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CHENNAI, Sept. 5

THE Chennai-based Amara Raja Batteries Ltd expects to benefit from its strategic alliance partner, Johnson Controls' acquisition of Varta's automotive battery division through improved market access in the Asia-Pacific region, Europe and America.

Johnson Controls, which has a 26 per cent equity stake in Amara Raja Batteries, will acquire Varta's automotive battery division for euro 312.5 million. This acquisition will enhance Amara Raja's access to European markets and the company will be in a position to capitalise on alliance synergy for exploiting market opportunities, according to a press release from Amara Raja Batteries.

The release quoted Mr Ramachandra N. Galla, Chairman and Managing Director, Amara Raja, as saying that the acquisition "will impact our business positively as Amara Raja is a potential supply source for the alliance's global customers and we are also actively involved in alliance research and development".

The long-term benefit for Amara Raja, he was quoted as saying, would be in improved market access not only in the Asia Pacific region but also in Europe and America.

The release said that Varta's automotive battery division, headquartered in Hannover, Germany, operated six battery assembly plants in Europe and manufactured automotive batteries for BMW, DaimlerChrysler, Ford, PSA and Volkswagen. The company was also a major supplier to the European independent aftermarket including customers like Robert Bosch GmbH, hypermarkets like Carrefour and wholesalers.

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