1. GOTTA BE A BETTER WAY
AMARA RAJA BATTERIES LIMITED I 2010-11 ANNUAL REPORT

2. Our new baseline
Better is the most important word in OUR NEW
the history of the world.
It never allows us to rest on our
CORPORATE IDENTITY
laurels. Amara Raja Batteries Limited unveiled a
It gently reminds us to do better
than yesterday. new corporate identity in 2010-11, the
It prods us to think better than
yesterday. 25th year of its existence.
It pushes us to create better This new identity, recognised as the
experiences for people working and
interacting with us. Amara Raja Way, showcases the
It urges us to be better human
beings than we are. Company’s five core values - experiences,
Better. It’s not a word. innovation, excellence, entrepreneurship
It is a higher calling.
and responsibility.
Gotta be a Better Way
The new logo identifies these values
through separate colours on the one
hand and the five natural elements on the
other - integrating them through a sense
of harmony.
04 25 years of AMARA RAJA 54 Corporate social responsibility 74 General shareholder information
06 2010-11 in retrospect 56 10-year financials 81 Financial section
CONTENTS 08 Chairman statement 58 Directors’ report
10 Managing Director’s statement 65 Corporate governance report
22 Management discussion and analysis 73 CEO and CFO certification

3. Blue signifies indelible Experiences created which,
like the serene and deep Water, engulfs all our
stakeholders.
Burgundy symbolises Innovation which, like the
vastness of Space, provides us with limitless scope to
transcend boundaries.
Magenta denotes Excellence which, like the strength
of Wind, lifts and drives our ceaseless pursuits.
Orange stands for Entrepreneurship which, like the
energy of Fire, fuels our creativity.
Green indicates our sense of Responsibility which,
like the nurturing Earth, guides us in all we do.
The new logo is the symphony of diverse elements
coming together and moving forward in perfect
harmony.
THE AMARA RAJA WAY.
AMARA RAJA BATTERIES LIMITED GOTTA BE A
02 ANNUAL REPORT 2010-11 BETTER WAY 03

4. A DOMINANT PLAYER IN THE INDIAN
BATTERY SPACE
Amara Raja has a lasting recall Amara Raja is a pioneer Pro Bike RiderTM’ battery with VRLA Amara Raja is a leader
technology for the two-wheeler
 Altered the image of a battery from a  Pioneered the use of VRLA technology  Sole supplier to Ford India
segment
mundane black box to a youthful, sleek in India
 Largest supplier of industrial standby
green power pack  Pioneered the PowerSleekTM Front
During an eventful 25-year journey, Amara Raja Batteries Limited  Only battery with the patented storage power in India
Access Terminal (FAT) battery, a neat
altered the dynamics of the Indian battery industry, established  Transformed the perception of lead-acid Silver X Alloy that protects the insides
stylish 12V mono-block power source  Largest single location fully integrated
itself around innovation and consolidated its brand as a ‘green standby batteries from a product that from corrosion
for telecom networks manufacturing facility in Asia
battery’ manufacturer. leaked acid and corroded surroundings
 Introduced expanded metal technology
to a safe energy box  Provided a memorable urban (Amaron®
successfully for the first time in India
Pitstop) and rural (PowerZoneTM)
 Redefined the job of battery dealers
 Pioneered the zero maintenance customer purchase experience
from selling, filling acid and charging to
battery with a 60-month warranty (formatted, air-conditioned outlets )
