This video explores the journey of Amara Raja Batteries, the successful business strategies they employed to challenge market giant Exide, and the significant political and environmental disputes the company faced, particularly starting in 2019 and 2021.
The Foundation of Amara Raja Amara Raja Batteries was founded by Galla Ramachandra Naidu. After studying in the finance sector abroad, he returned to India with the aim of starting a manufacturing unit to create employment. Initially, he established Amara Raja Powers and Systems, manufacturing items such as semiconductors, chargers, electrical items, and also engaging in white labeling. The name "Amara Raja" is derived from the starting letters of the names of his wife, Aruna Kumari Galla's parents: Amaravatamma and Rajagopal Naidu.
Challenging the Market Leader When Amara Raja entered the market, Exide had captured the entire market and often bought out any potential opposing companies. Amara Raja strategically identified a gap: Exide batteries required significant maintenance, such as frequently adding water. To capitalize on this, Amara Raja partnered with a foreign company, Johnson Controls, in 1997. Johnson Controls provided support regarding technology, production methods, and machinery. This partnership allowed Amara Raja to start manufacturing high-quality batteries and supplying them across the world. They established their main plant in Chittoor.
Disputes, Downfalls, and Political Pressure Amara Raja experienced significant disputes starting around 2019.
• Johnson Controls Exit (2019): After 22 years, Johnson Controls left the partnership in 2019, the reason for which remains unknown. Many investors lost confidence, fearing the business would decline without the strong brand association of Johnson Controls, leading them to sell their shares. While the company maintained good sales, its overall market situation saw a downfall. Amara Raja adapted by utilizing the technology previously used by Johnson Controls and successfully increased production and sales.
• Profit Rate Reduction: The company’s profit rate significantly dropped from 30% last year to 6% this year, leading to a drop in market shares, although they managed to break even.
• Environmental and Governmental Action (2021): In 2021, the Andhra Pradesh Government, under Jagan Mohan Reddy, ordered the immediate closure of Amara Raja factories in the Chittoor district. This order was due to the alleged link between the factory and health issues caused by lead/LED exposure suffered by many people in the vicinity.
• High Court Intervention: Amara Raja appealed the closure order to the High Court. The AP High Court partially saved the company, acknowledging that closing Amara Raja would halt the supply of backup energy to hospitals and industries, causing a significant impact on the Indian economy.
• Pollution Control Board: The Pollution Control Board also issued a notice to Amara Raja, instructing them to implement pollution control steps and cooperate with the government.
#amararajabatteries #amaron #amararaja #growthnihal #businessmodel #indianbusiness #startupstories #businesscasestudy #batteries #electricvehicles #batterybusiness #socialpostbusiness
Amara Raja Batteries Business Model | How Amaron Became India’s Battery Giant | Growth Nihal
--
#BusinessTips #StartupAdvice #StartupTips #BusinessIdeas #MarketingTips #OnlineBusiness #socialposttv #SocialpostBusiness
Welcome to Socialpost Business We provide expert business tips, startup advice, and insights into the latest business trends. Whether you're starting a new venture or growing your business, our content covers strategies, marketing, funding, and more to help you succeed. Subscribe and stay updated with actionable tips for your entrepreneurial journey!
For Any Promotions and Interviews Contact Us
Phone: +91 8885554884
Email: [email protected]
Follow Us On :
---------------------
Facebook: / socialpostbusiness
Instagram: / socialpost_business
YouTube / @socialpostbusiness
WhatsApp Group: https://chat.whatsapp.com/IenYTHdZm8z...
WhatsApp Channel: https://whatsapp.com/channel/0029VafL...
🔔 Disclaimer:
The content shared on Socialpost Business is intended for educational and informational purposes only. We do not provide legal, financial, or professional business advice. The strategies, opinions, and views expressed are based on personal or expert experience and may not apply to all business situations.
Viewers are advised to conduct their own research or consult with qualified professionals before making any business or financial decisions.
📌 Socialpost Business is not responsible for any losses or actions taken based on the content provided in this video.
Информация по комментариям в разработке