With all segments of the Indian automobile industry driving ahead at a healthy pace, auto component suppliers are a happy lot. One among them is the UNO Minda Group. The Rs 7,000 crore manufacturer of components ranging from switches, lights, interior controls to batteries and alloy wheels has chalked out a growth plan till 2025.
The set target is to grow at a rate of 20-25 percent year-on-year during this period. That translates to over Rs 20,900 crore at least, in 7 years. "Other than that, in case we are going for any M&A activity, it would only be for adding value to the technology, and adding customers, mainly in Europe," N K Minda, CMD, UNO Minda Group tells Autocar Professional. It is to be noted that the company had acquired German embedded system and software major iSYS RTS earlier this year.
The Group has over 20 product lines. A small part of it could get adversely impacted if mass scale electric mobility becomes a reality. "We have mapped all our product lines. There will hardly going to be two products that will be impacted by electrification," says Minda. He indicated that the UNO Minda Group would venture into new product lines with the onset of mass scale electric mobility. "We will have the opportunity of introducing new EV parts. So that is another scope," adds Minda. But for the time being, he is betting on the growth of the internal combustion engine "for at least another 7-8 years, or even more".
While Minda, who is also the immediate past president of ACMA (Auto Component Manufacturers Association), is bullish about the overall growth, he has a few concerns due to currency depreciation and rising raw material costs. The positives, including the healthy GDP growth, give Minda the confidence that the industry will "overcome" the short-term hurdles.