UNO MINDA AFTERMARKET PROJECTIONS

Uno Minda is ready to seize the opportunity, creating a greater pull for its product portfolio. In an upfront session Rakesh Kher, Chief Executive Officer, Aftermarket Division at the company spoke to Ashish Bhatia on the confident run.

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Q. The company continues to grow from strength to strength. Have you sustained your projections of a 12-15 percent CAGR growth?

A. I recall our last conversation and yes the projection stands unchanged from a long-term perspective. Perhaps this year, there was a slight dip in the optics but I think by and large, fundamentally if I were to say, it’s a very strong situation from thereon. This is a positive scope of increasing the revenues and I’m very sure the CAGR will also move into the realm of maintaining and sustaining the double-digit future.

Q. From an Industry TIV standpoint, the aftermarket as a whole is expected to grow from USD 10 bn to USD 14 bn. Are expectations on the right track?

A. As you see the estimated vehicle parc is almost about 340 mn and growing over four to five years (~50 per cent). So we have a vehicle projection there. The last two years, particularly this year have been exceptionally good year for the two-wheeler segment at an all-time high including CV segments like threewheelers where I think the estimates are very realistic. You will see that the vehicle parc will grow rapidly. In the aftermarket, we track these figures and the market closely and expect the vehicle parts universe to increase. We then calibrate our market share increase based on our present market share and what kind of products we are getting from the new models coming in. Overall, I think the estimates are quite accurate and the market can look forward to good times ahead clearly from a sales perspective.