Minda Corp's investment in Flash Electronics is valued at INR 1372 crore for a 49% equity stake. Minda Corporation Limited (Minda Corp) and Flash Electronics have announced a strategic partnership to create a leading EV platform in India. Minda Corp will acquire a 49% stake in Flash Electronics for INR 1372 crore . The partnership leverages the synergistic product portfolios of both companies, with Minda Corp specialising in automotive body electronics and Flash Electronics in engine and powertrain electronics, including EV powertrain components.
What does it signify?
The collaboration aims to expand both companies' market share in the rapidly growing automotive sector, particularly within the EV segment. The partnership will be showcased at the Bharat Mobility Expo in New Delhi from January 18-21, 2025.
Minda Corp's investment in Flash Electronics is valued at INR 1372 crore for a 49% equity stake. Flash Electronics is projected to achieve over INR 1500 crore in revenue in FY25, with a CAGR exceeding 17% in recent years. The company also anticipates an EBITDA margin of around 14% and a steady ROCE of over 22%.
This partnership combines Minda Corp's expertise in automotive body electronics with Flash Electronics' strength in engine and powertrain electronics. The combined portfolio creates a comprehensive offering for the automotive industry, particularly in the burgeoning EV sector.
Flash Electronics
Flash Electronics has a strong background in electricals and electronics for two and three-wheeler internal combustion engine (ICE) vehicles. They specialise in ignition systems and have emerged as a market leader in EV powertrain components such as motors, motor controllers, and vehicle control units.
Flash Electronics is expanding its innovative EV powertrain solutions to passenger cars and commercial vehicles. Minda Corp has developed products like battery chargers, DC-DC converters, power electronics, and battery telematics, further complementing the partnership.
Aligning with Minda's long-term strategy
This strategic move aligns with Minda Corporation’s long-term strategy to become a complete systems solutions provider in the auto components industry. It aims to capture a larger share of the rapidly expanding automotive market in India.
The partnership aims to strengthen both companies' positions within the automotive industry by leveraging their respective strengths. It seeks to drive future growth by capitalizing on synergies in products, technology, and customer bases.
“I have had the privilege of knowing Mr. Sanjeev Vasdev for many years, and we together are thrilled to embark on this strategic partnership journey with Flash Electronics. I am confident along with Sanjeev, I will be able to take this partnership to staggering heights. One plus one will be eleven. This partnership fits perfectly, Strategically and Financially in Minda Corporation’s long-term vision of creating value for customers and shareholders," said Ashok Minda, Chairman & Group CEO of Minda Corporation.
“I am confident that this partnership will catapult both the companies to a different level, the thing I am most excited about is having Ashok ji by my side and also having the opportunity to interact and work with Aakash. I believe that this partnership will set new benchmark for the industry and create more opportunities for employees for both the companies through technology advancements,” stated Sanjeev Vasdev, Managing Director of Flash Electronics (India) Pvt. Ltd.
The products and technology resulting from this collaboration will be displayed at the Bharat Mobility Expo in New Delhi. The expo is scheduled for January 18-21, 2025.