only selling as Amaron batteries
emerged as fully charged, ‘fit and  Introduced the innovative ‘Amaron®
forget’ when they were dispatched
 Launched PowerZoneTM branded  Doubled both LVRLA and MVRLA
batteries – part of rural retail battery capacities
initiative  Awarded the Best Telecom
Supplied the first ever VRLA battery Inaugurated greenfield automotive  Launched new look Amaron® Equipment Manufacturer by BSNL
used by Indian Railways – 1100Ah battery plant with a 1 million unit product range (PRO, FLO, GO,  Awarded Quality Excellence Award
for coach air-conditioning capacity Black and Fresh) by INDUS Towers
1996 2001 2007 2009
MILESTONES
1992 1997 2002 2004 2008 2010
Commenced production in India’s Signed JV with Johnson Controls  Received ISO 14001 certification  Received the Ford World Launched the Amaron® Pro Bike  Featured in the Forbes’ ‘Best under a USD
first and most advanced VRLA Inc (JCI), USA  Launched QuantaTM UPS, Excellence award RiderTM – first VRLA two-wheeler billion’ Asia list
battery plant Amaron Hi-way® and Amaron  OE agreement with Maruti batteries in India  Received the Supply Chain Leader 2011
Harvest® batteries Udyog Limited Award under the category ‘Dry cells and
storage batteries’ by Industry 2.0 India
SCM Conclave
 Received the award for ‘Best HR Strategy in
line with Business’ at the National Round
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5. 2010-11
IN RETROSPECT
 Declared a special dividend of ` 2 per
share on the occasion of the silver
jubilee
Our growth
Revenue growth Book value growth
 Achieved a 20% growth in sales volume
of automotive and industrial batteries
 Received OHSAS-2007 certification
 Featured in Forbes ‘Best under a USD
in numbers
20%
Over 2009-10
19%
Over 2009-10
billion’ Asia list
 Achieved a 20% growth in net sales
 Received the first prize under the
 Doubled two-wheeler/small VRLA
‘discrete manufacturing category’ in CII –
battery capacity from 1.80 million units
4th National conference and
to 3.60 million units per annum
competitions for Six Sigma
 Touched one billion Ah sales in industrial
battery business
 Received the Supply Chain Leader 2011 Volume growth Export growth Dividend payout
Award under the category ‘Dry cells and
 Introduced Amaron
batteries in the 2V high integrity series,
a specialised storage battery used in the
VoltTM Hi-Life storage batteries’ by Industry 2.0 India
SCM Conclave
20%
Over 2009-10
60%
Over 2009-10
58%
Over 2009-10
 Won the commendation (Foundation
Indian telecom industry
Award) ‘Strong commitment to HR
 Achieved market leadership in the Excellence’ award at the National HR
telecom and UPS segments Conclave of CII
13,132
14,645
17,611
2,056
2,965
2,588
1,670
1,481
15.66
20.24
14.69
47.49
63.65
75.63
19.56
17.34
30.62
44.51
34.62
21.80
35.18
24.90
0.70
0.17
0.15
9.42
0.80
2.90
4.60
805
POST TAX PROFIT (` Million)
DIVIDEND PER SHARE (`)
EARNING PER SHARE (`)
REVENUE (` Million)
DEBT-EQUITY (times)
EBIDTA MARGIN (%)
EBIDTA (` Million)
BOOK VALUE (`)
RONW (%)
ROCE (%)
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
2008-09
2009-10
2010-11
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6. This year
CHAIRMAN’S STATEMENT Amara Raja
celebrates its Silver Jubilee. We started our entrepreneurial journey
25 years ago, and we stand today at a significant milestone.
THE GLOBAL ECONOMY SHOWED A new journey…. a new excellent practices. In appreciation of our to drive business over the future.
