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.
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By GlobalDataMinda’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
