Minda Industries, the flagship
company of UNO Minda Group, said the Board has given approval for the expansion
plans in its two businesses i.e. Four Wheel (4W) Lighting and 4W Alloy Wheel.
The expansion comes in line
with the improved market scenario and increased demand, wherein the said
businesses have been operating at near capacity.
According to a company release,
Minda Industries Ltd will be setting up a lighting manufacturing plant at
Bhagapura, Gujarat to cater to increased demand for 4W Automotive Lighting.
Total capital expenditure for
this new facility in Gujarat is INR 90 Cr which will be funded through a mix of
debt and internal accruals. The plant is expected to commence operations by the
quarter ending March 2022 and will stabilize in a subsequent couple of
The business has existing
manufacturing facilities at Pune, Chennai and Manesar. The new plant will be in
the vicinity of key OEMs to help achieve better logistic management.
The plant will have state of
art manufacturing facilities with the unidirectional flow of material, robotic
automation for unloading, motorized conveyor system, Minda Industries said in a
The Company had augmented its
technical capabilities with the acquisition of Delvis last year. The auto
component major also plans to tap potential export business in Europe and
America in the future from this plant.
Further, Minda Kosei Aluminum
Wheel Private Limited, one of the subsidiaries of Minda Industries Ltd, will be
expanding its 4W Alloy wheel capacity by 60,000 wheels/month at its plant in
Bawal, Haryana, to cater to the increased demand.
The additional capital
expenditure for the aforesaid capacity expansion will be INR 167 Cr. The
expanded facilities are expected to commence operations by the quarter ending
March 2022 and expected to stabilize by June 2022.
NK Minda, Chairman & MD,
UNO Minda said, “The automotive lighting industry is witnessing a gradual shift
in technology into more LED-based lighting products. With strengthened
technical capabilities in next level of lighting technologies, we are
well-positioned to benefit from these technological shifts and to achieve
leadership in the segment."
He further added,
"Similarly, in 4W alloy wheels, customer preferences are moving towards
alloy wheels. Though the penetration of alloy wheel has increased in last few
years, however, it is still very low in comparison to developed countries
providing ample opportunities for our growth in future.”