Amara Raja Batteries Ltd (ARBL) is aiming to be a Rs 10,000-crore entity in the next 2-3 years as the Hyderabad-based company clocks a solid double-digit growth in its automotive segment, said a top company official to TOI.
ARBL expects that its automotive segment will contribute around two-thirds of its overall sales in the next 2-3 years as the vehicle sector grows and the rest will come from the industrial segment, ARBL CEO S Vijayanand told.
Besides, the company sees potential in the solar segment, which requires clean batteries for energy storage, as thrust on green energy is on the rise. ARBL’s revenue in 2016-17 was Rs 5,981.39 crore.
Asked by when ARBL will achieve Rs 10,000-crore sales, Vijayanand said: “Since we are are in two different verticals, a lot depends as how these individual verticals are likely to grow, but if we have our way and able to realise plans which we have in blueprint, we should be getting there in the next 2-3 years’ timeframe probably.”
“Our typical (revenue) historically split between automotive and industrial is 60:40, but if you look at the market potential, it should stabilise to two-thirds to one- third ratio,” he said, adding that “it would take a couple of years to reach there”.
The company is also eyeing development of 100 smart cities by the government that require solar energy solutions and may participate directly if there is a large order.
The company exports 12-15 per cent of its volumes to South-East, South Asia, the Middle-East and some African countries — in both industrial and automotive segments.
The overall battery market in India is estimated to be Rs 27,000 crore and dominated by two companies – ARBL and Exide.
