Amara Raja doubling down on building local distribution network in US amid tariffs: Report

Amara Raja Energy & Mobility

• Amara Raja aims to double export revenue share in five years
• Company expands US presence despite tariff challenges
• Shares closed at Rs 930.80, up 3% in five days, but down 19% in one year

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India's second-largest battery manufacturer Amara Raja Energy and Mobility is aiming to expand its presence in the US market as part of its efforts to double the share of revenue from exports in the next five years, Mint reported.

The Hyderabad-based auto ancillary firm is doubling down on establishing a local distribution network in the North American market amid US President Donald Trump’s harsh tariffs, the report further said, adding that it aims to benefit from its edge in one of the advanced technologies in lead acid battery industry.

Harshavardhana Gourineni, Executive Director of Amara Raja, told Mint that one of the most exciting opportunities, especially on the lead acid side, is building the company’s operations in North America, where they see certain technology trends like a move towards AGM (Absorbent Glass Mat) batteries.

“We’re the only manufacturer in India that's supplying AGM batteries to the OEMs. We'd like to use that technological prowess to build market share and build long-term and robust customer relationships,” he added during his interview with Mint.

Gourineni acknowledged that the imposition of tariffs has introduced some uncertainty, which creates an issue building up the business. However, during the interview, he noted that the Amara Raja has been able to compete by using some strategies. “We’ve been at 25% duty for the last 10 months or so. And yes, this definitely affects our competitiveness. It also creates a lot of suspense and confusion around which direction this may move and how long. But the fact is, we've still been able to compete. We've maintained our customer relationships. We've doubled down on building some distribution strength and getting a bit more local in the US, so that we can support the customers in a better way. And if things move in a positive direction, we can definitely build our volumes and take more market share,” he added.

Amara Raja share price:

Amara Raja Energy & Mobility shares closed in the green with marginal gains at Rs 930.80 apiece on January 5. The stock has risen more than 3 percent in the past five days, but fell around 2 percent in the past one month.

The stock fell around 19 percent in the past one year, and over 7 percent in the past five years.