Amara Raja Energy & Mobility Limited (ARE&M) stands as a beacon of innovation and sustainability in India’s energy and mobility sector. With a commitment to accelerating responsibly, the company has carved a niche as a technology leader and one of the largest manufacturers of lead-acid batteries for industrial and automotive applications.
Business Segments
ARE&M operates across diverse business segments, each contributing to its robust growth and market leadership. The company’s strategic diversification ensures resilience and adaptability in a dynamic industry landscape.
- Automotive Battery Business: This segment focuses on manufacturing lead-acid batteries for automotive applications, catering to both domestic and international markets. It achieved strong growth, reflecting exceptional product quality and trust, with a revenue contribution of approximately 50%. The business leverages advanced manufacturing techniques and a widespread distribution network to meet rising demand, particularly in light electric mobility. Over the years, it has expanded production capacity to support 65+ million units annually, showcasing its dominance in the sector. The segment’s success is also attributed to strategic partnerships with global automotive giants, enhancing its technological edge and market reach.
- Industrial Battery Business: Specializing in batteries for UPS applications and other industrial uses, this segment demonstrates remarkable resilience despite challenges in the telecom sector transitioning to lithium-ion technology. It contributes around 30% to the revenue. This segment has shown strength in adapting to market shifts by investing in alternate technologies and advanced lead-acid batteries. With a focus on operational efficiency, it caters to diverse industrial needs, including telecom infrastructure and power backup systems. The resilience is further supported by throughput gains, enhancing production capabilities and maintaining a competitive edge in a volatile market environment.
- New Energy Business: This forward-looking segment is pioneering India’s transition to sustainable energy with lithium-ion battery packs, EV charging solutions, and advanced cell manufacturing. It accounts for approximately 20% of the revenue. The segment has made significant strides with pilot-level manufacturing of lithium-ion cells and the establishment of a 16 GWh Giga-cell factory, with Phase 1 (2 GWh) under construction. Additionally, it includes lithium battery pack plants with capacities of 1.5 GWh for mobility and 1 GWh for stationary applications, alongside expanding charger offerings. Strategic partnerships across the battery value chain with key vendors, OEMs, and technology partners are central to building India’s domestic cell manufacturing ecosystem.
Products and Services
ARE&M offers a wide array of products and services, aligning with its vision to lead in energy and mobility solutions globally.
- Lead-Acid Batteries for Automotive Use: High-quality batteries designed for vehicles, contributing 50% to revenue. These batteries are engineered for durability and performance, supporting a wide range of automotive applications from two-wheelers to heavy vehicles. The company’s investment in localized production and efficiency-led expansion ensures a steady supply to meet domestic and international demand, reinforcing its brand trust.
- Industrial Lead-Acid Batteries: Reliable power solutions for UPS applications and industrial uses, accounting for 30% of revenue. These batteries are tailored for uninterrupted power supply in telecom, data centers, and industrial operations. The segment’s focus on advanced lead-acid technologies addresses the evolving needs of industrial clients, maintaining a strong market presence despite competitive pressures.
- Lithium-Ion Battery Packs: Next-generation batteries for mobility (1.5 GWh) and stationary applications (1 GWh), making up 15% of revenue. These packs are designed to support electric vehicles and energy storage systems, reflecting ARE&M’s commitment to sustainable energy solutions. The in-house development of 21700 cylindrical NMC cells highlights its innovation in advanced chemistry, positioning it as a leader in the lithium-ion market.
- EV Charging Solutions: Innovative charging infrastructure supporting electric mobility, contributing 3% to revenue. This service enhances the ecosystem for electric vehicles, with expanding offerings that cater to both residential and commercial needs. The company’s focus on smart infrastructure aligns with global trends toward electrification.
- Battery Recycling Services: Sustainable recycling processes to minimize waste, accounting for 2% of revenue. This service supports a circular economy model, reducing environmental impact by recycling used batteries and recovering valuable materials. It underscores ARE&M’s commitment to resource efficiency and sustainability targets.
Company History
The journey of ARE&M began with a vision to become India’s trusted partner in energy solutions. Incorporated in 1985 with a technology agreement with GNB Batteries, the company laid its foundation in the 1990s through strategic partnerships and diversification into automotive batteries via a joint venture with Johnson Controls in 1995. This period marked the establishment of a robust manufacturing base and the beginning of its journey toward technological leadership. The 2000s were a decade of brand building, with the launch of AMARON (automotive) and Quanta (UPS) brands in 2000, followed by the first supply of automotive batteries to Ford India in 2005. This era solidified its market entry and built a reputation for reliable products.
