Amara Raja Batteries Ltd. today said its board has approved a proposal to set up a greenfield automotive battery plant with an investment of Rs 700 crore.
“The Board of Directors at its meeting on Aug. 11, reviewed and approved a proposal for setting up a greenfield automotive battery plant with a capacity of 6.5 million units per annum to be implemented in three phases, staggered over a period,” Amara Raja Batteries said in a BSE filing.
Once the project is completed, the capacity of the four-wheeler battery plant will increase to 17 million units per annum. The total investment of the project is estimated at Rs 700 crore and the same would be met out of internal accruals, it added.
The first phase is expected to be completed in the next 18 months. The company posted 13.19 percent rise in net profit at Rs 113.03 crore during the first quarter of 2018-19, as against a net profit of Rs 99.85 crore in the April-June quarter of the previous year.
The stock ended 0.32 percent higher at Rs 826.50 on BSE Ltd.
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