Amara Raja signs first two-wheeler OEM deal - valve regulated lead acid battery
Amara Raja will make batteries for Honda for its two carswheelers.
Amara Raja, a leading company in the battery sector, has reached an agreement with Japanese auto giant Honda to develop a valve-regulated lead-acid (VRLA) battery for the car company.
If all goes well, Amara Raja will make batteries for Honda for its two-wheelers.
"So far, the deal is to develop batteries according to Honda's specifications.
Once approved by the company, we will consider making the product.
If all goes well, Honda will use the battery twice
K Suresh, chief financial officer of Amara Raja, told reporters: "wheel manufacturers in India, if possible, are also in the export market . ".
Approved, this battery will also enter Hero Honda 2-
In addition to the wheels made by Honda.
As the agreement is still in its development phase, the company has not incorporated it into any revenue projections.
Amara Raja will develop the product by the end of this fiscal year, and production will begin in the next fiscal year after approval.
Amara Raja has developed a motorcycle battery and has the ability to make about 1.
8 million units per year.
However, it mainly caters aftermarket.
"We have been looking for opportunities for OEMs (OEMs.
But we have a capacity limit.
Now, we are expanding our capacity to three.
6 million batteries per year-end.
Considering the existing capacity, we are not very active in seeking OEM deals.
But once Honda's deal is formed, it will be a breakthrough and we will focus on other automakers . "
The company operates in two key areas
Industrial and automotive batteries.
While industrial battery sales are said to be growing steadily, the growth in the automotive industry has prompted the company to increase the capacity of car batteries.
Amara Raja currently has its facilities in Karakambadi, near Tirupati, Andhra Pradesh.
The facility is capable of producing 4. 2 million four-
Wheeler battery and 1. 8 million two-
Wheeler battery.
In the industrial sector, the capacity includes a large valve regulating lead-acid battery with a capacity of 0. 9 billion an hour and 1.
8 million UPS battery.
In the automotive industry, the company has signed original equipment (OE) contracts with four companies
Wheeler automakers including Ford, GM, Maruti, Hyundai and Daimler.
Once put into production, the Honda agreement will be the first OE deal for both partiesWheeler segment.
"The Honda project will come to us through our partner Johnson control.
"They have existing arrangements with Honda," Suresh said . ".