Minda Industries on Friday said that the Brexit agreement between Britain and the European Union (EU) was a positive change as the delay in the decision was affecting its trade in the UK.
"With this change in the Brexit, I am very happy that some decision has been taken. It had been pending since long and was affecting our trade between UK and all," said NK Minda, CMD of Minda Industries.
He said that about 17 percent of the firm's revenue comes from the international market and out of that, 8 percent is from the EU as of now. Out of the 8 percent, about 1-1.5 percent is from the UK.
Minda, however, said that it needs to be seen what kind of custom tariff is going to be there. "Is there any possibility to set up a factory there or to export it from our Spain-based manufacturing company or to acquire some company? It is yet to be seen unless and until the tariff comes,” he said.
Speaking about demand in the European region, he added, “With the recent acquisition, we are hoping to grow. The market is not very promising at this moment but we will take the shares of the other manufacturers on our merit.”
In terms of payment issues in India business, Minda said, “There are no effects from the original equipment manufacturers (OEMs) as of now in the tier-I market. The payment from tier-I to tier-II are under crisis and tier-II is having a lot of pressure at the moment because of the 25-30 percent downturn. So margins are under pressure but some of the newer products which are elated to safety and environments are getting better, values are getting better so with the product mix, we are able to manage our cost controls, our productivity controls and other measures.”