The Board of Minda Industries Limited (the flagship company of Uno Minda Group) has approved expansion plans in its Four Wheel (4W) Lighting and 4W Alloy Wheel businesses.
Minda Industries will be setting up a lighting manufacturing plant at Bhagapura in Gujarat to cater to increased demand for 4W automotive lighting. The business has existing manufacturing facilities at Pune, Chennai and Manesar. The new plant will be in vicinity of key OEMs hence will also achieve better logistic management, said a press release.
The Company had augmented its technical capabilities with acquisition of Delvis last year. It also plans to tap potential export business in Europe and America in future from this plant.
The total capital expenditure for this new facility in Gujarat is Rs 90 crore which will be funded through mix of debt and internal accruals. The plant is expected to commence operations by quarter ending March 2022, said the release.
Minda Kosei Aluminum Wheel Private Limited, one of the key 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 capacity expansion will be Rs 167 crore.
Mr. 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. Similarly, in 4W alloy wheels, customer preferences are moving towards alloy wheels. Though 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.”