The NK Minda Group has inaugurated its new plant in Manesar, Gurgaon. This plant will use a superior quality Japanese process for production of painted wheel covers for Indian four-wheeler OEMs. The plant was inaugurated by S Maitra, CEO, Supply Chain, Maruti Suzuki India.
The NK Minda Group has invested Rs 5 crore in this plant. The start of production (SOP) is set to be in January 2012 with a set annual volume of 120,000 pieces and installed capacity of 600,000 pieces wheels annually. However, within the same space and paint facility and an increase in moulding machines, capacity can also be enhanced to thrice over. The plant is expected to reach the breakeven point by the year 2013-14.
The production and sale of these wheel covers will be taken care by two separate JV companies. While Mindarika Pvt Ltd (MRPL) will manufacture the painted wheel covers, Tokai Rika Minda India will supply to OEMs.
Commenting on the announcement, Nirmal K Minda, CMD of the NK Minda Group, said: “The wheel cover market has a potential to reach Rs 100 crore in the near future. MRPL has the technical competence and capability to manufacture wheel covers of varied thickness, up to 1.2mm, over and above its contemporaries. This gives a weight reduction advantage to OEMs. Tokai Rika, Japan is an established player in the field of wheel covers and provides full technical support to the JV companies. It is a major supplier of wheel covers to most OEMs in Japan.”
The Group has already received and developed an order from Maruti Suzuki India, which will be in SOP by the last quarter of 2011. The Group also has potential RFQs in advanced stages of discussions with other OEMs.
Nirmal K Minda further elaborated, “In this rapidly expanding market, there is a huge potential for expansion of players with proven technology. Mindarika might evaluate further investments in tooling to serve the aftermarket. However, the current focus of the company is to develop more designs for OEMs."