“OUR CORE VALUES STRONG INDICATIONS OF A identity Company’s HR practices, the ‘Employer
In recent years, emerging economies led
Branding Institute’, conferred various
THAT PAVED OUR PATH TURNAROUND AT THE BEGINNING
OF 2010-11 AND EXPECTATIONS
This year Amara Raja celebrates its Silver
Jubilee. We started our entrepreneurial awards to our Company like ‘Best HR
by China and India have confidently
proven that they are not only capable of
TO SUCCESS OVER THE WERE GENERALLY OPTIMISTIC. While journey 25 years ago, and we stand Strategy in line with Business’,
managing their own but can also
‘Continuous Innovation in HR Strategy at
LAST 25 YEARS WILL the state of affairs is recovering from
the global meltdown two years ago,
today at a significant milestone. We look
back with satisfaction, achievement and Work’ and ‘Excellence in HR through
influence the global economy. These
countries are currently in a position to
CONTINUE TO GUIDE US the global economy is still not back to responsibility. We look forward to Technology’. The Company bagged the
assert themselves as superior in economic
Supply Chain Leader 2011 award under
TO REACH AND PASS desired health. While developed
nations are growing slowly, emerging
continuing this journey with greater
achievements and bigger goals. We are the category ‘Dry cells and storage
management and crisis control than
many advanced nations. Amara Raja
MANY MORE SUCH economies are standing out as real commemorating this milestone with a batteries’ by Industry 2.0. CII awarded
Group is committed to play a significant
the first prize under the ‘discrete
MILESTONES”. drivers of the global economic activity,
India and China the prime movers
new corporate identity. The identity rests
on five strong pillars that define our core manufacturing category’ at CII- 4th
role in this momentum of growth and
prosperity through the ‘Amara Raja
with India’s GDP growth at 8.6 per values that we call the ‘Amara Raja Way’. National Conference and competition on
Way’.
cent in 2010-11. The new logo articulates our five core Six Sigma.
The 25 year journey would not have
values of Experiences, Innovation,
The Indian manufacturing sector grew Way forward been the same without our JV partner,
Excellence, Entrepreneurship and
8.8% in 2010-11. India is ranked The Indian economy is set to expand customers, employees, vendors and
Responsibility, symbolising harmony and
second in terms of manufacturing faster with a projected growth being other stakeholders. I take this
how they address the challenges of a
competence and is currently rated as 8.5% in 2012. opportunity to thank them for making
dynamic business environment.
one of the most attractive global Amara Raja a force to reckon within the
Automotive battery business: The
investment destinations. As per the An ever-changing business environment storage battery business in India and look
ongoing capacity additions, both in the
super-cycle report by Standard warranted this change even as our core forward to their continued support. I am
four-wheeler and two-wheeler plants,
Chartered's global research team, enduring values will continue to guide us confident that we will replicate what we
will help the Company capitalise on
China is likely to grow at 6.9% rate to pass more milestones. have achieved in 25 years by doubling
opportunities. The automotive sector will
over the next two decades while India them in the next five years.
Performance… propel our growth over the next few
is likely to grow on an average of
In this special year, our Company crossed years, with India expected to become the
9.3% over the same period and trail
the ` 2000 cr mark turnover, a sixth largest passenger vehicle producer
the US as the third-largest economy
noteworthy milestone. We achieved in the world with annual car sales
by 2030. The said report also sees the
market leadership in our telecom and projected to increase to over 9 million by
world economy reaching USD308
UPS businesses in the industrial battery 2020.
trillion by 2030. Based on the growth
and inflation forecasts, China will be business and improved our aftermarket Industrial battery business: With growing
a USD73 trillion economy and India presence in the automotive battery avenues, including replacement
will be a USD30 trillion economy by space. opportunities in the telecom sector,
2030. Currently, India is slightly over a surging demand in the UPS and power
trillion dollar economy.
Recognitions sectors, exports to new geographies and
During the year, our Company won
the government’s thrust to connect vast
several accolades for its innovative and
Dr. Ramchandra N Galla, Chairman rural areas, there is a growing potential
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08 ANNUAL REPORT 2010-11 BETTER WAY 09

7. MANAGING DIRECTOR’S STATEMENT
“OUR CORE PURPOSE The financial year 2010-11 was a year of
memories and achievements for our
In the Industrial Battery business, the year
2010-11 witnessed sharp reduction in
in two-wheeler battery organized
Aftermarket segment has reached 25%
and replacement requirement are
expected to push the demand in the near
OF CREATING INCLUSIVE Company. This year we completed 25 demand in the Telecom sector, resulting within three years from launch. future. UPS battery market will continue
AND SUSTAINABLE years of our existence; crossed the
milestone revenue of ` 20 billion;
in unsustainable aggression in pricing by
competition, which impacted the
During the year, two-wheeler and
to show a healthy annual growth of about
14%, which coupled with emerging
GROWTH WHILE launched new products; emerged revenue and margins. Despite the
small-VRLA battery combined installed
capacity has been doubled to 3.60
applications like Solar and Motive Power
DELIVERING WORLD- market leader in Telecom and UPS
(Medium VRLA) battery business;
adverse market conditions, we gained
market share in Telecom business, owing
million units per annum to support the
will propel the growth in the Industrial
battery business. We anticipate increasing
CLASS PRODUCTS AND featured in Forbes “Best under a USD to our “preferred supplier” status with
growing demand for our Company’s
products.
