January 15th, 2025
Minda Corporation, the flagship entity of the Spark Minda Group, has announced the acquisition of a 49% equity stake in Flash Electronics for ₹1,372 crore. This strategic partnership is poised to revolutionize India’s automotive market by combining Minda’s expertise in body electronics with Flash Electronics’ leadership in powertrain systems. Together, they aim to accelerate innovation in electric vehicle (EV) and internal combustion engine (ICE) technologies.
Deal Highlights
Acquisition Details
- Investment Value: ₹1,372 crore for 49% equity in Flash Electronics.
- Revenue Projections: Flash Electronics expects to surpass ₹1,500 crore in revenue by FY25, reflecting a robust growth trajectory.
- Product Synergies: Combined kit value of ₹30,000–₹35,000 per vehicle, creating a comprehensive offering for automotive manufacturers.
Key Product Areas
The partnership will focus on a range of high-demand products:
- EV Powertrains: Advanced electric drivetrains tailored for next-gen mobility.
- DC-DC Converters and Battery Chargers: Essential components for EV efficiency.
- BLDC Motors: Lightweight, energy-efficient motors for electric vehicles.
Strategic Objectives
The acquisition supports Minda Corporation and Flash Electronics’ shared goals of advancing India’s automotive landscape:
Expanding Product Portfolios
The collaboration enhances their ability to offer cutting-edge technologies for both EVs and ICE vehicles. This includes innovative powertrain solutions and body electronic systems designed to meet the evolving demands of global automakers.
Strengthening Market Leadership
The partnership positions the companies as key players in India’s rapidly growing EV sector, which is projected to expand significantly due to rising consumer adoption and government incentives.
Showcasing Innovation
The companies will jointly exhibit their latest technologies at the Bharat Mobility Expo in New Delhi, scheduled for January 18–21, 2025.
Financial and Market Insights
Flash Electronics’ Performance
- Revenue Growth: Delivered a 17% CAGR over the past few years, with robust growth prospects.
- Profitability: Maintains an EBITDA margin of 14% and a ROCE exceeding 22%, showcasing financial strength and operational efficiency.
Market Context
The acquisition aligns with India’s electrification goals, supported by increasing government incentives under schemes like FAME II. The growing consumer preference for sustainable mobility solutions further bolsters the demand for innovative automotive technologies.
About Flash Electronics
Flash Electronics is a leading manufacturer of automotive components, specializing in electric mobility and powertrain solutions. Operating across eight state-of-the-art facilities in India, Germany, and Hungary, the company serves prestigious clients, including Audi, BMW, Royal Enfield, and Tata Motors. Its global footprint and innovation-driven approach make it an ideal partner for Minda Corporation.
Significance
Minda Corporation’s acquisition of Flash Electronics represents a pivotal step in the evolution of India’s automotive industry. By leveraging their combined expertise, the companies aim to:
Capture Market Share: Strengthen their foothold in the automotive supply chain, catering to domestic and international clients.
Accelerate EV Adoption: Develop technologies that make electric vehicles more efficient, reliable, and accessible.
Drive Innovation: Introduce advanced systems for both EVs and ICE vehicles, ensuring relevance in a transitioning market.
