The Board of Minda Industries, a flagship company of UNO Minda Group, has approved the 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.
The company will be setting up world-class lighting manufacturing plant at Bhagapura, Gujarat, to cater to the increased demand for 4W automotive lighting.
The business has the existing manufacturing facilities at Pune, Chennai and Manesar. The new plant will be in vicinity of key OEMs, hence will also achieve better logistics management. The 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.
The company had augmented its technical capabilities with acquisition of Delvis in 2020. The company also plans to tap potential export business in Europe and America in future from this plant. Total capital expenditure for the new facility in Gujarat is Rs 90 crore which will be funded through a 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.
Minda Kosei Aluminum Wheel, one of the key subsidiaries of the company, will expand its 4W alloy wheel capacity by 60,000 wheels per 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 the end of March 2022 and expected to stabilise by June 2022.