business opportunity from the African
SERVICES CONTINUES billion” Asia list; and unveiled our new
corporate identity. Our Company’s
our customers. The thrust on volume
coupled with cost efficiency initiatives Ongoing capacity additions in both the
continent and intend to establish a strong
presence there.
TO REMAIN performance was supported by the moderated the impact on our margins.
Customer’s preference for our products
four-wheeler battery plant (4.20 million In spite of some slowdown in OEM
UNWAVERING.” stability in the Indian economy and
stupendous growth in the Automobile
was reinforced by the fact that Bharti
units to 5.60 million units per annum)
and the two-wheeler battery plant (3.60
production in the short-term, the Indian
Automobile Industry is expected to sustain
Airtel (the leading telecom operator) million units to 5 million units per
sector. Despite lower demand in the double-digit growth for the next five years
preferred us for their battery annum) will be completed by the 2nd
Telecom sector, which created volume on the back of a growing economy, rising
requirements in Africa. quarter of 2011-12. This will enable our
and margin pressure, our Company incomes and favorable demographics. The
weathered the storm with a more diverse The overall sales volume touched one Company to benefit from the growth Aftermarket will continue to present an
business mix backed by portfolio of billion Ampere hour (Ah) with 20% growth opportunities available in the attractive opportunity aided by customer
over the previous year, backed by strong Aftermarket and new geographies preference for branded batteries and
products and expansion into new
demand for UPS QuantaTM batteries. We outside of India, simultaneously helping sustained growth in Automobile
geographies.
emerged as the market leader in Telecom our Company to garner higher market production.
Our Company achieved gross sales and UPS battery business with 42% and share from OEMs.
of ` 20,765 million in FY 2010-11 We will continue to judiciously create
32% market share respectively, backed by
Our Company continues to enjoy capacity ahead of demand and continue
compared to ` 16,904 million in customers’ preferences for Company’s
comfortable liquidity and is confident of to lead the market with innovative
FY 2009-10. Net revenues for the year quality products.
meeting the funding requirements products.
were at ` 17,611 million compared to
Amaron VoltTM, a specialized Hi-Life planned for the financial year 2011-12,
` 14,645 million in FY2009-10 recording We will strive to reach our stated goal of
battery in the 2V high-integrity series, was through internal accruals and we expect
a topline growth of 20%. The profit after USD1billion revenues by 2015-16. It will
launched during the year for critical to continue to be near debt-free.
tax in FY2010-11 stood at ` 1,481 be our endeavour to explore and excel in
applications in the Telecom, Renewable
million against ` 1,670 million in all business initiatives and reward all
Energy and Power Control sectors, which Outlook
FY2009-10. Our Company has been stakeholders even better in times to come.
received very good market response. As we celebrate the Silver Jubilee year,
achieving aggressive growth targets, we are geared up with renewed vigor for On behalf of the Company, I take this
with 37% CAGR in revenues and 44% In the Automotive Battery business, sales
a brighter future, despite near-term opportunity to convey my sincere thanks
CAGR in profits over the past five years. volume grew by 20% and 58% in the
challenges in Telecom and possible lower to all shareholders and place on record
four-wheeler battery and two-wheeler
growth rates in Automobile production. our gratitude to our employees,
The Board of Directors have proposed a battery applications respectively. The
We are optimistic about continuing our customers, channel partners, bankers,
dividend of ` 2.60 per share, which is in growth was realized through channel
growth story, aided by robust long-term suppliers and our joint-venture partner
line with the dividend policy of distributing expansion in the Aftermarket business,
fundamentals of the Indian economy. Johnson Controls Inc.
