Minda Industries jumped 3.39% to Rs 560 after the company's board approved expansion in four wheel lighting and alloy wheel businesses.
The company said the capacity expansion is undertaken considering the improved market scenario and increased demand, wherein the said businesses have been operating at near capacity.
The auto ancillary company will be setting up lighting manufacturing plant at Bhagapura, Gujarat to cater to increased demand for 4W automotive lighting. The new plant will be in vicinity of key 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, motorized conveyor system which will result in better operational efficiencies. The company also plans to tap potential export business in Europe and America in future from this plant. 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 stabilize in subsequent couple of quarters.
Minda Kosei Aluminum Wheel, one of the key subsidiaries of Minda Industries, 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 Rs 167 crore. The expanded facilities are expected to commence operations by quarter ending March 2022 and expected to stabilize by June 2022.
Minda Industries is a flagship company of UNO MINDA Group. UNO MINDA, a technology leader in Auto Components Industry is a leading supplier of proprietary automotive solutions to OEMs as Tier-1. It manufactures automobile components for Original Equipment Manufacturers (OEMs).
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