Amara Raja Batteries signs MoU with Telangana for lithium-ion battery gigafactor


Automotive battery major Amara Raja Batteries on Friday announced that it has signed a memorandum of understanding (MoU) with Telangana government to setup a research and manufacturing facilities for lithium-ion battery. The facility will be set up at Mahbubnagar district, Telangana.

The company plans to invest over 9500 crores, in the next ten years. “Over the next 10 years, the company intends to invest over INR 9500 crores, after necessary approvals,” said Amara Raja Batteries in its regulatory filing.

The company on November 3 had announced incorporation of a subsidiary called Amara Raja Advanced Cell Technologies Pvt Ltd.

“Amara Raja has been working on Li-ion cell chemistries specifically suited for Indian subcontinent conditions, and already supplies lithium battery packs and chargers to some 2 and 3-Wheeler OEMs,” said the company in its regulatory filing.

“This strategic partnership with the Government of Telangana is a giant leap for Amara Raja and will bring in the impetus for innovations in sustainable technologies for the whole region, in addition to generating employment opportunities. We have had a long association with the state and are excited to finally have the opportunity to establish an industrial base here”, said Jayadev Galla, Chairman & Managing Director, Amara Raja Batteries.

“Telangana has been a frontrunner in adopting sustainability, and it is a proud moment for the state to welcome the country’s largest ever investment in the lithium-ion cell manufacturing sector. Our aim is to become the most electrified state in India, and having a Gigafactory in Telangana further strengthens our aspiration to become an EV manufacturing hub and spearhead the EV revolution in India,” said K T Rama Rao, Telangana Minister for Industries and Commerce.

The company reported a net profit of 109.73 crore in the September quarter . The company had reported a net loss of 1.82 crore in the year-ago period. The revenue from operations jumped over 19 per cent YoY to 2,699.46 crore during the quarter.

The company scrip ended 1.15 per cent higher at 653.15 at BSE on Friday.

Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.



Source link