Amara Raja Batteries Limited is eyeing acquisitions in the new energy area and exploring setting up overseas facility and possible buyout in it’s lead acid battery business.
Even as it awaits the outcome of the ₹18,100-crore Performance Linked Incentive scheme for Advanced Cell Chemistry batteries, which will pave way for its proposed $1-billion investment in a Gigafactory, it is scouting for more strategic investments in the start up space in the lithium ion and related areas, according to its management.
On a day it invested $5 million into Log 9 Materials, a Bengaluru-based advanced battery start up, where other investors pumped in $3.5 million, the company said it is looking out for more buyouts as start-ups are lot more nimble.
Vikramadithya Gourineni, Executive Director, ARBL, said “Our investment is in line with our plans to invest in cutting-edge technologies to accelerate its evolution towards becoming an 'Energy & Mobility' enterprise. This will mark the first in a series of interesting developments that we plan to execute in the future.”
“We are keenly watching the progress of the PLI scheme and expect its outcome later this fiscal. This will enable us to develop on our plans of an investment of $1 billion over 10 years. In the meantime, we are looking at more strategic investments in start ups in related areas,” he said.
Harshavardhana Gourineni, ED, ARBL, said “As we grow our lead acid battery business, we plan to increase exports to markets like South East Asia, Middle East, Africa and other markets. Last year, we exported about 3 million batteries and exports accounted for about 12 per cent of the business. We are looking at stepping this up to over 6-8 million.”
“In order to step up exports, we may have to build a new plant in other markets or even buyout existing companies to grow the market there due to local duties and taxes. We are exploring buyouts, even though nothing has been finalised as yet,” he explained.
AP issue
Asked about the recent AP Pollution Control Board notices, a senior company executive said: “the company is taking all necessary steps to address various issues relating to the plants. The matter is sub-judice and we would not like to comment on it at this point.”
ARBL as an anchor investor made an investment of $5 million for over 11 per cent stake as a part of it’s strategy to focus on entering into new green tech, battteries and fuel cell technologies.
Log 9 addresses the challenge of range anxiety and issues relating to fast charge through Rapid Charging Battery Packs.
Akshay Singhal, Founder & CEO, Log 9 Materials, said, "The partnership with ARBL will enable us to propel commercialisation at scale of our Rapid Charging Batteries, which in turn shall play a major role in the future for Log 9 in advanced cell chemistries.”
Log 9 has secured funding from existing investors including Exfinity Ventures and Sequoia Capital.
These funds will be utilized to expand production capacity and business development efforts of Log 9's Rapid Charging Battery technology.
The start-up plans to set up cell manufacturing under the niche category of ACC PLI scheme.