Stoneridge Inc., a leading US manufacturer of automotive electronic instruments has taken a 49% stake in Minda Instruments Limited (MIL), a group company of the INR3 billion (€54 million) Ashok Minda Group.
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The Ashok Minda Group is India’s leading manufacturer of automotive locks and an OE supplier to most leading vehicle manufacturers. The company also makes wiring harnesses and automotive instruments.
As a part of this agreement the $US607 million Stoneridge will pick up a 49% stake in MIL over a period of three years. MIL (now rechristened Minda Stoneridge Instruments Limited) gains exclusive manufacturing and marketing rights for India and 17 Asian countries – Malaysia, Indonesia, Phillipines, Singapore, Thailand, Vietnam, Pakistan, Bangladesh, Brunei, Burma, Cambodia, Laos, Mauritius, Maldives, Nepal and Sri Lanka.
This agreement gives SRI entry into the lucrative and fast growing Indian market. The current electronic instruments cluster market in India is worth INR5 billion (€90 million) and is growing at a rate of 10-12% yearly. The market is also expected to grow substantially in the near future. MIL has recorded strong growth of around 80% during the last three years.
The joint venture is expected to achieve a turnover of $20 million within three years from the domestic instruments business. In addition, the JV has ambitious plans for exports (buy-back) to SRI. At a later date, other SRI product lines, including sensors and actuators, will also be introduced.
Minda’s existing plant in Pune will be expanded to produce electronic instrumentation within 18 months. The plant currently manufactures mechanical instrumentation.
Deepesh Rathore / Tilak Swarup
