Amara Raja Batteries Limited has informed the Exchange about Investor Presentation
May 24, 2023
National Stock Exchange of India Limited Listing Compliance Department “Exchange Plaza” Bandra – Kurla Complex Bandra East, Mumbai – 400 051 NSE Symbol: AMARAJABAT
BSE Limited Corporate Relations Department Phiroze Jeejeebhoy Towers Dalal Street, Fort Mumbai – 400 001 BSE SCRIP CODE: 500008
Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure
Sub: Requirements) Regulations, 2015 - Investor Presentation
Dear Sir/ Madam,
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Investor Presentation for Q4 FY23.
This is for your information and record.
Thanking you
For Amara Raja Batteries Limited
Vikas Sabharwal Company Secretary
Encl: a/a
Amara Raja Batteries Limited
Q4 & FY 23
Earnings Presentation
Safe Harbor
Thisdocumentcontainsstatementsthatarenothistoricalfactsandareforwardlookingstatements.These
forwardlookingstatementsinter-aliaincludeourfinancialandgrowthprojectionsaswellasstatements
concerningourplans,strategies,intentionsandbeliefsconcerningourbusinessandthemarketsinwhich
weoperate.
We have based these forward-looking statements on our current expectations and projections about
futureevents. Such statementsinvolveknown andunknown risks, uncertainties andother factorsthat
may cause actual result to differ materially. Such factors include, but are not limited to, changes in
generaleconomicconditions,ourabilitytosuccessfullyimplementourstrategy,themarketacceptanceof
and demand for our products, our growth and expansion, technological change and our exposure to
marketrisks.
Bytheirnature,theseexpectationsandprojectionsareonlyestimatesandcouldbemateriallydifferent
fromactualresultsinthefuture.Thiscommunicationisnotanoffertosellorthesolicitationofanofferto
buysecurities.
Our Core Purpose
To transform our increasing spheres of influence and to improve the quality of life by building institutions that provide better access to better opportunities, goods and services to more people. . . all the time.
3
The Amara Raja Way
4
4
Journey So far
• ARPSL the 1st
• ARBL introduces
• ARBL received ISO
company of the group was incorporated
VRLA technology in India
certification
• ARBL goes public
• ARBL was
incorporated
• ARBL launched
• Technology
agreement with GNB Batteries Inc
VRLA batteries in Indian Railways for rolling stack application
• ARBL diversified into automotive batteries and signed a JV with Johnson Controls Inc.
• ARBL received QS- 9000 certification
• Supply of 1st batch of automotive batteries to Ford India Pvt. Ltd.
• AMARON brand automotive batteries launched
• Quanta Branded UPS Batteries launched
• Amaron Hi-way and Amaron Harvest Batteries launched
• Amaron PRO, Amaron GO, Amaron FRESH and Amaron SHIELD batteries launched
• PowerZone Brand
launched
• New Amaron Logo unveiled
• ARBL launched 2 Wheeler battery plant
• Amaron Black, Flo brands launched
• Amaron Sleek
and Amaron Volt brands for industrial applications launched
• Amaron Probike Rider, the first AGM battery for 2W was launched.
• World’s largest MVRLA Battery plant launched in Chittoor
• 2nd automotive battery plant inaugurated
• Amaron received Super brands status from Super brands council
• ARBL inaugurated Tubular battery plant
• Amaron Brute brand launched
• Subsidiary AMARA RAJA ADVANCED CELL TECHNOLOGIES started in 2022. Enters into MOU with Govt of Telangana for setting up of a 16 Gwh Gigafactory and advanced innovation hub.
1985
1990
1995
2000
2005
2010
2015
2020
5
Structure
Amara Raja Batteries Limited
(ARBL)
Amara Raja Advanced Cell Technologies Private Limited
(ARACT)
Amara Raja Circular Solutions Private Limited
(ARCSPL)
Ownership : 100%
Ownership : 100%
Amara Raja Batteries Middle East (FZE)
(ARBME)
Amara Raja Power Systems Limited
(ARPSL)
Ownership : 100%
Ownership : 100%
Advanced Chemistry Cells and Battery Packs for Mobility and Storage Applications
Recycling of Used Batteries
Subsidiary for International Operations in Middle East
Proposed Acquisition:
Manufacturer of Integrated power systems, Industrial and EV chargers
Energy & Mobility
Focus on lead acid batteries (LAB) value maximisation and transition to new age technologies.
