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UNO Minda Limited Investor Presentation 2021
61248_rns_2021-06-23_914e554a-6a0c-4a0f-acbd-7f5ce63861c0.pdf
Investor Presentation
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Minda Industries Ltd Uzchasys Acquisition – June 2021
Safe Harbor
This presentation and the accompanying slides (the "Presentation"), has been prepared by Minda Industries Limited (the "Company"), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the auto ancillary industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
Index
• UZ Chasys-Company Overview • Uzbekistan Country Overview • Uzbekistan Automotive Market • Uzbekistan Auto Component Market Drivers • Transaction Rationale
Brief Summary - UzChasys
- Minda industries Ltd has won bid to acquire 51% stake in UZ Chasys LLC for a purchase consideration of INR ~58 Cr (~83.1 BN Soms)
- Uz Chasys is the only manufacturer of Lighting products in Uzbekistan and one of the major Lighting supplier in CIS countries.
- Uz Chasys supplies complete Lighting products range to Uz Auto (OEM) with 100% SOB
- Uz Chasys sales categorization is as follows (2021 Sales):
| OEM Sales : | 55% |
|---|---|
| Exports: | 25% |
| After Market: | 20% |
Technology upgradation: Through upcoming GEM models (SOP from Jan-23), Uz Chasys is upgrading its technology to LED based systems.
Company Overview - UzChasys
| 2008 | Establishment of UzChasys LLC JV of Uzbekistan and South Korea. |
|---|---|
| 2009 | Launch of production of 250 thousand sets of headlights and car lightsper year. With the launch 200 workplaces were created. |
| 2011 | Production of front lights for the Spark (Chevrolet) model began |
| 2012 | Production of headlights, taillights and third brake light for the Cobalt(Chevrolet) model |
| 2013 | Production of fog lights with daytime running lights for the Gentra(Chevrolet) model began |
| 2017 | Production of headlights for the Lada Vesta (Lada) model began |
| 2018 | Production of headlights for the Granta (Lada) model began |
| 2019 | Production of headlights for Damas (Chevrolet) microvan began |
Current Ownerwhip Structure
- High quality, approved by international Customers
- Availability of advanced production technology
- Low cost (labor, power & utility)
- Customs and tax incentives within CIS
- Developed logistics network within CIS
Uzbekistan Country Overview
7/6
- Largest market in Central Asia
- Strategically located at the crossroads of Asia and Europe, providing a gateway to CIS & EU markets
- The business environment in Uzbekistan has witnessed a remarkable improvement over the past few years with the assuming of office by New president Mr Shavkat Mirziyoyez who won presidential elections in December 2016
- An impressive programme of market driven reforms aimed at liberalization of the economy and according impetus for the growth of private and foreign investment has been undertaken under the Government's National Development Strategy for 2017–2021.
- Uzbekistan is currently the second-largest trading partner of India in Central Asia after Kazakhstan.
- In 2018, Uzbekistan ranked 33rd globally and 2 nd in the CIS (after Russia) for car production.
Uzbekistan – Automotive Market (Uz Auto)
- Growing Automotive market in Uzbekistan
- GEM (General Motors Emerging Market) model being launched from Jan-23
Motorization Rate
| 2019 | 76 cars per 1000people |
|---|---|
| 2030 | 150~160 cars per |
| (forecast) | 1000 people |
Auto Component- Localization and Divestment Opportunity
- Tier-1 suppliers are limited, most of them are JV companies formed by UzAuto Motors
- Local supplier base is very limited and most of the BOP are imported
- Localization of Alloy wheels is a priority (currently being imported 100%)
- Government is expected to divest stake in other auto component JV's
Transaction Rationale
- Foray into growing Automotive market of Uzbekistan
- Access to market in CIS Countries & Central Asia, with a manufacturing base in Uzbekistan
New Customer Acquisition:
- UzAuto Motors (Technical partner GM)
- AutoVAZ (Renault group) in Russia
Opportunity to participate in future localization and divestment opportunities in Uzbekistan enabling MIL to broaden its offering with synergistic products in Uzbekistan / CIS region
Contact Us
For further information, please contact:
| Company: | |
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Company : Investor Relations Advisors :
Minda Industries Ltd. CIN : L74899DL1992PLC050333 Mr. Ankur Modi Head Treasury and Investor Relation [email protected] Strategic Growth Advisors Pvt. Ltd. CIN : U74140MH2010PTC204285 Mr. Jigar Kavaiya +91 99206 02034 [email protected]