NDR Auto Components Limited , a key player in the automotive components sector, has announced a series of strategic decisions aimed at expanding its manufacturing capabilities and strengthening its corporate infrastructure.

New Manufacturing Facility in Andhra Pradesh

The company's Board of Directors has approved the establishment of a new manufacturing facility in Anantapur, Andhra Pradesh. This ambitious project, with an estimated investment of Rs 27.29 crore, is set to be implemented over the next two financial years. The facility will focus on producing frame structures for 5-seater cars, with a capacity of 50,000 sets, and seat covers for 7-seater cars, with a capacity of 78,000 sets.

Incorporation of Wholly-Owned Subsidiary

To operate this new facility, NDR Auto Components will incorporate a wholly-owned subsidiary named "NDR Auto Components South Private Limited" or a similar name as approved by the Registrar of Companies. The subsidiary will be established with an initial paid-up share capital of Rs 1.00 crore.

Expansion Timeline and Financing

The company aims to have the new manufacturing facility operational by August 2026. The project will be financed through a combination of equity and loans provided by the holding company, utilizing both internal accruals and term loans.

New Corporate Office Space

NDR Auto Components has entered into a Space/Sub-License Agreement with Aria Hotels and Consultancy Services Private Limited. The agreement secures 7,500 square feet of super built-up area in the Aria Signature Office at JW Marriott Hotel, Aerocity, New Delhi. The total consideration for this prime office space is Rs 11.25 crore, with the agreement extending up to May 2066.

CSR Initiative

The Board has also approved the creation of a Corporate Social Responsibility (CSR) Trust in association with Bharat Seats Limited, an associate group company. This initiative aligns with the provisions of Section 135 of the Companies Act, 2013, and underscores the company's commitment to social responsibility.

Financial Performance

NDR Auto Components reported its unaudited standalone and consolidated financial results for the quarter ended June 30. The Board noted that the Limited Review Report from auditors contained no qualifications or adverse remarks, indicating a clean financial record for the quarter.

These strategic decisions reflect NDR Auto Components' commitment to growth, expansion, and corporate responsibility in the automotive components sector. The new manufacturing facility in Andhra Pradesh is poised to significantly enhance the company's production capabilities in frame structures and seat covers for the automotive industry.

As NDR Auto Components Limited embarks on this expansion journey, the automotive industry will be watching closely to see how these investments translate into market growth and technological advancements in the coming years.

NDR Auto Components Limited has reported robust financial results for the first quarter, alongside ambitious expansion plans that include setting up a new manufacturing facility through a wholly-owned subsidiary.

Q1 Financial Highlights

NDR Auto delivered improved quarterly results, with revenue rising to ₹1.85 billion compared to ₹1.70 billion in the same period last year. The company's EBITDA increased to ₹223.00 million from ₹187.00 million year-over-year, while the EBITDA margin expanded to 12.03% from 10.90%. Notably, the consolidated net profit grew to ₹136.00 million versus ₹115.00 million in the prior year period.

Expansion Plans

The company's Board of Directors, in a meeting held on August 11, approved several strategic initiatives:

1. New Manufacturing Facility: NDR Auto plans to set up a manufacturing facility for frame structures, seat covers (trims), and other automotive components in Anantapur, Andhra Pradesh. The project, with an estimated investment of ₹27.29 crore, will be implemented over two financial years through a wholly-owned subsidiary.

2. Subsidiary Incorporation: The Board approved the incorporation of a 100% subsidiary, tentatively named "NDR Auto Components South Private Limited," to manage the new manufacturing project. The subsidiary is expected to be incorporated by November with an initial paid-up share capital of ₹1.00 crore.

3. Production Capacity: The new facility aims to produce 50,000 sets of frames for 5-seater cars and 78,000 sets of seat covers for 7-seater cars.

Corporate Office Relocation

In preparation for future growth, NDR Auto has approved entering into a Space/Sub-License Agreement with Aria Hotels and Consultancy Services Private Limited for commercial office space. The new office will be located at Aria Signature Office, JW Marriott Hotel, Aerocity, New Delhi. The agreement covers 7,500 square feet of super built-up area and 15 reserved car parking spaces in Basement-2, with a total consideration of ₹11.25 crore plus periodic payments.

CSR Initiative

The Board has also approved the creation of a CSR Trust in association with Bharat Seats Limited, an associate group company, to undertake corporate social responsibility activities as per the Companies Act, 2013.

These developments signify NDR Auto's commitment to growth and expansion in the automotive components sector, while also focusing on corporate governance and social responsibility.