Changes for page Amara Raja Batteries Ltd
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... ... @@ -16,81 +16,47 @@ 16 16 17 17 The battery plants are located at Karakambadi and Amara Raja Growth Corridor(ARGC) in Chittoor District, Andhra Pradesh, India. The Karakambadi manufacturing facility consists of three plants (4 Wheeler, 2 Wheeler and LVRLA). While the ARGC facility consists of four plants (4 Wheeler, 2 Wheeler, Tubular and MVRLA). Together these plants contribute to the growing volumes of Amara Raja Batteries Ltd. 18 18 19 += Business Overview = 19 19 21 +== Automotive Batteries == 20 20 21 -Business Overview23 +Amara Raja Automotive Batteries offers a wide range of battery solutions in Passenger Vehicles, Three Wheelers, Two Wheelers, Commercial Vehicles, Farm Vehicles, and Home UPS/Inverters. Amara Raja Batteries Limited(ARBL) is the first company to manufacture Valve Regulated Lead-Acid (VRLA) batteries in India. They are engineered to provide performance reliability and consistency over the life of the product and they offer a long battery life with minimal maintenance in most demanding applications.{{footnote}}https://www.amararajabatteries.com/Business/Automotive{{/footnote}} 22 22 23 -Automotive Batteries 24 - 25 -Amara Raja Automotive Batteries offers a wide range of battery solutions in Passenger Vehicles, Three Wheelers, Two Wheelers, Commercial Vehicles, Farm Vehicles, and Home UPS/Inverters. Amara Raja Batteries Limited(ARBL) is the first company to manufacture Valve Regulated Lead-Acid (VRLA) batteries in India. They are engineered to provide performance reliability and consistency over the life of the product and they offer a long battery life with minimal maintenance in most demanding applications.{{footnote}}https://www.amararajabatteries.com/About{{/footnote}} 26 - 27 -[[https:~~/~~/www.amararajabatteries.com/Business/Automotive>>url:https://www.amararajabatteries.com/Business/Automotive]] 28 - 29 - 30 30 Amara Raja Automotive Batteries are built to the highest competence in its class. The flagship brand of Amara Raja Batteries, Amaron, is well known for its Zero Maintenance, Extended Warranty, High Cranking Power and Enhanced Safety. The company's products are manufactured at its ISO/TS-16949, ISO-14001 and BH OHSAS-18001 certified manufacturing facilities in Tirupati. The epitome of quality, the ISO:9001 certified ARBL manufacturing plants render batteries with Higher cyclic life, Superior discharge performance, Lower self-discharge rates, explosion resistant, factory charged and eco-friendly batteries ARBL the most preferred battery manufacturing company in over 32 countries across the globe. 31 31 27 +== Industrial Batteries == 32 32 33 -Industrial Batteries 29 +Amara Raja Industrial Batteries offers a broad range of battery solutions in segments like UPS, Telecom, Railways, Defence and Motive. Amara Raja Batteries Limited(ARBL) is the first company to manufacture Valve Regulated Lead-Acid(VRLA) batteries in India. They are engineered to provide the performance reliability and consistency over the life of the product and they offer a long battery life with minimal maintenance. The VRLA products fit virtually anywhere and provide superior performance in the most demanding applications.{{footnote}}https://www.amararajabatteries.com/Industrial/{{/footnote}} 34 34 35 -Amara Raja Industrial Batteries offers a broad range of battery solutions in segments like UPS, Telecom, Railways, Defence and Motive. Amara Raja Batteries Limited(ARBL) is the first company to manufacture Valve Regulated Lead-Acid(VRLA) batteries in India. They are engineered to provide the performance reliability and consistency over the life of the product and they offer a long battery life with minimal maintenance. The VRLA products fit virtually anywhere and provide superior performance in the most demanding applications.{{footnote}}https://www.amararajabatteries.com/About{{/footnote}} 36 - 37 -[[https:~~/~~/www.amararajabatteries.com/Industrial/>>url:https://www.amararajabatteries.com/Industrial/]] 38 - 39 39 Amara Raja Industrial Batteries are built to the highest competence in its class. They are fail-safe and fool-proof battery technology manufactured at its premium manufacturing facility. The epitome of quality. an ISO:9001 certified ARBL manufacturing plant render batteries with Higher cyclic life, Superior discharge performance, Lower self-discharge rates, Explosion resistant, Factory charged and Eco-friendly batteries with a floating life of 10 plus years making ARBL, among the most preferred battery manufacturing company in over 32 countries across the globe. 