Hyderabad: Industrial and automotive batteries maker Amara Raja Batteries Limited on Wednesday said its board of directors has approved the sale and transfer of its new energy business to its wholly owned subsidiary Amara Raja Advance Cell Technologies Pvt Ltd through a slump sale arrangement on a going concern basis.
The transaction has been conducted for a lumpsum consideration of Rs 167.2 crore subject to adjustment as set out in the business transfer agreement, ARBL said.
The new energy business of ARBL comprises lithium ion cell and battery pack manufacturing, as well as an R&D pilot plant for prototyping and manufacturing of Li-ion cells.
ARACT is engaged in developing and manufacturing energy storage and management products, solutions and technologies related to advanced cell chemistries such as lithium cells, among others, and battery packs
The Amara Raja group has already announced plans to set up its gigafactory and E-Hub in Hyderabad at an investment of Rs 9,500 crore late last year.
“We are moving quickly in our EV related business with the Gigafactory and E-hub development work while our chargers and packs continue to see good traction,” said Vikramadithya Gourineni, executive director, new energy business, Amara Raja group.
Meanwhile the company said it has posted a 54% jump in net profit at Rs 223 crore for the third quarter ended December 31, 2022, as compared to Rs 145 crore on a 11.5% rise in revenue from operations during the quarter at Rs 2,637 crore from Rs 2,365 crore in Q3FY22.
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