Minda Industries has realigned its business verticals as the auto ancillary company believes the centralisation of functions will help it reap the benefits of scale, said Sunil Bohra, ED and Group CFO on Wednesday. The company plans to have increased focus on exports and international sales, he said, while adding that the company has set up a dedicated marketing office in Japan.

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“First was the objective of how do we get synergies of scale, how do we have benefit or advantage of the operating leverage at play, when the sales increase the fixed cost ideally should not increase in that proportion so that was one objective,” Bohra told CNBC-TV18.

On optimisation measures at the company, he said, “The second objective was some of the functions like marketing, commercial, they were also decentralised. So we were not reaping the benefits of the economies of scale.”

He further added, “We have made sure that we retain all our employees, we have tried to sort of restructuring our organisation in such a way that for future growth we don’t increase our fixed cost in the proportion as we have been incurring in past. All these benefits we are expecting to come in the medium term, may not immediately like we said we are already at 14-15 percent kind of margin do we expect any significant benefit immediately in the quarter answer to that may not be yes but it will have some positive impact considering maybe one-two years hence.”

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(Edited by : Ajay Vaishnav)