COMPANY ANLYSIS OF THE AMARAJA BATTERIES LTD

CHAPTER-I
1. Introduction about the company
2. History and origin
3. Company profile
4. Industrial profile
CHAPTER-II
1. Objectives of the study
2. Scope of the study
3. Limitations of the study
CHAPTER-III
1. Research Methodology
 AMARARAJA COMPANY ANALYS
COMPANY PROFILE

Amara Raja Batteries Limited (ARBL), is a member company of Amara Raja group
which comprises the following other companies.

1. Amara Raja Power Systems Pvt. Ltd., (ARPSPL), Karakambadi, Tirupati.

2. Mangal Precision Products Pvt. Ltd. - MPP 1, Karakambadi, Tirupati.
3. Mangal Precision Products Pvt. Ltd., - MPP2, Petamitta village, Chittoor.
4. Amara Raja Electronics Pvt. Ltd., (AEPL), Diguvamagham, Chittoor.
5. Galla Foods Pvt. Ltd., (GFPL), T. Rangampet, Puthalapattu, Chittoor.
Mr. Ramachandra Naidu. Galla

Mr. U.V Warulu

Dr. Upendranath Naimmlagadda

Mr. P.Lakshman Rao

Mr. Arthur F.Nening.Jr

Mr. Douglas C. Brown

Mr. James T. Luke

Mr. Jayadev Galla

Scientist

NRI
Chartered Accountant

Johnson Controls Inc. USA

Johnson Controls Inc. USA

Johnson Controls Inc. USA

Managing Director
Chairman and Executive Director
 Amara Raja Group

Type Conglomerate

20Founded
December 1985

Ramachandra
Founder Naidu::: GALLA ramachandra Naidu

Worldwide
Area
served

Key Ramachandra Naidu

people Galla (Chairman)
Galla Jaydev (Managing director)

Products Automotive batteries, battery

chargers, electronics, industrial
batteries, digital inverters,
industrial batteries, infrastructure,
power, processed food, trickle
chargers, UPS

Number of 12500 (2013)[1]

employees

Website amararaja.com
HISTORY OF THE COMPANY

Amara Raja Batteries Private Limited (ARBL) incorporated under the companies act,
1956 in 13th February 1985, and converted into Public Limited Company on 6th September
1990.

The technocrat entrepreneur Sri Rama Chandra Naidu Galla is the chairman and
managing director of the company. ARBL is the first company in India which manufactures
Value Regulated Lead Acid (VRLA) Batteries. The main objective of the company is
manufacturing of good quality of “Sealed Maintenance Free (SMF)” acid batteries. The

Company is setting up to Rs. 1,920 lakhs plant is in 18 acres in Karakambadi village Renigunta
mandal. The project site is notified under “B” category.

The company has the clear cut policy of direct selling without any intermediate. So they
have set up six branches and are operated by corporate operations office located in Chennai.
The company has virtual monopoly in higher A.H. (Amp Hour) rating market its product
VRLA. It is also having the facility for industrial and automotive batteries.

Amara Raja is a 5 ‘S’ company and its aim is to improve the work place environment by
using 5 ’S’ technique which is:

1. SEIRI - Sort Out.

2. SEITON - Systematic Arrangement

3. SEISO - Spic and Span

4. SEIKETSU - Standardization

5. SHITSUKI - Self discipline

They propose to accomplish this by

 Training the people and creating awareness on 5 ‘S’


 Motivating and changing the behaviour patterns of the people

 Establishing standards for the implementation of element of 5 ‘S’.

They believe that effective implementation of 5 ’S’ technique s will result in

 Consistent and better quality product


 Higher productivity

 Lesser accidents
Collaborators

Amara Raja has a strategic tie-up with Johnson Controls Incorporation of USA. Amara
Raja and Johnson Controls Inc. both are having a 26% each share in ARBL and the remaining is
on public share. Amara Raja is a company with commitment to achieve excellence in all its
activities. The company is currently poised on a healthy growth rate of 2.5% per annum and the
present turnover of around 270 crores. Major customers are BSNL, VSNL, SIEMENS, and
BHEL etc.

