N. K. Minda, MD, NK Minda Group
B&E: What do you think are the major challenges that this
industry is facing?
NKM: The challenges that the auto component industry is facing is the same as what the Industry is facing in general. This include rising raw material prices, slowing demand due to high interest and oil rates, rising manpower cost, attrition and resultant squeeze in margins.
B&E: What is Minda’s next step?
NKM: At Minda, export is an ongoing thrust area, our exports which were at 10% a couple of years ago are today at 18%. Our export thrust is not dictated by a slowing domestic demand but is a conscious decision on our part where we are aiming at 25% of our group revenues coming from exports. We were the first company from the auto sector to set up a plant in Indonesia and are actively exploring setting up plants in Vietnam, Uzbekistan and Brazil. As far as competition is concerned, it only serves as a reminder to us that we have to constantly innovate and offer better value to our customers in order to retain their trust.
B&E: What is your R&D expenditure? Do you have a presence in foreign locations?
NKM: We are at presently spending 3% of our annual turnover on R&D and the aim is to gradually take this up to 5%. We have a plant in Indonesia and are exploring the option of setting up plants in Vietnam, Uzbekistan and Brazil in the next 2-3 years. We have overseas offices in Turin, Vietnam, China, Italy and Japan.
B&E: What do you think are the major challenges that this
industry is facing?NKM: The challenges that the auto component industry is facing is the same as what the Industry is facing in general. This include rising raw material prices, slowing demand due to high interest and oil rates, rising manpower cost, attrition and resultant squeeze in margins.
B&E: What is Minda’s next step?
NKM: At Minda, export is an ongoing thrust area, our exports which were at 10% a couple of years ago are today at 18%. Our export thrust is not dictated by a slowing domestic demand but is a conscious decision on our part where we are aiming at 25% of our group revenues coming from exports. We were the first company from the auto sector to set up a plant in Indonesia and are actively exploring setting up plants in Vietnam, Uzbekistan and Brazil. As far as competition is concerned, it only serves as a reminder to us that we have to constantly innovate and offer better value to our customers in order to retain their trust.
B&E: What is your R&D expenditure? Do you have a presence in foreign locations?
NKM: We are at presently spending 3% of our annual turnover on R&D and the aim is to gradually take this up to 5%. We have a plant in Indonesia and are exploring the option of setting up plants in Vietnam, Uzbekistan and Brazil in the next 2-3 years. We have overseas offices in Turin, Vietnam, China, Italy and Japan.
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.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
No comments:
Post a Comment