upto 15% of the net profits after tax to the robust demand from OEMs and addition
Our core purpose of creating inclusive
shareholders. This is over and above the of new geographies in international Let’s all believe there’s ‘Gotta be a better
and sustainable growth while delivering
“One time special dividend” of ` 2.00 per markets. In the four-wheeler battery way’ and lets work together towards
world-class products and services
share declared and paid in February 2011, business, our Company enjoys a achieving it.
continues to remain unwavering.
to commemorate the silver jubilee of our market share of 25% in OEM and
Company. 30% in Aftermarket segment in In Telecom, Value Added Services (VAS)
Jayadev Galla, Managing Director
organized market, while market share enabled by 3G and Wi-MAX, rural rollout
AMARA RAJA BATTERIES LIMITED GOTTA BE A
10 ANNUAL REPORT 2010-11 BETTER WAY 11
Annual Report 2010-11 11

8. We strengthened our customer
experience through the following
initiatives:
 We were the first to offer a 60-
month warranty on batteries in India,
providing consumers with peace of
mind.
 We enhanced the retail purchase
experience through unique, urban
(Amaron® Pitstop) and rural
(PowerZoneTM) formatted outlets.
 We emerged as the preferred
partner for major vehicle launch
programmes of leading automobile
OEMs in India.
 We created a collaborative working
culture and empowered teams to
undertake strategic initiatives, thereby
providing an invigorating working
experience.
A NUMBER OF OUR INDUSTRY
PLAYERS WOULD PROBABLY GIVE
INITIATIVES LIKE THESE ACRONYMS
LIKE CRM AND TQM. WE CONSIDER
THEM TO BE THE INTRINSIC AMARA
RAJA WAY!
 We were the battery supplier for
India’s first micro hybrid vehicle of
Mahindra & Mahindra.
 We are the single source of
batteries for the entire fleet of
Comfort Delgro taxis in Singapore.
 We were the first to introduce
EXPERIENCES
AT AMARA RAJA, WE ARE ENGAGED IN MANUFACTURING AND MARKETING BATTERIES.
VRLA technology for railway rolling
stock application, enabling Indian
Railways to roll out III tier AC coaches.
WHAT WE RELISH IS EXCEEDING CUSTOMER EXPECTATIONS AND ENHANCING
CUSTOMER DELIGHT.
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9. We facilitated the transformation
through painstaking innovations:
 We were the first to introduce
VRLA technology in India for
industrial standby applications.
 We pioneered VRLA batteries for
motorcycle applications in India.
 We were the first to introduce Zero
Maintenance batteries for automotive
applications in India.
 We transformed India’s
automotive battery market with the
launch of Amaron®, backed by a
unique sales and service model.
In doing so, we grew faster than the
industry average in each of the last
five years leading to 2010-11.
A NUMBER OF INDUSTRY OBSERVERS
WOULD CONSIDER THIS TO BE
UNIQUE. WE CONSIDER IT TO BE THE
TYPICAL AMARA RAJA WAY!
 We launched Amaron Volt® Hi-Life
batteries, a high-integrity series
battery to provide robust back-up
INNOVATION
AT AMARA RAJA, WE EMBEDDED ‘INNOVATION’ INTO OUR ORGANISATIONAL DNA.
power solutions.
 We launched ‘PowerZoneTM’, the
first formatted rural distribution
initiative in the Indian battery industry.
THE RESULT IS THAT WE WENT ON TO SHAPE OUR COMPANY’S FORTUNES AND
ALTER THE DYNAMICS OF THE INDIAN BATTERY INDUSTRY.
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10. EXCELLENCE
AT AMARA RAJA, WE MANUFACTURE BATTERIES AT A SINGLE LOCATION; WE DELIVER
DEPENDABILITY ACROSS THOUSANDS OF POINTS OF USE.
