The acquisition will help Minda Industries in terms of lighting technology solutions and expand its global footprint.
03 Mar 2016 | 18981 Views | By Autocar Pro News Desk
Minda Industries, which manufactures a varied range of automotive components, has announced its acquisition of the Spain-based Rinder Group’s global lighting business involving headlamp, tail-lamps and small lamps.
The value of the deal is estimated at 20 million euros (Rs 152 crore). The acquisition includes 100 percent equity holding ...
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Minda Industries, which manufactures a varied range of automotive components, has announced its acquisition of the Spain-based Rinder Group’s global lighting business involving headlamp, tail-lamps and small lamps.
The value of the deal is estimated at 20 million euros (Rs 152 crore). The acquisition includes 100 percent equity holding in Rinder India and Light Systems and the Technical Center, Spain along with 50 percent equity holding in Rinder Riducu, Colombia. The deal will be financed through internal accruals and the debts.
Automotive lighting constitutes one of the key products for Minda Industries, which has manufacturing plants at Manesar, Pune and Delhi. The company has a turnover of around Rs 300 crore per annum. With the new acquisition, Minda Industries’ lighting business will have a turnover in excess of Rs 700 crore. Other than automtotive lighting, Minda Industries also has separate verticals for switches, electronics and acoustics.
The Rinder Group operates in the premium lighting business and has an annual turnover of 55 million euros (Rs 420 crore). The Rinder Group has its own technology and design centre in Spain; this facility will help the UNO Minda Group in establishing itself as a major player in the lighting business globally. Apart from these, synergies in terms of SOB with customers, suppliers’ rationalisation and sharing of resources, will enhance the profitability of Minda Industries.
Speaking about the acquisition, N K Minda, chairman of the UNO Minda Group (pictured above), said, “This acquisition will establish Minda Industries as a technology leader in lighting solutions and will further augment the R&D capabilities of the company. Our vision is to achieve 25 percent of group turnover from international business. The overseas leg of this global acquisition will ensure that the company moves closer to its vision and expand its geographical footprints further.”
As a part of the deal, Rinder’s brand name and intellectual property rights have also been acquired. The integration and merger with the UNO Minda brand name will be finalised at a later stage.
Rinder India’s plants are located at Chakan and Pimpri in Pune, Maharashtra and Bahadurgarh, Haryana. The Light Systems and Technical Center is located at Bilbao, Spain and Rinder Riducu’s plant is situated in Colombia. Rinder India's domestic clients include TVS Motor Co, Bajaj Auto, Ford India, Tata Motors, Royal Enfield, Hero MotoCorp, Mahindra & Mahindra, Nissan Motor India, Suzuki Motorcycles India, JCB and Ashok Leyland. Rinder India, which has a good customer base in the ASEAN countries, also supplies to Kawasaki, Peugeot MotoCycles, KTM, Yamaha and Piaggio in foreign markets.
The UNO Minda Group, which was founded in 1958, is a leading supplier of automotive solutions to OEMs globally as a Tier 1. The company has its manufacturing facilities in Indonesia, Vietnam, Spain, Morocco and Mexico and offices in Japan, Europe and China. It has 36 manufacturing plants in India and has joint ventures with companies in Japan, Italy and India.
The UNO Minda Group manufactures two-wheeler switches and handlebar assemblies, electronics and sensors, four-wheeler switches and heater control panels, automotive lamps and horns, alternate fuel systems and CNG-LPG kits, automotive batteries, blow mouldedcomponents, seatbelts, alloy wheels, wheel covers, air filtration systems, die casting components, SRC, cylinders, steering wheels, airbags, fuel caps, body sealing, car infotainment systems, air brakes, clutch actuation systems and automatic gear shifters.