40 40 33 +**Applications** 41 41 42 -Applications 35 +* UPS 36 +* Telecom 37 +* Solar 38 +* Railways 39 +* Motive 40 +* International Operations 41 +* Defence 43 43 44 - .43 +**Products** 45 45 46 -UPS 45 +* PowerStack 46 +* AMARON SLEEK 47 +* AMARON VOLT 48 +* GENPRO 49 +* AMARON QUANTA 50 +* AMARON QUANTA-HWS 51 +* AMARON QUANTA-HUPS 52 +* AMARON Brute 53 +* AMARON Solar 54 +* AMARON Quanta S-XEL 47 47 48 - Telecom56 += Industry Overview = 49 49 50 - Solar58 +The lead-acid battery industry has been in existence for more than 150 years, but the ubiquitous technology displays remarkable traction even today.{{footnote}}https://www.amararajabatteries.com/images/investors/annual-reports/ARBL%20Annual%20Report%202019-20%20double%20spread.pdf{{/footnote}} 51 51 52 -Railways 53 - 54 -Motive 55 - 56 -International Operations 57 - 58 -Defence 59 - 60 - 61 - 62 -Products 63 - 64 -. 65 - 66 -PowerStack 67 - 68 -AMARON SLEEK 69 - 70 -AMARON VOLT 71 - 72 -GENPRO 73 - 74 -AMARON QUANTA 75 - 76 -AMARON QUANTA-HWS 77 - 78 -AMARON QUANTA-HUPS 79 - 80 -AMARON Brute 81 - 82 -AMARON Solar 83 - 84 -AMARON Quanta S-XEL 85 - 86 - 87 -Industry Overview 88 - 89 - 90 -The lead-acid battery industry has been in existence for more than 150 years, but the ubiquitous technology displays remarkable traction even today.{{footnote}}https://www.amararajabatteries.com/About{{/footnote}} 91 - 92 -[[https:~~/~~/www.amararajabatteries.com/images/investors/annual-reports/ARBL%20Annual%20Report%202019-20%20double%20spread.pdf>>url:https://www.amararajabatteries.com/images/investors/annual-reports/ARBL%20Annual%20Report%202019-20%20double%20spread.pdf]] 93 - 94 94 With a proven arrangement for reliable and low-cost energy storage, lead-acid battery plays an important role in its day-to-day life. 95 95 96 96 Growth in the lead-acid battery market is led by increasing industrialization and urbanization, rising inclination towards green energy sources. There has been significant technological advancements to push the performance boundaries of lead acid batteries enabling their deployment in new and merging application segments. While lithium ion batteries have built a remarkable presence in EVs and grid scale energy storage application, lead-acid batteries continue to stay ahead in terms of production costs, adoption and recycling – lead-acid batteries are 99% recyclable – making them the biggest contender for affordable energy storage solutions. ... ... @@ -103,16 +103,14 @@ 103 103 104 104 Stationary lead-acid batteries are more efficient in storage of energy obtained from renewable sources like wind and solar and are more suitable installations in offshore and onshore platforms to store, supply and direct electric power as per requirements. 105 105 106 -The sectoral structure 72 +== The sectoral structure == 107 107 108 108 The Indian lead-acid battery industry is split equally between the automotive segment and the nonautomotive segment. The industry is divided into three segments: (a) Organized segment – controlled by five manufacturers, (b) SME segment and (c) SSI segment. Given the high share of replacement demand for sectors like automotive, home inverter, UPS and traction, the share of unorganized/semiorganized players is high. To beat the increasing competition, the organized players are promoting more and more entry-level brands at competitive pricing and shorter warranty periods and are expanding their distribution network in the semi-urban and rural markets. This should help raise their share in the overall battery market. 109 109 76 += Business Segments = 110 110 111 - BusinessSegments78 +== Automotive Battery division == 112 112 113 - 114 -Automotive Battery division 115 - 116 116 Amaron, the flagship Amara Raja offerings that have transformed the automotive battery space in India. 117 117 118 118 The Tirupati and Chittoor manufacturing facilities are benchmarked to the ISO/IATF 16949, ISO 14001, OHSAS 18001 and EnMS 50001 standards. ... ... @@ -121,10 +121,8 @@ 121 121 122 122 Over the years, Amara Raja has set up an entrenched distribution network comprising 30,000- plus Amaron and PowerZone retailers for a pan-India reach. This distribution edge has helped the Company sustain its competitive dominance in the aftermarket segment. 123 123 88 +=== Passenger vehicles === 124 124 125 - 126 -Passenger vehicles 127 - 128 128 India was the favourite destination of multinational car manufacturers before the slowdown. The annual sales of passenger vehicles were increasing consistently through the last five years. India was expected to overtake Japan and Germany and emerge as the third-largest global car market after the US and China. But the slowdown in the automobile sector has changed the scenario. The downslide for this segment started in July 2018 and continued ever since. 