COMPANY : MINDA INDUSTRIES

1. History/Founders profile
Minda Industries, incorporated in 1992, is engaged in the business of manufacturing switches
and batteries for 2/3 wheelers and off–road vehicles. In 1995, the company’s businesses were
re–organised into Strategic Business Units (SBUs). In 1997, the NK Minda Group
implemented TQM – PQCDSM – TPS in the group. The same year company received ISO
9001 certification. This company is the flagship company of the Minda Group. it commands
more than 70% market share in the 2/3-wheeler segment in India. Presently the company
owns 8 state–of–the–art facilities located in India and Indonesia. The company has workforce
of more than 2800 people and a network of over 300 distributors spread across country.

2. Product profile
The company is engaged in the business of manufacturing of auto electrical parts and
components, including auto electrical parts such as switches, lightings, batteries and blow
moulded products and ancillary services. The company designs, develops and manufactures
switches for 2/3 wheelers and off-road vehicles. In addition, the company manufactures
batteries 2/3/4 wheelers and off-road vehicles.

 Switches– The company is engaged in manufacturing of switches for 2, 3, 4 wheelers

and also for off–road vehicle. Under this, it manufactures electronic systems, modular
switch, panel switch, rotary switch, starter switch, plunger switch, rocker switch and
many more products.

 Batteries– The company has introduced the automotive battery brand “Vroom” in the
market. Minda Industries manufactures 3 types of batteries– Long Life, Maintenance
Free and Time Proof are available in all the 3 sizes, i.e 2.5 Ah, 5.0 Ah and 9.0 Ah. 

3. Client Profile
The main business of Minda industries is manufacturing of switches and batteries so the
target audience of Minda industries are major automotive i.e two-wheeler and three-wheeler
manufacturing companies.
Their clients include one of the top brands domestically as well as internationally like royal
Enfield, ford, BMW etc.
 4. Organization Structure

In accordance with prevailing trends in global auto components ancillary industries, UNO
MINDA Group has a structured orientation for its different verticals grouped under specific
domains.
This helps the companies to systematize their operations for a more effective and efficient
execution. Creating a dynamic business environment, this segregated and proactive approach
evolves into a more productive business module.
Harnessing greater business opportunities and creating better strategies generate a higher
revenue model; the Group realigns its verticals into independent profit centres which mark
the progression to this nimble approach.
 5. Present Market Share

6. Future Strategies
Minda Industries, the flagship of UNO Minda Group, said it will invest over Rs 250 crore in
expanding its four-wheel lighting and alloy wheel business to meet the increased demand as
its existing units are operating at near capacity. As part of this expansion, the automotive
components maker will set up a new manufacturing plant at Bhagapura in Gujarat at an
investment of Rs 90 crore to cater to increased demand for four-wheeler automotive lighting,
Minda Industries Ltd said in a release

The automotive lighting industry is witnessing a gradual shift in technology into more LED-
based lighting products. With strengthened technical capabilities in next level of lighting
technologies, we are well positioned to benefit from these technological shifts and to achieve
leadership in the segment
The new plant will have state-of-the-art manufacturing facilities with unidirectional flow of
material, robotic automation for unloading, motorised conveyor system which will result in
better operational efficiencies, said the release, adding the facility will be in vicinity of key
OEM’s and therefore will also achieve better logistic management.
The company also plans to tap potential export business in Europe and America in future
from this plant.

7. Financial Information
Balance sheet of Minda industries
Cash Flow statement of Minda Industries
8. Achievements
 2020- Golden peacock award for excellence in corporate governance.
 2020- CSR EXCELLENCE AWARD FOR EXTRAORDINARY
CONTRIBUTION TOWARDS CSR
 2015- MRPL was felicitated with Gold Award in Excellence in Technology in
Large Scale Category.
 2013- MIL – Acoustic Division received “Gold Quality Award” from Bajaj
Auto Ltd.
 2012- Minda Industries Limited - Switch Division received "Quality
Management Award" from Honda.
 2009- ACMA Silver Trophy for Excellence in Technology in the NON-SME
Category this year. (MIL 2wh Switch - Gurgaon)

 2009- ACMA Gold Trophy for Recognition under Manufacturing excellence

this year – (MINDARIKA PVT. LTD)

 2009- ACMA Gold Trophy for Recognition under Quality & Productivity

excellence this year. – (MIL 2wh Switch – Pant Nagar)

 2008-"Excellence in Quality" award from TATA Motors. The award was

conferred on 16th Oct 2008 during Tata’s Annual Supplier’s Meet 2008 held
in Mumbai.

 2007 -Minda Industries Limited wins the National R&D Award 2007 by

Department of Scientific & Industrial Research, Ministry of Science &
Technology 

 2005 -Bajaj Award for Excellence to Minda Industries Limited

 2005- Achievement Award from Honda for quality & delivery to Minda

Industries Limited

 2004- Received TKML cost achievement award for Mindarika

 2003 Received ISO 14001 and OHSAS 18001 certification for Switch

Division

 2003 Received Maruti's Manufacturing Excellence Award for Mindarika

 2003 Received FORD Q1 award for Mindarika

 2001 Won 1st prize in Honda Supplier Quality Circle Competition for 2nd
time in Mindarika

 2001 Received QS 9000 certification for Horn Division

  2000 Started BEST (Business Excellence through Simple Techniques) journey
in association with CII

CHAPTER 3:

SOWT ANALYSIS

1- STRENGTHS
 Rising Net Cash Flow and Cash from Operating activity
  
 Company with high TTM EPS Growth
 
 New 52 Week High
 
 Growth in Net Profit with increasing Profit Margin (QoQ)
 
 Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
 
 Increasing Revenue every quarter for the past 3 quarters
 
 Increasing profits every quarter for the past 3 quarters
 
 Strong cash generating ability from core business - Improving Cash Flow
from operation for last 2 years
 
 Company able to generate Net Cash - Improving Net Cash Flow for
last 2 years
 
 Company with Zero Promoter Pledge
 
 FII / FPI or Institutions increasing their shareholding
 
 Strong Momentum: Price above short, medium and long term moving
averages

2- WEAKNESSES

 Companies with growing costs YoY for long term projects

 
 Inefficient use of shareholder funds - ROE declining in the last 2 years
 
 Inefficient use of assets to generate profits - ROA declining in the last 2
years
 
 Promoter decreasing their shareholding

3- Opportunities
  Brokers upgraded recommendation or target price in the past three
months
 
 Highest Recovery from 52 Week Low
 
 RSI indicating price strength
 
 Insiders bought stocks

4- Threats

 Stocks with high PE (PE > 40)

 
 Insiders sold stocks

MCKINSEY’S 7

1- Strategy

a) Regulatory Norms

 BS-VI expected implementation by 2020 will benefit UNO MINDA as it ready with
products which are likely to see strong demand
1. Sensors (BS VI) and Engine related Sensors in association with Sensata, US
2. Advance Filtration and Canisters
3. On Board Diagnostics (OBD)
4. Seat Belts

b) Premiumization

 Indian Automobile market is likely to undergo premiumization of vehicles and UNO

MINDA is Poised to strongly benefit.
1. LEDs replacing convention lamps
2. Advanced Driving Assistance System (ADAS)
3. Alloy Wheels
4. Infotainment System
5. Telematics
6. Wireless Chargers
7. AMT
c) Enhanced Safety

 NCAP and Crash Test Norms are ensuring a swift migration to a safe car.

1. Air Bags & Seat belts

2. Reverse parking Sensors
3. Combi Braking Systems

d) Electronification & EVs

 UNO MINDA has set up CREAT for Advanced research engineering and advanced
technologies focused to capture
1. Cockpit Electronics
2. Body Exterior & advanced Lighting Air Bags & Seat belts
3. Controllers and Sensors
4. EV technologies

2- Structure
In accordance with prevailing trends in global auto components ancillary industries,
UNO MINDA Group has a structured orientation for its different verticals grouped
under specific domains. This helps the companies to systematize their operations for a
more effective and efficient execution. Creating a dynamic business environment, this
segregated and proactive approach evolves into a more productive business module.
Harnessing greater business opportunities and creating better strategies generate a
higher revenue model; the Group realigns its verticals into independent profit centers
which mark the progression to this nimble approach.

3- Shared values
 Customer is supreme
 Live quality
 Encourage creativity and innovation to drive people process & products
 Respect for individual
 Respect for work-place ethics
 To be a Sustainable Global organization that enhances value for all
its Stakeholders, attains Technology Leadership and cares for its people like
a Family.
 Be a like a family, that employees could relate to and feel that they are a part
of it - company and employees would care for each other at all times
 Grow its employees so that they are able to realise and unlock their full
potential

4- Systems
 Minda industries attach great importance to their Group-wide process
management.
  Reliable scheduling: Their customers can rely on them that they meet the
deadlines they have promised.

 Continuous information availability: On request, they furnish their

customers comprehensive information on their technical solutions and the
status of order processing at any time during the execution of their orders.

 Transparent process management: Their defined, transparent processes

provide a clear view about all processes along the entire value-added chain.
This benefits their customers at all times.

 Optimum price/performance ratio: Together with the customer, they always

develop the best possible solution for the customer. They strive for this goal at
any time.

5- Staff

 Uno Minda has more than 22000 emoloyees working presently. They need a large
number of people, well qualified and trained to keep pace with their business needs. They
recruit from amongst the best of Engineering Colleges, Polytechnics, ICAI, ICSI and
from reputed Business Schools. Each fresh recruit is put through a systematic, rigorous
on-the-job training.

 Talent management at UNO MINDA, NK Minda Group is a systematic effort to source

and develop internal talent, to meet current and future business needs.

 Individuals are suitably rewarded for their contribution in achieving organizational goals
and for their own performance

 Skill Development is a constant and focused endeavor in UNO MINDA

 There is a conscious effort to develop Leadership and this involves feedback during
Performance Appraisal, Assessment of Competencies, Gap analysis and Career
development Plans. 

 Currently in times of COVID, Most of their staff have been working from home. Employees
have been provided with appropriate infrastructure to facilitate work from home

 Digital medium of communication has been used extensively and the organization as a
whole has evolved to work under the new normal.
 The organization had utilized this time productively by providing extensive online
professional Training and Development programs, which has been well received
6- Skills

 Minda industries is focused on recruiting the best of the best with the perfect skillset
needed according to the job.

 The major areas of skill focus by Minda industries are: switch, acoustic, auto gas, after
market, lighting, advance electronics, casting, fuel cap, seating etc.

 Moreover, they also have its own training academy, called Paathshala, to create
empowered people and leaders, who create excellence in everything they do.

  One of the most important part in enhancing their skill set is 'Dream Alignment' session,
where we motivate everyone to see a connect between their life's aspirations and the
vision of the company.

 They also have a fully operational practical skill centre where people 'Do and Learn'
which is a learning forever.

7- Style
Minda industries follows a participative style of leadership. This means they:

 Give subordinates a share in decision making.

 Keep subordinates informed of the true situation, good or bad, under all circumstances.
 Maintain awareness of the state of the organisation's morale, with action taken to keep it as
high as possible.
 Keep the leaders approachable.
 Counsel, train, and give development opportunities to subordinates