Amara Raja Gives Green Signal for a New Plant in Telangana

Amara Raja Advanced Cell Technologies, a subsidiary of Amara Raja Energy & Mobility, is planning a major expansion of its battery manufacturing operations. The company’s board of directors has approved an investment of Rs. 2,320 crore for this purpose. With the proposed expansion, the annual battery production capacity at its plant in Telangana’s Amara Raja Giga Corridor will increase from the existing 4 gigawatt-hours (GWh) to 9 GWh.

As part of the expansion, the company will also establish a new lithium iron phosphate (LFP) cell manufacturing facility. Amara Raja has stated that all the expansion activities are expected to be completed within 30 months. In addition, the board has approved an investment of Rs. 100 crore in Amaron Assist Private Limited, a subsidiary established to provide automotive services. These investments are expected to strengthen the company’s battery manufacturing and automotive services businesses.

Meanwhile, Amara Raja Energy & Mobility reported a decline in its net profit for the second quarter ended September. On a consolidated basis, the company recorded revenue of Rs. 4,109 crore and a net profit of Rs. 153 crore. Compared with the corresponding quarter of the previous financial year, revenue increased by 18.5%, while net profit declined by 44.8%, mainly due to higher expenses. Despite the decline in profit, the board recommended an interim dividend of Rs. 4.30 per share. Shareholders whose names appear in the company’s records as of the 6th of this month will be eligible to receive the dividend.