The home-grown battery manufacturer, Amara Raja Batteries Ltd has recently said that its board has approved an investment of close to Rs. 530 million in expanding its capacity for developing batteries for four-wheelers and two-wheelers.

While the decision of expansion comes in the wake of the rising demand in the Indian market, the company plans to plans to increase capacity at its two-wheeler battery unit by 1.8 million units to 5 million.

Moreover, the company highlighted in a statement that the capacity at its four-wheeler automotive unit will increase by 800,000 units to 6 million units. Keeping in mind that the passenger cars sales in India rose an annual 30.8 percent in June, SIAM predicts that the segment will file a growth of close to 12-13 percent in 2010/11.

However, as the company has reached its peak in terms of two-wheeler battery manufacturing, the company said that it is time to expand its capacities.

While the investment is expected to be funded from internal accruals, the firm reported a lower quarterly net profit of 357.26 million rupees as against Rs 425.74 million a year ago due to the margin pressures.