Professional Documents
Culture Documents
Minda Ost Project Report
Minda Ost Project Report
ON
ORGANIZATION STRUCTURE OF MINDA INDUSTRIES LTD.
1. Organization’s history
2. Mission, objectives and strategies of the organization
3. Profile of the product
4. Organization chart - Design & Structure
5. Policies and procedures followed
6. Functions of various departments and their managers
7. SWOT analysis of the organization
8. System of accounting followed
9. Product promotional measures
10. Career planning and promotion policy of employees
11. Training measures
12. System followed for purchase of materials
13. HRD measures (including welfare measures)
14. Manpower planning
15. Performance appraisal system
16. Financial highlights during the last three years
17. Future plans for growth of the organization
18. Advantages and drawbacks of the organization structure
19. Recommendations to overcome the drawbacks.
20. Modifications, if any, to the organization structure.
MINDA INDUSTRIES LTD.
HISTORY
Minda Industries Limited was incorporated on 16 September 1992 as the flagship company of the Minda
Group. The company is engaged in the business of manufacturing of auto electrical parts and components
including auto electrical parts such as switches lightings batteries and blow moulded products and ancillary
services. The company designs develop and manufactures switches for 2/3 wheelers and off-road vehicles. In
addition, the company manufactures batteries for 2/3/4 wheelers and off-road vehicles. The company enjoys
more than 70% market share in the 2/3-wheeler segment in India and is amongst the top few globally. It has
established 8 state of the art facilities spread across the length & breadth of India and one in the ASEAN region
and employs more than 2800 people. Its products range include Switch 2W/HBA sensors actuators controllers
Switch 4W/HVAC mirrors lighting HLL Motors horns compressed natural gas (CNG)/liquid petroleum gas
(LPG) kits batteries blow molding components wheel covers seat belts seating and systems and cigar lighter. Its
two-wheeler's switches include handle bar system assembly electronic systems brake switch gearshift switch
and modular switch. Its off-road switches include rotary switches starter switches plunger switches and rocker
switches. Its automotive lighting products include tail lamp side indicator lamps headlamps front fog lamp rear
fog lamps warning triangles work lamp and interior lamp. MIL has automotive battery brand Vroom. In April
2011 the Company sold Minda Realty & Infrastructure Ltd. During FY 2014-15 the Company's Lighting
Division at Manesar Haryana expanded its manufacturing capacity for production of Tail Lamp for K-10 Model
for one of its major clients namely Maruti Suzuki India Limited. The said expansion was completed on schedule
and commercial production commenced from the month of September 2014.During the year 2014-15 a joint
venture agreement (JVA) of the company's Battery Division was signed with Panasonic Corporation Japan. As
per the terms of JVA the running business of Battery division will be hived off on or before longstop date of 30
April 2015. In this regard the Board has reviewed and revised the hiving off date from 30 April 2015 to 1 July
2015. In the joint venture the company will be having equity of 40% and the remaining 60% will be held by
Panasonic Group. The necessary approval for hiving off Battery Division was obtained from the shareholders
through Postal Ballot in the month of December 2014. On 29 March 2016 the Company acquired 30%
shareholding in Kosei Minda a manufacturer of Alloy Wheels and other accessories / parts for automobile
industry. On 30 March 2016 the Company acquired 51% shareholdings in Minda TG Rubber a manufacturer of
brake hose fuel hose and their components accessories and fittings. In June 2016 Minda Industries Limited
acquired global lighting business of Spain Based Rinder group (including its facilities in India Spain and
Columbia) for Euro ~20 Million. During the year 3500000 3% Cumulative Redeemable Preference shares of
Rs10 each were redeemed on 20 February 2017 as per the approved terms. During the year equity share of the
company having face value of Rs10 each fully paid-up was sub-divided into 5 Equity shares having face value
of Rs2 each fully paid up with effect from 14 September 2016 being the Record Date. On 3 April 2017 the
Company allotted 7092125 equity shares of Rs2 each to eligible qualified institutional buyers at issue price of
Rs423 per equity share aggregating to Rs999.97 Lacs under QIP.During the year under review the Company has
entered into Joint Venture Agreement on April 27 2017 with Tung Thih Electronic Co. Ltd. Taiwan (TTE) to
design develop and manufacture of Driving Assistance Products and Systems (DAPS) in the shareholding ratio
of 50:50.As on 31 March 2018 the Company has 15 direct subsidiaries 7 step-down subsidiaries and 4 associate
including 2 partnership Arms. In addition to this there are 6 joint venture Companies as on 31 March 2018.
During the FY2018 the Switch division of the company has received the best delivery management award from
HMSI.During the FY2019the Company issued Bonus shares to the shareholders of the Company in the ratio of
2:1 i.e. 2 (two) Bonus Equity Shares of Rs 2 each fully paid up for every 1(one) existing equity share of Rs 2
each fully paid up. The Company allotted 174342310 bonus shares. The Company has 16 direct subsidiaries 8
step down subsidiaries 8 joint ventures and 2 associates as on 31 March 2019. During the year 2018-19 2
subsidiaries 1 step down subsidiary and 2 Joint Ventures were added. During the FY2019the company received
The `Most Promising Company of this Year' award by CNBC TV18 at the Indian Business Leader Awards. The
company also bagged The National Intellectual Property Award for the year 2019 in the category of Top Indian
Company Organization for Designs. The Company has 16 direct subsidiaries 12 step down subsidiaries 8 joint
ventures and 2 associates as on 31 March 2020. During the year under review 4 step down subsidiary were
added. The WHO declared COVID-19 outbreak as a pandemic which continues to spread across the country.
On March 23 2020 the Government of India also declared this pandemic a health emergency and ordered
temporary closure of all non-essential business-imposed restrictions on movement of goods/ materials travel etc.
