Minda Corporation, the flagship company of Spark Minda Group, is to amalgamate five of its domestic subsidiaries — Minda Management Services, Minda SAI, Minda Automotive Solutions, Minda Autoelektrik and Minda Telematics & Electric Mobility Solutions into Minda Corp. The company has received approval from the National Company Law Tribunal (NCLT), New Delhi Bench, for the same.
According to the company, the move will result in consolidation of its businesses and facilitate greater synergies, enabling them to have access to wider financial resources, increase managerial efficiencies, lower the cost structure and allow for higher transparency.
After the five-entity merger, the revenue of the standalone entity has more than doubled. In FY2019, the post-merger revenue of the standalone entity has increased to around Rs 2,370 crore as compared to revenue of Rs 1,133 crore a year before.
Commenting on the merger, Ashok Minda, chairman and Group CEO said: “The merger would result in simplification of corporate structure and a larger standalone entity. This will bring better governance, accountability and efficiency in the system. This move will lead to cost optimisation, efficient treasury management and better value proposition to all the stakeholders.”
Also read: Spark Minda, Ansys inaugurate joint CoE at SMTC, Pune
Spark Minda Tech Centre in Pune gets NABL accreditation
Spark Minda sets up lockset sub-assembly unit in Yerawada prison