Amara Raja is also a leading manufacturer of automotive batteries under the brands - Amaron® and Powerzone, which are distributed through a large pan - India sales & service retail network. The company supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors. The company’s Industrial and Automotive batteries are exported to Asia Pacific, Africa and Middle East
Amara Raja is the second largest automotive battery manufacturer and the largest supplier of Industrial storage battery in India. It entered the automotive battery segment only in FY01 post its JV with Johnson Controls Inc (JCI, USA) when it
introduced AMARON batteries based on Zero maintenance technology for the first time in India.
Using a three stage DCF model, I have derived an estimated value with these assumptions:
- Profit growth of 20% for the first 5 years, 10% for years 5-10 and 2% thereafter
- discount rates of 12,13 and 14%