Wednesday, Apr 24 2024 | Time 12:22 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

BharatPe launches BharatPe One

24 Apr 2024 | 11:20 AM

Kolkata, Apr 24 (UNI) BharatPe, India’s leading name in the fintech industry, has announced the launch of BharatPe One, India’s first all-in-one payment product that integrates POS, QR, and speaker into one device.

see more..
Sensex up over 200 points

Sensex up over 200 points

24 Apr 2024 | 10:39 AM

Mumbai, April 24 (UNI) The BSE Sensex remained firm for the fourth straight session on Wednesday, surging 261 points at 74,000 in opening session as buying was seen across board amid positive Asian Market.

see more..
Rupee up 6 paise against USD

Rupee up 6 paise against USD

24 Apr 2024 | 10:32 AM

Mumbai, Apr 24 (UNI) The rupee remained strong on Wednesday, advancing 6 paise to 83.28 against the opening session on selling of US dollars by bankers and exporters, dealers at the Foreign Exchange said.

see more..

USD, Yen down; Pound, Euro up

24 Apr 2024 | 10:15 AM

Mumbai, Apr 24 (UNI) Following were the indicative currency rates and travellers' cheques
buying and selling rates.

see more..

High taxation and extreme regulations undermine legal cigarette industry in India

23 Apr 2024 | 7:48 PM

Hyderabad, April 23 (UNI) The high taxation and extreme regulations have resulted the share of legal cigarettes in total tobacco consumption in the country has shrunk by 37 per cent to a mere 9 per cent at the present from 21 per cent in 1981-82, according to the Tobacco Institute of India (TII).

see more..
image