129 129 130 130 Sales of passenger vehicles, comprising cars, utility vehicles and vans, suffered a 17.8% degrowth visà-vis the 2018-19 sales. According to SIAM, cumulative PV sales in 2019- 20 stood at 2,775,679 units, dipping below the 3-million-unit mark for the first time since 2016-17. While passenger car volumes slipped over 23%, utility vehicle sales grew by 0.48% on the back of by launches like the Kia Seltos and MG Hector. ... ... @@ -137,19 +137,15 @@ 137 137 138 138 Aftermarket: In India, about 2.5–3 million vehicles are sold every year over the last 4-5 years. This provides a large and growing aftermarket opportunity for batteries. In addition to being a large market, it is a lucrative space for the following reasons: 139 139 140 -. 102 +* B2C nature of business 103 +* Better pricing power with diffused customer base 104 +* Demand for higher quality and performance 141 141 142 -B2C nature of business 143 - 144 -Better pricing power with diffused customer base 145 - 146 -Demand for higher quality and performance 147 - 148 148 With cities getting increasingly congested, growing vehicle population and the government imposing emission norms, the start-stop-start action of vehicles is expected to increase which will strengthen the demand for quality batteries in the aftermarket segment. India is the fifth largest car market in the world . India’s continuous rise in the league will strengthen the aftermarket segment battery demand over the medium term. 149 149 150 150 In the immediate near-term, battery makers could witness replacement demand driven by an upsurge in the aftermarket demand for replacement of old and discharged batteries. 151 151 152 -Two-wheelers 110 +=== Two-wheelers === 153 153 154 154 The shaky macro-economic environment in the country saw two-wheeler volumes falling by 17.76% from 21.18 million units in 2018-19 to 17.42 million in 2019-20. Exports provided a silver lining to the prevailing gloom growing by more than 7% over the previous year. 155 155 ... ... @@ -161,30 +161,29 @@ 161 161 162 162 Aftermarket: India is one of the largest two-wheeler market in the world, adding more than 15 million vehicles annually to the wheelson-the-street inventory for the last 3-4 years. Between 2012 and 2018, over 124 million bikes were sold in the country, creating a huge aftermarket opportunity. 163 163 164 -E-mobility 122 +=== E-mobility === 165 165 166 166 The Union government is trying to encourage the adoption of electric mobility to reduce the dependence on crude oil imports and bring down pollution across cities. With its cleaner carbon footprint and reduced localised pollution, e-mobility can serve as a solution. 167 167 168 168 Though the Indian Government laid out a broad plan in 2013 with the ‘National Electric Mobility Mission Plan (NEMMP) 2020’, e-mobility has seen better traction in the recent times with the Phase 2 of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles) rolled out on 1st April 2019. The second phase aims at boosting electric mobility and increasing the number of electric vehicles in commercial fleets. This includes buses using EV technology, electric, plug-in hybrid, and strong hybrid four-wheelers as well as electric three-wheelers including e-rickshaws and electric two-wheelers. It also focuses on the establishment of charging infrastructure across multiple cities. 169 169 170 -E-rickshaws 128 +=== E-rickshaws === 171 171 172 172 The Indian electric rickshaw market has witnessed significant growth in recently, owing to rising environmental awareness, government incentives and implementation of stringent regulations to curb environmental degradation. 173 173 174 174 Analysing the dominance of electric rickshaws, which cover 80% of the EV market in India, Frost and Sullivan has said in a recent report that e-rickshaws in India will grow to 1 million units by FY2025 from 0.4 million in FY2019. Around 72% of the electric rickshaws plying on Indian roads providing last mile mobility solutions to in Tier II and III cities, are 0-2 years old and approximately 98% of them are powered by lead acid batteries. It presents an interesting opportunity for it. 175 175 176 -Business strategy 134 +=== Business strategy === 177 177 178 178 The automotive battery business has developed preferred brands like Amaron and PowerZone. Both the brands have garnered significant market share and continue to acquire more. The brands operate in market segments of automotive, two-wheeler and inverter batteries. 179 179 180 180 The automotive battery business has drawn up a roadmap designed to sustain its growth momentum over the medium term. It covers geographic expansion, new products and applications, and new technologies and processes. 181 181 140 += Industrial Battery Division = 182 182 183 -Industrial Battery Division 184 - 185 185 The Company largely handles the business on B2B basis to serve customers like telecom operators, tower companies, UPS OEMs, power utilities and solar integrators. The Company has a strong distribution network covering 130 AQuA channel partners across the nation to serve the replacement markets of UPS batteries. The sales team is aptly supported by a network of 120 SWEAR service partners in addition to its own personnel. 