 "Minda Industries to invest over Rs 250 crore on business expansion")
Minda Industries, the flagship of UNO Minda Group, on Saturday said it will invest over Rs 250 crore in expanding its four-wheel lighting and alloy wheel business to meet the increased demand as its existing units are operating at near capacity.
As part of this expansion, the automotive components maker will set up a new manufacturing plant at Bhagapura in Gujarat at an investment of Rs 90 crore to cater to increased demand for four-wheeler automotive lighting, Minda Industries Ltd said in a release.
The plant is expected to commence operations by the quarter ending March 2022 and will stabilise in subsequent couple of quarters, it said.
The company currently has manufacturing facilities at Pune, Chennai and Manesar, which are operating at near capacity.
"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," said NK Minda, Chairman and managing Director, UNO Minda.
Similarly, in 4W alloy wheels, customer preferences are moving towards alloy wheels. Though penetration of alloy wheels has increased in the last few years, it is still very low in comparison to developed countries providing ample opportunities for our growth in future, he said.
The new plant will have state-of-the-art manufacturing facilities with unidirectional flow of material, robotic automation for unloading, motorised conveyor system which will result in better operational efficiencies, said the release, adding the facility will be in vicinity of key OEM's and therefore will also achieve better logistic management.
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The company also plans to tap potential export business in Europe and America in future from this plant, it said.
Minda Industries had augmented its technical capabilities with acquisition of Delvis last year, according to the release.
The company said one of its key subsidiaries, Minda Kosei Aluminum Wheel Private Limited will be expanding its 4W alloy wheel capacity by 60,000 wheels/month at its Bawal (Haryana) facility to cater to the increased demand.
The additional capital expenditure for this capacity expansion will be Rs 167 crore and the expanded facilities are expected to commence operations by quarter ending March 2022 and expected to stabilize by June 2022, the company said.
The Board of Minda Industries has approved these expansion plans, said the release.