Amara Raja Batteries, India's second-largest manufacturer of batteries, believes that telecom and auto are the two sectors that are likely to drive demand for the company going forward. Amara Raja's telecom battery solutions power over 2,00,000 cell sites across the country in various terrain and weather conditions.
Harshavardhana Gourineni, Executive Director of Amara Raja Batteries, expects the company to report low double-digit volume growth in the financial year 2024 mainly led by strong demand in the telecom segment due to the 5G rollout, along with the automotive production reaching pre-pandemic levels. "Exports business has also seen a good offtake," he said. Amara Raja has a 60 percent market share in the telecom segment.
An increase in mobile towers in India is driving growth in the telecom sector, which is expected to have a positive impact on India's lithium-ion battery market in the coming years, according to TechSci Research, which anticipates robust growth in the lithium-ion battery market between 2024 and 2028.
Gourineni said that the company is actively searching for technology partners for the Lithium-Ion business, where the change in technology is pretty rapid. Amara Raja's Lithium-ion battery packs and chargers segment tripled during the financial year 2023.
For the March quarter, Amara Raja reported revenue growth of 11 percent compared to last year, while the EBITDA margin expanded to 13.9 percent from 10.1 percent last year. However, the margin was lower on a sequential basis. Gourineni expects the margin to remain at current levels as the company brings new capacity onstream.
The global automotive aftermarket industry size is likely to grow at a Compounded Annual Growth Rate of 4 percent between 2023 and 2030, according to Grand View Research. Amara Raja, which has a 35 percent market share in the four-wheeler aftermarket segment is also the market leader in the Singapore and Malaysian markets.
Amara Raja has laid the foundation of its Giga corridor in Telangana, where it plans on spending over Rs 9,500 crore over the next 10 years.
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(Edited by : Hormaz Fatakia)
First Published: May 24, 2023 12:22 PM IST
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