Ashok Minda group, one of India’s leading automotive component manufacturer, today announced the completion of acquisition of Schenk Plastic Solutions GmbH of Germany. This is the second major acquisition by the group in Germany after aquisition of German auto component company KTSN last year.
Schenk is one of Germanyâ€™s leading specialist interior plastic component manufacturer and one of the major supplier of components to Daimler, BMW, VW, Fehrer, Lear, Johnson Controls, etc and in technical parts customers like STIHL, Bosch etc. The Group has purchased 100% equity capital of Schenk & the company has now been rechristened as Minda Schenk Plastic Solutions GmbH.
Schenk is a leading supplier of hi-end interior systems for premium segment cars & technical parts for critical applications such as power tools. The Company has a patented â€œskinformâ€ technology, which enables the production of high value soft-touch interior surfaces at a lower cost than previously possible. Schenk has two plants in Germany & one in Czech Republic, with a total employees strength of 500 and turnover of 75 million Euros (Rs. 480 Crores).Â Europeâ€™s leading automobile giants are the major customers of Schenk.Â
Commenting on the acquisition, Mr. Ashok Minda, Chairman of the Ashok Minda Group said, â€œThe acquisition of Schenk is a step forward in our strategy to become an important player in the global auto component industry. Schenkâ€™s technical leadership & Mindaâ€™s management competence will offer tremendous advantage to our existing and new customers in Europe & Worldwide. This will also strengthen our Groupâ€™s presence in the European market. Our strategy is to position Minda as a major global player in the auto component business & towards this objective, we are looking for various strategic opportunities in other parts of the World.â€
â€œMinda group has also recently set up an auto component plant in Indonesia & another manufacturing unit is under construction in Vietnam. These units will primarily cater to the customers in the ASEAN region, while our presence in Germany through Schenk & KTSN will provide us access to the European market. We will leverage on these acquisitions to become a major supplier of interiors of the premium cars, which is going to be one of the focus area for Minda groupâ€, further added Mr. Ashok Minda.
Last year, Ashok Minda Group achieved a turnover of Rs. 1000 Crores & with a growth target of 60% for the current fiscal, the turnover by the end of March, 09 is expected to be around Rs. 1600 Crores. The Group is aiming at sales revenue of over Rs. 4000 Crores ($ 1 billion) by the end of year 2011-12.
Keeping in line with the groupâ€™s overall strategy of expanding footprints in the global market, the share of international business is also expected to growÂ handsomely in the coming years. The international business was 25% in the year 2007-08, which will grow to around 50% by 2009.