Indian Tier 1 auto parts supplier Minda Industries Ltd. said March 3 it acquired the lighting business of Spain's Rinder Group for approximately $21.5 million, as part of a plan to expand in global markets.
Derio, Spain-based Rinder's lighting unit manufactures head lamps, tail lamps and other lighting. The deal includes a technical center in Spain and Rinder manufacturing plants in India and Colombia.
“This acquisition will establish Minda Industries Limited as [a] technology leader in lighting solutions and will further augment the R&D capabilities of the company,” said Chairman N.K. Minda, in a statement.
The acquisition includes 100 percent equity holding in Rinder India Pvt. Ltd, which include three factories in Pune and Delhi, along with a technology and design center in Spain and a 50 percent stake in Rinder Riducu in Colombia.
The move would more than double Minda's sales in lighting from 300 crore rupees ($44.5 million) to 700 crore rupees ($103.9 million), and is part of the Indian firm's strategy to achieve 25 percent of sales from international business.
Minda, which is based in Gurgaon, near Delhi, said the design center would help it establish itself as a “major player” in the lighting business. It said Rinder's operations will enhance profitability by rationalizing suppliers and sharing resources.
Minda has automotive lighting factories near Pune and Delhi.
As a part of the deal, the company also acquired Rinder's brand name and related intellectual property.
Rinder's India unit opened in 1997 and has three plants, in Chakan and Pimpri near Pune and Bahadurgarh, in Haryana state. Its clients include automakers Maruti Suzuki and Ford Motor Co. and motorcycle manufacturers including Kawasaki and Yamaha.
Minda has 37 manufacturing plants globally, including in India, Indonesia, Vietnam and Spain, with design centers in Taiwan and Japan and sales offices in the United States, Europe and Vietnam, according to its website, with 8,500 employees and annual sales of $525 million.