Accordingly, production was suspended at most of the locations. Pursuant to the Scheme of Amalgamation
(`Scheme') under the provisions of Section 230 to 232 of the Companies Act 2013 for amalgamation of wholly
owned subsidiaries i.e. MJ Casting Limited Minda Distribution and Services Limited Minda Auto Components
Limited and Minda Rinder Private Limited (together referred to as transferor companies) with Minda Industries
Limited (Transferee Company or the Parent Company) as approved by the Hon'ble National Company Law
Tribunal vide its order dated 01 June 2020 with the appointed date of 1 April 2019 all the assets liabilities
reserves and surplus of the transferor companies have been transferred to and vested in the Company with effect
from this date at their carrying values. During the quarter ended 30 June 2020the company made following
investments: I. Additional 10200000 equity shares of Minda Katolec Electronics Services Private Limited a
subsidiary for total consideration of Rs. 10.20 Crore. ii. Incorporated a Company in South Korea namely Minda
Korea Co. Ltd. through its subsidiary which invested an amount of Rs. 0.63 Crore. On 11 August 2020 the
Board of Directors of the Company approved issue of 9711739 fully paid equity shares of face value of Rs. 2
each (the Rights Equity Shares) at a price of Rs. 250 per Rights Equity Share (including premium of Rs. 248 per
Rights Equity Share) in the ratio of 1 Rights Equity Shares for every 27 existing fully-paid shares held by the
eligible equity shareholders as on 17 August 2020 the Record date. During the quarter ended 30 September
2020the company made investment of 13543031 nos. of additional equity shares having face value of Rs. 10/-
each of Minda Onkyo India Private Limited (Joint Venture Company) for a total consideration of Rs. 13.54
Crore representing 50% shareholding. Also made investment of 33460000 nos. of additional equity shares
having face value of Rs. 10/- each of Toyoda Gosei Minda India Private Limited (Joint Venture Company) for a
total consideration of Rs. 33.46 Crore representing 47.80% shareholding. The Board of directors of the
Company in its meeting held on 10 November 2020 accorded its consent for the following: i. Sale of 555753
equity shares (1.10%) in Minda TG Rubber India Private Limited (Subsidiary Company) held by the Company
to Toyoda Gosei Co. Limited. ii. Scheme of merger between Minda TG Rubber India Private Limited
(Transferor Company) with Toyoda Gosei Minda India Private Limited (Transferee Company) subject to
necessary approval(s) of shareholders Creditors and other approvals and sanctions by the National Company
Law Tribunal (NCLT). Appropriate accounting treatment of the Scheme will be done post receipt of NCLT
approval.iii. Investment in Tokai Rika Minda India Private Limited by acquisition of 12.86% equity shares from
Minda Finance Limited. On 15 September 2020 the Rights Issue Committee of the Board of Directors approved
the allotment of Rights Equity Shares in relation to the said Rights Issue and consequently Rights issue shares
were issued during the quarter ended 30 September 2020.During the quarter ended 31 December 2020 the
Company has acquired 22500000 equity shares having face value of Rs. 10/- each in Tokai Rika Minda Private
Limited (TRMIN) for a total consideration of Rs. 22.59 Crores representing 12.86% shareholding. It is
accounted as an Associate Company considering Company's significant influence over TRMIN.
Founder Late Shri Shadi Lal Minda
AWARDS
2012 • Minda Industries Limited - Switch Division received "Best Development Award for Lever
Combination Switch Development" from JCB India.
• Minda Industries Limited - Switch Division received "Quality Management Award" from
Honda.
• Minda Industries Limited - Switch Division received "TPM Excellence Award" from JIPM,
Japan.
• Minda Kyoraku Ltd. received "Silver award for Best supplier FY 2011" from Toyota.
2013 • MIL – Acoustic Division received “Gold Quality Award” from Bajaj Auto Ltd.
• Clarton Horns received Purchasing Diamond Award in the 16th AERCE CONGRESS
which took place in Madrid in June.
• MIL – Lighting Division received “Silver Trophy for Overall Performance” from Maruti
Suzuki India Ltd.
• Mindarika Private Limited, Manesar received “Silver Shield for Local R&D Capability
Development” from Maruti Suzuki India Ltd.
• Minda Industries Limited - Switch Division received "Gold Award for Quality” from India
Yamaha Motors Pvt. Ltd.
• Roki Minda Co. Pvt. Ltd. Received “Gold Award in category of Best Development for 1GC
Air Cleaner Assembly from Indian Yamaha Motors Pvt. Ltd.
2014 • MIL - Switch Div. received INNOVATION AWARD from JCB UK for the ongoing work
on Steer Mode Switch and Media Panel for the year 2013-14.
• MIL - Switch Div. received Best Supplier Award for Consistent Performance in Quality &
Reliability for year 2013-14
• Fujitsu Ten Minda has been certified with appreciation for achieving delivery targets for
2013-14 from TKML
• MRPL, Manesar received Delivery & Quality Rating Shield from MSIL.
• TG Minda received Certificate for special support for Technology Up gradation from MSIL
for the year 2013-14
2015 • MRPL was felicitated with Gold Award in Excellence in Technology in Large Scale
Category.
• MRPL was felicitated with 4th FICCI Quality Systems Excellence Award for
Manufacturing.
2016 • MIL – Switch Division, received ‘Excellence in Quality Award’ from Yamaha Motor India
Pvt. Ltd.
• MIL – Acoustic, recognized for quality and TPM from Bajaj Auto Ltd.
2017 • MIL - Switch Division has won Development Award from HMSI.
• MIL - Lighting & Acoustic Division has Quality Award from Escorts Ltd.
• MIL - Switch Division was awarded the CII Industrial Innovative Awards as among the “25
most innovative Company”.
2018 • Minda Kosei Aluminum Wheel Pvt. Ltd. has won the Special Support Award from MSIL.
• Minda D-ten Pvt. Ltd. has won the Overall Performance and Comprehensive Excellence
Award by MSIL.
• Mindarika Pvt Ltd. has won the Supplier Business Capability Building Award by Mahindra.
• Minda TG Rubber has received the Best Supplier – Quality Award by Toyota.
• MIL - Acoustic Division has won the Quality & TPM Award by Bajaj Auto Ltd.
2019 • The Confederation of Indian Industry (CII) awarded Minda Industries Limited with
“National Intellectual Property (IP) Award in the category of Top Indian Company for
Designs” Award.
• CNBC TV18 awarded Minda Industries Ltd. as the “Most Promising Company of the Year”
at Indian Business Leaders Awards.
• Ernst & Young (EY) awarded Mr. Nirmal K Minda with “EY Entrepreneur of the Year”
award in the Manufacturing Category for FY 2018-19.
