Minda Industries enhances its footprint in four-wheel lighting & alloy wheel business
The board of directors at Minda Industries Limited has given a nod for expansion plans in its two businesses i.e. four-wheel (4W) lighting and 4W alloy wheel.
The said businesses have been operating at a near-capacity while the decision was backed by the improving market scenario and observed increase in demand. Following is the expansion plan:
A) Setting up of additional plant at Gujarat for four-wheel automotive lighting business:
A world-class lighting manufacturing plant will be set up at Bhagapura (Gujarat) in order to fulfill the increased demand for 4W automotive lighting. The company has existing manufacturing facilities located in Pune, Chennai, and Manesar while the new plant will be established in the vicinity of the key OEM in order to achieve better logistic management. The plant will possess features like the unidirectional flow of material, robotic automation for unloading, motorised conveyor system that will help enhance better operational efficiencies.
The company has already portrayed its technical capabilities with the acquisition of Delvis the previous year. In the future, the company plans to conquer some potential export business in Europe and America from this plant. This new facility in Gujarat will have a total capital expenditure outlay of Rs 90 crore that will come through a mix of debt and internal accruals. The commencement of the operations of the plant is planned for the quarter ending March 2022 and thereby, will stabilise in the consequent quarters.
B) Additional capacity of four-wheel alloy business:
The subsidiary of Minda Industries, Minda Kosei Aluminum Wheel Private Limited will be stretching its 4W alloy wheel capacity by 60,000 wheels/month at its plant located in Bawal (Haryana) in order to serve the increased demand.
The additional capital expenditure will amount to Rs 167 crore. The facilities are expected to start their operations by March 2022 and stabilise by June 2022.
Minda Industries qualifies to be a supplier of automotive solutions to the original equipment manufacturers (OEMs). A range of products are offered by the company across various verticals of auto components, such as switching systems, acoustic systems, and alloy wheels, among others.
On Tuesday, the share of Minda Industries was trading at Rs 557.75, which is 2.88 per cent higher on BSE.