Mumbai, February 22, 2010: Funds managed and advised by Motilal Oswal Private Equity Advisors Private Limited (“MOPE”), has invested Rs. 400 million in Minda Industries Ltd (“Minda/ company”), a leading Auto Component player in the country.
Started in 1957 as a meter manufacturer, Minda is mainly engaged in the designing, developing and manufacturing of Switches and Lighting for 2/3/4 wheelers. They have recently ventured into Automotive Batteries and Blow moulded products for two/four wheelers. The company has established state of the art manufacturing units spread over 6 locations.
Minda is a well known player in the Industry with diversified product portfolio and leadership position in Switches. Company enjoys very strong relationship with almost all the automotive manufacturers in India like Bajaj Auto, Hero Honda, Maruti Suzuki, Tata Motors amongst others. Company has a very strong R&D set-up where dedicated teams work for continuous refinement in the existing products and development of new products and selling ideas to the OEM’s.
In addition, the group has a very strong countrywide distribution network of 300 dealers spread across A, B and C category cities to cater to the after market sales.
According to Mr. Raamdeo Agrawal, Chairman of MOPE, “ Automotive Industry in India is in high growth phase and if the economy has to grow from USD 1 trillion to USD 2 trillion in the next 4- 5 years, Automotive Industry has to play a pivotal role in such economic growth of India. Companies like Minda which have established a strong goodwill over the last 50 years, will hugely benefit from this high growth of the automotive industry in particular.
The entrepreneurial ability and vision of the promoter and the strong management team at Minda have successfully exhibited strong performance in the past with multiple products provides testimony of the potential of the company.
According to Mr. Nirmal Minda, Managing Director of Minda Industries, The company has invested over 100 crores in building new capacities of newer products in the last 3 years. It is now set to benefit from the capacity built up and a well diversified product portfolio. The company has been successful in forging exclusive relationship with world class automakers like Volkswagen in India. This investment from funds managed by MOPE at this stage will help the company to consolidate its leadership positions in the existing products and grow its new products / services aggressively.
Auto Sector
Over the last five years, India has established itself as one of the favoured global destinations for automobile manufacturing. With its proven low-cost product development and manufacturing capabilities, the country is all set to become an integral part of the global automotive chain as the demand shifts toward smaller, cheaper and environment-friendly fuel-efficient vehicles.
India is expected to emerge as the world’s seventh-largest automobile market by 2016 and third-largest by 2030, behind only the US and China
There is a direct correlation between growth in the automotive industry and growth of the automotive components industry, which is showing tremendous potential to grow and attain global proportions within the next ten years. The vast investments being made by foreign and domestic companies show promise of emergence of India as an automotive components manufacturing hub.
Delhi based Investment Bank – Dynamic Orbit Advisory Private Ltd. acted as the exclusive financial advisors to Minda Industries for the deal.
About Motilal Oswal Private Equity Advisors Pvt. Ltd.
Motilal Oswal Private Equity Advisors Pvt. Ltd. (MOPE) is a wholly owned subsidiary of Motilal Oswal Financial Services Ltd. (MOFSL), a global, diversified financial services group with businesses in securities, commodities, investment banking and private equity. MOFSL services and product offerings include wealth management, equity broking, commodity broking, distribution of third party products, investment banking and private equity. MOFSL has a network spread over 576 cities and towns comprising of 1,257 Business Locations with 5,80,667 registered customers. MOFSL has been ranked as the Best Country Research by Asia Money Brokers Poll 2007, Local Brokerage 2006 in the Asia Money Brokerage Polls for India, 2005 as well as the Most Independent Research. It has been offering portfolio management service to its customers since 2003 and the total assets under management at present are over INR 8,150 million.
MOFSL has launched the India Business Excellence Fund (IBEF), a US$ 125 million India focused Private Equity Fund being managed by MOPE. IBEF has an investment focus of providing growth capital to Small & Medium Enterprises (SME), typically in the range of US$ 5-15 million, across sectors. The Fund has already made 9 investments in companies across sectors such as bulk packaging, Power transformers and Power infra enablers, ITES, financial services, EMS, FMCG etc.
For further details, please contact:
Mr. Rakesh Sony/ Kiran Agarwal
Motilal Oswal Private Equity Advisors Pvt. Ltd.
ph: 022-39825500
