Shareholding Pattern - UNO Minda Ltd.

Promoters 385411394 67.41%

ForeignInstitutions 51444354 9%

NBanksMutualFunds 73130886 12.79%

Others 25296492 4.42%

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.