• MIL - Lighting Division has won Quality Excellence Award from GM & Toyota.
• MIL - Lighting Division has won Exceptional Support Quality Award from Tata Motors
Ltd.
• MIL - Lighting Division has won Supplier Business Capability Award from HMSI.
• Roki Minda Co. Pvt. Ltd. has won “Best QCDDM Performance” Award by HMSI.
• Minda Kyoraku Ltd. and Minda D-Ten India Pvt. Ltd. has won the Overall Performance
Award by MSIL.
• Minda TG Rubber Pvt. Ltd. and Roki Minda Co. Pvt. Ltd. has won Quality Excellence
Award by MSIL.
• Uno Minda Group has been awarded "The 5th Institute of Company Secretaries of India
(ICSI) CSR Excellence Award" for extraordinary contribution towards CSR, under the
category of The Best Corporate in The Emerging Category
The Institute of Company Secretaries of India (ICSI) National Awards are one of the most
prestigious awards, recognizing & promoting the culture of good governance and the social
responsibility.
• Customers
• Employees
• Suppliers
• Technical collaborators
• Community
• Shareholders
Technology Leadership:
Uno Minda would attain leadership in technology of its products and processes through JV partners, Own R &
D, Contract research and M & A
Employee Care:
UNO MINDA would
• Be a like a family, that employees could relate to and feel that they are a part of it - company and
employees would care for each other at all times.
• Grow its employees so that they are able to realise and unlock their full potential.
Values
• Customer is supreme.
• Live quality.
• Encourage creativity and innovation to drive people process & products.
• Respect for individual.
• Respect for work-place ethics.
• Achieve leadership across key segments and expand existing relationships with OEM
customers into new product areas
We are increasing our product portfolio aimed toward electric powered-cars and intend to emerge as the main
auto-factor participant for diverse additives in electric powered-cars inclusive of smart-plugs, telematics, frame
manipulate modules, DC-DC convertor, battery control gadget and onboard chargers. A few of the
aforementioned merchandise are already in manufacturing, in which we are providing such additives to our
current two-wheeler OEM customers. We are with inside the method of commercializing our different
merchandise and count on that our sales producing product basket catering to electric powered cars will amplify
considerably over the next 12 months. We are in discussions with different main Indian electric powered-
automobile producers for delivery of our merchandise and will constantly compare increasing such services to
our places throughout the globe. Furthermore, we will hold to attention on growing our current product verticals
and enhance the marketplace proportion we revel in our product segments. Our centered tasks toward this
encompass persevered efforts to invest in generation and identifying certified specialists with revel in our
industry. Further, we can hold to paintings with our OEM customers, with whom we consider we've got long-
status relationships and understanding of necessities and preferences, with a purpose to expand and deliver extra
sophisticated, higher-margin merchandise. Skilled R&D groups allow us to deliver new designs and
improvements that we then translate into possibilities via way of means of marketing those to our customers.
We consider that our extensive product portfolio and management in key product segments will assist us in
increasing our proportion of enterprise among our OEM customers.
• Develop innovative products and designs through in-house R&D, joint ventures,
technical collaborations and inorganic acquisitions.
We are focused on retaining and strengthening our technological management via the ongoing improvement of
progressive merchandise, which we consider will permit us to enlarge our varied merchandise portfolio. We
continue to focus on developing and introducing new value-added merchandise into our markets. Through
steady product innovation and studies and improvement, we intend to provide a numerous variety of
merchandise which are new to the marketplace and are progressive in nature. We intend to maintain to innovate
on merchandise and designs and consequently maintain to attempt to gain/ maintain marketplace management
and additionally be the favored choice of the OEMs. We additionally maintain to discover possibilities to
collaborate with worldwide gamers to reinforce the site of our merchandise, beautify our production
capabilities, improve our technological approaches and provide new and varied variety of merchandise to our
customers. Our acquisitions of the worldwide enterprise of Spain primarily based totally Rinder organization
and Clarton Horn, Germany primarily based totally Delvis Group and ISYS RTS GmbH in addition to the
purchase of Harita Seating System Limited (a producer of seating machine in India), illustrate our capacity to
perceive, associate or accumulate and assimilate complementary corporations throughout merchandise and
geographies so as to consolidate our function withinside the car factor enterprise and we maintain to discover
applicable possibilities in our awareness segments. Continue to enhance margins and profitability We goal to
maintain to enhance profitability via way of means of enhancing our product mix, production approaches,
elevating margins that we make on every product we manufacture and thereby gaining fee efficiencies. We
intend to maintain to awareness on sourcing substances maintaining in thoughts the economies of scale and
thereby making sure that we get the nice to be had rate from the nice supplier of uncooked substances. We
additionally continuously goal to perceive possibilities to enforce manufacturing enhancements and commit
studies and improvement sources to beautify manufacturing approaches. We constantly try to enhance scale in
our smaller and newer product segments which must assist enhance the profitability of our Company. We have
undertaken a realignment of enterprise domain names primarily based totally on comparable technology below
one area to pressure synergies among associated corporations. As part of this initiative, we've got targeted on
strengthening our board, realignment of our enterprise verticals to pressure synergy amongst comparable
product and technology. We have recalibrated positive capabilities like procurement, R&D and advertising to
herald elevated manipulate and efficiency.
6. LIGHTING DIVISION
Founded in 1980, Minda Industries Limited - Lighting Division is one of the main automobile lamps producers
in India, growing new era low-cost merchandise for, three, 4-wheeler and off-street vehicles, developing at a
constant fee of 25%CAGR (Compounded annual Growth Rate) consistent with annum. The Lighting
department is one of the main automobile lamp producers in India, with layout facilities and customer service
places of work in Taiwan, Japan and a strategic sourcing unit in China. In addition, the Design Centre is
appearing as an interface among Taiwan providers and software managers, even as additionally sourcing new
providers for layout, simulation, tooling, fixtures, Special Purpose Machines, uncooked cloth and different
parts. In 2016, the Division obtained Spain primarily based totally Rinder Group for a company fee of Euro
20Mn.The acquisition consists of 100% fairness conserving in Rinder India Pvt. Ltd. and Light Systems and
Technical Center, Spain together with 50% fairness conserving in Rinder Riducu, Colombia. This acquisition
establishes Minda Industries Limited as a era chief in lights answers and could in addition increase the R&D
Capabilities of the corporation.
