B&E: What kind of opportunities exist for the Indian component industry in foreign markets?
NKM: Indian auto component industry is today emerging as one to be reckoned with. With more and more global auto majors setting up manufacturing facilities in India, the Indian auto component sector is getting exposed to internationally accepted manufacturing practices. However, concerns about quality still remain. Also, we are still lacking in original research & development activities. But slowly I am sure that these issues will get resolved and India’s potential of emerging as the global auto hub will also be realised.
B&E: What effects has the rupee appreciation had on the company?
NKM: The Indian rupee has been depreciating in the recent past rather than appreciating. We typically have clauses in our export import orders wherein foreign currency fluctuation beyond a certain limit are factored in. Our exports are largely to Europe and are Euro denominated, so we have been relatively insulated from dollar fluctuations.
B&E: In terms of profitability, market share or turnover, what are the plans?
NKM: The NK Minda group has crossed the Rs.10 billion turnover mark and our next aim is to triple this turnover to Rs.30 billion crores in the next 3-4 years. In terms of profitability we are in challenging times and the aim is to increase our net margins to 10%, so that we can justify the faith of our stakeholders. Today we have roughly 70% market share in off road switches, 50% share in four wheeler switches, 40% market share in horns, 70% market share in CNG/LPG kits, 15% market share in automotive lighting. Besides this we are into EOVM (Electronic over view mirrors) and automotive batteries where we have just entered. The plan is to have domestic leadership in all product categories where we are not the leaders in the next couple of years.
NKM: Indian auto component industry is today emerging as one to be reckoned with. With more and more global auto majors setting up manufacturing facilities in India, the Indian auto component sector is getting exposed to internationally accepted manufacturing practices. However, concerns about quality still remain. Also, we are still lacking in original research & development activities. But slowly I am sure that these issues will get resolved and India’s potential of emerging as the global auto hub will also be realised.
B&E: What effects has the rupee appreciation had on the company?
NKM: The Indian rupee has been depreciating in the recent past rather than appreciating. We typically have clauses in our export import orders wherein foreign currency fluctuation beyond a certain limit are factored in. Our exports are largely to Europe and are Euro denominated, so we have been relatively insulated from dollar fluctuations.
B&E: In terms of profitability, market share or turnover, what are the plans?
NKM: The NK Minda group has crossed the Rs.10 billion turnover mark and our next aim is to triple this turnover to Rs.30 billion crores in the next 3-4 years. In terms of profitability we are in challenging times and the aim is to increase our net margins to 10%, so that we can justify the faith of our stakeholders. Today we have roughly 70% market share in off road switches, 50% share in four wheeler switches, 40% market share in horns, 70% market share in CNG/LPG kits, 15% market share in automotive lighting. Besides this we are into EOVM (Electronic over view mirrors) and automotive batteries where we have just entered. The plan is to have domestic leadership in all product categories where we are not the leaders in the next couple of years.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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