In our previous article, we had done a detailed SWOT analysis of Enel, an Italian Multinational Electricity & Gas Utility Company. In this article, we are going to explain the SWOT analysis of Minda Corporation.
Now, India’s leading player in the automotive components industry is none other than Minda Corporation (or Spark Minda). For over sixty years, Spark Minda (earlier Minda Corporation) has had a significant presence in the global automotive industry and is one of the main makers of auto parts for the OEMs.
The Rs 380 crores group, with a labour force of more than 16,000 is taking special care of the main passenger vehicle, commercial vehicle, motorcycle and scooter, off-street vehicle and tier 1 manufacturers in India with a presence in Indonesia, Vietnam, Uzbekistan, Japan and the U.S.A. They likewise serve post-retail fragments in India through a solid vendor distributorship of around 450 sellers.
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Now, we will discover strengths, weaknesses, opportunities and threats covering BOE. Before we delve into the SWOT analysis of Minda Corporation let’s learn about the company, its history, products, services and competitors.
About Minda Corporation
Minda Corporation was founded in Delhi by Shri S. L. Minda in 1958. The company is now a leading automotive component player with a global presence.
Minda Corporation Ltd was joined in the year March 11, 1985, with the name Minda Switch Auto Private Limited for the assembling of Ignition Switches for the Indian Automotive Industry and is the leading organisation of Spark Minda Ashok Minda Group which was important for the recent Minda Group.
Minda Corporation has 28 assembling offices situated across different parts of India including Maharashtra, National Capital Region, Tamil Nadu, Uttarakhand, Karnataka and Madhya Pradesh and 6 worldwide assembling offices in the Czech Republic, Poland, Germany, Indonesia, Mexico and Vietnam. Minda Corporation Ltd is perhaps the biggest provider of 2 wheeler 3 wheeler and Off-Road vehicles Electronic and Mechanical Security System.
For the innovative edge, the company has a devoted R&D office and coordinated efforts with the trailblazers and heads of the car business. For absorbing the most recent advances, Spark Minda has gone into key coalitions and specialised joint efforts with driving worldwide organisations and procured organisations across the globe. This has furnished Spark Minda with the front line in item plan and innovation to satisfy severe worldwide quality guidelines.
They are a leading car parts manufacturer in India – Electronic and Mechanical Security Systems, Die Casting, Keyless Solutions, Starter and Alternator Motors, Telematics, ITS and IoT, Wiring Harnesses, Components, Instrument Clusters, Sensors, Interior Plastics and new parts on hardware that take special care of all significant two, three, four-wheeler, business, rough terrain vehicle makers in India and Overseas.
Minda Corporation is an expanded organisation with an item portfolio enveloping mechanical and electronic security framework entryway framework electronic regulators for electric vehicles’ plastic insides and auto OEMs across the globe.
| Founder | Late Shri Shadi Lal Minda |
|---|---|
| Year Founded | 1958 |
| Origin | New Delhi, India |
| No. of Employees | 16,000+ |
| Company Type | Public |
| Market Cap | Rs 6,158.69 Crore (2022) |
| Annual Revenue | Rs 738.3 Crore (2021) |
| Net Income/ Profit | Rs 69.85 Crore (2021) |
Products of Minda Corporation
Minda Corporation has been a global marketer since 1958 and deals in the following businesses:
- Alternator
- Starter motor
- Locksets
- Wiring harness
- Speedometers
- Aluminium high pressure die casting
- Terminals
- Connectors
- Junction box
- Temperature sensors
- Ashtray
- Air vent
- Cupholder
- Steering column
- Wiper blades
Competitors of Minda Corporation
Competition among businesses may lead to the development of new or improved goods, as well as more efficient operations. Minda Corporation has a few major rival companies around the globe. Some of the top competitors are
- WABCO India
- Endurance Tech
- Minda Corporation Ltd
- Motherson Sumi
- Bosch Ltd
Now that we know about the company’s history, its products, and its close competitors, we can move on to the SWOT analysis of Minda Corporation.
SWOT Analysis of Minda Corporation
A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like Minda Corporation to compare its business and performance to that of its competitors.
It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Minda Corporation.
To better understand the SWOT analysis of Minda Corporation, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of Minda Corporation.
Strengths of Minda Corporation
Minda Corporation, being one of the leading companies in its industry, has several benefits that help it flourish in the marketplace. These strengths not only help it retain market share in existing areas but also help it break into new ones.
- Famous Brand: A well-known name in India for over 60 years reflects the amount of trust its customers hold including Audi, BMW, Fiat and many such big brands.
- Global Operations: Minda Corporation has 33 manufacturing facilities and 3 power plants in 7 countries across three continents in India with a presence in Indonesia, Vietnam, Uzbekistan, U.S.A. and Japan.
- Major Distributor: Minda Corporation is one of the major distributors of Electronic & Mechanical Security Systems, Die Casting, Keyless Solutions, Starter & Alternator Motors, Telematics, ITS & IoT, Wiring Harnesses, Components, Instrument Clusters, Sensors, Interior Plastics and new component are used by some of the major automotive manufacturing companies like Bajaj Auto, TVS Motor Company, Revolt, Ola Electric.
