Amara Raja group in talks with TN for establishing new battery unit

Amara Raja group, the second-largest manufacturers of batteries in the country, is in talks with the Tamil Nadu government for setting up a battery-making unit in the neighbouring state as part of its expansion plans.

The move comes amidst trouble in the home state of Andhra Pradesh where the company and the government are locked in a battle that is now before the High Court.

Highly placed sources told DH that the Chittoor-based company touched base with Guidance Tamil Nadu a couple of months ago for its expansion plans out of Andhra Pradesh. The sources said the Amara Raja group asked for land parcels close to Chennai for the proposed manufacturing unit.

“They spoke to us and wanted us to find land close to the Tamil Nadu-Andhra Pradesh border as it would be easy for them to connect the existing facilities and the proposed one. We have given them a detailed proposal with details of what we can offer. We hope they will choose TN,” a top government functionary said.

The company had recently confirmed that it was in talks with various state governments for its expansion plans.

While the sources refused to divulge the locations offered for the company, districts like Vellore, Ranipet, and Tiruvallur that share borders with Andhra Pradesh, particularly Chittoor district, could be ideal for setting up the factory.

Vellore and Ranipet that boasts of huge industries are around 120 km away from Karakambadi, where Amara Raja’s factories are located, and Chennai is around 135 km.

Besides the expansion plans, the Tamil Nadu government has invited the Amara Raja group to set its shop for manufacturing batteries for e-scooters in and around Hosur, which is being developed as a hub for manufactures of electric two-wheelers and their accessories.

“Since we believe companies like Amara Raja will eventually move to the electric vehicle sector by producing batteries for them, we have invited them to Hosur as we are keen on developing an ecosystem for electric scooters in the industrial city,” a senior government official said.

On reports of Amara Raja Batteries moving to Tamil Nadu lock, stock and barrel from Andhra Pradesh, the government functionary said he was not aware of any such move.

“The company approached us for expansion not for moving its factories. And we understand their facilities in AP are quite huge and we don’t really know how it is possible to shift the units. At this point, the talks between Tamil Nadu Government and Amara Raja batteries are for expansion,” he added.