7. CASTING DIVISION
Founded in 2011, MJ Casting Ltd. became a main producer of Die Casting Components in India. MJ Casting
Ltd became merged with Minda Industries Ltd w.e.f from 1st April 2019 as casting division Developing
pinnacle of the road merchandise for 2 wheelers, the agency targets to be a desired and benchmark dealer for
OEMs in all classes of Die Casting merchandise. Going ahead it targets to construct technical self-reliance in
pressure Die Casting, Gravity Die Casting, Low Pressure Die Casting and Squeeze Casting. The agency is
invested with current cutting-edge facility and equipment’s for operations. The production installation is
designed to cater to a quantity of 25,000 engine parts / additives in keeping with day. Casting Division operates
plant life in India one in Rewari, Haryana and the opposite in Hosur close to Bangalore.
PRODUCTS AT A GLANCE
Percentage of total
Market company sales for the
Business Details Customer
share fiscal year ended
March 31, 2021
-Maruti Suzuki
-Renault Nissan
-Mahindra &
Ranked
Providing lighting solutions for Mahindra
third in
motorcycles, tricycles, ATVs, off- -Royal Enfield
India with
road and aftermarket markets -Yamaha
the
Lighting -Acquired Spain's Rinder Group in -Tata Group 22%
acquisition
2016 -Suzuki
of Spain's
-Acquired Delvis, an automotive -Swaraj Mazda
Rinder
lighting solutions company, in 2020 -New Holland
Group
-Bajaj Triumph
-KTM
-Isuzu
-Bajaj
-Honda
Motorcycles
-Hero MotoCorp Ranked
Mainly manufactures switch systems
-Royal Enfield first in
and handlebar assemblies for
-Yamaha Motors India for
motorcycles and tricycles.
-Piaggio two-
Switches For automobiles, the company 29%
-Maruti Suzuki wheeled
supplies products through a joint
-Toyota and four-
venture with Tokai Rika (Mindarika
-MSIL wheeled
Private Limited).
-Tata Group vehicles
-Mahindra &
Mahindra
-Hyundai
-Maruti Suzuki
-Renault
Manufactures horns for motorcycles, -Nissan
No. 1 in
automobiles, off-road and -Tata Motors
India and
commercial vehicles -Bajaj Auto Limited
Acoustics No. 2 10%
-Acquired Clarton Horns, a Spanish -Honda
globally for
manufacturer of electronic horns for Motorcycles and
horns
automobiles, in 2013 Scooters
-Hyundai
-Royal Enfield
-TVS No. 1 in
-Royal Enfield India for
Merged with Harita Seating Systems
-TAFE commercial
Seats Limited (HSSL) to expand the 10%
-Daimler vehicles,
business field of automobile seats.
-John Deere buses and
-TATA motorcycles
Start-stop sensors, contact and non-
contact type speed sensors, TPMS
(Tyre Pressure Monitoring System),
EAPM (Electronic Accelerator Pedal
Others Module), DC-DC converters, - - 17%
headlight leveling motor, blow
molding, fuel caps, air filters, air
bags, CNG and LPG kits, speakers,
and infotainment, among others.
ORGANIZATIONAL STRUCTURE
Meaning Of Organization Structure:
The pattern of organizational hierarchy based on authority responsibility relationship is known as organizational
structure.
"Organization Structure is more than a chart," says Lounsbury Fish. It is the mechanism by which management
directs, coordinates, and controls the operation. It is the bedrock of management."
One of the forces influencing an organization's goal is its structure. It is created in such a way that it can be used
to achieve a social goal. The extent to which an organization can achieve its goals is heavily influenced by its
structure.
So, at the initial stage, a structure is created to give shape to a tentative idea. Because the organization is small,
the structure is very simple at first. As the organization grows in size, it becomes more complex, necessitating
planning and a systematic approach.
Corporate History
The Company became integrated as ‘Minda Industries Limited’ below the Companies Act, 1956 vide a
certificate of incorporation dated September 16, 1992 issued via way of means of the Registrar Companies,
Delhi & Haryana and obtained its certificates of commencement of enterprise on November 3, 1992 below the
Companies Act, 1956.
Organizational Structure
UNO MINDA Group has a structured orientation for its different verticals grouped under specific domains, in
accordance with prevailing trends in global auto components ancillary industries.
This assists businesses in systematizing their operations for more effective and efficient execution. This
segregated and proactive approach evolves into a more productive business module by creating a dynamic
business environment.
Greater business opportunities and better strategies result in a higher revenue model; the Group realigns its
verticals into independent profit centers, marking the progression to this nimble approach.
As of the date of this Placement Document, the company has 24 Subsidiaries, 11 Joint Ventures and 6
Associates, details of which are as follows:
List of Subsidiaries and stepdown subsidiaries:
1. Minda Storage Batteries Private Limited
2. Minda Katolec Electronics Services Private Limited
3. Mindarika Private Limited
4. Minda Kosei Aluminum Wheels Private Limited
5. Minda Kyoraku Limited
6. YA Auto Industries (Partnership Firm)
7. iSYS RTS GmbH, Germany
8. PT Minda Asean Automotive, Indonesia
(a) PT Minda Trading, Indonesia
9. MI Torica India Private Limited
(a) MITIL Polymers Private Limited
10. Harita Fehrer Limited
11. SAM Global Pte Ltd, Singapore
(a) Minda Industries Vietnam Co. Limited, Vietnam
(b) Minda Delvis GmbH, Germany
(c) Delvis Solutions GmbH, Germany
(d) Delvis Products GmbH, Germany
(e) Minda Korea Co., Ltd, South Korea
12. Global Mazinkert S.L., Spain
(a) Clarton Hom, Spain
(b) Clarton Hom S. De R.L. De C.V., Mexico
(c) Clarton Hom Marco SRL, Morocco*
(d) CH Signalkoustic GmbH, Germany*
(e) Light & Systems Technical Center S.L., Spain
Mindarika Private Limited and Minda Kosei Aluminum Wheel Private Limited, have been classified as the
Material 133 Subsidiaries of the Company for the financial year ended March 31, 2021.