LEAD ACID BATTERIES (LAB)
NEW ENERGY & MOBILITY
•
Focus on Improving Efficiencies by leveraging improved
process/Product Technologies
•
International Expansion
•
•
•
Li Cell and Pack Manufacturing
EV Charging Products
Energy Storage Solutions
7
Amara Raja Batteries Limited : Lead Acid Battery Business
CURRENT CAPACITIES
4W Batteries
▪ Annualised Capacity: 19 Mn Nos
2W Batteries
▪ Annualised Capacity: 30 Mn Nos
Industrial Batteries
▪ Annualised Capacity: 2.3 Bn Ah
ARBL
❖ 7 Battery Manufacturing Plants in two locations ❖ Largest Private Sector Employer in AP ❖ Strong work force with average age of 29 years
AUTOMOTIVE
❖ Leading Automotive Battery Brand ❖ Largest Exporter of 4W Batteries in India ❖ First AGM battery manufacturer for 2W
INDUSTRIAL
❖ First VRLA Battery Manufacturer in India ❖ Market Leader in Telecom. ❖ Largest Integrated Facility for MVRLA Batteries. ❖ Pioneered Battery Solutions for Indian Railways.
8
Distribution Network
SALES & DISTRIBUTION NETWORK - INDIA
23
Branches
39
Distribution Points
500+
Amaron Franchisees
100,000+
1000 +
2000 +
Points of Sale
Power Zone Retail stores
Extensive Service hubs.
9
Brands, Applications
Applications
Business Outlook
➢ Demand for fuel efficient vehicles, meeting stringent regulatory
norms, is increasing
➢ Increased use of
ISS, EFB, AGM technologies will result
in
increased share of organized brands
➢ Auxiliary batteries for electric vehicle to enhance demand
India 4W Production Trend (Mn nos)
7.3
7.5
6.1
5.3
6.2
8
6
4
2
0
India 2W Production Trend (Mn Nos)
24.5
21
18.3 17.7 19.5
30
20
10
0
FY 19 FY 20 FY 21 FY 22 FY 23
FY 19 FY 20 FY 21 FY 22 FY 23
➢ 4W volumes in FY 23 back to
pre-covid levels
➢ In 4Ws, healthy vehicle parc of over 70Mn vehicles to sustain the growth
➢ Uptick in 2W volumes in FY 23 ➢ In 2W, healthy vehicle parc of over
200Mn vehicles to sustain the growth
Major Accomplishments
Market Gains
Planned Initiatives
MS gain in 4 Wheeler aftermarket
MS gain in 2 Wheeler aftermarket
Customer Connect
Brand Identity
➢ Amaron eCommerce enabled Website
➢ Launched
➢ 100,000+ touch points/
retail presence
➢ Launch of The brand
mascot
“The RONS”
➢ Significant investment
in brand building
Going Digital
New Products
Hyperlocal Activity
Digital Warranty
Geographic targeting campaigns
Introducing New Products with channel and brand synergy
New Brands
New brands to explore different consumer segment
Automotive growing footprint
o 12% of Total Revenue from Exports
Global motorization rates per 1000 inhabitants
ENTRY/FOCUS - HIGH DENSITY MARKETS
o Last 5 years Revenue CAGR of 14%
Global average ~ 292
NAMR BRP : 84M
Europe BRP : 56M
A
790
CANADA
A
UNITED STATES
890
A
MEXICO
HONDURAS HONDURAS A A A A
GUATEMALA GUATEMALA
NORWAY
A
A
A
FINLAND
UK A
A
SWEDEN
A
A
A
BELARUS
IRELAND
GERMANY
POLAND
EU ~ 643
HUNGARY A
FRANCE A
A
A
ROMANIA
SPAIN A
A
PORTUGAL
MOROCCO
A
ITALY TUNISIA
A
A
TURKEY A
LEBANON
397
A
RUSSIA
CIS BRP : 23M
KAZAKHSTAN A
AZERBAIJAN
A
UZBEKISTAN A
A
TURKMENISTAN
ALGERIA
A
EGYPT A
SAUDI ARABIA
A
A
Grow to 80+ countries by FY28
Presence in 50 countries
VENEZUELA A
GUYANA GUYANA A A
COLOMBIA A
ECUADOR A
PERU
A
366
BRAZIL
A
A
BOLIVIA
CHILE
A
A
PARAGUAY
373
A
A
ARGENTINA
URUGUAY
SAMR BRP : 61M
MAURITIANA
Africa ~ 65
A
A
NIGER
MALI
GUINEA
A
A
CHAD
A
SUDAN A
SENEGAL
GAMBIA GUINEA-BISSAU GUINEA-BISSAU
A A A
SIERRA LEONE
A
A A
A
BURKINA FASO GHANA TOGO AA A
NIGERIA A
CAMEROON
A SURINAME
LIBERIA
BENIN
A
A
IRAQ A
KUWAIT A
BAHRAIN
AFGHANISTAN A
NEPAL A
BHUTAN A
UAE A
OMAN A
A
QATAR
YEMEN A
INDIA
A
59
GCC ~ 403
A
ETHIOPIA
A
MALDIVES A
A
SRILANKA
SOMALIA
A
221
CHINA
S. KOREA A
JAPAN A
624
A
MYANMAR A
BANGLADESH
TAIWAN A
A
HONG KONG
APAC BRP : 30M
PHILLIPINES
A
THAILAND A
VIETNAM
A
A
CAMBODIA
MALAYASIA A
A
SINGAPORE
A
INDONESIA
82
A
KENYA A
UGANDA A
DRC
RWANDA
A
A
SEYCHELLES
A
ANGOLA
A
ZAMBIA
TANZANIA
A
MALAWI
A
A
A
A
NAMIBIA
ZAMBABWE
MOZAMBIQUE
BOTSWANA
A
A
MADAGASCAR
MAURITIUS
A
SOUTH AFRICA
MEA BRP : 47M
Current ARBL presence
Expansion plan
PAPUA NEW GUINEA
A
AUSTRALIA
A
782
FIJI ISLAND
A
NEW ZEALAND
A
12
Industrial Batteries: Double digit growth in FY 23
➢ Strong growth due to 5G rollout &
➢ Demand for industrial UPS batteries
➢ Focus on emerging BESS market in
related network Augmentation.
