CRISIL Ratings has reaffirmed its ‘CRISIL AA-/Stable/CRISIL A1+’ ratings on the bank facilities of Minda Corporation Limited (MCL; part of the MCL group).
The rating reflects groups healthy business risk profile driven by its strong market position in the auto component industry, group’s diversified product offerings and its marquee customer base in domestic market. Minda Group is one of the largest player in India in security systems for two-wheelers and a leading player in the wire-harnessing segment for two-wheeler, three-wheeler and commercial vehicles. Group is expected to continue to improve its market position supported by continuous innovation being undertaken for various product segments and its long-standing relationships with marque customers. Driven by healthy demand flow from domestic market and strong tie-up with customers, group has been growing at a rate much higher than industry growth rate (revenue growth was ~44% in FY23 vs 12-13% Industry growth in same fiscal). With continuous technological innovation and introduction of new products to its product profile, which is agnostic to the electric vehicle revolution, the group is expected to continue to diversify its offerings and grow at a healthy pace over the medium term.
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