Amara Raja Energy & Mobility Ltd · NSE:ARE&M
Amara Raja Energy & Mobility — Amara Raja Batteries — Merger or Acquisition (September 2022)
33 slides from Amara Raja Energy & Mobility's merger presentation, Sep 26, 2022
Slide 1: Outcome of Board Meeting letter to stock exchanges
September 26, 2022 National Stock Exchange of India Limited BSE Limited “Exchange Plaza” Corporate Relations Department Bandra – Kurla Complex Phiroze Jeejeebhoy Towers Bandra East Dalal Street, Fort Mumbai - 400 051 Mumbai - 400 001 NSE Symbol: AMARAJABAT BSE SCRIP CODE: 500008 Dear Sir / Madam, Su
Slide 2: Letter closing and company secretary signature
The Scheme along with the required documents, as approved by the Board would also be available on the website of the Company i.e. https://www.amararajabatteries.com/Investors/. We request you to take the same on record. Thanking You For Amara Raja Batteries Limited Vikas Digitally by Vikas signed Sa
Slide 3: Annexure 1 – Disclosure under Regulation 30
Annexure – 1 Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No CIR/CFD/CMD/4/2015 dated September 9, 2015 Sr. Particulars Details No. a) Name of the entity (ies) Resulting Company - Amara Raja Batteries Limited (“ARB
Slide 4: Consideration for the Scheme on arm's length basis
The consideration for the Scheme shall be discharged on an “arm’s length” basis. The equity shares to be allotted by the Resulting Company in consideration of the demerger are based on the registered valuers report dated September 26, 2022, issued jointly by Bansi S. Mehta Valuers LLP, Registered Va
Slide 5: Scheme rationale and benefits
of the Demerged Company, with its core battery manufacturing operations. Accordingly, pursuant to the Scheme, the Plastic Component for Battery Business will be demerged into the Resulting Company and the Demerged Company would continue to run and operate the Retained Business. The Scheme is being p
Slide 6: Change in shareholding pattern and share exchange ratio
g) Brief details of change in Based on the shareholding pattern of the Company as on 16th shareholding pattern (if September 2022, the pre and post Scheme shareholding pattern any) of all entities of the Company will be as follows: Category Pre-Scheme Post-Scheme No. of equity % No. of % shares equi
Slide 7: Press Release: Amara Raja Batteries announces backward integration
Press Release For Immediate dissemination AMARA RAJA BATTERIES ANNOUNCES BACKWARD INTEGRATION OF ITS BUSINESS Transaction is expected to improve overall profitability margin Hyderabad, September 26, 2022: Amara Raja Batteries Limited (ARBL), India’s leading industrial and automotive battery major (B
Slide 8: About Amara Raja Batteries Limited
About Amara Raja Batteries Limited Amara Raja Batteries Limited is an Energy and Mobility enterprise and one of the largest manufacturers of energy storage products for both industrial and automotive applications in the Indian battery industry. In India, Amara Raja is the preferred supplier to major
Slide 9: Investor Presentation on Proposed Scheme of Arrangement
Investor VA Presentation On Proposed Scheme of Arrangement September 2022
Slide 10: Disclaimer / Safe Harbor
Disclaimer / Safe Harbor The contents of this document are for your information only and are intended to provide an overview of the material aspects of the proposed transaction. This document does not purport to provide all and complete details, as may be required to make a full analysis of the prop
Slide 11: The Amara Raja Way
The Amara Raja Way® To TRANSFORM our increasing INNOVATION spheres of influence and to IMPROVE the QUALITY OF LIFE by building institutions that provide RESPONSIBILITY better access to BETTER EXCELLENCE OPPORTUNITIES to more people CORE VALUES All THE TIME….. EXPERIENCES ENTREPRENEURSHIP 3
Slide 12: Agenda
Agenda 01 02 Overview of the Company Profile Proposed Transaction 03 04 Indicative Timelines Advisors 05 06 Future Strategy Annexure 4
Slide 13: Agenda
Agenda 01 02 Overview of the Company Profile Proposed Transaction 03 04 Indicative Timelines Advisors 05 06 Future Strategy Annexure 5
Slide 14: Amara Raja Batteries Limited Overview
Amara Raja Batteries Limited Class & Scale: One of the world’s largest integrated Lead Acid Battery manufacturing facility ► Largest manufacturer of standby VRLA batteries in South Asia Products Overview ► Amaron – Fastest growing automotive battery brand in India 8 lead acid battery manufacturing
Slide 15: Amara Raja Batteries Limited manufacturing and distribution
Amara Raja Batteries Limited Branches Current Capabilities Manufacturing Locations Karakambadi Industrial complex Tirupati ► 1st 4W Battery plant 4W Batteries ► 1st 2W Battery plant ► Annualized capacity: 16.2 mn nos. ► LVRLA Battery plant 2W Batteries Chittoor District of AP ► Annualized capacity:
