Automotive component manufacturer Spark Minda announced its German subsidiary, Minda KTSN Plastic Solutions (MKTSN), filed for insolvency on June 9.
Spark Minda decided the capital being invested in its German subsidiary would be better used for future business ventures, as well as research and development.
After extensive deliberations pertaining to MKTSN’s current and future cash flow needs, the company’s Board of Directors chose to curb the possibility of additional financial exposure and advised the capital be allocated towards growth and profitable business opportunities, it said in a news release.
The company added that it intends to enhance its EBITDA margin and return on capital employed, which should alter the former by 2pc and the latter by 5pc.
Spark Minda manufactures automotive components, like electronic and mechanical security systems and die casting, and caters to major two-, three-, and four-wheeler, as well as commercial and off-road vehicle, manufacturers in India and abroad.