CCORELOGS

Is Amara Raja (Amaron) catching up with Exide Industries in industrial & automotive battery market? How?

Asked on June 23, 2015, 6:55 p.m.
Amara raja has made good progress in recent past and in some cases, is overcoming the better established Exide Industries. What could be the reason? Is Amara Raja seriously going to beat Exide Industries?

Answers

Anonymous User
Amaron, no doubt, is doing good and it is trying to grab a bite of the Exide's share. However, it has a long way to go and will certainly take a continuous effort from the Amara Raja group before it poses a real threat to Exide. Lets start with the production capacity first. Exide has seven factories, compared to only 1 of Amara Raja, spread across India giving it a huge advantage not only in terms of quantity, but also strategically. Due to its pan India presence, Exide can supply the batteries to the customers at a very short notice, meanwhile cutting down the inventory and transportation costs.The range of product exide has - starting from motorcycle batteries to submarine batteries is unmatched. Only Exide can boast of such variety in its repertoire.Technologically, both are comparable, because after all Lead Acid is a very primitive technology and the basic elements cannot be tampered with. Coming to the after sales service, due to Exide's extensive dealership network, the ease of service is certainly higher. The main reason for Amaron doing good is because of the facility of a line of credit to its retailers - Exide is fully Cash and Carry.
There is still a long way for to go for Amara Raja......

9

4Votes
1 Comments
rohit
Good piece of information. However the last line suggests that the approach towards growth tahen by amaron is not too healthy.
Tata Consultancy Services
Ritesh Joshi from Tata Consultancy Services
Amaron is Joint venture of Amara Raja batteries and Jhonson controls Inc., which is also world leader in Automotive batteries. Amaron used technology of Jhonson controls and  has produced a very good quality product in Indian market. Amaron has hit the market with long life batteries marketed as zero maintenance battery. It is also OEM of many automobile company.It has a considerably big industrial battery business, with supplies to the Department of Telecommunications, the Indian Railways, etc. 

8

2Votes
0 Comments
CoreLogs
Surya Prakash from CoreLogs
Amara Raja has actually made quite good progress in the last few years in the automotive as well as industrial segment of battery sales. The share prices and the market share of Amara raja is constantly going uphill whereas that of exide industries are lagging behind. Even though Exide is not showing a downhill trend, the growth rate of amara raja is constantly more than Exide since last few years.
However Exide owns more than 65% market share in automotive OEM and organized retail, amara raja is fast catching up exide industries. But this is a little misleading as the profits of amara raja are on the downside which means they are expanding on the price of cost which won't be sustainable for long.
From an investor's point of view, investing in Amara raja for short period can be more profitable than investing in exide.

7

1Votes
0 Comments