Uno Minda Sees Sensor Business Clocking Rs 500 Crore Annual Revenue

Uno Minda Ltd.'s tie-up with South Korea's Asentec Co. to develop wheel speed sensors is expected to strengthen its automotive sensors portfolio—a key part of its value-added products, according to Group Chief Financial Officer Sunil Bohra.

"The collaboration with Asentec will help us add to current offering of sensors with latest technology," Bohra told BQ Prime.

The sensor business is expected to be a sizeable one over the next 4-5 years, Bohra said. He sees it achieving more than Rs 500 crore annual revenue; it is already close to clocking Rs 400 crore, he said.

The wheel speed sensors business is expected to add close to Rs 70-100 crore annually over the next 4-5 years, Bohra said.

Asentec and Uno Minda will jointly design and develop the products, and Uno Minda will manufacture it in their Pune facility. As Uno Minda will be utilising Asentec's technology, they will be paying the company a royalty, consisting of a few percentage points, he said. As volumes increase, the percentage of royalty will decrease.

“Over the next few years, we expect the company to continue trajectory of outperformance versus industry by 1.5 times. Increased kit value, increased share of business via new product launches, whose impact will be visible in near term, high amount of traction in exports and premiumisation-led growth will aid outperformance,” said Bohra.

According to Bohra, Uno Minda expects to close and announce orders under Uno Minda-Beuhler Motor GmbH joint venture ahead of Q3 earnings. It is also awaiting a detailed project report with respect to the Uno Minda-Tachi-S Co. JV in the next 3-4 months, as initial capex is very small, he said.