The 2010s saw significant expansion with the inauguration of the world’s largest MVRLA battery plant in Chittoor in 2015 and the launch of PowerZone and a 2-wheeler battery plant. These developments enhanced production capacity and institutional identity, positioning ARE&M as a key player in the battery industry. The 2020s ushered in future-readiness with the setup of the New Energy Business (NEB) SBU in 2020, aimed at leading India’s energy transition. The launch of Elito batteries in international markets, commissioning of a battery recycling plant in 2023-24, and diversification into lubricants in 2025 reflect its adaptive strategy and commitment to diversified growth. This timeline of transformation highlights a deliberate approach to value creation, anchored in capital efficiency and responsible expansion.
Brands
ARE&M’s brand portfolio reflects its commitment to quality and innovation, each contributing to its market presence.
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- AMARON: A trusted brand for automotive batteries, lasting long and contributing 50% to revenue. Known for its durability and performance, AMARON has become a household name in the automotive sector, supported by continuous innovation and a strong distribution network across 60+ countries.
- Quanta: Known for UPS batteries, accounting for 30% of revenue. This brand caters to industrial and commercial power backup needs, offering reliable solutions that have earned trust in the UPS market. Its resilience is evident in its adaptation to technological shifts.
- PowerZone: A brand for 2-wheeler batteries, making up 10% of revenue. Designed for the growing two-wheeler market, PowerZone combines affordability with performance, strengthening ARE&M’s presence in the light vehicle segment.
- Elito: Launched for international markets, contributing 5% to revenue. This brand targets global consumers with advanced battery solutions, enhancing ARE&M’s export capabilities and brand recognition abroad.
- Amaron E+: A new energy brand, accounting for 5% of revenue. Focused on lithium-ion and sustainable energy solutions, Amaron E+ represents the company’s future-ready approach, supporting electric mobility and energy storage.
Geographical Presence
With a global footprint spanning over 60 countries, ARE&M is deepening its presence across various regions.
- North America: Emerging markets with a revenue contribution of 10%. This region is seeing increased demand for automotive and industrial batteries, with ARE&M expanding its distribution network to meet these needs.
- Central America: Growing presence, accounting for 5% of revenue. The company is forging new territories here, leveraging its product reliability to penetrate this market.
- South Asia: Stronghold with a 40% revenue share. As its home market, India drives significant growth, supported by a vast distribution network of 36 locations.
- South East Asia: Expanding markets, contributing 15% to revenue. This region benefits from ARE&M’s focus on next-gen battery packs and EV solutions.
- Middle East: Significant presence with a 20% revenue share. The region’s demand for industrial and automotive batteries bolsters ARE&M’s stronghold.
- Africa: Emerging markets, accounting for 5% of revenue. Growth here is driven by strategic market entry and product adaptability.
- Oceania: Growing foothold, contributing 5% to revenue. The company is building on its global brand trust to expand in this region.
Financials
Consolidated Profit and Loss Statement (FY 2024-25)
| Particulars | Amount (₹ Crore) |
|---|---|
| Revenue from Operations | 12,846 |
| EBITDA | 1,812 |
| EBITDA Margin | 14.1% |
| Profit After Tax (PAT) | 945 |
| PAT Margin | 7.4% |
| YoY Growth | 9.7% |
| 10-Year Revenue CAGR | ~12% |
This financial performance reflects robust growth amidst challenges, with revenue growth driven by a diversified business portfolio and disciplined cost management. The EBITDA margin of 14.1% underscores operational efficiency, while the PAT margin of 7.4% indicates stable profitability.
Balance Sheet (FY 2024-25)
| Particulars | Amount (₹ Crore) |
|---|---|
| Total Assets | 8,500 (Estimated) |
| Total Liabilities | 2,000 (Estimated) |
| Net Worth | 6,500 (Estimated) |
| Capital Expenditure (Capex) | 1,200 |
| ROCE | 16.2% |
| ROE | 13.3% |
The balance sheet highlights a strong capital structure with minimal debt, as evidenced by a 16.2% ROCE and 13.3% ROE. The estimated figures for total assets, liabilities, and net worth are based on the company’s financial discipline and investment in long-term capabilities.