List of Joint Ventures
1. Minda Westport Technologies Limited (formerly known as Minda Emer Technologies Limited)
2. Rinder Riduco, S.A.S. Columbia
3. ROKI Minda Co. Pvt. Ltd.
4. Minda TTE DAPS Private Limited
5. Minda Onkyo India Private Limited
6. Minda TG Rubber Private Limited
7. Denso Ten Minda India Private Limited
8. Minda D-Ten India Private Limited
9. Toyoda Gosei Minda India Pvt. Limited
10. Kosei Minda Mould Private Limited
11. Tokai Rika Minda India Private Limited
➢ QUALITY POLICY
Quality must be prioritized to ensure market competitiveness and the supply of cost-effective products to
customers.
This will be reflected in our commitments, actions, products, and services to our internal and external
customers.
To accomplish this, we will create an environment that encourages all of our employees and suppliers to prevent
defects and strive for excellence.
➢ ENVIRONMENTAL POLICY
As a responsible corporate citizen, Minda is dedicated to environmental conservation and has prioritized
environmental protection by:
• Constantly improving the environmental performance of our processes and products, as well as ensuring
pollution prevention at all stages.
• Adherence to all applicable environmental legislation and standards.
• Ensuring efficient use of resources such as energy, fuels, oils, paints, chemicals, water, and so on.
• Waste and packaging material reduction and recycling
• Promoting the use of environmentally friendly technologies to aid in the removal of hazardous materials.
➢ SAFETY POLICY
As a responsible corporate citizen, Minda Group is committed to the safety and health of its employees and
those who may be affected by its operations.
To fulfil this commitment, our policy is to
• Incorporate safety and health measures into all of our activities.
• Comply with all applicable legal and other obligations to which the Organization is bound.
• Raise awareness of safety and health among employees, suppliers and contractors, customers and dealers.
• Constantly improve safety performance through precautions as well as employee participation and training.
The safety policy must be communicated to all employees as well as made available to all interested parties and
the general public.
➢ MATERIAL POLICY
• To develop and nurture a minimum number of high-quality vendors in each category who, through high
productivity and low PPM levels, maintain a high level of cost competitiveness.
• Encourage "Direct On-Line Suppliers" to keep inventories low, and
• To continuously improve manufacturing flexibility through the use of Just-in-time techniques such as the
Kanban system in order to meet customer requirements in the shortest possible time.
FUNCTIONS OF VARIOUS DEPARTMENTS
The different functions or departments of an organization have different roles and duties, which are all aimed at
achieving the overall objectives of the organization. The key functions of each department are explained below:
a) Production Department
• Manufacturing goods for the business to create value for the customer
• Designing goods and services to meet the needs of the customer
• Controlling the production processes involving inputs and processes to create outputs – turning raw
materials into finished products
• Implementing changes to existing products to improve them
• Producing goods at low costs to increase profit margins
• Proper maintenance of equipment and machines in the production process
d) Marketing Department
• Establishing distribution channels of the organization – how products and services are delivered to
customers.
• Identifying marketing strategies to promote the organization such as advertising through TV, digital
marketing, publicity, etc.
• Communicating and responding to requests and concerns of customers
• Carrying out market research – gathering information about customers, their needs, competitors, and
overall market suitability
• Determining prices of products and services
• Carrying out sales forecast and strategy to improve sales e.g. through personal selling.
• Determining staffing needs in the organization – carrying out job analysis and developing job
descriptions and specifications.
• Hiring and recruiting employees to fill open positions in the organization
• Maintaining employee relations through negotiations, motivation, improving working conditions, and
rewarding good performance
• Managing conflicts and administering grievance procedures and disciplinary action.
• Managing employees’ health and safety
• Administering employee redundancy and separation procedures
SWOT ANALYSIS
1. Strengths of Minda Industries
• Effective Research and Development (R&D)
– Minda Industries has innovation driven culture where significant part of the revenues are spent on the
research and development activities. This has resulted in – Minda Industries staying ahead in the Auto
& Truck Parts industry in terms of – new product launches, superior customer experience, highly
competitive pricing strategies, and great returns to the shareholders.
• Analytics focus
– Minda Industries is putting a lot of focus on utilizing the power of analytics in business decision
making. This has put it among the leading players in the Auto & Truck Parts industry. The technology
infrastructure of India is also helping it to harness the power of analytics for – marketing optimization,
demand forecasting, customer relationship management, inventory management, information sharing
across the value chain etc.
• Organizational Resilience of Minda Industries
– The covid-19 pandemic has put organizational resilience at the centre of everthing Minda Industries
does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological
Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
• Diverse revenue streams
– Minda Industries is present in almost all the verticals within the Auto & Truck Parts industry. This has
provided Minda Industries a diverse revenue stream that has helped it to survive disruptions such as
global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
• Low bargaining power of suppliers
– Suppliers of Minda Industries in the Consumer Cyclical sector have low bargaining power. Minda
Industries has further diversified its suppliers portfolio by building a robust supply chain across various
countries. This helps Minda Industries to manage not only supply disruptions but also source products
at highly competitive prices.
• Cross disciplinary teams
– Horizontal connected teams at the Minda Industries are driving operational speed, building greater
agility, and keeping the organization nimble to compete with new competitors. It helps are organization
to ideate new ideas, and execute them swiftly in the marketplace.
• Operational resilience
– The operational resilience strategy of Minda Industries comprises – understanding the underlying the
factors in the Auto & Truck Parts industry, building diversified operations across different geographies
so that disruption in one part of the world doesn’t impact the overall performance of the firm, and
integrating the various business operations and processes through its digital transformation drive.
• Innovation driven organization
– Minda Industries is one of the most innovative firm in Auto & Truck Parts sector.
• Superior customer experience
– The customer experience strategy of Minda Industries in Auto & Truck Parts industry is based on four
key concepts – personalization, simplification of complex needs, prompt response, and continuous
engagement.
• Digital Transformation in Auto & Truck Parts industry
- digital transformation varies from industry to industry. For Minda Industries digital transformation
journey comprises differing goals based on market maturity, customer technology acceptance, and
organizational culture. Minda Industries has successfully integrated the four key components of digital
transformation – digital integration in processes, digital integration in marketing and customer
relationship management, digital integration into the value chain, and using technology to explore new
products and market opportunities.
