NEW DELHI: Auto component manufacturer Minda Industries today said it has acquired the global lighting business of Spain-based Rinder Group for Euro 20 million.
The acquisition includes 100 per cent equity holding in Rinder India and Light Systems and Technical Centre in Spain; and 50 per cent equity holding in Rinder Riducu, Colombia. The deal will be financed through internal accruals and the debts.
NK Minda, chairman, UNO Minda Group said: “This acquisition will establish Minda Industries as a technology leader in lighting solutions and will further augment the R&D capabilities of the company.”
The lighting business of Minda Industries at present has a turnover of around Rs 300 crore per annum. This is set to increase to around Rs 750 crore on account of the new acquisition. The acquisition will give Minda access to Rinder India’s three facilities in the country across Bahadurgarh, Haryana and at Chakan and Pimpri, Maharashtra.
At a global level, the acquisition will help Minda Industries to enhance its footprint in Indonesia and Vietnam. “Our vision is to achieve 25 per cent of group turnover from our international business. The overseas leg of this global acquisition will ensure that the company moves closer to its vision and expand its geographical footprints further,” informed Minda. International business currently accounts for around 17 per cent of the Group’s turnover.
As a part of the deal, Rinder’s brand name and intellectual property rights have also been acquired. Integration & Merger with UNO MINDA brand name will be finalised at a later stage. Minda said that the focus now would be to merge Rinder India with UNO MINDA. There are no immediate capex requirements, investment plans would be drawn up eventually for next year and year after.
Rinder Group operates in premium segment of lighting business with annual turnover of Euro 55 million (Rs 410Cr). Rinder Group has its own technology and design center in Spain and will help Minda Group in establishing itself as a major player in lighting business. Apart from these, synergies in terms of share of business with customers, suppliers’ rationalization and sharing of resources, will enhance the profitability of Minda Industries. Deloitte and BMR advised UNO MINDA group on the transaction.
UNOMINDA group was founded in 1958 and is a leading supplier of automotive solutions to OEMs (original equipment manufacturer). The company has its manufacturing facilities in Indonesia, Vietnam, Spain, Morocco & Mexico and have offices in Japan, Europe and China. It has 36 manufacturing plants in India and has joint ventures with companies in Japan, Italy and India.