1 min read.Updated: 14 Jun 2021, 12:17 PM ISTLivemint
ARBL plans to invest in a bouquet of products and services to accelerate its transformation to an energy and mobility solutions provider, the company said
NEW DELHI :
Amara Raja Batteries Ltd (ARBL) plans to leverage India’s green mobility push and has announced "energy and mobility" as its strategic focus area.
This move by Amara Raja Batteries comes against the backdrop of some of India’s top conglomerates, renewable energy firms and battery makers seeking to take advantage of the government’s ₹18,100 crore production linked incentive (PLI) scheme to make lithium-ion cells. Through the scheme, the government is looking to attract investments worth ₹45,000 crore.
“The ACC (advanced chemistry cell) PLI scheme announced recently by government of India for ₹18,000 crore provides a significant impetus for building a domestic supply chain for lithium and other advanced cell chemistries to serve the fast-growing EV and renewable energy sectors. ARBL plans to invest in a bouquet of products and services to accelerate its transformation to an energy and mobility solutions provider," the firm said in a statement on Monday.
The lead acid battery major, among other companies such as state-run Bharat Heavy Electricals Ltd (Bhel), Exide Industries Ltd, Greenko Group, Renew Power, Reliance Industries Ltd, Adani Group, Tata Chemicals, Larsen and Toubro Ltd, and a joint venture (JV) led by Japan’s Suzuki Motor Corp. have shown interest in building lithium-ion cell manufacturing plants in India, as reported by Mint earlier.
“The new energy business will build on technological innovations such as lithium and other new age chemistries that are enabling accelerated transformation in renewable energy, electric mobility, microgrids, etc. The technology in this space is emerging rapidly and often in a discontinuous way," the company said.
“While the board unanimously believes new energy will provide substantial thrust over the coming decade, there remains a strong conviction on the long-term potential of the lead acid batteries business," the company added.
India on its part is rolling out its roadmap for transition to electric mobility that involves manufacturing of lithium-ion batteries.
“After a careful review of the global business opportunities, the ARBL Board has decided to future-proof our business by repositioning ARBL as an energy and mobility player," the firm’s vice chairman, Jayadev Galla, said.