AMARA RAJA BATTERIES LIMITED (INDUSTRIAL PROFILE)

Amara Raja Batteries Limited was established in the year 1985 and then converted into
limited in the year 1990. Amara Raja has a strategic tie-up with Johnson Controls Inc. of the
USA.

Amara Raja has demonstrated its commitment to offer optimum system solutions of the
highest quality and has become the largest supplier of standby power systems to core Indian
utilities such as the Indian Railways, Department of Telecommunications, Electricity Boards
and major power generation companies. Extensive plans have been charted out for the future,
wherein the company undertakes to become the most preferred supplier for power back-up
systems.

Amara Raja has offered time tested world-class technology and processes developed on
International standards – be it high integrity VRLA systems like Power Stack and Power Plus or
the recently launched high performance UPS battery – KOMBAT & Aaron Hi-life automotive
batteries that are the products of the collaborative batteries efforts of engineers at Johnson
Controls Inc. and Amara Raja.

ARBL comprises of two major divisions viz., Industrial Battery Division and Automotive
battery division. Total strength of ARBL comes around 1350.
 ARBL

Industrial Battery Division (IBD) Automotive Battery Division (ABD)

1. Railway Coaches 1. Two wheelers

2. Telecom 2. Four wheelers

3. UPS 3. Heavy vehicles

Industrial Battery Division (IBD)

Amara Raja has become the benchmark in the manufacture of Industrial batteries. India is
one of the largest and fastest growing markets for industrial batteries in the world and Amara
Raja is leading in the front, with an 80% market share for standby VRLA batteries. It is also
having the facility for producing plastic components required for Industrial batteries.

ARBL is the first company in India to manufacture VRLA batteries (S.M.F.). The
company has set-up Rs.1920Lakhs plant in 18 acres in Karakambadi village, Renigunta Mandal.
The project site is notified under ‘B’ category.

Capacity

The actual installed capacity of IBD is 4Lakh cells per annum and utilization capacity is
reached to 3, 25,000 cells per annum.

Products

Types of VRLA batteries manufactured in IBD are

1. Power Stack
2. Combat (UPS Battery)
3. Brute
4. Genpro
Customers

Amara Raja being the first entrant in this industry had the privilege of pioneering VRLA
technology in India. Amara Raja has established itself as a reliable supplier of high-quality
products to major segments like Telecom, Railways and Power.

Competitors

The major competitors for Amara Raja Batteries products are Exide Industries Ltd.,
Hyderabad Batteries Ltd., and GNB.

Automotive Battery Division (ABD)

ARBL has inaugurated its new automotive plant at Karakambadi in Tirupati on September
24th, 2001. This plant is part of the most completely integrated battery manufacturing facility in
India with all critical components, including plastics sourced in-house from existing facilities
on-site. In this project, Amara Raja’s strategic alliance partners Johnson Controls, USA have
closely worked with their Indian counterparts to put together the latest advances in
manufacturing technology and plant engineering. It is also having the facility for producing
plastic components required for automotive batteries.

Capacity

With an existing production capacity of 5 Lakh units of automotive batteries, the new
Greenfield plant will now be able to produce 1 million batteries per annum. This is the first
phase in the enhancement of Amara Raja’s production capacity in which the company has
invested Rs.45 crores. In the next phase, at an additional cost of Rs.25 crores, production
capacity will increase to 2 million units estimated to complete around 3 years. After that ARBL
will become the single largest facility for battery manufacture in Asia.
 Products

The products of ABD are

1. Amaron Hi-Way
2. Amaron Harvest
3. Amaron Shield
4. Amaron Highlife

Customers

ARBL has prestigious OEM (original equipment manufacturer) clients like FORD,
General Motors, Daewoo Motors, Mercedes Benz, Daimler Chrysler, Maruti Udyog Ltd.,
Premier Auto Ltd., and recently acquired a preferential supplier alliance with Ashok Leyland,
Hindustan Motors, Telco, Mahindra & Mahindra and Swaraj Mazda.

