A STUDY ON

AMARA RAJA BATTERIES PRIVATE LIMITED

COMPANYANALYSISREPORT
Submitted in the practical fulfilment of the
Requirement for the award of the Degree of
Deportment of Management Studies
SREENIVASA INSTITUTE OF TECHNOLOGY AND MANAGEMENT STUDIES
(SITAMS)
(AUTONOMOUS)
Submitted By
Mr .G.JAVEED
REG No: 18751E0036
Under the Guidance of
Dr .C. JYOTHSNA MBA, Ph.D.
ASSISTANT PROFESSOR,
DEPARTMENT OF MBA

SREENIVASA INSTITUTE OF TECHNOLOGY AND MANAGEMENT STUDIES

(AUTONOMOUS)
Dr .D.K. AUDIKESAVULU MARG (BANGALORE-TIRUPATI BYE-PASS ROAD)
MURAKAMBATTU POST, CHITTOOR-517127(A.P)
2018-2020

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SREENIVASA INSTITUTE OF TECHNOLIGY AND MANAGEMENT STUDIES
(SITAMS)
(AUTONOMOUS)

Dr .D.K. AUDIKESAVULU MARG

(BANGALORE -TIRUPATI BYE -PASS ROAD)
MURAKAMBATTU POST, CHITTOOR -517127(A.P)

DEPARTMENT OF MBA

CERTIFICATE

This is to certify that COMPANY ANALYSIS entitled as

“A STUDY ON AMARA RAJA BATTERIES LIMITED”, Submitted
By Mr .G. JAVEED(REG No:18751E0036) in partial fulfilment of requirements
for the award of the Degree in “Deportment of Management Studies” under
SREENIVASA INSTITUTE OF TECHNOLOGY AND MANAGEMENT STUDIES
(AUTONOMOUS) during the academic year 2018-2020

PROJECT GUIDE HEAD OF DEPARTMENT

Dr .C.JYOTHSNA D.J.V. BALASUBRAMANIAN

MBA, Ph.D. M.B.A, Ph.D.
Assistant Professor Associated Professor & HOD
SITAMSSITAMS

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 ACKNOWLEDGEMENT
I wish to express my sincere thanks to Dr. P. Ramesh Kumar, Ph.D., MISTE, FIE,
Principal, SITAMS for providing the opportunity to take up this mini project.
I express my sincere gratitude to Dr .J.V. Balasubramanian, MBA, Ph. D, HOD,
Department of MBA SITAMS, for providing the opportunity to do this project.
I express my sincere gratitude to my guide. Dr .C.JYOTHSNA, MBA, Ph.D.
Assistant professor for his valuable guidance, and encouragement bestowed up on me in the
preparation pf this synopsis.
I sincerely express my gratitude to technical and non-technical staff of for making my
synopsis gets complete successfully.
I sincerely express my thanks to all my family members and friends, who help to
complete this synopsis successfully.

DATE: G.JAVEED

PLACE: CHITTOOR (REG No: 18751E0036)

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INDEX:
Chapter No Concepts Page No

I Industry profile

Company profile

History

Mission and Vision

Product profile

II Purpose of study

Objectives of the study

III Methodology

IV Analysis

V Findings & conclusion

Bibliography

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 Industrial Profile

Abstract:
The Battery industry in india, which is worth Rs. 1600 cr, has a market size of 2000
million units. The industry is dominated by dry carbon cell batteries and the demand to
a large extent is from the rural areas. The industry focus highlights the classification of
the battery market and the product portfolios of the domestic chinese products being
available and the market for rechargeable batteries growing at a rapid pace, Which have
affected the industry players.

Description
The demand for batteries, which has been fuelled by increase in the usage of
small pocket radios and high-powered cameras, has improved dramatically. The shift, in
the nature of demand (from D size batteries to pencil size batteries) has also brought in
a drastic change in the demand pattern.
Eveready industries lead the Indian dry carbon cell market with over 40% market share.
Though Eveready is a strong national player, Nippo has a prominent presence in the
southern region. Novino, on the other Hand, has a strong presence in certain pockets in
the northern region, while BPL, a new entrant, has also managed to garner sizeable
market share.

The alkaline battery market only account for 5% of the total market .This is because the
alkaline battery costs twice as much as a traditional zinc carbon battery. The higher
pricing is due to the relatively higher cost of production. Contrary to the global trend the
higher price of alkaline battery has dampened the markets growth in india. Alkaline
batteries in developed countries account for more than 70% of the battery market. The
alkaline segment in India is dominated by the global brands.Duracell and energizer.

Keywords
Marketing master mind magazine, battery industry alkaline batteries, carbon cell
batterieds, Eveready industries, Indian battery industry, battery market Chinese
products, global brands, Agricultural production, Consumer products, Electronic
gadgets, urban markets.

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 In a rapidly transforming economic and business environment, fast-paced innovations
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The IUP Publications brings out a portfolio of publications to make the much-needed
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The portfolio of publications consists of 27 journals in the niche areas of management,

finance, economics, science & technology and arts & humanities, containing cutting
edge research papers in various domain areas and inter-disciplinary topics, interviews,
case studies and book reviews.

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 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. U.V Warulu Scientist

Dr. Upendranath Naimmlagadda NRI

Mr. P.Lakshman Rao Chartered Accountant

Mr. Arthur F.Nening.Jr Johnson Controls Inc. USA

Mr. Douglas C. Brown Johnson Controls Inc. USA

Mr. James T. Luke Johnson Controls Inc. USA

Mr. Jayadev Galla

Managing Director
Mr. Ramachandra Naidu. Galla Chairman and Executive Director

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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

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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


Mission

The mission of ARBL is to deliver reliable and clean power to its customers, technology and
trust are key value additions that are delivered with every product and endorsed by its satisfied
clients across the globe.

Vision
Will be a dominant player in providing integrated solutions in conversion and
management of electrical power by leveraging sustainable technologies

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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.

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 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

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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.

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 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.

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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

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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.

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 Objectives of the study
 To do the SWOT analysis of the company
 To do the PEST analysis of the company

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 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.

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 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.

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 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.

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 IV. ANALYSIS

SWOT Analysis of Amara Raja 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

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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

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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

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