Minda, Valeo JV eyes potential car clients

Delhi-based Nirmal Minda group is in talks with leading car companies to supply parts like starter motors and alternators from its newly formed joint venture company with Valeo Electrical Systems of France. According to top sources, the new company, Valeo Minda Electrical Systems India, is in talks with Hyundai, Tata Motors, Nissan, Volkswagen, Renault and Ford for supply of these parts as it begins production at a new facility in Chakan, Pune.

Sources confirmed that the company has already entered into an arrangement with at least two or three of these companies to supply them starter motors and alternators. Managing director of the NK Minda group, Nirmal K Minda told Autocar Professional that it was premature to confirm the names of companies to whom it would supply these parts.

Valeo will hold 66.7 percent in the joint venture with the Indian partner taking up the balance. The company expects to achieve revenues of around Rs 275 crore in the fifth year of operation. It will cater to global vehicle makers too. The new plant in Pune will have a capacity to manufacture one million units each of starter motors and alternators. The company is investing around Rs 120 crore here over four years. Around 10 percent of this amount has been earmarked for setting up an R&D lab at the facility. Commercial production is likely to begin in March 2008.

According to sources, Naresh S Warrier of Minda Industries, the flagship of the Nirmal Minda group, will take over as managing director of the new venture. He is a trusted lieutenant of Nirmal Minda and had been working for long as business head (projects). The NK Minda group product profile comprises switches for 2-3wheelers as well as 4-wheelers, lighting, horns and alternate fuel kits. Minda’s existing joint venture partners include Tokai Rika of Japan and Fiamm SpA of Italy. It recently initiated a battery project in Uttarakhand.

As for Valeo, this is its fourth joint venture in India. Recently, it had tied up with the Ashok Minda group for security systems. The two other joint ventures are with the Anand and Amalgamation groups for manufacturing transmissions. Valeo Electrical Systems is a Euro 1.2 billion company with 6000 employees worldwide. According to Minda officials, the total OEM market for cars in India is 1.5 million starters and alternators apiece, growing at around nine percent.

P THARYAN