Minda Corp targets ₹1,500 cr export, eyes growth in electric vehicles

The auto-component maker expects global growth to be led by instrument clusters, wiring harnesses, EV components and electronics as it increases four-wheeler penetration

Auto-component maker Minda Corporation is targeting more than a twofold increase in exports to ₹1,500 crore over the next four years from around ₹600 crore currently, as it looks to expand its presence in global markets and tap rising demand for automotive electronics and electric vehicle components.

 

The company expects export growth to be driven primarily by its instrument cluster, wiring harness, electric vehicle (EV) and electronics businesses, Aakash Minda, executive director of Minda Corporation, told Business Standard.

 

“We are in line to do that,” Minda said, referring to the company’s export target.

 

Exports currently account for around 8-9 per cent of Minda Corporation’s revenue, with nearly 90 per cent coming from the domestic market. The company is looking to increase its international business as it expands its product portfolio and manufacturing capabilities.

 

Four-wheeler penetration becomes key growth focus

The export push will coincide with a broader shift in the company’s business mix towards higher-value products and four-wheelers.

 

Two- and three-wheelers currently account for around 42-43 per cent of revenue, while four-wheelers contribute about 20 per cent.

 

“We are now heavily focusing on four-wheeler penetration,” Minda said.

 

Recent order wins, partnerships and new products are aimed at increasing the company’s presence in the segment, alongside customer additions and premiumisation.

 

Minda Corporation is also expanding its portfolio of technology-intensive products. These include TFT instrument clusters, smart-key systems, EV components, high-voltage connection systems and wiring harnesses, sunroof systems, wireless chargers, antennas and body control modules.

 

EV-related products contributed nearly 14 per cent of group revenue in the first quarter, and the company expects the contribution to rise further as electric vehicle penetration increases.

 

Its associate company Flash Electronics derives around 30 per cent of its revenue from EV-related products, Minda said.

Capacity expansion to support growth

The company is also expanding its manufacturing footprint to support growth.

 

Capacity utilisation across its plants currently stands at around 75-78 per cent, and Minda said the company typically begins planning a new plant when utilisation reaches 80-85 per cent.

 

Minda Corporation is setting up greenfield and brownfield facilities across its businesses, including vehicle access, wiring harnesses, instrument clusters, EVs, die-casting and electronics.

 

It has acquired land in Jewar and Aurangabad as part of its expansion plans.

 

The company typically invests around ₹400 crore annually in capital expenditure, with additional investments made for new plants and joint ventures.

 

Alongside organic expansion, Minda said the company is also in discussions with multiple companies for potential projects, keeping acquisitions as another avenue for growth.

 

The company is pursuing five key growth levers — volume growth, premiumisation, new products, new customers and higher market share — as it seeks to build a larger and more diversified business.

 

Minda said the company was also focusing on backward integration and deeper localisation to improve competitiveness and reduce dependence on imported components.