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Uno Minda secures large land parcel in IMT Kharkhoda, initiates Groundbreaking Ceremony for greenfield alloy wheel plant

Posted On : 2024-04-12 11:19:49( TIMEZONE : IST )

Uno Minda secures large land parcel in IMT Kharkhoda, initiates Groundbreaking Ceremony for greenfield alloy wheel plant

Uno Minda Limited ("Uno Minda") (formerly known as Minda Industries Limited), a leading global manufacturer and supplier of proprietary automotive solutions and systems to original equipment manufacturers ("OEMs") as Tier 1, has marked a significant milestone with the groundbreaking ceremony for its upcoming greenfield passenger vehicle alloy wheel plant with a capacity of 120,000 wheels per month at IMT Kharkhoda, Haryana. The ceremony was graced by esteemed dignitaries, including OEM customers, government officials, and Uno Minda's senior management. The plant with a capital outlay of Rs 542 Crore will be set up in a phased manner over the next 5 years with phase 1 commissioning in Q2 FY26.

Uno Minda had recently secured an allotment of a strategic land parcel of 94.32 acres at IMT Kharkhoda, Haryana HSIIDC, to fuel its ongoing and future expansions. A part of this land i.e. around ~ 25 acres has been designated for this greenfield Alloy wheel plant. Uno Minda's proactive land acquisitions and greenfield project demonstrate its commitment to staying ahead of the curve in the rapidly evolving Indian auto landscape.

IMT Kharkhoda is evolving as a thriving industrial centre with a mega plant from a leading passenger car OEM already under construction and various downstream units securing land for their own investment. The authorities are further boosting the region by offering streamlined clearances under one roof. This location offers Uno Minda logistical advantages for sourcing and supply with its various suppliers and customers at the Industrial Township as well as in the vicinity.

Considering the growth prospects as OEMs announce large capacity expansions, Uno Minda is also strategically aligning its own growth trajectory. Uno Minda has been proactively securing land parcels in all major auto hubs to be ready to meet the growing demand from OEMs. Last year, Uno Minda had acquired 86 acres of land at Khed City Industrial Park, Pune followed by recent acquisition of 37 acres in Hosur Tamil Nadu and 94.32 acres in IMT Kharkhoda Haryana. The Company is also in process of acquiring land parcel in Gujarat.

These acquisitions also mark a shift in the company's strategy, moving from buying pocket of land as per the exact requirement every time we expand to buying a large plot of land to meet current and as well as future needs. This revised strategy offers two key advantages: First Uno Minda avoids delays associated with land acquisition by having readily available land, enabling a quicker response to growth opportunities. Secondly, larger plots allow for building bigger plants and consolidating existing ones, leading to improved operational management and economies of scale.

Mr Nirmal K Minda, CMD, Uno Minda Group said; "Over the past two decades, our company has achieved sustained growth, resulting in multiple plants at various locations. To propel ourselves to the next leg of growth, we are embarking on a strategic expansion plan. This plan involves the establishment of large-scale, technologically advanced megafactories alongside the consolidation of existing facilities for enhanced operational efficiency and economic optimization. As part of this plan, we started construction of mega 4W lighting in Pune Khed city last year and now groundbreaking for the 4W Alloy wheel plant at IMT Kharkhoda.

We remain firmly optimistic about the long-term prospects of the industry and are committed to contributing to the "Aatmnirbhar Bharat" initiative through the domestic manufacturing of cutting-edge technologies."

Shares of Minda Industries Limited was last trading in BSE at Rs. 725.70 as compared to the previous close of Rs. 742.60. The total number of shares traded during the day was 11555 in over 647 trades.

The stock hit an intraday high of Rs. 752.10 and intraday low of 723.35. The net turnover during the day was Rs. 8485758.00.

Source : Equity Bulls


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