Minda Group to invest Rs 350 cr in 2 years

To launch a new line of products through a joint venture.

N K Minda Group, manufacturer of automotive components, is planning to expand into a new line of products through a joint venture and will expand its existing line of products for an investment of Rs 350 crore in the next two years.

N K Minda, Managing Director, N K Minda Group, told Business Standard, "We are planning to come up with two to three new products in the automotive component segment."

Recently, The Minda group has forayed into the automotive battery segment targeting two and four-wheelers.

The company will be investing Rs 150 crore in the expansion of capacity of its existing product line and Rs 200 crore will be invested in the new product line for which the company is planning to set up a manufacturing unit in India. However, Minda did not disclose the new products.

The fund will be raised through a different mix of resources including internal accruals, equity and debt. "The investment mix is yet to be finalised as the entire plan is in initial stage," said Minda.

The company is scouting for partners for setting up units for its new products as it will be based on a JV business model. The JV will be with overseas automotive company.

N K Minda group, recently set up a greenfield facility at Pantnagar for batteries with technical assistance of Fiamm SpA. The company has invested Rs.40 crore on a battery plant at Pantnagar. The capacity of the plant is 4.2 million batteries per annum. The plant is complete and has started test production. The commercial production will commence in June 2007.

N K Minda Group has had a CAGR of 40 per cent in the last 3 years. The group's flagship company, Minda Industries Ltd (MIL), has got 70 per cent market share in 2/3-wheeler switches in India.

MIL also has a lighting division. Minda Autogas Ltd, the alternate fuel kits provider, is the sole supplier of LPG kits to the WagonR Duo of Maruti. Minda Fiamm & Fiamm Minda are the leaders in Horn and have 40 per cent marketshare.

MindaRika provides switches for 4-wheelers.

The Minda Group's marketing arm has also launched an 'FMCG Model', which they have rolled out in Tamil Nadu, targeted at the after sales market (replacement market).