Amara Raja bets on capacity addition to up market share.

Amara Raja Batteries is expanding market share in its main battery business by adding more capacity, its chief financial officer has said. The company is targeting a market share of 47 per cent in the four-wheeler OEM ( original equipment manufacturer) segment in the next three to four years from 30 per cent now.

In the replacement market, it expects market share to improve to 30 per cent from 24 per cent, while in the two-wheeler segment, Amara Raja wants a market share of 24-25 per cent from 16-17 per cent currently, though OEM market share expansion will entirely depend on recovery in the automotive space.

Suresh Kalyan, CFO, Amara Raja, ruled out any change or cut in prices. 'We will maintain our existing structure of price mechanism, which is +/-2 per cent of dealer land price compared to competition,' he added. 'Our aim is not to distort price mechanism to push volume growth and maintain amargin of 14-15 per cent.' It is investing Rs. 750 crore to raise capacity in two-, four-wheeler and industrial segments.

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