Slide 16: Mangal Industries Limited Overview
Mangal Industries Limited Overview In-house design hub that plays a pivotal role in delivering value- ► Engaged in the manufacturing of engineering added integrated engineering services for customers components ► Serves a broad range of sectors (automotive, railways, telecom, power, utilities, e-com
Slide 17: Mangal Industries Limited business segments
Mangal Industries Limited ► Mezzanine Plastic Component for Battery Business ► Pallet Storage ► Automated Racking Solutions Storage and ► Shelving Retrieval System ► Plastic Containers ► Jars ► Plastic Covers ► Handles ► Cabinets ► C&Z purlins Metal This business of MIL caters solely to ARBL ► Metal
Slide 18: Agenda
Agenda 01 02 Overview of the Company Profile Proposed Transaction 03 04 Indicative Timelines Advisors 05 06 Future Strategy Annexure 10
Slide 19: Transaction Overview
Transaction Overview Proposed Transaction Resultant Structure Promoters Public Promoters Promoters Public 28.06% 71.94% 100.00% 32.86% 67.14% ARBL MIL ARBL Issue equity shares as consideration Plastic Component Other Key Steps for Battery businesses Business ◼ Demerger of Plastic Component for Batte
Slide 20: Key Highlights – Plastic Component for Battery Business
Key Highlights – Plastic Component for Battery Business Overview Products Range ► Started operations in 2004 ► Caters solely to Amara Raja Batteries Limited ► Has developed expertise in processing wide range of plastics (PCPP, PC, Containers Covers PC+ ABS, ABS Nylon, POM, etc.) ► Manufacturing capa
Slide 21: Key Highlights – Plastic Component for Battery Business
Key Highlights – Plastic Component for Battery Business Journey of Capability Building Proforma Revenue – Last 3 Financial Years ► OEE (Overall Equipment Effectiveness) improved from 68% in FY10 to INR cr 89% in FY22 569 ► Yield in FY22 improved to 98% 412 421 ► Focused customer quality with Defects
Slide 22: Transaction Summary
Transaction Summary Transaction ► Demerger of Plastic Component for Battery Business of MIL into ARBL Overview ► MIL - 100% stake held by RN Galla Family Private Limited (RGFPL) ► Backward integration of business Transaction ► Potential synergies linked to the proposed transaction Rationale ► Expect
Slide 23: Transaction Rationale
Transaction Rationale ► Enhanced control over the supply and inventory management of its raw materials Backward #1 integration of ► Combining of a wider value chain bringing in-house plastic moulding capabilities business ► Simplification of the business operations ► Various potential synergies aris
Slide 24: Agenda
Agenda 01 02 Overview of the Company Profile Proposed Transaction 03 04 Indicative Timelines Advisors 05 06 Future Strategy Annexure 16
Slide 25: Indicative Timelines
Indicative Timelines Months Sep 2022 Oct Nov Dec Jan 2023 Feb Mar Apr May Jun Jul Aug Sep Board Approval Filing of scheme with Stock Exchanges Receipt of Stock Exchanges approval and filing with NCLT Filing with NCLT Shareholders / creditors meeting NCLT / other regulatory process NCLT Approval Rece
Slide 26: Agenda
Agenda 01 02 Overview of the Company Profile Proposed Transaction 03 04 Indicative Timelines Advisors 05 06 Future Strategy Annexure 18
Slide 27: Advisors
Advisors Financial Advisor and Fairness Opinion Provider Transaction Advisor Legal Advisor and Legal Due Diligence Independent Valuers Financial Due Diligence 1
Slide 28: Agenda
Agenda 01 02 Overview of the Company Profile Proposed Transaction 03 04 Indicative Timelines Advisors 05 06 Future Strategy Annexure 20
Slide 29: Building Blocks of Growth
Building Blocks of Growth International markets: 35 countries and growing Advanced ► Offer products / solutions for Technologies EVs & Energy Storage applications Digital ► Road map for digital factory Transformation ► Invest into digital solutions for SEA better customer experience Growth market Ne
Slide 30: Sustainability and Initiatives for Growth
Sustainability and Initiatives for Growth Integrated Approach to Lead Recycling Establishing Circular Economy Compliance Cost Saving Recycling Environmental Regulation Battery Distribution Plant Centre Cores Collection Supply Security Through Reverse Logistics Smelter Initiative for Growth ► Leverag
Slide 31: Agenda
Agenda 01 02 Overview of the Company Profile Proposed Transaction 03 04 Indicative Timelines Advisors 05 06 Future Strategy Annexure 23
Slide 32: Abbreviations
Abbreviations 2W Two Wheeler Vehicles MT Metric Tonne 4W Four Wheeler Vehicles MTPA Metric Tonne Per Annum ABS Acrylonitrile Butadiene Styrene MVRLA Medium Value Regulated Lead Acid AGM Absorbed Glass Mat NCLT National Company Law Tribunal AP Andhra Pradesh NSE National Stock Exchange of India Limit
Slide 33: Thank You
Amara Raja Batteries — Merger or Acquisition (September 2022) on 6ix