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News: As per media sources, Mr. Jayadev Galla, Chairman of the company has decided to take a break from active politics and not contest upcoming union elections 2024 to focus on the transition of its listed company i.e. Amara Raja Energy & Mobility from traditional Lead Acid battery business to new age energy business (Li-On battery ecosystem).
Views: This is a positive development for the company highlighting promoters’ commitment towards the upcoming transformational change. In the recent past it has entered into MoU with Govt. of Telangana for setting up of Li-Ion Battery Gigafactory. The said facility is expected to have cell manufacturing capacity of up-to 16GwH & assembly capacity of up to 5 GWh with overall investment pegged at ~₹9,500 crores over next 10 years. In the first phase, it is setting up a Li-On cell plant of 2GwH capacity at a capex outlay of ~₹ 1,200 crore and operational in next 2-3 years.
Impact: Positive