LAUNCH OF AMARON AUTOMOTIVE

BATTERIES

AMARA RAJA BATTERIES LTD.

Leading industrial and automotive battery manufacturer in India.
First company to manufacture sealed maintenance-free valve regulated lead acid
(VRLA) batteries for industrial applications in India.
Market leader in standby VRLA battery segment in India with market share of over
40%.
Largest manufacturer of VRLA batteries in the Indian Ocean Rim and among the top
10 in the world.
Technical collaboration with Johnson Controls, global automotive component
manufacturer.

SEGMENTS IN STORAGE
BATTERY MARKET

AUTOMOTIVE BATTERY MARKET

Automotive battery segment
Market share : 62%, storage battery market
Market valuation : 160 billion
Original Equipment Manufacturer (OEM) Market
Exide is the market leader with market share of 90%
Amaron recent entrant with supplies to Ford,GM, Dailmer Chrysler, Hind Motors

Replacement Market
Exide is the market leader with market share of 25%
Amaron reached 6% market share after 3 years of market entry

PRODUCT
Outer Design
Black colored casing.
Made of strong polypropylene material
Convenient fold down handles
Charge indicators on the battery
Fancy looking wends
Rugged finish of side walls
Font color in florescent green for easy recognition

PRODUCT
Performance
Usage of patented silver alloy mix plates to prevent corrosion
High heat resistant technology
Temperature resistant
Suitable for Indian weather conditions
Long life and low maintenance

PROMOTION
Advertising campaign entrusted to Ogilvy & Mather
Lasts long ,really long
Claymation and folklore
Hinglish lyrics
Well known fables used in advertisements
Mineral water campaign
Brand Ambassador - Narain Karthikeyan

PLACE
100 franchisees spread across the country named Pit Stops
Standardized store design
Selected 7250 retailers:

Service stations
Accessory shops
Old battery dealers
Lubricant dealers
Departmental Stores

SWOT ANALYSIS
Strengths
Promotional Activities
Brand Image in Industrial Segment
Technology in the Battery
Strong distribution network
Weakness
Inexperience in Automotive Segment
Opportunities
Lucrative Automotive Segment - OEM & Replacement Market
Threats
Competition from Exide and other Brands in this sector

WHEN THE OEM MARKET IS THE KEY SEGMENT

IN THE AUTOMOTIVE BATTERY INDUSTRY, WHY
DID AMARA RAJA FOCUS ON REPLACEMENT
MARKET?
OEM market dominated by current player- entry expected to be difficult
Replacement market dominated by unorganized players- entry relatively easy
Replacement market : price realizations expected to be better than OEM
Success in replacement market evidence of acceptance of product quality to
operate in Indian market conditions
Private label branding further evidence of acceptance of product quality

WHAT SHOULD IT DO TO INCREASE THE

MARKET SHARE?
Attracting users of competitors in unorganized market by educating them about
demerits of the local producers.
By providing more profit margins to the suppliers.
Providing better after sales services.

IN WHAT WAY DOES BRANDING HELP

AMARARAJA TO MARKET A LOW
INVOLVEMENT PRODUCT LIKE
AUTOMOTIVE BATTERIES?
Consistency in communication-has helped in establishing a well recognized brand
in the minds of the customer.
It has lead to awareness, trial and repeat purchase
Customer retention

WHAT SHOULD ARBL DO TO

PENETRATE THE OEM SEGMENT

Provide better warranty services than competitors

Produce more variety of batteries to cater to more cars
Provide credit payment options
Offer highly competitive price-depending on the share of business given

Q&A

THANK YOU