Hella India Lighting Unlisted Shares

About Company

Hella India Lighting Limited is the Indian arm of HELLA GmbH & Co. KGaA, Germany, a globally renowned automotive lighting and electronics major. HELLA is known for setting international benchmarks in quality, innovation, and customer orientation, supplying to leading vehicle manufacturers across the world.

HELLA entered India in 1959 through a joint venture with JMA Industries, marking over 50 years of presence in the Indian automotive market. In 2005, HELLA ended the JV and established Hella India Lighting Limited as an 81% subsidiary of HELLA Germany.

The company primarily operates in the automotive lighting and allied components space, supplying products to both OEMs (Original Equipment Manufacturers) and the automotive aftermarket. Hella India was delisted in 2015 at an exit price of ₹52.39 per share, which was accepted by shareholders.

Business Model & Operations

Hella India operates on a dual-channel business model:

• OEM Business: Direct supply of automotive lighting and components to vehicle manufacturers such as Maruti Suzuki, Tata Motors, and other OEMs.
• Aftermarket Business: Supply of replacement parts, accessories, chemicals, and lighting products used after the sale of vehicles.

The company manufactures and supplies technologically advanced automotive products, aligning with global HELLA standards, while adapting to Indian market requirements.

Products & Portfolio

Hella India offers a diversified range of automotive products, including:

• Projector Lamps
• LED Lamps
• Auxiliary Lamps
• Automotive Lubricants
• Spark Plugs
• Coolants
• Filters
• Horns
• Bulbs for two-wheelers and commercial vehicles

The product portfolio caters to passenger vehicles, two-wheelers, commercial vehicles, and electric vehicles (EVs).

Manufacturing & Technology

The following outlines Hella India’s manufacturing and technology capabilities:

• Local development and manufacturing of LED headlamps at the Derabassi plant
• First-ever 5.75” LED headlamp developed and manufactured locally
• Capability to support global EV OEMs, including exports facilitated through HELLA’s international sales network

The company leverages HELLA’s global R&D and engineering expertise while maintaining localized production capabilities.

Shareholding Structure

The following explains the ownership structure of Hella India Lighting Limited:

• Hella Holding International GmbH (Germany): 69%
• Hella India Automotive Private Limited: 31%

HELLA Germany remains the ultimate holding company.

Capital & Recent Corporate Actions

The following highlights key capital-related developments:

Equity Share Issuance – August 2023

• Issued 5,52,313 equity shares
• Issue price: ₹986 per share (including premium)
• Allotted to Hella Holding International GmbH
• Total funds raised: ₹54.46 crore
• Purpose: Buying out minority shareholders
• Issuance done pursuant to NCLT-approved Composite Scheme
• Funds currently invested in Fixed Deposits with Deutsche Bank, pending further NCLT directions

Industry Position & Growth Drivers

The following outlines industry trends and growth drivers:

• Strong positioning in automotive lighting, a critical safety and design component
• Entry into EV lighting systems, especially for two-wheelers
• Expanding aftermarket portfolio with filters, lubricants, horns, and accessories
• Recovery potential aligned with the automobile industry cycle

Business Highlights (FY21–22)

The following summarises key operational achievements.

• Entered LED front lighting systems for electric two-wheelers with 5 OEM partnerships
• Successfully launched LED marker lamps for a global EV OEM in the USA
• Expanded aftermarket offerings across multiple categories
• Recognised by Great Place To Work Institute as
  “India’s Best Leaders in Times of Crisis 2021” (Mid-size category)

Financial Review

The following summarises recent financial performance.

• Revenue grew from ₹195 Cr (FY21) to ₹305 Cr (FY22)
• Gross margin stood at ~45% in FY22
• EBITDA increased from ₹17 Cr (FY21) to ₹40 Cr (FY22)
• PAT improved significantly from ₹3 lakh (FY21) to ₹16 Cr (FY22)
• EPS for FY22: ₹50 per share

Indicative Market Capitalisation:

• ₹126 Cr at ₹400 per share

Challenges & Risks

The following outlines key risks associated with the business.:

• High dependence on the automobile industry demand cycles
• Revenue sensitivity to OEM production slowdowns
• Competitive pressure from global and domestic auto component players
• EV transition requires continuous technology upgrades

Promoters & Management

The following lists promoter details:

• Hella Holding International GmbH
• Hella India Automotive Pvt. Ltd.

Quick Summary

This section summarises Hella India Lighting Limited in brief:

• Indian subsidiary of global automotive major HELLA Germany
• Strong presence in OEM and aftermarket automotive lighting
• Early mover in EV lighting solutions
• Significant turnaround in profitability in FY22
• Delisted but actively consolidating promoter ownership