In addition, the proportion of overseas business conducted through Minda is expected to increase further from the current 16%.

Auto parts maker Minda Industries is betting on winning new business by entering new product lines, signing agreements for future models and adding content to each vehicle. The top management said.

The company also specializes in electric vehicles (EVs) various sensors, controllers and other products involving electrical systems.

Chairman, Nirminda Group “Unlike companies that manufacture engine components, Flagship Products’ existing product lines of switches, lighting, wheels, and audio products are protected from the transition to EVs.”

The company also said it wants a quarter of its revenue to come from overseas operations, up from 16% currently.

Minda Industries Chief Financial Officer (CFO) Sunil Bohra said that Minda Industries is benefiting from the growing consumer preference for premium products in the automobile market. Premium products such as LED lamps, alloy wheels, etc. help the company to increase its revenue per vehicle.

“As a result, our level of monetization per vehicle has really increased, and the average value of our kits has increased by 10 percent year-over-year,” Bohra said.

After completing the Seating Systems merger with Harita, the company will soon enter the automotive seating business. That will increase sales by 10 percent, he said.

However, it could face headwinds from rising raw material prices and supply shortages. Prices of metals and rubber have risen sharply in the past few months, hurting manufacturers’ margins.

Meanwhile, the company’s logistics costs have skyrocketed due to a shortage of semiconductors because parts must be shipped by plane.

In a recent report, ICRA predicted that revenues from India’s auto parts industry will decline by about 6-8% in FY21 due to a rapid recovery in demand from sectors such as passenger cars. Earlier, the credit rating agency predicted a 12-15% decline due to the epidemic.

Improved demand in 2021 and 20211 For the low base effect in FY2022, the rating agency expects a growth rate of 20-23% in FY2022. The report suggests that overall revenue CAGR is likely to be around 7-9% for FY20-25.

Minda Industries reported a profit of Rs 730 crore on revenues of Rs 218.1 for the September ended December. The stock closed at Rs 511.455 shares per share on the Bombay Stock Exchange on Tuesday, down 1.58%.