to enhance critical raw material security and expand its commitment to environmental responsibility. The Company also hopes to pursue inorganic opportunities available in the market to bolster its leadership position. ARBL is confident that these initiatives will result in higher growth rates, increased market share and enhanced stakeholder value.
Source: indiainfoline.com
