Vijayanand revealed that the company would also be applying for the production-linked incentive (PLI) scheme for ACC batteries
Battery manufacturer Amara Raja Batteries is looking to grow its battery business further with a key focus on energy storage systems as it plans to infuse about USD 1 billion in the next five to seven years towards capex to be spent for both organic and inorganic growth.
S Vijayanand, President, New Energy wing of Amara Raja said that keeping in mind the current market trend, the company would be focusing more on the new-age energy storage systems such as Lithium-ion Technology as the market for lead-acid batteries begins to wear off.
Vijayanand revealed that the company would also be applying for the production-linked incentive (PLI) scheme for ACC batteries, which was approved by the Centre in May with an estimated outlay of Rs 18,100 crore.
Vijayanand said Amara Raja has been making about Rs 400 to Rs 500 crore investment on capex and sustaining the existing businesses traditionally every year.
He further noted that Amara Raja is expecting 15 to 17 per cent growth in revenues in the next five years and hoped that it would become a USD two billion entity by then. Vijayanand said the future investments will be dependent on growth requirements and maker needs.
In June, the battery maker had announced energy and mobility as its strategic focus going forward to capitalise on emerging opportunities, adding that it will invest in new green technologies, including lithium-ion batteries, to capitalise on the fast-evolving trends in energy and mobility sectors.
It also announced the 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.
Amara Raja Batteries clocked Rs 7,150 crore revenues in FY21 registering Rs 647 crore net profit.
