To invest Rs 1,500–2,000 crore to enhance its manufacturing and R&D capabilities.
04 Mar 2025 | 402 Views | By Yukta Mudgal & Ketan Thakkar
Following its recent acquisition of a 49% stake in Flash Electronics, the Ashok Minda-promoted Spark Minda Group is targeting an accelerated path to $3 billion (Rs 25,000 crore) turnover by the end of the decade.
The company plans to invest between Rs 1,500 crore and Rs 2,000 crore by ...
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Following its recent acquisition of a 49% stake in Flash Electronics, the Ashok Minda-promoted Spark Minda Group is targeting an accelerated path to $3 billion (Rs 25,000 crore) turnover by the end of the decade.
The company plans to invest between Rs 1,500 crore and Rs 2,000 crore by the end of this decade to build organic capabilities in research, development, and capacity expansions. Spark Minda focuses on electronic and mechanical security systems, die-casting components, wiring harnesses, instrument clusters, sensors, telematics and connected vehicle technologies.
It recently shelled out Rs 1,372 crore for 49% of Flash Electronics, a manufacturer of high-performance automotive components, including motors, motor controllers, magnetos, regulators, and sensors. “Our revenue target for 2030 is $3 billion… With Flash, we will be about Rs ₹8,000 crore, about a billion, by 2026. So we are looking at almost tripling the business in about 4-5 years,” said Aakash Minda, Executive Director of Spark Minda. "With this partnership, we want to create India's fastest and largest EV platform. We (Spark Minda) bring in the expertise of power electronics and body electronics, and they (Flash) bring in the core expertise of the powertrain, electronics, and powertrain," Minda said.
The acquisition will help Spark Minda increase its supply to Flash Electronics, boost exports, and cater to a broader customer base. It could also potentially add $100 million in turnover to Minda Corp, according to Aakash.
In FY 2024, the company clocked Rs 4,651 crore (around $540 million) in revenue. Minda believes that this target is achievable with the growth opportunities that lie with both organisations. With localisation, premiumisation, and a thrust on exports, many new opportunities are opening up, he remarked.
To support this growth, the company will scale up its investments from the current run-rate of around Rs 250-300 crore per year. “In the future, our investment will be about Rs 350-400 crore yearly. That will be the regular capital expenditure in terms of the investments, research and developments, and capacity expansions,” he said.
Emerging Opportunities
Much of the new growth will come from emerging areas such as EVs and connected vehicles. The revenue from the electric vehicle segment currently contributes about 5% to the group's total, and is expected to increase to 10-12% once the deal with Flash Electronics is completed.
However, he noted that the growth would be subject to the pace of adoption of electric vehicles in India. "Our growth will depend on the penetration of EVs into the Indian market. Our focus is to grow at least 1.5 times the overall industry, whether through premiumisation, electrification, or exports," said Aakash.
The penetration of electric vehicles in the passenger vehicle segment is close to 3%. OEMs and experts project the penetration to reach 15% in passenger vehicles by the end of the decade. The government is also pushing for faster adoption of electric cars, spurring component manufacturers to rapidly scale up production to meet the anticipated surge in demand.
Acquisitions
Aakash also says the company continues to explore inorganic growth opportunities; and with its strong cash flow and healthy debt-equity ratio, funding will not be a constraint. However, it has specific criteria that the target must meet. “Our focus has consistently been on identifying synergistic and complementary products to Minda Corporation.
Additionally, we prioritise acquisitions or opportunities that meet the following criteria: They are substantial in scale, with an EBITDA of Rs 150 crore or more. They align with the evolving market, being either EV-compatible or engine-agnostic. And they should fall outside the domains of cast glasses, sheet metal, and similar product categories,” he added. Aakash says that given the disruption in the automotive space, the group's future strategy will hinge on diversifying its revenue base.