Spark MINDA is a customer driven organisation and is transitioning towards becoming
an advanced technology solutions provider
What are your views on the growth of India’s automobile sector and your company’s future role in it?
We are optimistic about the future. The entire automotive industry, including component manufacturers is witnessing great progress in terms of sales and expansion. The world is witnessing the third automotive revolution to say so already, along with transformation of the industry and emergence of new-age technology-led mobility solutions in every form of mobility.
Further, India has solidified its position as the third largest automobile market in the world. During the fiscal year 2023-2024, our industry produced 28.43 million vehicles including passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles. Globally, India is the largest tractor manufacturer, second-largest bus manufacturer, and third-largest heavy truck manufacturer. Success in this era of new-age mobility depends on collaborations among multiple stakeholders who will anchor this evolution. At Spark MINDA, we are focusing on premiumisation of legacy products, investments in new-age mobility solutions, future collaborations and for our customers in B2B and B2C segments. The company is also implementing initiatives towards electronification as well as strengthening and expanding the group’s presence as a complete automotive system solution provider, both in India and global markets as well.
How would you rate Spark MINDA’s business performance in the past four years?
Spark MINDA is a customer driven organisation and is transitioning towards becoming an advanced technology solutions provider. With a strong focus on innovation and development of cutting-edge automotive products, our investment in R&D has doubled over the past three years, enabling us to stay at the forefront of technological advancements. Over the past four years (FY2020-2024), Spark MINDA has made remarkable progress, with our revenue doubling besides significant improvements in margins. Our revenue has grown steadily at a compounded annual growth rate (CAGR) of 25 percent while our EBITDA has seen a remarkable CAGR of 33 percent.
Our Electric Vehicle (EV) order book has increased sevenfold in just three years, demonstrating our strong position in the evolving automotive market and our ability to meet demands of future mobility. Moreover, we are equipped with best-in-class testing facilities including EMC/EMI, hardware-in-the-loop (HIL)/software-in-the-loop (SIL) and Surface Mount Technology (SMT) facilities along with a unique design studio. These facilities empower us to ensure the best quality and reliability of our products, driving customer satisfaction and loyalty. Going forward, we will continue to drive innovation, deliver advanced automotive solutions and play an active role in shaping the future of mobility.
Tell us about your future business strategies and investment focus.
We will continue to focus on growing our legacy portfolio while targeting new business through aggressive investment in R&D. We are moving ahead aggressively to leverage the fast-emerging opportunities in the EV sector. Going forward, we expect domestic demand to remain strong based on improved consumer sentiments, product premiumisation for urban centres and new vehicle launches. We are also keeping a close watch on how the exports market unfolds. Moreover, stabilization of commodity prices is expected to aid improvement in underlying margins. Our focus on premiumisation and technological advancement, coupled with robust testing infrastructure and increased research and development investments positions us for continued success in the dynamic automotive landscape.
What is your strategy for exports?
We are actively concentrating on expanding our exports operations and nurturing partnerships as part of our growth strategy. Currently, overseas revenue contributes to 13 percent of our total turnover and we are closely monitoring developments in the exports market. Spark MINDA is committed to further strengthening this segment and expanding revenue streams for sustained growth.
What are the challenges faced by you?
Firstly, as we are witnessing a rapid technology transition in the Indian automobile industry. We feel procuring the right talent and nurturing it for the future is one of our biggest challenges. At our end, we are trying to absorb the best talents, ensuring future growth and success of the company. Secondly, the industry is also witnessing significant geopolitical headwinds compounded by sluggish growth in the commercial vehicle sector and also a decline in tractor sales, however we have shown resilient performance YOY, creating wealth for investors.
