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Minda Industries is focusing on expanding its foot print globally through organic and inorganic routes
India-based auto parts manufacturer Minda Industries, a part of $ 624 million auto component technology leader Uno Minda Group, will increase its stake in its foreign entities as part of its international expansion plans.
Minda Industries will increase its stake in its Indonesian subsidiary PT Minda Asean Automotive and Singapore-based SAM Global Pte Ltd (100 percent holding company of PT Minda Vietnam) to 51 percent, the company said in its recent filing to Bombay Stock Exchange.
The company sources told Automotive India News that the transaction process will be completed in the current financial year.
Uno Minda Group had established green field manufacturing facility in Indonesia through PT Minda Asean Automotive, primarily to produce switches and locks for two wheelers in 2005, Today PT Minda Asean Automotive exporting its products to Thailand, Malaysia, Philippines and Vietnam.
The company is implementing this international level corporate transaction within three months of forming a joint venture with Japan-based aluminum wheels and auto parts manufacturer Kosei Group.
Both the Minda and Kosei Group have formed a joint venture christened, Minda Kosei Aluminum Wheel Pvt Ltd in February 2015 to manufacture aluminum wheels in India with manufacturing plant in Bawal in Haryana.
Uno Minda Group owns 70 percent stake in the venture while the remaining 30 percent held by Kosei Group. The JV is injecting in Rs 200 crore in manufacturing plant, which is expected to commence production with an annual installed capacity of 600,000 units of wheels by 2016.
During the financial year 2014-15, Minda Industries standalone revenue surged to Rs 1,370 crore from Rs 1,108 crore recorded in the previous financial year while its net profit nearly doubled to Rs 53 crore from Rs 27 crore.
The company’s growth for the fiscal comes on the back of its strong performance in the domestic and international markets. During the fiscal 2014-15, the switch division of Minda Industries started shipping its products to Piaggio in Europe. The order is worth of Rs 20 crore per annum. The company has also expanded its lighting division in Manesar to cater to future models of Maruti Suzuki with vehicle lamps including head lamp and tail lamp.
It may be noted that Minda Industries has acquired the European auto component major Clarton Horn from PMAn Domestic AG, Germany in 2013 for Euro 6.8 million. Clarton Horn, a leading manufacturer of automotive electronic horns, has OEM customers across Europe and has a manufacturing plant at La Carolina in Spain with sales Office in Germany . Clarton Horn’s annual turnover in 2012 stood at Euro 38 million and rated as the world’s second largest automotive horns manufacturer. Then the acquisition of Calrton Horn was seen as a major step in the Minda Industries’s strategy to become a global player in automotive horns.
Image Source : Uno Minda Group