- Offer Many Services: They offer customers a wide range of solutions including Casting Simulation, Prototyping, Tool Designing & Manufacturing, Assembly, Die Casting, Shot Blasting, Powder Coating, Core Making & multi-process Foundry services.
- Leading Market Position: Minda Corporation holds the second largest Indian auto component group position for automotive components. Since its inception the growth enabled the company to create a new revenue stream and diversify the economic cycle risk in the markets it serves, propelling Minda Corporation to the top of the Indian market.
- Highly Qualified Workforce: Through training and learning initiatives, Minda Corporation has been able to develop highly qualified 16,000+ employees. Minda Corporation devotes significant resources to employee training and development, resulting in a team that is not just highly competent but also driven to attain greater success.
Weaknesses of Minda Corporation
Minda Corporation’s weakness is an area where he can improve. Strategy is about making important decisions, and weaknesses are areas where a company could improve with the help of a SWOT analysis.
- Expenditure on Building Fresh Supply Chain & Logistics Network: AI has significantly modified the business model in the technology industry and hence, Minda Corporation has to build a new expensive supply chain network.
- Sloping Market Share With Rising Revenues: The electronic industry is growing faster than the company itself making it challenging to analyze the trends within the technology sector.
- Components Can Get Readily Copied: Minda Corporation’s business model is the issue to address which can get easily copied by its competitors. The organisation must develop a platform model that can combine suppliers, vendors, and end-users to ensure a secure supply chain.
- Liabilities: Its total debts and liabilities are more than some of its competitors (such as Suprajit engineering) as per Money Control’s analysis as of March 2021.
- Net Worth: Its net worth from all its sources of funds (share capital, reserves, preference shares etc) is also less than some of its competitors (such as Endurance Tech) as per Money Control’s analysis as of March 2021.
- Losses: The company faced maximum losses as of March 2020 due to the pandemic.
Opportunities for Minda Corporation
Opportunities are possible areas for a company to consider to improve results, sales, and, ultimately, profit. Minda Corporation includes the following opportunities:
- Survival: The company has been able to resist the losses caused due to the pandemic which implies the company has a long way to go in sustaining itself as a manufacturer.
- Expansion: While the company is going international, it is simultaneously leaving an everlasting imprint, which implies that the company has the potential to expand to many locations. Minda Corporation is looking to acquire a component maker to expand its EV presence by March 2022 and is in discussions with a few potential targets.
- Transport Industry Boom: More and more automotive industries are relying on external suppliers for vehicle components to save their manufacturing costs which imply that Minda’s importance won’t decline and would rather increase with time.
- Pandemic: Due to Corona, people are preferring to use their vehicles rather than public transport for fear of infections which means that the sale of automobiles (especially electric) would increase with time which would have a positive impact on the sales of Minda products to automotive manufacturers.
- R&D and Tech: If the company starts investing more capital to boost itself and to be in sync with the latest developments in tech, the company can have a bright future!
Threats to Minda Corporation
External environmental factors that can harm a Minda Corporation’s growth are known as threats. Minda Corporation’s threats include the following:
- Raw Material Price Volatility: Aluminium and steel are the major raw materials for the company. Any disruption in the availability or pricing of these raw materials may have a significant bearing on business profitability.
- Global Pandemic Outbreaks: A highly infectious third/fourth wave of COVID-19, leading to lockdowns or restricted mobility, could impact the business growth of all auto component manufacturers, due to reduced demand for new vehicles, as well as lower wear and tear of existing ones.
- Strong Rivalry from other Components Providers: There is a lot of competition in the industry these days. This affects prices, resulting in a drop in revenue or income for Minda Corporation.
- Threat from Local Distributors: Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. Also, local distributors like repairing centres and garages are selling duplicate two-wheeler suspension components in the name of Minda Corporation which is again another threat for the company.
- Country-specific Regulations: Each country has a different set of rules and regulations regarding the transportation of goods. Some goods have very strict restrictions in some countries making it difficult to transport them.
This ends our complete SWOT analysis of Minda Corporation. Let us conclude our learning below.
To Conclude
As we can see, Minda corporation has huge potential owing to its consistent performance and prestige as an old brand in India. What makes its future picture look a bit glum is it’s approaching strong and equally good competitors who are running at the same pace and may cross over Minda’s position if Minda Corporation lags in any of the aspects, be it upgrading technology, maintaining good financial records along with relations with clients.
However, the company has outperformed its rival competitors with its incredible marketing efforts in branding. With the increasing competition and advancement in technological expertise, digital marketing plays a vital role in boosting traffic, if the company gets better visibility, sales and revenue will eventually increase.
Hundreds of thousands of businesses now use digital marketing to reach a considerable number of people because it is easier and more cost-effective than other traditional ways. If you are interested in learning more and getting upskilled in digital marketing then check out IIDE’s Online digital marketing course to know more.
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