Minda updates on various ongoing expansions. All seem to be in the right direction.

The Company has updated on the following –

  1. JV with FRIWO Group to expand component offerings to the electric vehicles
  2. Technology Licence Agreement with Dhama Innovations for Temperature Controlled Automotive Seats  (TCAS)
  3. Expansion of alloy capacities both for 4 wheelers and 2 wheelers

All the above expansions definitely seem to be in the emerging areas with strong expected demand and hence bodes well for the future of the Company.

Key details on the above expansions.


  • FRIWO is a German Company founded in 1971 and currently has a sales of Euro 100 mn and Market Cap of Euro 270 Mn
  • JV draws on the synergy between Minda and FRIWO’s EV product portfolio

  • JV would allow the potential EV kit value to increase by Rs 28,000. Minda’s existing EV kit value is Rs 7,300 and this JV + additional ongoing products would increase this value to Rs 56,300. Existing overlapping business of Minda and FRIWO in India would be transferred to the JV entity.
  • JV would also manufacture the agreed products for ASEAN and European markets.
  • Minda would own 50.1% in the JV.
  • JV targets a capex of Rs 390 crore in the next 6 years of which Rs 160 crore is planned in the first 2 years. Minda would invest Rs 71 crore as equity and balance would be funded through internal accruals, debt and equity.
  • Minda would also invest Euro 15 mn directly into FRIWO AG.

Technology Licence Agreement (TLA) with Dhama

  • Dhama Innovations is pioneer in developing Temperature controlled solutions designed to address the problems of thermal stress and has multiple global patents. It has built products for sports, automotive, women healthcare, industrial and defence industries.
  • Under the TLA, Dhama and Minda will launch series of Heating and Cooling seats for the Automobile Industry.

Capacity enhancement in the alloy wheels business

  • In 4w segment –
    • Rs 74 crore of additional capex (50:50 debt:equity) to increase Gujarat plant capacity by 30,000 wheels p.m. by Q1 FY 24. Gujarat plant’s capacity post expansion will increase to 1,20,000 p.m.
    • Above is in addition to the ongoing 60,000 p.m. wheels expansion at Bawal plant. This expansion will increase the Bawal’s capacity to 1,80,000 p.m.
    • Demand should not be a challenge given alloy’s penetration currently being low at 35% in the country.
  • In 2W segment –
    • Rs 190 crore of additional capex (50:50 debt:equity) to increase Supa plant capacity by 2 mn wheels p.a. by Q4 FY 22. Supa plant’s capacity post expansion will increase to 5.6 mn wheels p.a.
    • Demand should not be a challenge given increasing trend of using the alloy wheels. 55%-60% of current demand is estimated to be met through imports providing sufficient opportunity for local replacement. EVs are also catching up well in the 2W, which mainly use the alloy wheels.
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