Bharat Stage VI Transition Will Not Have Any Material Impact, Says Minda Industries
Merger with Harita Seatings may be complete by end of the ongoing financial year, the firm’s chief financial officer.
The government’s ruling on selling only vehicles with Bharat Stage-VI compliant engines from next year may not materially impact operations but would actually open up new opportunities, said Sunil Bohra of Minda Industries Ltd.
“Most of our products are agnostic to engine systems- be it electric vehicles or internal combustion engines,” the auto-part maker’s chief financial officer told BloombergQuint in an interview. “One of the major products which get impacted in the transition is filters where we’re already compliant.” The firm’s Rs 120-crore sensor project will have operations that cater specifically to the new emission norm, he said.
The Supreme Court ruled that automakers must sell only BS-VI compliant engines from April next year. That comes at a time when the entire value chain of the industry—from component suppliers to vehicles manufacturers and dealers—has been impacted by the slowdown due to weak sales resulting in factories cutting production.
The Noida-based firm also said the merger proceedings with Harita Seatings Systems Ltd. was underway in National Company Law Tribunal and is expected to be completed by the end of the ongoing financial year. “It’s expected to clock Rs 750-800 crore in terms of revenue potential for this financial year which will be added to our consolidated financials right away post-merger.”
Shares of Minda Industries fell 1.1 percent intraday apiece compared with a 0.6 percent fall in the Nifty Index.
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