Minda Corporation will invest close to Rs2.70bn ($28.2m) to build a new manufacturing facility in Pune, Maharashtra, to produce thin film transistor (TFT) displays for automotive use, executive director Aakash Minda told CNBC.
The project has secured approval under the Indian government’s Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors.
According to the report, it is designed to cut the company’s reliance on imported displays while strengthening its manufacturing presence within India.
At the outset, the plant will concentrate on automotive displays for instrument clusters, infotainment systems and cockpits.
Minda already produces clusters and other display-related components and intends to supply the displays made at the new facility to its own operations alongside external customers.
TFT makes up roughly 40-45% of the bill of materials in an automotive display module, and the majority of such displays are presently sourced from abroad.
Minda’s approach will begin with localising the assembly stage, before progressively bringing more components into domestic production.
A finished display module includes the TFT, backlight assembly, cover glass and other related processes, positioning the company to produce displays for internal use as well as full modules for automakers.
“The objective is to focus on complete, deep localisation and backward integration,” Aakash was quoted as saying.
He added that products designed, developed and manufactured locally are likely to strengthen the company’s competitive position and support future business growth.
Aakash also pointed to potential opportunities in international markets over time, though the company’s near-term priority remains building capability, capacity and expertise within India while serving domestic demand.
Exports, he said, will be explored only once the business is established domestically, pointing to what he called a “huge opportunity” in overseas markets.
“India’s Minda to invest Rs2.70bn for automotive TFT displays – report” was originally created and published by Just Auto, a GlobalData owned brand.