The Board of Minda Industries Limited (Flagship company of Uno Minda Group) on Saturday has approved expansion plans in its two businesses -- Four Wheel (4W) Lighting and 4W Alloy Wheel, considering the improved market scenario and increased demand, wherein the said businesses have been operating at near capacity.
Lighting manufacturing plant in Gujarat
As part of the plan, it will also be setting up world class lighting manufacturing plant at Bhagapura, Gujarat to cater to increased demand for 4W automotive Lighting. The business has existing manufacturing facilities at Pune, Chennai and Manesar, Minda said in a statement.
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 and will stabilise in subsequent couple of quarters, it said.
The additional capital expenditure for the aforesaid capacity expansion will be Rs. 167 crore. The expanded facilities are expected to commence operations by quarter ending March 2022 and expected to stabilize by June 2022.
The new plant will be in vicinity of key original equipment manufacturers (OEM’s) hence will also achieve better logistic management. The plant will have state of art manufacturing facilities with unidirectional flow of material, robotic automation for unloading, motorised conveyor system which will result in better operational efficiencies, the company 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," NK Minda, Chairman and Managing Director, Uno Minda said.
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, he said.
The company had augmented its technical capabilities with acquisition of Delvis last year. The company also plans to tap potential export business in Europe and America in future from this plant.
Minda Kosei Aluminum Wheel Private Limited, one of the key subsidiary 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 company said.