Minda Industries to consolidate operations

N K Minda-headed UNO Minda Group is consolidating all its companies under an umbrella company Minda Industries to achieve greater operational flexibility and economies of scale.

Thus, Minda Industries will have a total of 17 companies under its fold, 12 of which are already under it. Consolidating the remaining five will be complete by March 2018, said a senior executive of UNO Minda.

S K Jain, chief financial officer of UNO Minda, said: "We would be requiring Rs 50-60 crore to complete this plan. We engaged KPMG for this restructuring who worked on it for 1-1.5 years."

Minda Industries has raised stake in Minda TG Rubber to 51 percent and in MJ Castings, it has increased its stake to 98 per cent from 50 per cent. While in Kosei Minda Aluminum Company it raised stake to 30 per cent from naught.

"There could one or two cases where we will take the buy-out route, we are seeing how we can do this — by cash or preference issue", added Jain.

The group aims to attain a turnover of Rs 10,000 crore by 2020. Minda Industries, a listed entity, recorded a turnover of Rs 2,500 crore in the last financial year, whereas the Group recorded a consolidated revenue of Rs 5,500 crore.

The group has planned a capital expenditure of Rs 70-80 crore for the current financial year which would be spent on existing facilities. Minda Group companies have bagged new orders from Maruti Suzuki and Honda Cars India.

In March, Minda Industries had announced an acquisition of the global lighting business of Spain based Rinder Group that manufactures automotive lamps — head lamp, tail lamps and small lamps. The enterprise value for the total deal is about Euro 20 million (Rs 152 crore).

The acquisition includes 100 per cent equity holding in Rinder India and Light Systems and Technical Center, Spain along with 50 per cent equity holding in Rinder Riducu, Colombia. The deal will be financed through internal accruals and the debts.

"We have an internal cash accrual of Rs 200 crore which go up by 25 per cent this year. The capex (capital expenditure) will be funded by these accruals", added Jain.