Amara Raja Energy & Mobility Ltd · NSE:ARE&M
Amara Raja Energy & Mobility — Investor Presentation (August 2024)
42 slides from Amara Raja Energy & Mobility's investor presentation, Aug 4, 2024
Slide 1: Regulation 30 Intimation Letter to Stock Exchanges
August 4, 2024 National Stock Exchange of India Limited BSE Limited Listing Compliance Department Corporate Relations Department Exchange Plaza Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Fort Bandra East, Mumbai – 400 051 Mumbai – 400 001 NSE Symbol: ARE&M BSE SCRIP CODE: 500008
Slide 2: Investor Presentation August 2024
A m a r a R a j a E n e rg y & M o b i l i t y L i m i t e d (formerly Known as Amara Raja Batteries Limited) I N V E S TO R P R E S E N TAT I O N August 2024
Slide 3: Snapshot
Snapshot BUSINESS OPERATIONS FINANCIALS 10 Manufacturing Market Cap ~ INR 304 Bn+(As on 4 decades of experience Facilities(including 2 plastic units) June 30, 2024 50+ Million units annualized Leading Automotive Battery Marginal debt in the books Capacity for Automotive batteries Brand Market Leader
Slide 4: Overview
Overview ▪ Amara Raja Energy & Mobility Limited, (ARE&M), formerly known as Amara Raja CONSOLIDATED INCOME (INR Mn) & EBITDA MARGINS(%) Batteries Limited, is one of the largest manufacturers of lead-acid batteries in 1,17,084 14.17% 1,03,920 86,972 India. 13.78% ▪ Name change in 2023 reflects, the b
Slide 5: ARE&M: Journey So Far
ARE&M : Journey So Far • Ventured into USA, the • ARE&M introduces VRLA technology in India worlds largest automotive • Launched VRLA batteries in Indian Railways for market rolling stack application • Launched allied business - • Goes public • PowerZone Brand launched • 2nd automotive battery plant
Slide 6: Marquee OEM Clientele
Marquee OEM Clientele Lead Acid Business- LAB New Energy Business- NEB* Automotive Industrial Mobility & Stationery Airtel EicherLogo *New Energy Business- Other than Lead acid batteries(including lithium-ion batteries) 5
Slide 7: State Of Art Manufacturing Facilities
State Of Art Manufacturing Facilities AMARA RAJA GROWTH 4W Battery- MVRLA 2W KARAKAMBADI PLANTS CORRIDOR- LAB 2 Plants Battery Battery 8 Battery Manufacturing Plants in 2 locations LAB- 4W Battery SEGMENTS ANNUALISED CAPACITY LOCATION LAB- LVRLA Battery Automotive ~50 Mn Tirupathi & Chittoor- AP LAB
Slide 8: Awards And Customer Recognitions
Awards And Customer Recognitions Award for consistently High- Overall Excellence Award Awarded exemplary Vendor India’s Notable Supplier Award quality Performance from from Mahindra & Mahindra Partner from ATC India from Bosch Maruti Suzuki India Ltd LEADCON’23 – Hosted Lead Industry experts to spre
Slide 9: Business Overview
aN ())) AMARA RAJA BUSINESS OVERVIEW
Slide 10: Operations At A Glance
Operations At A Glance LEAD ACID BATTERIES AUTOMOTIVE | INDUSTRIAL Lead Recycling plant • Li Cell and Pack Manufacturing AUTOMOTIVE • EV Charging Products • Applications – 2W, 3W, 4W & CV’s • Energy Storage Solutions • First AGM battery manufacturer for 2W • Developed India’s First 21700 Cylindrical
Slide 11: Lead Acid Batteries
aN ())) AMARA RAJA Lead Acid Batteries
Slide 12: Lead Acid Battery - Industry Outlook
Lead Acid Battery - Industry Outlook ❑ India’s Lead acid battery market is projected to reach USD 6.6 billion by FY2029 with a INDIAN LEAD-ACID BATTERY MARKET (USD Bn) CAGR of ~ 7% ❑ Global Lead acid battery market is projected to reach USD 58.7 billion by FY2029 with a 6.0 CAGR of ~ 4.4% 4.2 ❑ Asia
Slide 13: Growth Drivers For Automotive Segment
Growth Drivers For Automotive Segment Growing Demand: ▪ Rise in middle class income, gender diversity and young population resulting in growing demand for PV ▪ Commercial Vehicle may increase due to high level of activity in infrastructure Policy Support to the sector ▪ Initiatives like Make in Indi
Slide 14: Automotive- Multifold Applications With Strong Brand Recall
Automotive- Multifold Applications With Strong Brand Recall Products for multiple applications Strong Brand Recall Automotive 4-W 3-W 2-W Farm Bus E-Rick Vehicles • Caters to both domestic and international Markets • Zero Maintenance, Extended Warranty, High Cranking Power, and Enhanced Safety • Pio
