Auto parts giant Uno Minda, a key Tier1 supplier, is buckling up for a major ride in its seating segment, projecting a 3–4x revenue surge to a whopping Rs 3000–4000 crore within the next 6-7 years.
Currently accounting for roughly 8–9% of the company's revenue or Rs 1000 crore annually, the seating division is poised for an exponential leap, according to Sunil Bohra, CFO and CEO of Safety & Comfort Systems Domain.
"This business will definitely see growth, but maybe slightly slower than some other segments in our portfolio in terms of timeline," Bohra said on the sidelines of the Bharat Mobility Show in New Delhi. "We're expecting a 3–4x increase over the next 6-7 years, thanks to expanding our customer base across various segments."
In April 2021, Uno Minda made a strategic move, merging with Harita Seating Systems, which was earlier a part of the TVS Group's seating business. This brought aboard a prestigious client roster including TVS, Royal Enfield, TAFE, Daimler, John Deere, and Tata, instantly bolstering Uno Minda's seating portfolio.
However, as Bohra explains, Harita Seating Systems initially faced a common challenge in the auto seating industry: dependence on OEMs with equity stakes.
Undeterred, Uno Minda embarked on an ambitious plan to double Harita's revenue within five years, starting from a Rs 750 crore base in FY2020. Now, the company is surpassing its own target, with Bohra confidently stating, "We've added many new customers across segments, and we're optimistic of achieving this goal within a shorter timeframe of 3.5–4 years."
Uno Minda, despite a strong market share in commercial vehicles, off-road, and two-wheeler seating, is aiming to expand its presence in the passenger car segment, where it currently lacks a significant foothold.
The company's first strategic step is a joint venture with TACHI-S, a global seat system creator, focusing on manufacturing and marketing seat recliners for four-wheeler passenger vehicles in India. The initial product offering includes recliners, with plans to expand into other seating mechanisms, frames, and complete assemblies. Notably, Uno Minda holds a majority stake (51%) in the joint venture.
Capturing market share
Nirmal K Minda, Chairman and Managing Director, Uno Minda, stated that his group's target has always been to capture more than 30% of the market share in any segment that they get into, in three years.
"We look for new product lines based on emerging technologies and substituting imports. We do import in the beginning but immediately get into the localisation programme in a year or two," said Minda.