Minda Industries expects PLI scheme to accelerate its Rs 600 capex for FY2023

Minda Industries which has been selected for government support under the production linked incentives (PLI) scheme, expects this to help it accelerate its planned capex of Rs 600 crore for the current fiscal. The company’s leadership told Autocar Professional that it expects to earn revenues exceeding  Rs 1500 crore, based on this investment, over the next 4-5 years.

According to Nirmal Minda, MD, Minda Industries, battery management systems (BMS), on-board and off-board chargers, telematics, body control module, vehicle control units, sensors as well as select CNG components are some of the key products which will form a part of the  PLI scheme.

"PLI scheme will only accelerate the investment and our efforts, thereby helping the entire ecosystem including Tier 3 and Tier 4 suppliers who form a major chunk of  Micro, Small and Medium Enterprises (MSME)," he said adding that the company's initial focus will be to further improve upon the localization of products before targeting exports.

The company is believed to be already in the process of setting up three new plants, two in Gujarat and one in Haryana, as part of its expansion plans. 

The PLI Scheme for auto and related-component industry in India has attracted a proposed investment of Rs 74,850 crore against the target estimate of investment Rs 42,500 crore over a period of five years.

The proposed investment of Rs 45,016 crore is from approved applicants under the 'Champion OEM Incentive Scheme' and Rs 29,834 crore from approved applicants under 'Component Champion Incentive Scheme', the union-heavy industries ministry said in a statement last month. 

Growth opportunities aside, Minda Industries’ top brass remain concerned over the spiralling commodity prices, which Nirmal Minda claims has been the worst he has seen in four decades. The ongoing geo-political challenges including those emanating from the Ukraine-Russia war has only ended up making the situation worse, he continued, emphasizing that the lead time which is the period from placing an order to taking delivery has now gone up to over 12-18 months from just a few months based on the nature of the commodity.