We achieved this through some  We grew net sales, EBIDTA and profit  In 2010-11, we received the 1st prize in
diligent investments: after tax by 4.84 times, 4.97 times and TPM Best Practices in AOTS (South
6.22 times respectively over the last five Chapter) and received the Supply Chain
 We created Asia’s largest, single-
years leading to 2010-11. Leader 2011 Award under the category
location, vertically-integrated battery
manufacturing facility accredited for ISO  There are more than 1,90,000 live ‘Dry cells and storage batteries’ by Industry
9001:2000, ISO/TS 16949 (certified by battery banks, providing uninterrupted 2.0 India SCM Conclave.
TUV NORD), ISO 14001 and OHSAS backup power to GSM & CDMA Base  Two teams from the Company
18001- 2007 Trans-receiver Stations (BTS), Base participated in National level QCC
Switching Centers (BSC) and Main convention; one featured in the “Excellence
 We received the Ford World Excellence
Switching Centers (MSC) in telecom. category”, the other stood in the
award, the award for the Best Telecom
Equipment Manufacturer from BSNL and A NUMBER OF INDUSTRY PLAYERS “Distinguished Category”.
the Quality Excellence Award from Indus WOULD CONSIDER THIS TO BE GOING  Won the first prize under the discrete
Towers BEYOND THE USUAL CALL OF BUSINESS. manufacturing category at the CII- 4th
WE CONSIDER IT TO BE THE NATURAL National conference and competitions on
 We enjoy the preferred supplier status
AMARA RAJA WAY! Six Sigma.
with major telecom, UPS and automotive
OEM customers; we are market leaders in
supplying batteries to the telecom and
UPS segments
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11. ENTREPRENEURSHIP
AT AMARA RAJA, OUR BUSINESS IS TO MAKE BATTERIES BUT OUR PASSION IS TO BUILD ENTREPRENEURS.
We demonstrated this through a
number of initiatives:
 We built successful and progressive
partnerships especially our joint venture
with Johnson Controls Inc., USA (JCI), a
global leader in automotive batteries.
 We created a team of 70 ‘freshers’
(average age 27 years) to independently
manage exciting segments like the two-
wheeler and the small VRLA battery facility.
 We created entrepreneurs by developing
business partners through our Amaron®
Pitstop, PowerZoneTM outlets and AQuA
channel on a pan-India basis.
 We nurtured ‘intra-preneurship’ among
the employee community through
Continuous Improvement programmes –
enhancing value for the individual and the
organisation.
A NUMBER OF PEERS WOULD CONSIDER
THIS TO BE A BUSINESS STRATEGY. WE
CONSIDER IT TO BE THE FUNDAMENTAL
AMARA RAJA WAY!
 We strengthened our entrepreneur-
channel partners (Amaron® Pitstop,
PowerZoneTM outlets and AQuA network)
from 147 as on March 31, 2006 to 1,112
as on March 31, 2011.
 We ranked 22nd among the Best
Employers in India, as per ‘Employer
Branding Institute of India’.
 We were featured in Forbes ‘Best under
a US$ billion’ Asia list.
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12. We have done so for the last number
of years through the following
initiatives:
 We created non-migratory job
opportunities in rural communities.
 We dedicated 2% of profits or 0.2% of
revenue (whichever is higher) towards
corporate social responsibility initiatives,
creating social infrastructure (schools,
hospitals, public centers, sanitation
infrastructure and community facilities).
 We transformed barren, dry land into
one of the greenest battery facilities; more
than 70% of the area is green.
A NUMBER OF CORPORATES WOULD
PROBABLY DESCRIBE SUCH INITIATIVES AS
COMMUNITY BUILDING. WE CONSIDER
THEM TO BE THE CORE AMARA RAJA WAY!
 Our manufacturing units employ over
85% of people from surrounding villages.
RESPONSIBILITY
AT AMARA RAJA, WE DO NOT MERELY PROVIDE POWER SOLUTIONS; WE EMPOWER THE
 We contributed Rs.126 million towards
social development initiatives over the last
five years leading to 2010-11.
WORLD AROUND US.
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