continues to be robust.
Commercial and Industrial Segments
➢ ARBL continues
to have dominant
➢ ARBL meets more than half of the
market share.
lead acid battery requirement
in
Data Centres.
• Developing Lithium Solutions for Telecom, Data Centre, BESS and other applications in Industrial segment to get future ready
•
Expanding to Newer Geographies /Markets
13
LAB Strategy Outline: TARGET REVENUE GROWTH OF 11 TO 12%
Automotive
Drive Efficiencies
Cost Efficiencies with ASG/MSG technologies.
Deepen the market presence
Leverage the channel network for distributing other allied products
International
Expand the presence
Industrial
Energy Solutions
Expand presence to Europe and American Markets
Hold the current Market shares in Telecom and UPS
Deepen presence in SE Asia, West Asia and African Markets
Global manufacturing foot print to avoid tariff barriers
Build Capabilities for Battery Energy solutions by offering Chemistry Agnostic Solutions
14
Initiatives for Growth / Value Maximization
Advanced Products
• AGM batteries for ICE & Micro Hybrids • Auxiliary batteries (AGM) for EV’s • Nest Gen UPS and High Wattage Batteries • Batteries with Eco friendly FR components
Process Technology
• Complete migration to Stamped Grid range : Cost savings • Stamped Grid technology for higher wattage to result in superior product performance for UPS,ESS and
Telecom
• Advanced and efficient manufacturing process for AGM and Flooded Products
Digital & Efficiency
• Digitizing of service and distribution operations • Further Reduction in Warranty Replacements
Recycling & Sustainability
• Recycling of Batteries through best process Technology • Increase Usage of Renewable power (Current Capacity of 65 Mw)
15
New Energy Business
…New Growth Engine
Market Potential and Market Fit : Indian Market ~ 150 Gwh
Market Fit
Market Potential by FY 30
Pouch
Prismatic
Cylindrical
------------
Application
Potential in GwH
LEV
PV
CV
Storage
Total
45 to 50
50 to 55
15 to 25
20 to 30
130 to 160
NMC
LFP
Market Potential and Market Fit : Indian Market ~ 150 Gwh
Underlying Demand Drivers
High customer pull for EVs ensuring market
expansion in specific segments as a near given
India manufacturing subsidies ensure that the delivered
cost of the final product is efficient and competitive
18
EV Chargers
Off Board Charger
AC Charger
DC Fast Charger
12Channel Battery Swapping Station
EV Chargers
Input supply
Output
Range
150 to 280VAC
48-59VDC
230VAC/415VAC
230VAC/415VAC
415VAC
200-1000 V DC
415VAC
42-58VDC
500W to 3000W
3 KW to 22KW
30 KW to 300KW
Max. Power of 20KW
Conversion details
AC to DC Conversion
No Power Conversion
AC to DC Conversion
12 Nos of 1.9kWH Batteries
Application
Off Board Charger supplies DC power to E-2Wheelers & 3 Wheelers
Supplies controlled AC power supply to the On Board Charger for E-4 Wheelers
DC Fast Charging of E-4 Wheelers
To Charge E- 2/3 Wheeler batteries of 1.9kWHr Swappable Batteries
Giga Corridor Roadmap: Divitipally in Telangana
Phase 1
FY 25
•Customer Qualification plant •2 Gwh Cell Capacity •2 Gwh Pack facility
FY 28
Phase 2
•Cell Capacity of 8Gwh •Pack Capacity of 5 Gwh
FY 32
Phase 3
•Cell Capacity of 16 Gwh
•
•
Land allotment completed
Capital subsidy & power cost subsidy
20
Key Strategic Building Blocks
Technology
Customers (Cells, Packs and Chargers)
SCM
Talent
• Build in-house competency in cell technology development
• Build strategic technology
partnerships.
