2. INTRODUCTION
• Amara Raja batteries Limited (ARBL) was started
in 1985 by Mr Ramachandra Galla.
• The first company to manufacturer sealed
maintenance-free valve-regulated lead acid
(VRLA) batteries for industrial applications in
India.
• The largest manufacturer of VRLA batteries in the
Indian Ocean Rim and among the top 10 in the
world.
• Technical collaboration with Johnson controls , a
global automotive component manufacturer.
3. Battery statistics
• The global battery market is about US $86
billion , of which roughly US $50 billion is
allocated to rechargeable batteries.
• The growth is estimated at 6% annually
through 2014.
• China , India , Brazil and South Korea will
record some of the strongest market gains.
4. Indian Automobile Battery
• The Indian automobile battery industry is about
Rs.20,000 Cr(Organized Sector- 12,000 Cr) and
Industrial battery industry (telecom , railways , power
& ups) is Rs.8000 cr
• The automobile battery market is divided into the OEM
market and Replacement market.
• The OEM market (30%) is catered to by established
companies like Exide , Amara Raja( Amaron , Quanta) ,
AMCO.
• The Replacement market (70%) is shared equally by the
unorganized and organized players , each having 50%
of the market.
5. History of ARBL
• The ARBL is an Indian battery manufacuring
co. which is headquartered at Hitec city ,
Hyderabad.
• It is better known its for automotive battery
brand ‘Amaron’ which is the second largest
selling automotive battery brand in India.
• ARBL employs a workforce of over 7000
employees.
6. ARBL at a Glance
• Type – conglomerate
• Founded – 20th Dec ,1985
• Founder – Ramachandra Naidu Galla
• Area served – worldwide
• Website – AmaraRaja.co.in
7. • Mission :
the mission of ARBL is to deliver reliable
and clean power to its customers , technology
and trust are key value additions that are
delivered with every product and endorsed by its
satisfied clients across the globe.
• Vision :
will be a dominant player in providing
integrated solutions in conversion and
management of electrical power by leveraging
sustainable technologies.
8. ARBL has two strategic business units (SBUs):
1. The Industrial batteries division and
2. The Automotive batteries division
9. Business of the co.
• Industrial– Under this it manufactures and market five products namely
Powerstack , Amaron Quanta, Amaron Volt, Amaron Sleek and
Applications. Its clients includes big names like BSNL, MTNL, Lucent,
Alcatel, Siemens, Nokia, Ericsson, Alstom, Crompton Greaves, etc.
• Automotive– It manufactures and market automotive batteries under the
name Amaron. Under Amaron it has introduced products like Pro, Flo, Go,
Black, Fresh, Hi–way, Harvest, Shield, and Optima caters to various
automobile needs.
• The company exports automotive batteries to countries namely Singapore,
Malaysia, Hong Kong, Thailand, Vietnam, Philippines, China, Japan,
Greece, Australia, Dubai, Omen, Bahrain, UAE, Kenya, Tanzania, South
Africa and many more.
• The company has been supplier to big companies like Ashok Leyland, Fiat,
General Motors, Hindustan Motors, Honda, Hyundai, Mahindra &
Mahindra, Maruti and Tata Motors, Daimler Chrysler and Ford.
10. SWOT Analysis
• Strengths :
contains patented silverx alloy to give it extra-long life.
High customer focus in all aspects from design to
manufacturing to sales.
Continuously innovating and is at par with the best
batteries in the world.
Market leader in India with in a short span of a few years.
Huge dealer network.
Online ordering of batteries.
Excellent advertising and marketing through ads , print
media.
11. • Weakness :
Higher cost means limited margins
Huge competition from local and international
brands means limited market share growth
12. • Opportunities :
Boom in automobile sales in all segments
Customers are getting more brand sensitive
and focus on quality more than cost.
international markets responding well to
inroads by Amaron.
13. • Threats :
Other battery manufacturers offering lower
prices.
Improvement in car technologies can lead to
modification of batteries
Unfavourable govt. policies can affect
operational efficiency.
14. Product differentiation
• Form :-
Black casing made of strong propylene material.
Convenient fold-down handles
Fancy looking wends
Ribbed side-walls
• Features :-
Charge indicator
Non-corrosive plates
Heat resistant technology
No water topping required
15. Service differentiation
100 franchisees spread across country ,
named pit stops
Standard store design
Distribution through 7,250 retailers
Planning to distribute through departmental
stores
16.
17. Promotional strategies
• The co. highlighted its products by the tagline
“Lasts Long , really long.”
• Advertising campaign entrusted with O&M.
• Hinglish lyrics makes the brand youthful & sporty.
• For brand recalling among customers the co.
stared mineral water campaign and distributed
water bottles with unique messages.
• The co. associate itself with events like
motorsports and Go-karting.
• The co. signed Narain Karthikeyan who is the 1st
formula one driver from India.
18. Sales and Distribution strategy
• Its 100 franchisees spread across the country
are named Pit stops.
• The co. also distributes batteries through
other channels.
• At present the company is distributing
products to about 7,250 retailers who include
service stations , accessory shops , old battery
dealers , lubricant dealers etc.
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24. Why did Amara Raja focus on the
replacement market ?
• Top competition from Exide in OEM
• Better price realisation
• After making a name in replacement market it
can enter into OEM market
• Unorganized nature of the market
25. In what way does branding help
Amara Raja to market a low involvement product like
automotive batteries?
• After making a name in replacement market it
can enter into OEM market by grabbing the
attention of big companies
• Effective positioning – easy to recall brand
26. What should ARBL do to penetrate OEM
segment to increase market share?
• Product customization
• Meeting requirements of OEM in Cost
effective manner
27. Conclusion
• Amara Raja believes in influencing and
improving the quality of life by building institutions
that provide better access to better opportunities ,
goods and services to people all the time . With
innovative engineering , research and design ,
Amara Raja has grown with partnerships and
information sharing with world leaders.
• Amara Raja is committed towards latest
generation technologies by developing and
manufacturing globally competitive , customer
focused products of world class quality and
responsibly introducing these products into
relevant markets.