Last Updated : May 12, 2015 09:30 PM IST | Source: CNBC-TV18

Amara Raja may invest Rs 4,500 cr in new plant in Chittoor

Amara Raja Group to roll out new plant in Chittoor, Andhra Pradesh with a capacity of 7 million batteries per year, though it is currently manufacturing just around 4 million units.

Hyderabad-based Amara Raja Group is opening up its 500-acre land bank for development that may include several big investment projects. The first of these will see Amara Raja Batteries will roll out its flagship Amaron batteries from a brand new plant, reports CNBC-TV18’s Jude Sannith.

A greenfield development that could turn Chittoor into Andhra's next industrial hub. When Amara Raja growth corridor turns fully operational in the next five years, this land bank could house some big manufacturing names. Andhra Pradesh CM Chandrababu Naidu laid the foundation of the corridor this week.

The site has already become home to Amara Raja's new factory that will manufacture the group's flagship Amaron batteries. The AP government and the Amara Raja Group are now hoping to attract big investment to the region by creating sector-specific zones within the corridor.


Ramachandra N Galla, Chairman, Amara Raja Group said that, "there is a separate zone for manufacturing and a separate zone for green industries. At present, the battery plants are coming under the manufacturing zone. Also, we've separated certain sections for the battery business. Other areas we have are light-auto-component business, consumer electronics business, power electronics and green electronics."

The project is expected to attract 20,000 jobs over the next five years and a projected investment of Rs 4,500 crore. The Amara Raja growth corridor has successfully aligned its vision and mission with that of the Andhra government - a focused, systematic initiative to make Chittoor, a manufacturing hub to rival any other across the country.

The Amaron plant itself is expected to employ over 8000 skilled personnel over the next two years. The plant's total capacity is 7 million batteries per year, though it is currently manufacturing just around 4 million units. The group says expansion plans are in the offing.

"We have designed total 7 lines capacity. Today, we've got five lines. Out of the five lines also, we're running only four lines. We've added the capacity, because we will require them in future. Each year, we'll be adding to that. We are confident that in two years, we'll be able to add to this,” added Galla.

The Andhra government has found a willing partner in Amara Raja as it tries to give a facelift to Chittoor's industrial profile.

If the partnership proves to be a successful one, Chief Minister Chandrababu Naidu's plan to make the state India's preferred investment hub by the year 2022 may move a step closer to reality.

First Published on May 12, 2015 08:58 pm