UNO Minda, a leading tier-1 supplier of proprietary automotive solutions to original equipment manufacturers (OEMs), is anticipating improved share of business in the domestic commercial vehicle segment with the roll-out of air brake systems along with its existing products.
It may be recalled that the home-grown auto component firm had announced a joint venture two years back with Nabtesco Automotive Corporation of Japan for designing, manufacture and sale of air brake products for CVs, in addition to clutch actuation systems for passenger vehicles. The JV was set up at Rs. 373 million, with UNO Minda holding 51 per cent of the equity and Nabtesco the balance 49 per cent. The new company will be known as Minda Nabtesco Pvt. Ltd. One of the proposed locations for the JV project is Pantnagar, Uttarakhand. This JV is being considered a major move by UNO Minda for adding a product line and enhancing its presence in the CV business.
In a one-on-one interaction with MOTORINDIA, Mr. Sanjay Walia, Head – Corporate Marketing & Communications, UNO Minda, said: “We have allied with Nabtesco which is known for its technical excellence, exhaustive product expertise and extensive experience in Japan. With this partnership, we are strategically venturing into a new product line, in keeping with our diversification and consolidation approach to the Indian market. 
The air-brake systems, which will be jointly branded, will be competing with some of the leading players in the industry.”
Shedding further light on the progress of the JV, Mr. Walia said: “We are currently into the product development stage. Once the products are developed and tested, we will start commercially rolling it out this year. We are already in touch with a few OEMs and are updating them continuously on the product development status. At this stage, we have already finalized business for dual brake system with VECV. We are in an advanced stage of discussion with other OEMs as well. The investment planned on the JV is about Rs. 700 million.
It is a known fact that Nabtesco Automotive Corporation, a member of the Nabtesco Group which keeps making great breakthroughs with its original motion control technology, specialises in transport equipment business. Since 1937 it remains a technology leader and supplier in automotive air brake systems and clutch control systems. It manufactures automobile components for OEMs in Japan and other countries.
Mr. Walia, who is a 25-year veteran in the auto component industry, observed: “It (air brake) is a high-value product, and we are confident of integrating with most of the Domestic OEMs once the product is rolled out. We look forward to gaining good numbers in this business. Nabtesco is one of the biggest players in its home market and Japanese technology always has an edge. The advantage lies in the fact that we are offering the Japanese technology with an Indian cost. We are confident of cornering a marketshare of 25 per cent in this segment by 2020. It will also be catering to the aftermarket vertical.”
It is worth mentioning here that the UNO Minda’s product range includes over 20 product lines ranging from 2/3/4 Wh / Offroad switches to lighting products to alternate fuel kits. 
With representative offices in Japan, China and Italy, 36 manufacturing locations spread across India and overseas manufacturing set-ups in Indonesia, Vietnam and Spain, the group is a formidable player in the two-wheeler and four-wheeler space (both PVs and CVs). Among its multiple product lines, it commands nearly 44 per cent in the domestic automotive switch industry in the PV space.
Mr. Walia further disclosed: “With lamps we have already made a better bandwidth in the CV space. We are also sharpening our focus on the switch business in the CV segment. We decided to have a dedicated cell within our switch division which takes care only of the CV segment. This is how we are planning to strengthen our business in the CV segment. Again, we also have a separate cell for the off-road division. Even in the lamp division, we have a separate cell for the off-road division. There is a focussed team on this division comprising tractors and construction equipment. We have been working with JCB for the last two years. 
We are doing the project with JCB UK from India. We are also in the initial stage of discussion with John Deere of the US. So we are looking to cater to current customers in the construction equipment space extensively and also new clients since the technology is already available.”
He also confirmed that the group’s alternate fuel kits will also be made for buses and trucks (for cars currently).
When quizzed about its Aftermarket vertical, Mr. Walia confirmed that UNO Minda will be maximizing its presence there. “In the aftermarket vertical we are traditionally supplying switches, lamps and horns. Soon we will be adding air cleaners for the two-wheelers in the initial phase, followed by PVs and CVs. Aftermarket vertical currently stands at 9 per cent of the total business. We are expecting around 10-12 per cent (Rs. 1,000 crores) by 2020.”
Mr. Walia said that the company’s overseas presence will account for 25 per cent by 2020, and affirmed, “we are exploring Brazil to be the next destination for export in the two-wheeler segment switches to start with, and thus we are fast catching up to be a true global company.”
Apart from inorganic growth, the company is also scouting for more acquisitions. “We are garnering enhanced business opportunities in the CV segment with the present as well as new entrants in the Indian market. We have started receiving quotation requests from other OEM’s,” commented Mr. Walia.
With new product lines and acquisitions, UNO Minda is able to post sustainable growth in revenues for the last few years. “Our topline grew by 20 per cent owing to the new product lines. Products like car infotainment systems, air cleaners, air brakes, alloy wheels, fuel caps, etc., which we have recently got into, will shore up our revenues further. We have around 85 patents and more than 100 design registrations across the group. From the second quarter (of FY2014-15) we can expect revival of the industry. We did Rs. 3,150 crores last year and are expecting Rs. 10,000 crores by 2020,” signed off Mr. Walia.