Amara Raja Batteries board clears proposal to set up Rs 700 cr plant

Amara Raja Batteries today said its board has approved a proposal to set up a green field automotive battery plant with an investment of Rs 700 crore.

"The Board of Directors at its meeting on August 11, 2018, reviewed and approved a proposal for setting up a green field automotive battery plant with a capacity of 6.5 million units per annum to be implemented in three phases, staggered over a period of time," said in a BSE filing.

Once the project is completed, the capacity of four-wheeler battery will increase to 17 million units per annum. The total investment of the project is estimated at Rs 700 crore and the same would be met out of internal accruals, it added. The first phase is expected to be completed in the next 18 months.

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The company posted 13.19 per cent rise in net profit at Rs 113.03 crore during the first quarter of 2018-19 as against a net profit of Rs 99.85 crore in the April-June quarter of the previous year. The stock was trading at Rs 828.05, up 0.50 per cent from the previous close on BSE.