Minda Industries plans to raise between Rs 200-250 crore for expansion purposes. The components company, which makes motorcycle switches and handlebars, would use part of the money to set up a new plant in Pantnagar, Uttaranchal –– the emerging auto hub.

Besides greenfield expansion, the company is actively looking to acquire companies to set a global footprint. Minda Industries is the flagship company of the Rs 500-crore Minda group.

Besides making switches for 2-wheelers, it also makes switches and horns for passenger cars.

Nirmal K Minda, managing director, Minda Industries told ET, “We will raise about Rs 200-Rs 250 crore to set up a new greenfield facility in Pantnagar to cater to the OEMs that are setting up plants there.” The company expects to spend around Rs 80 crore on the plant to be set up in Pantnagar. “We will set up new motorcycle handle bar assembly there,” he added.

The company plans to start operations by December this year. The company has also set apart a separate sum for acquisitions. “We are in the initial stages of talks with companies and are looking seriously at acquiring companies who manufacture the same auto components as us.

We want to set up a global footprint,” said Mr Minda. The company also plans to spend around Rs 25 crore in setting up a tool room and design centre.

“The money raised will be a mix of internal accrual and debt. We are also in talks with private equity investors to raise the rest of the money. But, we are also looking at raising FCCBs or GDRs to raise some money to fund our expansion plans,” he said.

Early this year , the auto component maker had set up its greenfield plant in Indonesia to supply to OEMs like Honda, Yamaha, Suzuki and Kawasaki. It already has four manufacturing plants in Gurgaon, Pune, Hosur, Delhi & Aurangabad.

http://economictimes.indiatimes.com/articleshow/1648602.cms