Minda Corporation Ltd, the flagship company of the Spark Minda Group, said it will acquire a 49% equity stake in Flash Electronics for ₹1,372 cr in cash and will partner with the company to establish what it called the fastest-growing electric vehicle (EV) platform in India. The collaboration combines Minda Corp’s expertise in automotive body electronics with Flash Electronics’ specialization in engine and powertrain electronics.
Deal Highlights:
- Valuation: Minda Corp to acquire 49% equity stake in Flash Electronics ₹1,372 Cr cash.
- Flash Electronics Revenue: Projected to exceed ₹1,500 Cr in FY25
- Focus: Automotive body, engine, and powertrain electronics
The partnership is intended to expand the product offerings of both companies, leveraging their existing portfolios to create a comprehensive range of EV solutions. Minda Corp has been developing products such as battery chargers, DC-DC converters, and power electronics, while Flash Electronics has focused on electric powertrains, including motors, motor controllers, and vehicle control units. Flash Electronics has also announced plans to introduce electric powertrain solutions for passenger and commercial vehicles in the near future.
As part of the deal, Minda Corporation will acquire a 49% equity stake in Flash Electronics for a cash consideration of Rs 1,372 crore. Flash Electronics, which has reported a compound annual growth rate (CAGR) of over 17% in recent years, might achieve revenues exceeding Rs 1,500 crore in FY 2025. The company maintains an EBITDA margin of approximately 14% and a return on capital employed (ROCE) of over 22%.
The move comes amid a broader push for electrification in the automotive industry, supported by government policies and market demand for cleaner mobility solutions.
Both companies will showcase their combined technology and products at the Bharat Mobility Expo, scheduled to be held in New Delhi from January 18-21, 2025.
Spark Minda is a leading manufacturer of aluminum and zinc die-cast and machined components for both the automotive and non-automotive industries in India.
Flash Electronics got most of its revenue (45%) from electronics and electricals, 20% each from EVs and metallics. Two-wheelers contributed 76% of revenue, 3W/4W 7%, other vehicles 8% and aftermarket 9%. Exports contributed 24% of revenue.
Its key customers include Audi, Bajaj, BMW, BRP Rotax, Ducati, Harley-Davidson, Kawasaki, KTM, Mahindra, Moto-Morini, Piaggio, Porsche, Proton, Royal Enfield, Suzuki, Tata, Triumph, Volkswagen, Webasto and Yamaha.
The company manufactures products such as traction motors, motor controller unit, BLDC Motors with fan assembly, primary gears, IDU mid drive motors and so on. For an E-2W the kit value is Rs 15,000-20,000. Minda has a existing kit value of Rs 12,000-15,000. Overall, the combined kit value is expected to rise to Rs 30,000-35,000 per vehicle.
Nuvama Research pointed out that Minda and Flash have adjacent product portfolios in body electronics and powertrain electronics and that Minda expects synergies and cross selling benefits ahead.