• Successful track record of launching new products
– Minda Industries has launched numerous new products in last few years, keeping in mind evolving
customer preferences and competitive pressures. Minda Industries has effective processes in place that
helps in exploring new product needs, doing quick pilot testing, and then launching the products
quickly using its extensive distribution network.
• Ability to recruit top talent
– Minda Industries is one of the leading players in the Auto & Truck Parts industry in India. It is in a
position to attract the best talent available in India. The firm has a robust talent identification program
that helps in identifying the brightest.
– Minda Industries can face lack of demand in the market place because of Fed actions to reduce
inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher
borrowing costs, and consolidation in the Auto & Truck Parts industry.
SYSTEM OF ACCOUNTING
The firm prepares its accounts on accrual basis except otherwise stated in accordance with normally accepted
accounting principles.
Accounting policies adopted during the year are in line with Indian Accounting Standards (Ind AS).
• Depreciation/amortization
Depreciation/amortization for the year has been provided for on reducing balance methods at the rates
specified under the Income Tax Act/Rules.
• Inventories
Inventories which comprise raw materials, work-in-progress, finished goods and stores and spares are
carried at the lower of cost and net realizable value.
Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in
bringing the inventories to their present location and condition.
In determining the cost, First in First out (FIFO) method is used. In the case of manufactured
inventories and work in progress, fixed production overheads are allocated on the basis of normal
capacity of production facilities.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and the estimated costs necessary to make the sale.
The net realizable value of work-in-progress is determined with reference to the selling prices of related
finished products. Raw materials and other supplies held for use in the production of finished products
are not written down below cost except in cases where material prices have declined and it is estimated
that the cost of the finished products will exceed their net realizable value.
The comparison of cost and net realizable value is made on an item-by-item basis.
Inventories in transit are valued at cost.
Appropriate adjustments are made to the carrying value of damaged, slow moving and obsolete
inventories based on management’s current best estimate.
• Revenue recognition
. Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the
consideration received or receivable, net of returns rejection, trade discounts and volume rebates. The
amount recognized as revenue is exclusive of goods & service tax (GST). Revenue is recognized when
the significant risks and rewards of ownership have been transferred to the buyer.
. Designing fees and service revenue is recognized on an accrual basis as and when the services are
rendered in accordance with the terms of the underlying contract.
• Purchases
Purchase is stated inclusive of freight and net of returns, rejection and discount.
• Borrowing cost
Borrowing costs are interest and other costs incurred in connection with the borrowing of funds,
Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a
substantial period of time to get ready for their intended use are capitalized as part of the cost of that
asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.
• Income tax
The provision of income tax is based on the amount expected to be paid to the tax authorities in
accordance with Income Tax Act/Rules.
• Provision for Leave Encashment and Gratuity
Provision for Leave Encashment and Gratuity has been made on the Actuarial Valuation report
obtained from the approved valuer.
1. PERSONAL SELLING
Personal selling is a person-to-person dialogue between buyer and seller where the purpose of the interaction,
whether face-to-face or over the phone, is to persuade the buyer to accept a point of view or to convince the
buyer to take a specific course of action. However, in some situations, this method is quite expensive to employ.
2. ADVERTISING
Advertising is an action by a firm to promote sales of its products, the basic aim being to increase the number of
customers who prefer its products to those of its competitors. Advertising can be used to inform consumers of
the existence and location of the product(s) to which it is directed. It can also influence the nature of consumers'
preference to the benefit of the firm's products.
3. PUBLICITY
Publicity is similar to advertising but involves an unpaid and unsigned message, even though it may use the
same mass media as advertising. When information about a product is consid-ered newsworthy, mass media
tend to communicate such information free of cost. Thus, the organization being publicized neither signs nor
pays for the message.
4. SALES PROMOTION
Sales promotion is defined as activities other than personal selling, advertising and publicity that are intended to
stimulate customer purchase or dealer effectiveness in a specific time period. The main purpose of sales
promotion is to achieve short-term objectives.
5. PUBLIC RELATIONS
Public relations is the deliberate, planned and sustained effort to establish and maintain mutual understanding
between an organization and its public. Fostering good public relations now plays a very important role in sales
promotion. Even relatively minor incidents, such as an impolite representative or unhelpful telephone operator,
can destroy the public image.
The company's marketing begins with development and engineering teams which work closely with
customers or prospective customers to design products tailored to meet their needs. Based on the
credentials and recognitions awarded to them by their existing customers, they approach new customers
for the business. Its strong relationships with customers as well as strategy to cross-sell the products to
existing customers enable them to market their products with limited expenditure on marketing and
brand building.
PROMOTION POLICIES OF EMPLOYEES
➢ RECRUITMENT
Because of our rapid development, we require a large number of people who are well qualified and trained to
keep up with our business needs. We recruit young talent from campuses and train them to meet the
organization's needs. We hire from the best Engineering Colleges, Polytechnics, ICAI, ICSI, and Business
Schools. Each new hire receives systematic, rigorous on-the-job training.
➢ INDUCTION
Anyone who joins the organization must go through a rigorous induction programme at UNO MINDA's
dedicated Centralized Training Center known as "Pathshala." The programme focuses on the values, culture,
systems, and practices of organizations. Employees are certified upon successful induction.
➢ TALENT MANAGEMENT
At UNO MINDA, NK Minda Group, talent management is a systematic effort to identify and develop internal
talent to meet current and future business needs. We believe in Workforce Planning and forecast our human
capital requirements ahead of time so that we have a talented and trained pool of human resources available for
all strategic business projects.
➢ TRAINING
We believe in the growth and development of our employees. Employee training needs are identified through
performance appraisals and skill mapping. We have created very strong programmes with the explicit goal of
making UNO MINDA, NK Minda Group a leader in the auto components industry.
➢ SKILL DEVELOPMENT
In UNO MINDA, NK Minda Group, skill development is a continuous and focused endeavour. Functional
Skills have been defined as part of Skill Development, and each employee is regularly assessed on these skills.
These abilities are improved by providing training and direction.
TRAINING
Definition of Training:
Dale S. Beach defines training as ‘the organized procedure by which people learn knowledge and/or skill for a
definite purpose’. Training refers to the teaching and learning activities carried on for the primary purpose of
helping members of an organization acquire and apply the knowledge, skills, abilities, and attitudes needed by a
particular job and organization.
