Thursday, Apr 25 2024 | Time 21:46 Hrs(IST)
image
Business EconomyPosted at: Sep 26 2022 7:11PM


Amara Raja announces backward integration of its business

Hyderabad, Sep 26 (UNI) Amara Raja Batteries Limited (ARBL), India’s leading industrial and automotive battery major on Monday announced a proposed transaction integrating its supply chain, leading to margin improvements by bringing the Plastics Component for Battery Business of Mangal Industries Ltd (MIL) into its own fold through a scheme of arrangement involving demerger of Plastics Component for Battery Business from MIL into ARBL (“Scheme”).
The Plastics Component for Battery Business of MIL caters exclusively to ARBL, providing plastic containers, covers, small parts, handles and jars that are used in batteries, the company said in a release.
It currently has a capacity of 37,000 plus MTPA with 150 Injection Moulding Machines located at three manufacturing facilities.
On effectiveness of the Scheme, the shareholders of MIL as on the record date will receive 65 equity shares of ARBL for every 74 equity shares held by them in MIL, as consideration for the Scheme.
This proposed transaction will simplify the business operations by backward integration of the supply chain and bringing plastic moulding capabilities in-house.
The Company is expected to benefit from margin improvement and annual recurring post-tax synergies of INR 50 mn to INR 60 mn.
The proposed transaction is expected to be EPS accretive from the first year of it being effective.
Thee Scheme is subject to the necessary statutory and regulatory approvals including approvals of NCLT, the stock exchanges, SEBI and the respective shareholders of each of the companies.
Mr. Jayadev Galla, Chairman & Managing Director of the Company, said “This is in keeping with our theme of consolidating and unlocking synergies as we continue to pursue value accretive growth opportunities that will lead ARBL to the leadership position in the Energy and Mobility space. This step is in alignment with the best interest of our shareholders.”
Harshavardhana Gourineni, Executive Director, Automotive & Industrial Batteries said “The move strengthens ARBL’s control of the supply chain and augments our battery recycling initiatives. It also helps us in improving margins by better utilization of manpower and reducing logistics costs.”
The Company is a leading manufacturer of automotive batteries under the brands Amaron® and PowerzoneTM, which are distributed through a large Pan-India sales & service retail network.
The Company supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The Company’s Industrial and Automotive Batteries are exported to countries in the Indian Ocean Rim.
UNI KNR SHK1911
Please log in to get detailed story.
Tags: #Amara Raja announces backward integration of its business
More News

Tech Mahindra net at Rs 661 crore in Q4; Company gives dividend of Rs 28 per share

25 Apr 2024 | 7:28 PM

New Delhi, April 25 (UNI) Mahindra Group company Tech Mahindra, a technology consulting and digital solutions provider, on Thursday reported about 41 per cent decline in net profit at Rs 661 crore year-on-year basis for the fourth quarter ended March 31, 2024.

see more..

Kottayam-Kochi Rubber Market Rates

25 Apr 2024 | 7:26 PM

Kottayam, April 25 (UNI) Following were the Rubber Market rates announced by the Rubber Board here today per quintal.

see more..
Indusind Bank net up 15 pc in Q4

Indusind Bank net up 15 pc in Q4

25 Apr 2024 | 7:10 PM

New Delhi, April 25 (UNI) Leading private bank Indusind on Thursday reported a 15 percent jump in net profit at Rs 2,349 crore in Q4 of FY 2023–24, compared to Rs 2,043 crore in the same quarter in 2022–23.

see more..

25 Apr 2024 | 6:53 PM

New Delhi, April 25 (UNI) Leading private bank Indusind on Thursday reported 15 percent jump in net profit at Rs 2,349 crore in Q4 of FY 2023-24 compared to Rs 2,043 crore in the same quarter in 2022-23.

see more..

Regulations to become more stringent, demanding in coming years : CUB MD

25 Apr 2024 | 6:40 PM

Chennai, Apr 25 (UNI) “Regulations are going to be here, and they are going to
get more stringent as there is a learning depending upon the changes in the
environment and the role of the CFO's,” City Union Bank (CUB) MD and CEO
Dr N Kamakodi observed on Thursday.

see more..
image