Automotive component manufacturer A K Minda Group on Thursday announced a 50:50 joint venture agreement with France's Valeo Group to manufacture auto security products. The Minda Group anticipates the auto security business segment to contribute Rs 300 crore (Rs 3 billion) to its top-line by 2010.
Minda Group is targeting a nearly four-fold jump in its overall revenues by 2010, to touch the Rs 2,300 crore (Rs 23 billion) mark from previous fiscal's Rs 630 crore (Rs 6.30 billion)
"With our present joint venture operational and the growth in business, we expect our top-line to touch the Rs 2,300 crore (Rs 23 billion) mark by 2010. Security system business would become a Rs 300 crore (Rs 3 billion) business by then," A K Minda Group Chairman Ashok Minda told reporters in New Delhi.
Minda said the auto security business is expected to be a Rs 1,000 crore (Rs 10 billion) market by 2010, a majority of which would be OEM. The joint venture company -- Minda Valeo Security Systems -- would operate out of A K Minda group's manufacturing facility in Pune and would initially invest 5.7 million Euros (nearly Rs 31.35 crore).
"The JV company would manufacture a whole range of Valeo's auto security products and would integrate Minda's existing four-wheeler security systems business. We would initially invest 5.7 million Euros," Minda said.
Minda added the company would invest an additional Rs 50 crore (Rs 500 million) over the next three years to expand the production base in phases.
The company expects to sell majority, 70-75 per cent of its produce in the domestic market through the OEM route, while the remaining would be sold in the overseas market.
© 2025