Sep 16, 2016: With the acquisition of Spain-based company Rinder in March 2016, Indian company Minda Industries stepped into automotive lighting sector in a big way. Following the acquisition, the Indian component maker purchased 100% equity holding in Rinder India along with its technical and design centre in Spain and 50% equity holding in Rinder Riducu, Colombia.
Jumpstarts expansion in lighting domain
Following the deal, Minda has accelerated its expansion in the LED lighting domain, setting a target of Rs 5000 million within the next three year. Minda wants to expand its growth both in the domestic and international lighting markets. This expansion will facilitate Minda’s lighting division to attain a consolidated topline of Rs 10,000 million from Rs 700 million. Minda will now take advantage of Rinder’s LED lighting know-how, its expertise in LED lamps, and its LED automatic headlamps.
Considers setting up overseas LED plant
Minda has plans to set up an LED lamp manufacturing plant in Mexico or Columbia for all-terrain vehicles and harvesters. Minda is also undertaking a pre-feasibility study on the potential, which will require an investment of Rs 500 million. The company estimates that it may start production within three years, and achieve a turnover of Rs 1000 million.
Minda has plans to conduct a feasibility study in discussion with its clients on whether initially, Rinder lamps for vehicles will be produced at the existing Minda facility in Indonesia as the company believes that it would be more economically viable to supply from Indonesia rather than India as that would save logistics costs. In fact, Minda would invest Rs 750-800 million in Indonesia over the next three years to expand production capacity of Rinder LED lamps, and also to get new orders from Nissan for Minda lighting products like LED headlights.
On the home front, Minda will start an LED lamp facility in the Indian south city Chennai that will offer Rinder’s two-wheeler and Minda’s four-wheeler LED lighting solutions. The plant will start off within two years, with an investment of Rs 1000 million. Constructions of the facility will start within three months and the plant will go on stream in July 2017.