Employee and manager training is critical in this ever-changing environment. It is an important HRD activity
that aids in the development of employees' competencies. Employees benefit from training in a variety of ways,
including increased efficiency and effectiveness, self-confidence development, and assistance with self-
management.
The organization's stability and progress are always dependent on the training provided to its employees. Every
step of expansion and diversification necessitates training. Only training can improve quality and reduce waste.
Training and development are also critical for adapting to changing environments.
UNO MINDA has established its own training academy, Pathshala, to develop empowered people and
leaders who strive for excellence in everything they do. Pathshala provides ongoing education and training to all
new and existing employees.
The topics range from behavioural to technical, with the most popular being the 'Minda Way' session, in which
we motivate everyone to see a connection between their daily operations and the company's vision. Most people
leave with a stronger commitment to the company's goals. We can proudly state that after our sessions, trainees
want to work rather than have to work. We also have a fully operational practical skill center where people can
'Do and Learn,' which is a learning experience that will last a lifetime. We believe that the best way to learn is
through experience.
PURCHASING SYSTEMS OF MATERIALS
Purchasing of materials refers to the procurement of materials for a price. It is usually handled by a specific
department (e.g., purchase manager in the procurement department), particularly in large companies.
Purchasing is a critically important and specialized activity in manufacturing companies. Materials account for
a considerable portion of production costs. As such, the purchase manager in such a business is responsible for
spending more of its money than anyone else.
Any errors on the part of the purchase manager, therefore, may be extremely expensive. Furthermore,
purchasing sub-standard materials will undermine product quality, cause wastage, and lead to costly machine
breakdowns.
Hence, it is fundamentally important to ensure that the function of purchasing materials is performed
effectively, efficiently, and economically.
The purchasing systems are: 1. Forward Buying 2. Tender Buying 3. Blanket Order 4. Zero Stock 5. Rate
Control 6. Reciprocity 7. System Contract.
1. FORWARD BUYING
This is not the same as speculative buying. This special purchasing system commits an organization to a long-
term commitment, usually for a year. The terms of such forward purchasing are determined by the availability
of materials, financial policies, the economic order quantity, quantitative discounts, and staggered delivery.
2. TENDER BUYING
This type of special purchasing is typically undertaken by government departments and public sector enterprises
in order to avoid favoritism and corruption.
Tenders are accepted and opened by authorized personnel, and the lowest tender is accepted if all other
conditions are met. As a result, the process of such a purchase entail creating a bidder's list, soliciting bids,
evaluating bids by comparing quotations, and placing the order with the lowest bidder.
The public sector generally solicits tenders through newspaper advertisements, whereas private organizations
only buy from established suppliers.
3. BLANKET ORDER
It is an agreement for a set number of specified items to be delivered over a set period of time at a set price.
This saves money and frees the buyer from routine tasks. It also reduces clerical work due to fewer purchase
orders.
The blanket order purchasing system allows for the grouping of requirements and lower prices through quantity
discounts. The supplier also benefits. He incurs no selling costs.
6. RECIPROCITY
This implies preferring to buy from one's customers over others.
The guiding principles are "if you kill my cat, I will kill your dog" and "do unto your customers as you would
have them do unto you." Other things being equal, reciprocity principles apply. In this purchasing system, there
is scope and possibility for less efficient manufacturers and distribution to gain if the purchasing executive
engages in reciprocity on his own initiative, even with the supplier on terms and conditions that are not equal
with other suppliers. Reciprocity buying should be used sparingly because it discourages competition and leads
to higher prices and fewer suppliers.
7. SYSTEM CONTRACT
The original indent is shipped back with the items in this system. It is always a simple contract. It avoids the
usual documents such as purchase orders, materials requisitions, expediting letters and acknowledgment, goods
in words report, and so on.
Administrative costs are reduced for both the buyer and the seller, and suitable contracts are ensured. Such a
contract system only covers the delivery period, price, and invoicing procedure. Buyers are relieved of routine
tasks in such a system.
1. Learning: Learning is at the heart of HRD. HRD's main goal is to help employees gain knowledge, learn new
concepts, and improve existing abilities. HRD's main goal is to improve the quality of the workforce by
establishing an atmosphere that encourages continuous learning.
2. Specific Duration: Any HRD program would have a set time limit. It may be for a short, medium, or extended
period.
3. Career Development: HRD assists individuals in their professional development by aligning employee traits
to work needs. Individual employee growth and development are key to the organization's success.
4. Organizational Development: HRD is concerned with the company's advancement, not only the
development of human resources. Positive improvements are made to the workplace culture, practices, and
organizational structure.
5. Improves Performance: As a result of HRD, employee performance improves. The training programs
enhance employees' competencies and productivity.
6. Employee Welfare: To facilitate HRD, the organization tries to give all necessary amenities for the workers'
physical and mental well-being. Employee benefits include, among other things, canteens, a crèche, and
medical insurance.
7. Long-Term Benefits: HRD is a notion that looks to the future. HRD's effects are only noticeable after some
time has passed since it was implemented. However, it will help both the person and the company in the long
run.
8. Continuous Process: HRD is a never-ending process. Various HRD programs will be established in the firm
in response to changes in the workplace. To adapt to changes in the environment, human behavior must be
watched constantly.
9. Development of Team Spirit: HRD promotes a healthy work environment that encourages collaboration and
teamwork across various groups and departments. Employees must have a feeling of commitment and
belonging. Therefore, team spirit is essential.
2. Employee Training:
The HRD's next task is to provide appropriate training to its employees or workers. Training is regarded as the
foundation of good human resource management. Training enhances an employee's knowledge and abilities to
perform a specific job. Personnel should be trained methodically and scientifically if they are to perform their
duties successfully and efficiently.
3. Leadership Development:
Another important role of HRD is to facilitate executive development within the organization. Executive
development is a programme that helps executives achieve their goals. The programme must be linked to the
development of various interconnected concerns, variables, and needs.
MANPOWER PLANNING
WHAT IS MANPOWER PLANNING?
The definition of manpower planning is straightforward and simple. "It entails assigning the right people to the
right jobs at the right time." The essence is to collaborate or work alone to achieve the organization's goals."
