ANDHRA PRADESH, 19 September 2022: Amara Raja Group, the nation’s second-largest automotive battery manufacturer, plans to focus on the lithium-ion batteries, the renewable energy industry, and the electric vehicle (EV) market.
According to a senior firm official, it also anticipates that the infrastructure and electricity businesses, which are anticipated to merge by the end of current fiscal year (2022–23, or FY23), will more than treble their turnover from INR 1,200 crore to INR 3,000 crore by 2025.
Investment in lithium-ion batteries
While keeping its focus on conventional lead acid batteries, the USD 1.3 billion group would invest about INR 7,000 crore in lithium-ion batteries. The company not only provides battery packs for battery EVs but also for other uses, such as energy storage.
Vikramadithya Gourineni, executive director at Amara Raja Batteries, said “We will invest roughly INR 6,000–7,000 crore throughout the first phase. At Tirupati in Andhra Pradesh, we have a research and development centre.”
The corporation claimed to have already built a cutting-edge power electronics team that is concentrated on the infrastructure for swapping and charging while considering potential business expansion.
Gourineni stated that the business already provides cells to a few Indian producers of electric three-wheelers.
Integration on track
The merger of Amara Raja Power Systems and Amara Raja Infra is progressing as planned, according to the group, and is anticipated to be completed by the end of FY23. As part of a group restructuring last year, this was stated.
“Bankers and shareholders have already given us their approval. By the end of this year, we anticipate receiving the National Company Law Tribunal‘s rulings,” Gourineni said.
Electricity, infrastructure and solar
According to a business road map, the electricity and infrastructure sector, which is currently worth INR 1,200 crore, is predicted to reach INR 3,000 crore by 2025. The rail industry, which includes electrification, signalling, and telecommunications, as well as the renewable energy and data centre industries, are projected to be the segment’s main growth drivers.
The company has a 700 Mw solar portfolio, of which 200 Mw have already been commissioned and about 500 Mw are in the implementation stage.
“The railroads will make up about 20% of the INR 3,000 crore target. According to Gourineni, there could be enormous prospects in the solar sector as well.
In the transportation and industrial sectors, Amara Raja Power Systems is also placing a significant wager on green hydrogen. It received a contract from NTPC (previously National Thermal Power Corporation) last year to build the nation’s first green hydrogen refuelling station in Leh, which is located 3,600 metres above sea level.
The initiative is our inaugural effort in the mobility sector. In terms of hydrogen, we believe the industrial sector offers low-hanging fruit, particularly in sectors like steel, cement, and fertiliser. On the industrial front, hydrogen might be widely used, Gourineni continued.
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