Mumbai, September 24: Auto component major Minda Corporation Limited’s board has approved two moves to drive the company’s next phase of growth. This includes establishing a wholly owned subsidiary in China along with the issuance of Non-Convertible Debentures (NCDs) worth ₹500 crores.
This move is aimed at establishing Minda Corp’s presence in the international supply chain, allowing it to directly engage with suppliers to reduce lead times, boost quality control and optimize costs. The subsidiary is aimed to function as a critical hub for the company in one of the world’s largest automotive markets. This presence will also help Minda to enhance its supply chain resilience.
The China unit’s primary objective is to enable localized procurement and streamline sourcing of essential raw materials and electronic components. This strategic localization is expected to provide a competitive advantage by insulating the company’s production lines from international shipping disruptions and fluctuating trade dynamics.
Complementing this, Minda Corporation’s Board has also decided to raise ₹500 crores through NCDs in one or more tranches. The proceeds will be used to strengthen the company’s balance sheets and support its long term growth objectives. Industry analysts suggest the funds will likely be used to refinance existing high-cost debt, meet working capital requirements, and potentially fund future research and development or inorganic growth opportunities.
With these moves, Minda aims to integrate deeper into the Chinese manufacturing ecosystem, while securing substantial growth and positioning itself as a global OEM (Original Equipment Manufacturer) These steps reflect a clear commitment to operational efficiency and a robust strategy to scale its presence in the global automotive electronics and component sectors.