186 186 187 -Batteries for telecom sector 144 +=== Batteries for telecom sector === 188 188 189 189 India’s telecom sector, which has been grappling with huge debts and massive regulatory headwinds for the past few years, has received investments of more than C1.42 lakh crore in the last six months. All the four mobile operators have received some form of funding, which indicates that the investor confidence has not waned out. 190 190 ... ... @@ -192,21 +192,21 @@ 192 192 193 193 Telecom networks are clearly at the heart of Amara Raja’s digital future. While most sectors are saddled by terrible slump in business, telecom is slated to grow by 15-20% even in the midst of the economic slowdown. As data usage skyrockets, focus to improve rural coverage and launch of 5G can increase the power requirement at towers. 194 194 195 -Batteries for UPS applications 152 +=== Batteries for UPS applications === 196 196 197 197 India’s UPS market size is around $1 billion and it is expected to continue growing because of the digital transformation sweeping through the country. 198 198 199 -Data Centers: A move toward a connected, inclusive digital economy means more and more data is being generated across various platforms as well as accessed by more people using mobile technology. Data centers have started making big strides with the spurt in data consumption. The cloud computing and edge data center technologies are increasingly being adopted across businesses as well as consumers adding to the demand for batteries. 156 +**Data Centers:** A move toward a connected, inclusive digital economy means more and more data is being generated across various platforms as well as accessed by more people using mobile technology. Data centers have started making big strides with the spurt in data consumption. The cloud computing and edge data center technologies are increasingly being adopted across businesses as well as consumers adding to the demand for batteries. 200 200 201 -Mobile telephony: Improved device penetration, affordable data tariff plans and increased data-intensive content such as videos are driving the growth of mobile telephony in India. Mobile data traffic is growing as more Indians spend time streaming videos, which is expected to account for 75% of the overall mobile traffic by 2024. Estimates suggest that the total mobile data traffic per month will record a CAGR of 23% from 4.6 exabytes in 2018 to 16 exabytes in 2024. 158 +**Mobile telephony:** Improved device penetration, affordable data tariff plans and increased data-intensive content such as videos are driving the growth of mobile telephony in India. Mobile data traffic is growing as more Indians spend time streaming videos, which is expected to account for 75% of the overall mobile traffic by 2024. Estimates suggest that the total mobile data traffic per month will record a CAGR of 23% from 4.6 exabytes in 2018 to 16 exabytes in 2024. 202 202 203 203 India’s IT industry contributed around 7.7% to the country’s GDP and is expected to contribute 10% to the GDP by 2025. 204 204 205 205 The government initiative to computerize its various departments coupled with the National e-Governance Plan is expected to boost the demand for low-end UPS systems. Infrastructure push on Airport expansions, Metro Rail, smart cities, and banking, financial services and insurance (BFSI) are adding fuel to the UPS business growth in India. 206 206 207 -Manufacturing Sector: with increased impetus to local manufacturing and intensifying focus on pharma, chemical and food processing sectors, India is expected to rank among the top three growth economies and manufacturing destinations of the world. 164 +**Manufacturing Sector:** with increased impetus to local manufacturing and intensifying focus on pharma, chemical and food processing sectors, India is expected to rank among the top three growth economies and manufacturing destinations of the world. 208 208 209 -Batteries for Solar and Energy Storage Sector 166 +=== Batteries for Solar and Energy Storage Sector === 210 210 211 211 The government’s earlier RE targets of 175GW which was further enhanced to 450 GW by 2030 as announced by the Hon’ble Prime Minister will significantly drive the demand for energy storage systems in India. 212 212 ... ... @@ -216,7 +216,7 @@ 216 216 217 217 Behind the meter requirement of energy storage at residential, commercial and industrial locations is expected to witness faster adoption with the likely introduction of differential tariffs will further drive growth in the energy storage needs. 