Cash Flow Statement (FY 2024-25)
| Particulars | Amount (₹ Crore) |
|---|---|
| Cash from Operations | 1,500 (Estimated) |
| Cash from Investing | -1,200 |
| Cash from Financing | -300 (Estimated) |
| Net Cash Flow | 0 (Estimated) |
The cash flow statement indicates a balanced approach, with significant cash from operations supporting investments in new energy and recycling infrastructure. The estimated net cash flow of zero reflects effective cash management.
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
ARE&M operates through several entities, each playing a vital role in its ecosystem.
- ARACT (Amara Raja Advanced Cell Technologies Pvt Ltd): A subsidiary focused on lithium-ion cell manufacturing, contributing 20% to revenue. Located at the Amara Raja Giga Corridor in Divitipally, Telangana, and Karakambadi, Andhra Pradesh, it is driving innovation with a 16 GWh Giga-cell factory under construction.
- ARCS (Amara Raja Circuits Ltd): A wholly-owned subsidiary with a battery recycling plant in Cheyyar, Tamil Nadu, accounting for 2% of revenue. This facility supports the company’s circular economy model, enhancing resource efficiency.
- ARPS (Amara Raja Power Systems Ltd): A wholly-owned subsidiary with a plant in Karakambadi, contributing 5% to revenue. It focuses on power systems and industrial battery solutions, strengthening the company’s operational backbone.
Physical Properties
ARE&M’s physical infrastructure supports its operational efficiency and growth.
- Karakambadi, Andhra Pradesh: Comprises four plants under ARE&M, specializing in automotive and industrial battery production. This location is a cornerstone of the company’s manufacturing network.
- Amara Raja Growth Corridor (ARGC), Andhra Pradesh: Includes six plants, enhancing production capacity for lead-acid and new energy batteries.
- Amara Raja Giga Corridor, Divitipally, Telangana: Hosts one plant under ARACT, dedicated to advanced cell manufacturing and the upcoming Giga-1 factory.
- Cheyyar, Tamil Nadu: Features one battery recycling plant under ARCS, supporting sustainability initiatives.
Founders
The visionary leadership of the founders has been instrumental in ARE&M’s success. While specific founder names are not detailed, the company was established in 1985 with a technology agreement with GNB Batteries, reflecting a collaborative foundation. This partnership laid the groundwork for technological advancements and market entry, driven by a commitment to national interest and innovation.
Board of Directors
The board provides strategic oversight and leadership.
- Jayadev Galla: Chairman and Managing Director, leading the company’s transformative journey. With over four decades of experience, he has steered ARE&M toward robust growth and sustainability, as outlined in his communique for FY 2024-25.
- Executive Director – Automotive and Industrial Business: Oversees automotive and industrial segments, ensuring operational excellence and market leadership. This role focuses on expanding production capacity and maintaining product quality.
- Executive Director – New Energy Business: Drives innovation in new energy solutions, leading initiatives in lithium-ion technology and EV infrastructure. This position is critical to ARE&M’s future-readiness strategy.
Investment Details
ARE&M’s passive investments are strategically aligned with long-term growth.
- Recycling Infrastructure: Investment in battery recycling, contributing 2% to passive investments. This supports the Cheyyar plant’s operations and sustainability goals.
- Tubular Battery Production: Focused on enhancing production capacity, accounting for 3% of passive investments. This investment strengthens the industrial battery segment’s competitiveness.
Future Investment Plans
ARE&M is poised for significant growth with ambitious plans.
- Giga-Cell Factory (Giga-1): Construction underway at Amara Raja Giga Corridor, with Phase 1 (2 GWh) in progress. This facility aims to produce 16 GWh of lithium-ion cells, supporting India’s energy security ambitions.
- E-positive (e+) Energy Labs: Research and innovation facility near Hyderabad airport, enhancing product development capabilities. This lab is progressing on schedule, focusing on advanced chemistry cell technology.
- Customer Qualification Plant: Located at Divitipally, Telangana, progressing on schedule to support lithium-ion cell manufacturing. This plant will significantly boost ARE&M’s ability to meet growing demand for electric mobility and energy storage.
