Ashok Minda Group Acquires Aksys, plant Koengen

Ashok Minda Group, India's leading automotive component manufacturer, today announced the completion of acquisition of Aksys, Koengen in Germany. Aksys, Koengen is one of Germany's leading specialist composite moulding manufacturer and one of the major supplier of components to Daimler, Volkswagen Group, Renault, PSA, General Motors etc. The Group has acquired 100% of Aksys, plant Koengen through an asset deal the Company has now been rechristened as Minda Schenk Plastic Solutions GmbH, Plant Koengen.

This is the fourth major acquisition by the Group in Germany and the sixth acquisition in Europe. Over the last few years, Ashok Minda Group had acquired German auto component company KTSN, which also operates in the interior component business followed by Schenk ALU Automotive in Germany, a subsidiary of Schenk in the Czech Republic and Tectro in Poland. With the acquisition of Aksys, the Group further strengthens its presence in product portfolio footprints in the European automotive component market. The Group will leverage on this acquisition to offer a better value proposition to its customers.

Aksys Koengen is having the following special technologies for composites: Sheet Mould Compounding, Glass Long Fibre, Glass Mat Thermoplastics, Injected Mould Compounding. These technologies are not presently available in India and we plan to offer these technologies to Customers in India. The Company has many patented technologies, which enables the production at a lower cost and customized than previously possible. Aksys, Koengen has an employee strength of approx 200 turnover of 40 million Euros (Rs. 240 Crs).

Commenting on the acquisition, Mr. Ashok Minda, Chairman of the Ashok Minda Group said, “The acquisition of Aksys, Koengen is a major step in our strategy to become an important player and to consolidate our position in the Global Auto Component Industry. Aksys technical leadership Minda's management competence and presence in Europe in India will offer tremendous advantage to our existing and new customers in Europe Worldwide. This will also
consolidate our Group's presence in the European market. Our strategy is to position Ashok Minda Group as a major global player in the auto component business towards this objective, we are looking for various strategic opportunities in other parts of the World.”

“Minda Group has also recently set up an auto component plant in Uzbekistan. This unit will primarily cater to the customers in the CIS region Russia. Our presence in Germany through KTSN and Schenk, now including Aksys, plant Koengen, will provide us access to the European market. We will leverage on these acquisitions and new projects to become a major supplier of interiors of the cars, which is going to be one of the focus area for Ashok Minda Group”, added Mr. Ashok Minda.

Ashok Minda Group is targetting to achieve a turnover of Rs. 2500 Crores (US $ 550 Million) in 2010-11. The Group is aiming at top line revenue of approx Rs. 6000 Crores ($ 1.3 billion) by the end of year 2013-14.

Keeping in line with the Group's overall strategy of expanding footprints in the global market, the ratio of international business is also expected to grow phenomenally in the coming years. The international business from its present level of 40% is expected to grow to approx 50% by 2013-14.

Ashok Minda Group is one of the leading manufacturer of automotive parts in India. It is engaged in the manufacturing of three Systems – Safety, Security Restraint System, Driver Information Telematics System and Interiors System and is catering to the leading two four wheeler vehicle manufacturers in India overseas including Europe, North America, CIS ASEAN countries. The Group has 25 plants in India overseas including Germany, Poland, Czech Republic, Indonesia, Vietnam and Uzbekistan.