Hyderabad, April 05 : The leading industrial and automotive battery manufacturer — Amara Raja Batteries — on Thursday announced that the Galla family is going to buy 2% shares of Johnson Controls (JC) in the country to execute the termination of their two decade old agreements with JC. With this, the shareholding of Galla family will go up to 28% from the existing 26% which makes the trigger point for the termination of the agreements. The company on Wednesday informed the exchanges that Galla family has terminated the shareholders agreement with Johnson Controls (Mauritius) Private Limited and Johnson Controls Battery group.
Both the entities have on December 22, 1997 entered a shareholders agreement, investment and Technical assistance. The market analysts expect this development would save 4-5% in terms of royal that Amara Raja pays every year and the Telugu Company may also increase the stake in a gradual manner over a period of time.
Ramachandra N Galla and his family (26%) and Johnson Controls (Mauritius) Private Limited (26%) are equal partners in the promoter group of Amara Raja Batteries. While the promoter group owns 52% stake in the company, the rest 48% stake is in the public hands including the mutual funds and retail investors. Jayadev Galla, son of Ramachandra N Gallla, is the Managing Director of the company and a sitting MP from Guntur Parliamentary Constituency in Andhra Pradesh.