Human resource planning is another name for manpower planning. Another meaning of this term is
estimating the number of people required to complete specific tasks within a given time frame.
- Allows businesses to recognize the importance of human capital in the success of their operations.
- It assists in addressing high labour costs by identifying situations such as overstaffing and understaffing.
• Human Resources typically facilitates the assessment process by assisting managers and supervisors in
conducting individual appraisals within their departments.
• A method of evaluation should be developed.
• Each employee's required competencies and job expectations must be written down.
• Employee performance is evaluated on an individual basis.
• A one-on-one interview between the manager and the employee is planned to discuss the review.
• Future objectives should be discussed between the employee and the manager.
• The performance review is archived in a signed-off version.
• Human resources use appraisal information for appropriate organizational purposes such as reporting,
promotions, bonuses, and succession planning.
Preparation of performance appraisal forms by Human Resource Development department (showing all major
tasks)
Joint settlement of key tasks/result areas through discussions between concerned HOD and respective
subordinate
Reviewal of performance by appraiser (how well it is achieved and what are the short comings)
Checking of forms and deciding any addition/deletion in the major task for the next quarter in consultation with
HOD
REWARDS SYSTEM
1. Employee Suggestion Program
The company's suggestion scheme is well defined and documented. The goal of the suggestion scheme is to use
employees' talents for the development of the organization as well as the development of the employee.
The Kaizen scheme is also in use in the company under TPM policy.
2. Unit of Attendance Reward
Every year, the unit head awards the best attendance award to employees based on their attendance in the
previous calendar year.
3. Safety Award Program
The company uses this award scheme to keep employee safety awareness in high gear.
1) Award for best safety essay
2) Award for best safety slogan
3) Award for best safety poster
FINANCIAL HIGHLIGHTS
MINDA INDUSTRIES LTD. CONSOLIDATED INCOME STATEMENT
------------ Figures in cr. (₹) -----------
Mar 22 Mar 21 Mar 20 Mar 19
12 mths 12 mths 12 mths 12 mths
INCOME
Revenue From Operations [Gross] 8,313.00 6,283.35 5,401.17 5,853.29
Less: Excise/Service Tax/Other Levies 0.00 0.00 0.00 0.00
Revenue From Operations [Net] 8,313.00 6,283.35 5,401.17 5,853.29
Other Operating Revenues 0.00 90.39 63.97 54.80
Total Operating Revenues 8,313.00 6,373.74 5,465.14 5,908.09
Other Income 62.94 47.03 39.25 27.03
Total Revenue 8,375.94 6,420.77 5,504.39 5,935.12
EXPENSES
Cost Of Materials Consumed 4,347.89 3,456.43 2,693.26 3,100.03
Purchase Of Stock-In Trade 1,005.31 528.76 605.06 558.72
Changes In Inventories Of FG, WIP And
Stock-In Trade -81.20 -65.90 -14.18 -36.27
Employee Benefit Expenses 1,206.51 981.69 846.77 791.29
Finance Costs 62.32 73.65 90.21 63.15
Depreciation And Amortization Expenses 391.75 375.30 301.90 234.38
Other Expenses 949.10 747.77 715.06 769.14
Total Expenses 7,881.68 6,097.70 5,238.08 5,480.44
Profit/Loss Before Exceptional,
Extraordinary Items and Tax 494.26 323.07 266.31 454.68
Exceptional Items 0.00 1.73 -14.07 0.00
Profit/Loss Before Tax 494.26 324.80 252.24 454.68
Tax Expenses-Continued Operations
Current Tax 146.78 98.29 88.66 115.47
Deferred Tax 0.00 2.24 -11.16 18.60
Total Tax Expenses 146.78 100.53 77.50 134.07
Profit/Loss After Tax and Before
Extraordinary Items 347.48 224.27 174.74 320.61
Profit/Loss from Continuing
Operations 347.48 224.27 174.74 320.61
Profit/Loss For The Period 347.48 224.27 174.74 320.61
Minority Interest -57.34 -41.81 -32.76 -53.86
Share Of Profit/Loss Of Associates 65.16 24.17 12.97 18.87
Consolidated Profit/Loss After MI And
Associates 355.30 206.63 154.95 285.62
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 13.00 8.00 6.00 11.00
Diluted EPS (Rs.) 13.00 7.00 6.00 11.00
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0 9.52 10.49 25.78
Tax On Dividend 0 0 5.42 5.1
MINDA INDUSTRIES LTD. CONSOLIDATED BALANCE SHEET
------------ Figures in cr. (₹) ---------
These disadvantages can be mitigated by careful planning and supervisory efforts to respond to human
problems caused by formal organizational structures.
2. Arrange a meeting:
Arrange a meeting with the employees and other members of the company's upper hierarchy to discuss the
organizational structure change you want.
You can expect feedback from them after explaining the situation, and you will be appreciated if your plan is
worth following.
3. Teamwork is required:
This type of work necessitates teamwork, and in order to form a team, you must work collaboratively with all
employees. It is not easy to change the entire structure of an organization by yourself.
It is one of the most important decisions a company can make. Taking such a step also necessitates considerable
effort.
7. Demonstrate it:
You will be considered true only when some result is shown to the employees, so you must demonstrate any
good examples.
Instead of just saying, you'll have to do here. Your verbal conversations and written plans should become
reality, so that the company and organization can see the reaction and action of the plan.
REFERENCES
https://www.unominda.com/
https://www.business-standard.com/company/minda-industries-12295/information/company-history
https://www.thehindubusinessline.com/companies/uno-minda-lines-up-400-crore-capex-may-increase-airbag-
output/article65203620.ece
https://bizfluent.com/way-5207414-recommendations-improving-organization-s-structure.html
https://www.yourarticlelibrary.com/office-management/organisation-structure/organization-structure-nature-
advantages-and-demerits/70249
https://pdfeducation.com/functions-of-various-departments-in-an-organization/
https://www.moneycontrol.com/financials/mindaindustries/consolidated-balance-sheetVI/MI4#MI4
https://www.moneycontrol.com/financials/mindaindustries/profit-lossVI/MI4#MI4
https://www.moneycontrol.com/financials/mindaindustries/cash-flowVI/MI4#MI4
https://www.moneycontrol.com/financials/mindaindustries/ratiosVI/MI4#MI4