218 218 219 -Batteries for motive power 176 +=== Batteries for motive power === 220 220 221 221 Unlike developed economies, the usage of Fork Lifts/Pallet Trucks in India has been limited owing to traditional practice of usage of labor for goods movement as well as very little adoption of palletization. 222 222 ... ... @@ -226,24 +226,23 @@ 226 226 227 227 The adoption of electric vehicles for forklift will continue to grow with more and more conversion of diesel vehicles to electric vehicles, adding to the battery requirements. Among most of the emerging regions of the world, the adoption of lift trucks per million people is very low and it is significantly low in India at approximately 10 lift trucks per million as against 273 in China and 693 in North America. This certainly offers a huge legroom for growth in the Indian market. 228 228 229 -International markets 186 +=== International markets === 230 230 231 231 Increased preference for Indian engineering products in the global markets and rapid adoption of successful business models of India in segments like telecom (tower companies, fixed energy cost model) UPS (India as a manufacturing base for global markets) and the renewable energy storage are set to offer tremendous opportunities. 232 232 233 233 Close on the actions initiated by the Chinese government a few years back to ensure HSE measures in manufacturing and reduced play in global requirements of lead acid batteries, India has turned out to be a preferred destination for sourcing, apart from Vietnam. The undeniable fact of India being a significantly large captive user of batteries has worked in its favor in rolling out technologically superior and costcompetitive batteries for global requirements. 234 234 235 -Business strategy 192 +=== Business strategy === 236 236 237 237 Amara Raja industrial batteries continue to be the most preferred choice in industrial batteries and holds a high market share in all segments of business operations. While continuing to grow the business in India, the strategic roadmap of industrial battery business highlights geographic expansion, new applications, new processes and new technologies to emerge as a credible global supplier for energy storage products and services. 238 238 196 += Financial Overview = 239 239 240 -Financial Overview 241 - 242 242 The company’s revenue from operations for the year ending March 31, 2020 had grew to Rs 6,839.46 crores from RS 6,793.11 crores last year registering a marginal growth. The net profit for the year grew to C660.82 crores from Rs 483.49 crores in the previous year, registering a growth of 37%. The Earnings per share (EPS) for the year stood at Rs 38.69 per share, an increase of 37% compared to Rs 28.31 per share for the previous year 243 243 244 244 The Company’s financial position has shown immense improvement over the years. The net worth as at March 31, 2020 improved to Rs 3,655.61 crores with the net addition of H320.29 to other equity during the year. There is no interest bearing debt as of March 31, 2020. The surplus cash at the year end stood at Rs 32.60 crores. CRISIL had re-affirmed the ratings on the Company’s loan-term bank loan facilities at ‘CRISIL AA+/Stable’ and on the short-term bank facilities at ‘CRISIL A1+.’ 245 245 246 -Automotive battery business 202 +=== Automotive battery business === 247 247 248 248 The headwinds encountered by the automotive sector during second half of financial year 2018-19 continued through entire financial year 2019-20. Both four wheeler (4W) and two wheeler (2W) vehicle production experienced negative growth during 2019-20. This resulted in OEM business in both the application categories, declining in line with new vehicle production, though the share in respective OEMs was maintained. 249 249 ... ... @@ -251,7 +251,7 @@ 251 251 252 252 The expansion of manufacturing capacity in both 4W and 2W battery product lines is on track though there are some delays in the completion of installations due to Covid-19 pandemic. However, the company is confident that the capacities will be available to meet the market demand. 253 253 254 -Industrial battery business 210 +=== Industrial battery business === 255 255 256 256 The Industrial Battery Business has improved its performance in financial year 2019-20 compared to previous year despite the year end sales getting impacted due to COVID19 pandemic. The volumes grew in all segments of the business barring telecom segment. 257 257 ... ... @@ -259,7 +259,6 @@ 259 259 260 260 During the year the distribution network for small capacity VRLA batteries were strengthened which resulted in significant growth in this business. The tubular batteries which were launched two years ago for rural banking applications also showed good progress. 261 261 218 += References = 262 262 263 -References 264 - 265 265 {{putFootnotes/}}