The board of Minda Industries has approved the company's expansion into four-wheel lighting business and four-wheel alloy wheel businesses due to an improved market scenario and increased demand.

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Sunil Bohra, Executive Director & Group CFO at Minda Industries, spoke to CNBC-TV18 with a quick take on expansions.

"In Bawal in Haryana, we will expand our capacity from 120 thousand wheels a month to 180 thousand wheels a month, so that is a Brownfield expansion within the adjusting premises. The second one which is the lighting plant is a Greenfield plant in Gujarat. Both these plants are expected to start the commissioning activity sometime in the last week of 2021-2022 and maybe a quarter thereafter for stabilisation and all.”

On the demand, he said, “The alloy wheel business we are already running beyond capacity and we need to expand to make sure that we have surplus capacity available. Plus, based on additional orders which we have got, we need expansion to happen. There is a lot of positive momentum in our aftermarket sales, so demand in the alloy wheel segment remains very robust.”

“The other expansion is the lighting plant. As discussed in the past, currently our annual sales is roughly around Rs 400 crore odd in that business. The new orders which we have got are almost more than Rs 200 crore a year and definitely, we will need to expand our capacity to meet that additional orders.”

On funding, he said, “Broadly, I would say internal accruals, maybe a bit of little bit of debt, but broadly both the plants will be funded from internal accruals.”

For full management commentary, watch the video.

(Edited by : Priyanka Rathi)

First Published:Mar 30, 2021 10:56 AM IST