Slide 15: Automotive- Domestic Distribution Network
Automotive- Domestic Distribution Network Increasing the presence through Amaron franchise network Digital initiatives to enhance the experience for esteemed partners JAM DISTRIBUTION POINTS Go Paperless with new AMARON KONNECT APP ZRK HAR RUD GUR DEL GZB JAI LKN SIL GAU VAR PAT MAND RAN Digital War
Slide 16: Automotive- Reaching Out To International Markets
Automotive- Reaching Out To International Markets Enhancing brand image and strengthening global supply chain Initiatives and Expo Participation in international markets Auto Expo at Birmingham Inauguration of World’s largest Amaron Pitstop in Kuwait Auto Expo at Johannesburg 15
Slide 17: Growing Automotive Footprint
Growing Automotive Footprint Established presence in 50+ countries New entry in 6 countries in FY24 Future expansion 397 A RUSSIA UNITED STATES A LEBANON A IRAQ A KUWAIT AFGHANISTAN A NEPAL 221 624 A A BAHRAIN BHUTAN A EGYPT A A JORDAN UAE TAIWAN A SAUDI ARABIA A OMAN MACAU A INDIA A A A MYANMAR A A
Slide 18: Growth Drivers For Industrial Segment
Growth Drivers For Industrial Segment UPS ▪ Witnessing steady growth in Data Centers on account of digitization and rising demands for data localization in India. ▪ The Growth in Industrial UPS market in India due to the growth in mfg, IT/ITES, Retail, Hospitality supported by a strong replacement r
Slide 19: Lead Acid Batteries – Industrial
Lead Acid Batteries – Industrial Products across verticals ❑ Pioneers in Valve Regulated Lead-Acid(VRLA) batteries in India Telecom UPS ❑ UPS and telecom contribute a dominating share of revenue ❑ Market leader in Telecommunication batteries in domestic market Railways Solar Exports ❑ First and only
Slide 20: New Energy Business
aN ())) AMARA RAJA New Energy Business
Slide 21: Lithium-Ion Batteries - Industry Outlook
Lithium-Ion Batteries - Industry Outlook Mobility outlook- EV Projected LiB Demand in India (GWh) • Strong thrust on Electrification, the demand for LiB is expected to be 100 to 130 GWh 100-130 by 2030. • Envisaged EV penetration by FY30 38-42% 60-65% 16 6 10 10-12% 15-20% 2023 2024 2025E 2030E • El
Slide 22: Long term growth drivers - for Lithium-Ion Battery market Segment
Long term growth drivers - for Lithium-Ion Battery market Segment Policy push ▪ PLI ACC scheme announced to encourage domestic production of cells ▪ Financial subsidies including manufacturing subsidies valued 50000 cr+ Telecom sector ▪ Advent of 5G leading to growth in telecom towers ▪ Secondary de
Slide 23: New Energy Business
New Energy Business PRODUCT PORTFOLIO PAVING THE WAY FOR THE FUTURE Battery Packs Chargers • Amara Raja Advanced Cell Technologies (ARACT) was incorporated to focus on 3-W 2-W Portable developing advanced cell chemistries , battery packs and chargers • Lithium Battery packs are currently being suppl
Slide 24: Building State Of Art Giga Factory In Telangana
Building State Of Art Giga Factory In Telangana Chargers Pack Giga CQP Cell Giga Proposed plants Stationery Production Capacity • 16 GW over next 10 years • 2 GW by 2025 and 5 GWH by 2028 ▪ 60 MWh (Annual) • Scaling up of existing pack • Product Development and • Giga factory for both NMC and LFP ca
Slide 25: Focus On R&D For Innovative Technologies
Focus On R&D For Innovative Technologies R&D LAB FOR DEVELOPING LI-ION CELLS AND BATTERY PACK ASSEMBLY 1st in INDIA Achieved IATF 16949:2016 & ISO 9001:2015 certification for Li-Ion Batteries Facility will be equipped Development of innovative with advanced clean energy storage laboratories and test
Slide 26: New Energy Business Thought Leadership
New Energy Business Thought Leadership EVOLVE CONCLAVE- A unique conclave on Advanced battery Technologies ❑ To foster enriching exchange of ideas among industry leaders, policymakers, energy and mobility experts, manufacturers, and delegates. ❑ It aims to develop a consensus on the way forward in t
Slide 27: Strategic Overview