Competitors
 Exide

 Prestolite

 AMCO
Amara Raja Power Systems Pvt. Ltd

Amara Raja Power Systems Pvt. Ltd. was incorporated in 1984 and was co-promoted by
A.P. ELECTRONIC DEVELOPMENT CORPORATION (APEDC). By virtues of APEDC’s
equity participation, ARPSL has become a deemed public limited company as per section 43
(A) of The Companies Act. ARPSL is engaged in the manufacture of Uninterrupted Power
Systems (UPS) Battery Chargers (BC) and inverters. The company had a technical
collaboration with H.D.R. Power Systems Inc. USA. The company has entered into a new
collaboration with M/s. Rectifier Technologies, Australia for manufacturing the advanced
Switch Mode Power Supply units [SMPS] for battery charging purpose. The present credit
rating of the company is “A”.

Total strength of ARPS (P) L comes around 265.

Products

The products of ARPSL are

1. Conventional chargers
2. Switch Mode Rectifiers[SMR]
3. Integrated Power Supply Systems (Ips).

Customers

BSNL, VSNL, SIEMENS, SPCNL, RELIANCE & LG.

Mangal Precision Products Pvt Ltd

It was started in the year 1996-97 at pentamitta village, Chittoor Dist. It produces
battery components like copper connectors, copper inserts, hardware required by ARBL
&ARPSL.

The unit is having required machinery and equipment like power press break,
mechanical press, could forging machine, thread forming machine, lathe, drilling, trapping
machine etc., to produce the above components These components are Electro-plated and
dispatched to ARBL & ARPSL.

Amara Raja Electronics Pvt Ltd

It was recently established in 2000. it produces electronic card and power distribution
boards for UPS and inverters.

Product Profile

Type of VRLA batteries manufactured in the industrial battery division

1. Power Stack
2. Kombat(UPS battery)
3. Brute
4. Genpro
Galla Foods Pvt Ltd

GFPL was incorporated in 11th March 2004 and having its registered office at Rangampet,
Puthalapattu Mandal, Chittoor district, Andhra Pradesh.

 It is in the process of setting up a world class Food Processing Unit on par with the
international standards for extracting natural fruit concentrates from tropical fruits and
export to USA, Europe and other advanced International markets.

 The company belongs to the Amara Raja group, which is a pioneer in industrial and
automotive batteries in India.
PRODUCT PROFILE

Amaron is a product of Amara Raja Batteries Limited, a joint venture of Amara Raja of
India & Johnson control of USA.

A battery is device that stores electrical energy in the form of chemical energy and
reconverts chemical energy when required.

A battery is made up of number of cells connected to each other & immersed in an

electrolyte. Each cell contains +ve &-ve plates.
+ve plate is made up of lead dioxide (pbO2)
-ve plate is made up of spongy lead (pb)
Electrolyte consists of sulphuric acid (H2SO4) and water (H2O)

Lead acid batteries are used in automobiles. Chemical reaction that takes place in the
battery as follows:

PbO2 +Pb + 2PbSO4+ 2H2O.

The synergy of Amara Raja & Johnson Control compliments the strengths of both in
terms of product design and market presence and meets the ever growing demand for batteries
of international quality. Normally batteries all over the world are manufactures on specified
norms laid down by

1. Japanese International Standards (JIS)

2. Douche International Norms (German/Europeans standards) DIN.

PRODUCT PROFILE OF ARBL GROUP:

S.no Product Name Feature

Applications

1 Amaron High performance, totally high power For Tractors

Harvest charge acceptance.

2 Amaron shield Ready to fit, long life, low For Investors

maintenance, higher cranking power.

3 Amaron Hi- Long life, maintenance free, fully Cars-utility vehicles,tractors,3

Life batteries scaled and tested, no leakage. wheelers, HCV ‘s, geneses &
LCV ‘s.

4 Kombat High discharge, high performance UPS, EPBS, engine starting

batteries, which are compact light emergency lighting, SPB,
weight factory charged, explosion, portable power, fine alarm
resistant & environment friendly. security systems.

5 Amara Raja Light weight, sturdy weather proof & Industrial applications, power
(Power stack) long lighting , high integrity, high plants, railways, motive power,
Industrial energy density. solar, electric vehicles,
emergency lighting.

