Automotive component maker Minda Corp has announced an ambitious plan to ramp up revenue and margins along with a Rs 2,000 crore capex target, sending the shares higher by nearly 9 percent on September 24.
Minda said in the investor presentation that it will aim for 3.5x growth in revenue at over Rs 17,500 crore by FY30 with an EBITDA margin of over 12.5 percent. The company has lined up a planned capex of approximately Rs 2,000 crore over the next five years. The auto OEM maker will also look to reduce its debt to equity to 0.3x. From the present export revenue of Rs 420 crore in FY25, which is 8 percent of the total pie, Minda said it will aim to grow at a CAGR of 37 percent by FY30 to hit an export target of Rs 1,500 crore. Minda Corp's exports were worth Rs 220 crore in FY21.
Greenfield Expansion
The company is setting up three greenfield facilities and has acquired land to support future expansion. Two of the greenfield units in Noida and Pune will be in Die Casting and one making for instrument clusters.
Eye on the Global Market
The plans also entail stepping up on exports to target a global market, leveraging the cost advantage of India's auto component industry. The investor document shared a list of products that the company will aim to premiumise, as well as plans to foray into new-age product categories.
From the present export revenue of Rs 420 crore in FY25, which is 8 percent of the total pie, Minda said it will aim to grow at a CAGR of 37 percent by FY30 to hit an export target of Rs 1,500 crore. Minda Corp's exports were worth Rs 220 crore in FY21.
JVs for New Products
Its forays into new-age product categories are being underscored by JVs, including one with HCMF Taiwan for sunroof systems and Toyodenso, Japan for switch systems. Minda said it will target 15 percent market share in India for the sunroof and power tail gate segment, expecting a revenue of Rs 500 crore by 2030.For EVs, it has an agreement with SANCO China for localization and is expecting a revenue of Rs 300 crore by 2030 from the EV product category.
The company is also targetting an increased presence of its EV portfolio, aligning with the global trend of rising electric mobility. "EVs are expected to drive a minimum 20-30 percent increase in content per vehicle," said Minda Corp, projecting an EV penetration of 24 percent in Indian e-2W segment, with a sale of over 62 lakh units in FY29.
Demand Outlook for Auto Parts
The tailwind is expected to take India's auto component industry to a turnover of $200 billion by 2030, from current $74.1 billion in FY25. "Shifting global trade and a cost advantage position India's auto component industry for healthy export growth," the company said. India's Auto components exports are expected to reach $70-100 billion by 2030.
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