Amara Raja Batteries bucks Covid blues, logs strong growth across verticals in FY21
May 25, 2021
Awaits PLI scheme for new plan
Amara Raja Batteries Limited registered a strong performance in FY21 bucking the disruption caused by the Covid pandemic lockdown by registering a strong volume growth across verticals. Growth was aided by volumes in both automotive and industrial applications across all customer segments. These sectors witnessed better- than-expected demand in the last two quarters of the last financial year.
The batteries major posted a profit of ₹646.83 crore and income of ₹7237.14 crore for FY21.
The company completed expansion of capacities in 4Ws/2Ws (by 1.5m/3m units to 14m/20m units) and is expected to deploy a capex of about ₹400-450 crore in FY22, according to Motilal Oswal.
Manufacturing is looking for more automation
India’s manufacturing is struggling to breathe during the second wave of the Covid-19 virus. Before the pandemic, the sector was estimated to contribute 25 per cent to the country’s GDP by 2025. The Central Government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives signalled to the world that becoming a global manufacturing hub was a top priority. The 2021 Union Budget’s Production Linked Incentive (PLI) Scheme to boost local manufacturing attracted three of Apple’s top manufacturers to India Foxconn, Wistron, and Pegatron.Nineteen global and 14 domestic companies have filed under the PLI scheme. The economy was picking up that is before the second wave hit. Once again, manufacturers today are facing great uncertainty. Employees continue to succumb to the virus, and states are imposing varying levels of restrictions some instituting total lockdowns. And with experts anticipating a third wave, why isn’t ma
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