Big plans in automotive and solar segments are likely to push ARBL closer to its Rs 10,000-crore revenue target much earlier than expected.
Hyderabad-based Amara Raja Batteries (ARBL) is aiming to be a Rs 10,000-crore company in the next two to three years. The company, which sells batteries under the Amaron brand, is bullish on its revenue as it clocks double-digit growth in its automotive segment. ARBL's revenue in 2016-17 was Rs 5,981.39 crore.
ARBL expects its automotive segment to contribute around two-thirds of its overall sales in the next two to three years as the vehicle sector grows. The remaining sales are set to come from the industrial segment, reveals ARBL CEO S Vijayanand. 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.
"Since we are in two different verticals, a lot depends on how these individual verticals are likely to grow. But if we have our way and are able to realise plans which we have in blueprint, we should be getting there (Rs 10,000-crore revenue) in the next two to three years' timeframe probably," adds Mr Vijayanand.
The company is registering a compounded annual growth rate of around 15 per cent in its revenue over the past five years. Based on the past growth rate, it expects double-digit growth in the next three years.
New technologies
The overall battery market in India is estimated to be around Rs 27,000 crore and dominated by two companies, ARBL and Exide. ARBL is the flagship company of the Amara Raja Group, with 26 per cent equity stake each from the Galla family and USbased Johnson Controls.
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