6 Amara Raja Zero maintenance, no specific gravity For generators

Genpro checks, no water tapping up required,

long life, assured starting and service.
 7 Amaron Hi- Long life, ultra low maintenance, For trucks
way batteries ready to fit, higher cranking power.

8 Quanta -------------------- UPS batteries

(uninterrupted)

Objectives of the study

 To do the SWOT analysis of the company

 To do the PEST analysis of the company

SWOT Analysis of Amaraja Batteries LTD:

S = Strength w = weakness

O = Opportunities T = Threats

Strengths:
1. Contains patented Silverx Alloy to give it extra-long life
2. High customer focus in all aspects from design to manufacturing to sales
3. Continuously innovating and is at par with the best batteries in the world
4. Market leader in India with in short span of a few years
5. Huge dealer network
6. Online ordering of Batteries
7. Excellent advertising and marketing through TVCs, Print media

Weaknesses:
1. Higher cost means limited margins
2. Huge competition from local and international brand means limited market share
growth
3. Not having full-fledged function inadequate infrastructure
Opportunities:
1. Boom in automobile sales in segments
2. Customers are getting more brand sensitive and focus on quality more then
cost
3. International markets responding well to inroads by Amaron
4. High potential growth rate in construction industry

Threats:
1. Other battery manufacturers offering lower prices
2. Improvement in car technologies can lead to modification of batteries
3. Unfavourable govt polices can affect operational efficiency
4. Shortage of skilled manpower

PEST Analysis of the company:

P = Political E = Economic

S = Social T = Technology

Political:

For every company entity it is the very primary basic think to consider that
company should start their operations according to the current situation of particular
country, political factors affect any business in many ways like for ex few factors
consider:

 Government policies
 Political stability or instability
 Bureaucracy
 Corruption
 Foreign trade and tax policies
 Funding grants and initiatives

Economical:

Second thing is economic before thinking about any business plan a company
needs to understand economy of targeted country, either it is healthy and have a
adequate ability to get ROI or not ,there is few factors are consider:

 Economic trends
 Industry growth
 Seasonal factors
  International exchange rates
 Consumer disposable income
 Raw material cost, unemployment rates, availability of credit

Social:

Another important factor is social factor, here company should align their
products or services to the social sensitivity of any country. The following factors are
considered:

 Attitudes and beliefs about arrange of factors including money

 Demographic and geographic factors
 Social classes
 Customer service, religion, cultural taboos, health
 Environmental factors

Technological:

Technology is a new life or new destiny of the universe but this is also true that
many countries are not make them up to the mark with technologies. In this case
company like known for its technological excellence should consider technically their
products are expected by the particular market or not:

 Technology and communication infrastructure

 Consumer access to customers
 Competitor technology and development
 Technological research and innovation
 Intellectual property regulations

Scope of the study

Scope of the study is to discuss the Brand Awareness of Amaron batteries. This
research also includes the study of analyzing the factors to improve the awareness of
the brand and it will easy to restructure the advertising strategies of the brand and to
know the present awareness level of the brand among the customers. Through the
study was consented on the penetration of their product and factors affecting their
penetration finding of this study can be useful for getting the feedback about various
batteries, their market presence and consumer response for the batteries.
 Through the study was confined to batteries but
company to understand the market factor other than competition, affecting, the
presence of its wide range of batteries.
To make people Aware about the batteries brand.

Limitations of the study

During my entire Study of these company I tried my best to make to make my
research study and my report qualitative but during my Analysis of the following
limitation I faced;
 Time period for the study is very short.
 It happens some that some respondents may give wrong/biased data.
 Some secondary data did not give proper response
 Study only through the secondary data based.

Research Methodology

A Research methodology or involves specific techniques that are adopted in

research process to collect assemble and evaluate data. It defines those tools that
are used to gather relevant information in specific research study. Surveys,
questionnaire and interviews are the common tools of research.

Research Design:
Under the research design commonly using 2 types of data collecting
methods
1. Primary Data 2. Secondary Data

1. Primary data:
The data collection was carried using Questionnaire. The data was
collected through personal interview method.

2. Secondary data:
For this research work the secondary data are collected from the
previous information with the company. Apart from the SEO, books,
magazines so on.