Li-Ion foray unlikely to offer fast charging for Amara Raja
To mitigate the capital risk and to gain easy access to technology, a global partner would be essential.
Synopsis
Analysts believe that the scale of investment for Li-Ion cell manufacturing along with the capital requirement of its existing core business of lead-acid batteries may stretch Amara Raja’s balance sheet.
ET Intelligence Group: Amara Raja Batteries’ decision to enter the Lithium-Ion batteries segment is a welcome step to plug the technology gap in its business model. However, in the absence of details on investment outlay and possible global technology partner, it may not lead to any immediate stock re-rating.
Under the new energy business unit, the company has started Li-Ion battery pack assembly for a few customers while working on pilot
