Amara Raja Batteries, one of the country's leading battery manufacturers, has announced that the company has terminated a shareholders agreement between the Gala family, Johnson Controls (Mauritius) and Johnson Controls Battery Group, and consequently also terminated other agreements. With this, the Gala family has taken control of the company.
The shareholders agreement dated December 22, 1997 was signed between Johnson Controls Mauritius (JC Mauritius), Johnson Controls Battery Group (JCBG) and the Galla family, was amended on September 28, 2008 and April 20, 2017. The share subscription and investment agreement dated December 22, 1997, by and among JC Mauritius, JCBG and Amara Raja Batteries, and the Galla family.
Amara Raja Batteries had also signed a technical assistance and license agreement and PowerFrame technology license agreement and technology collaboration agreement. The battery manufacturer says that in November 2018, Johnson Controls International announced its intention to sell its Power Solution business. Consequently, JC and the Galla family reached an agreement, which would see the Galla family acquire 2 percent equity shares of the company from JC and terminate the shareholders agreement with effect from April 1, 2019.
Following the termination of the shareholders agreement, the other agreements also stand terminated. Amara Raja says that as part of the 1997 technical assistance agreement it has "fully absorbed all critical technologies" over the years. At present, it manufactures a wide range of batteries utilising advanced product and process technologies for customers across various application segments.
Subsequent to the signing of the Power Frame Technology license agreement in September 2018, Amara Raja has received complete technology know-how and has taken all measures for implementing the technology for manufacturing batteries using an advanced stamped grid plate-making process. In addition, JC will continue to provide technology assistance to the Indian company for an additional period as mutually agreed.
Amara Raja Batteries says as part of the company's future outlook, it would continue to invest into new technologies and nurture partnerships.