Key Insights:

Announcement: Minda announced acquisition of German car lighting system maker Delvis at trailing Enterprise Value/sales of ~0.6x for EUR21mn.

Delvis is into R&D and testing of PV lighting systems using LED/Halogen/Xenon/Laser technologies. Volkswagen and Audi are its top customers.

Analysis: Minda holds ~12% market share of India’s car lighting industry and operates under technological licensing agreement with AMS, Korea.

The acquisition would help Minda diversify its portfolio and customer base besides expanding market share by indigenising Delvis’ offerings.

Delvis operates at low-teen RoCE. Minda targets improving Delvis’ operating efficiency to levels of its portfolio of 20-25% by expanding manufacturing along with indigenisation.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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