aN ())) AMARA RAJA STRATEGIC OVERVIEW
Slide 28: Growth Strategy
Growth Strategy AUTOMOTIVE- DOMESTIC AUTOMTOVE INDUSTRIAL LEAD ACID BATTERIES (DRIVE EFFICIENCY) INTERNATIONAL (ENERGY SOLUTIONS) (EXPAND PRESENCE) • Cost efficiencies with ASG/MSG • Global manufacturing footprint to avoid tariff • Retain the market leadership in Telecom and UPS technologies. barrie
Slide 29: Aligning With Emerging Industry Trends
Aligning With Emerging Industry Trends LEAD ACID BATTERIES NEW ENERGY SOLUTIONS MARKET LEADERSHIP ▪ To emerge as one of the largest ▪ Debottlenecking to result in ▪ Government Policy push supporting battery manufacturer in the country efficiencies in capacities and cost NEB growth ▪ Full suit produc
Slide 30: ESG
aN ())) AMARA RAJA ESG
Slide 31: Sustainability At Amara Raja
Sustainability At Amara Raja Energy and Carbon • Committed to Net Zero by 2050, net zero plan aligned with SBTi limiting to 1.5 deg increase as per Paris agreement • Reduced absolute Scope 1&2 emissions by 20% and intensity by 38% • 23% Renewable energy share with captive renewable at 62 MW Water Ma
Slide 32: Sustainability At Amara Raja
Sustainability At Amara Raja People and Community • Roll out of Amara Raja Sustainability Academy • All Amara Raja Group companies recognized as Best Place to Work awards from the Great Place to Work Institute • Safety by Design in our state-of-the-art manufacturing • CSR initiatives in thematic are
Slide 33: Sustainability At Amara Raja
Sustainability At Amara Raja School at Diguvamagham CheckDams Social Forestry Zero Liquid Discharge Units Solar panels (ground mounted) Fume and Dust extraction systems 32
Slide 34: Sustainability At Amara Raja
Sustainability At Amara Raja CDP Rating ‘B’ Silver Award for Sustainability report Golden Peacock Award for Sustainability CII Gold Award for ESH Excellence ASSOCHAM award for Climate change Best Overall Sustainability Awards 33
Slide 35: Policy Framework – Sustainability
Policy Framework – Sustainability Environment Social Governance Health, Safety & Environment Health, Safety & Environment Code of Ethics 5S Corporate Social Responsibility Board Diversity Energy Management Human Rights Anti Bribery & Anti-Corruption Sustainable Sourcing Equal Opportunitie
Slide 36: Financial Overview
aN ())) AMARA RAJA FINANCIAL OVERVIEW
Slide 37: Historical Consolidated Income Statement
Historical Consolidated Income Statement PARTICULARS (INR Mn) FY22 FY23 FY24 Operational Revenue 86,971 1,03,920 1,17,084 Total Expenses 76,732 89,600 1,00,499 EBITDA 10,239 14,320 16,585 EBITDA Margins (%) 11.77% 13.8% 14.2% Other Income 780 924 1,104 Depreciation 3,957 4,504 4,843 Finance Cost 151
Slide 38: Consolidate Balance Sheet
Consolidate Balance Sheet PARTICULARS (INR Mn) FY22 FY23 FY24 PARTICULARS (INR Mn) FY22 FY23 FY24 Assets Equity And Liabilities (1) Non-Current Assets (1) Equity 45,525 60,070 67,987 (A) Property, Plant And Equipment 21,276 28,555 29,095 (A) Equity Share Capital 171 171 183 (B) Right Of Use Asset 2,
Slide 39: Consolidated Financial Charts
Consolidated Financial Charts REVENUES (INR Mn) EBITDA (INR Mn) & EBITDA MARGINS PAT (INR Mn) & PAT MARGINS (%) (%) 10,000 7.98% 9.00% 1,17,084 14.17% 9,000 7.03% 13.78% 8.00% 18,000 16.00% 1,03,920 5.89% 8,000 11.77% 7.00% 16,000 14.00% 7,000 86,972 6.00% 14,000 12.00% 6,000 12,000 5.00% 10.00% 9,3
Slide 40: Capital Market Data
Capital Market Data NSE: ARE&M | BSE: 500008 | Bloomberg: AMRJ:IN | Reuters: AMAR.NS / AMAR.BO 160% 1 YEAR STOCK PERFORMANCE 140% 120% 100% 80% 60% 40% 20% 0% -20% Jul-23 Aug-23 Sep-23 Oct-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Amara Sensex PRICE DATA (AS ON 30TH JUNE, 202
Slide 41: Disclaimer
Disclaimer This presentation by Amara Raja Energy and Mobility Limited (including its subsidiaries) is general background information about the Company’s activities at the date of this presentation. Said information is provided in summary form only and does not purport to be complete, does not conta
Slide 42: Thank You
aN ())) AMARA RAJA THANK YOU
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