Amara Raja Batteries (ARBL) has announced a scheme of arrangement that involves demerger of plastics component for battery business from Mangal Industries (MIL) and merge the division into ARBL.
The move strengthens ARBL’s control of the supply chain and augments battery recycling initiatives.
It also helps the company in improving margins by better utilisation of manpower and reducing logistics costs.
The plastics component for battery business of MIL caters exclusively to ARBL providing plastic containers, covers, small parts, handles and jars that are used in batteries.
It currently has a capacity of over 37,000 tpa with 150 injection moulding machines located at three manufacturing facilities.