• Establish Advanced Energy Research and Innovation Centre in Hyderabad
• Create best-in-class product portfolio for both EV and ESS
• Leverage Customer
Relationships and collaborate to create custom built products for Mobility and Stationary storage segments.
• Current Customers: Piaggio, Mahindra, Omega SEKI, Greaves Mobility, Tork motors and Baxy mobility, etc..
• Work with Strategic Vendors for Capital Equipment and Critical Raw Materials
• Support initiatives for
strengthening domestic Supply Chain
•Recruitment and on boarding of subject matter experts
• Build Deep Tech Expertise in Technology, Supply Chain and Operations
•To Promote Diversity & Inclusion
• Conscious initiatives on hiring of diverse gender
•Affirmative action efforts
•Rural & Urban Mix
21
Acquisition of Amara Raja Power Systems Limited ARBL to acquire 100% of shares of ARPSL from RFPL
Pre-Transaction Structure
Post-Transaction Structure
ARPSL: Financial Highlights
RN Galla Family Private Limited
(RFPL)
Amara Raja Power systems Limited (ARPSL)
Amara Raja Batteries Limited (ARBL)
RN Galla Family Private Limited
(RFPL)
Amara Raja Batteries Limited (ARBL)
(28.06% owned by RFPL)
Amara Raja Power systems Limited (ARPSL
FY 22
Rs in Cr
FY 23
131
13
10%
184
20
11%
Revenue
EBITDA
EBITDA %
ARPSL is involved in the manufacture of
➢ Industrial Chargers and Integrated Power Systems for Indian Railways
➢ EV chargers for 2W/3W applications and is developing products for other EV applications
22
Financial Highlights
Q4 FY23 Standalone Financial Highlights
Revenue (₹ Cr)
2,429
11.4%
2,181
EBITDA (₹ Cr) & EBITDA Margin %
400 350 300 250 200 150 100 50 -
53.4%
220
10.1%
337
13.9%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Q4-FY22
Q4-FY23
Q4-FY22
Q4-FY23*
➢ Over all Automotive Volume growth of 10% to 13% except for tubular Batteries.
➢ Industrial Battery volume grew around 6% to 7%
➢ Revenue from EV chargers and Lithium Battery Packs grew by 5 times.
➢ Margin improvement due to Better operational Efficiencies and Higher Realization.
24
FY23 Financial Highlights
Operating Income (₹ Cr)
10,386
19.4%
8,696
EBITDA (₹ Cr) & EBITA Margin %
32.5%
1,023
11.8%
1,355
13.0%
1,600 1,400 1,200 1,000 800 600 400 200 -
FY22
FY23
FY22
FY23*
➢ Strong Volume Growth in Automotive Batteries around 13% and Industrial Batteries is around 12% while the Home UPS
battery volume was stable compared to the previous year
➢ Revenue from EV chargers and Lithium Battery Packs grew by 3.5 times.
➢ Margin improvement due to lower input costs and higher realization.
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
25
Key Financial Ratios
Current Ratio
2.44
2.02
2.12
1.85
2.25
22.55%
21.03%
ROCE
20.44%
18.50%
14.99%
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
Asset Turnover Ratio
3.65
3.64
3.28
3.38
2.75
EPS
38.69
37.87
40.65
28.30
29.93
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
26
Mission - Skilling Rural India To 'Make In India'
Objective to provide systematic technical & non-technical training to people from rural India
A free of cost 18-month course including food and accommodation for all the students
Spread over 5 acres of land
Capacity for 800 students per year
Developed 2 Villages: Diguvamagham Petamitta Village
Skill Development Centre Bank Telephone Exchange
Drinking Water Roads Complete Electrification
Recreational Park
Library Women Employment
Primary Health Care
School College
Social Forestry
Water Resources for Farming
• 222 acres of barren hillock Adopted for greenery development
• 30 acres purchased and donated
to Government
• 70,000 + saplings planted • 40 Tribal families employed • Protected by all-around fence • Plant varieties (Jamun, Neem,
Amla and other medicinal plants)
• 23 Check dams for water
conservation
• De-silting of 3 water
bodies
• Supply channels to harvest
rain water
• Benefits 12 panchayats, covering 60 villages
Dr. Ramachandra Galla (Visionary, Founder Chairman)
Jayadev Galla (Chairman and Managing Director)
“ To be an entrepreneur is
to be a social worker.”
“ Gotta be a better way reflects our
attitude of constantly looking for better ways to do things.”
THANK YOU