Hyderabad – 4th April 2019: Amara Raja Batteries Limited (ARBL), India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT) yesterday informed Stock Exchanges that Johnson Controls International (JC) and the Galla Family reached an agreement by which Galla Family would acquire 2% equity shares of the Company from Johnson Controls. JC and Galla family currently hold 26% shares each in ARBL. Upon purchase of the 2% shares, Galla family will increase their holding in ARBL to 28%. Consequently, JC and Galla Family agreed to terminate the shareholders and other allied agreements with effect from April 01, 2019.
ARBL had an ongoing Technical Assistance agreement entered in the year 1997 with JC and has fully absorbed all critical technologies over the years. During this period the company has built significant engineering capabilities to independently develop advanced technology for manufacturing of AGM batteries for motor cycle and commercial UPS segments and tubular batteries for Home UPS segment. Demonstrating Reverse Innovation capability, ARBL has also developed unique products conforming to JC’s global customer requirements.
Subsequent to signing PowerFrameTM Technology license agreement in September 2018, ARBL has received complete technology know-how and the recently announced capacity expansion project with advanced stamped grid plate making process is progressing as per scheduled timelines. Further, JC will continue to provide technology assistance to ARBL for an additional period as mutually agreed.
Commenting on this development, Jayadev Galla, Vice Chairman and Managing Director, ARBL said:
“JC has been a long time partner and we enjoy strong relationships even today. JC has been considering various strategic options to restructure their Power Solutions business and in November 2018 announced their intent to sell the Power Solutions business to Brookfield. JC exiting the Power Solutions business globally will not affect the growth strategy of Amara Raja Batteries.
Backed up by innovative branding, advanced technology and operational excellence we have built strong capabilities in Research & Development, product design, manufacturing technology and distribution. Today the company manufactures a wide range of batteries utilizing most advanced product and process technologies to serve the customer’s current and future requirements across various application segments.
We will continue to leverage the strengths built over the years including the ongoing technological initiatives. We look forward to positive developments in the coming future that will help Amara Raja Batteries to continue to build on the current technological capabilities and pursue opportunities for collaboration and investments into advanced technologies. “