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Uno Minda to expand capacity with new facilities in Indonesia and India



Posted On : 2024-09-19 13:44:36( TIMEZONE : IST )

Uno Minda to expand capacity with new facilities in Indonesia and India

Uno Minda Limited ("Uno Minda"), a global Tier-1 supplier of proprietary automotive systems and solutions to original equipment manufacturers ("OEMs"), is excited to announce its expansion in Indonesia and India. The company's wholly owned subsidiary, PT Minda Asean Automotive ("PTMA"), has secured additional orders, including orders for long tail lamps for passenger cars from OEMs in Indonesia. To meet this growing demand, Uno Minda will establish a new manufacturing facility in Indonesia, expected to be operational by Q4 FY26.

Uno Minda has been a significant player in the Indonesian market since 2005, when it established its first manufacturing facility. PTMA currently supplies components and systems to major two-wheeler OEMs in the country. The new plant will enable Uno Minda to diversify its product offerings and cater to the growing demand for passenger car components. Once the new plant is commissioned, the existing plant will also be relocated to the new site to consolidate operations and achieve economies of scale. The total capital expenditure for the new plant is estimated at Rs 210 Cr.

In addition to its Indonesian expansion, Uno Minda is also expanding domestic capacities. The Company's one of the key subsidiary Uno Mindarika Private Ltd ( "UMRPL") had recently set up a new plant in Farrukhnagar, Gurugram, Haryana. In phase 1 of this new plant, it had set up manufacturing facilities for part products to be used for manufacturing of automotive switches. UMRPL will be shifting existing manufacturing plant from Manesar, Nawada Fatehpur, Haryana to Farrukh Nagar, Haryana in Phase-II with an Investment of Rs 120 Crores. The phased relocation will be completed by Q3 FY27, ensuring uninterrupted supply to customers and provide flexibility for future growth.

In addition to the above expansion in Indonesia and India, our joint venture company, Toyoda Gosei Minda India Pvt Ltd, through its subsidiary Toyoda Gosei South India Pvt. Ltd, will be setting up a new plant in Harohalli, Karnataka. This facility will manufacture safety systems (airbags, steering wheels, etc.) and interior and exterior products (console boxes, etc.) to meet the increased demand. The total capital expenditure for this new plant in Harohalli is estimated at Rs 283 Cr, with operations expected to commence in Ql FY27.

These expansions demonstrate Uno Minda's commitment to strengthening its global footprint, serving the growing automotive markets in India, and meeting the evolving needs of its customers.

Shares of Minda Industries Limited was last trading in BSE at Rs. 1030.45 as compared to the previous close of Rs. 1056.00. The total number of shares traded during the day was 27183 in over 2483 trades.

The stock hit an intraday high of Rs. 1061.90 and intraday low of 1029.00. The net turnover during the day was Rs. 28287020.00.

Source : Equity Bulls

Keywords

UnoMinda INE405E01023 OEMs Expansion Indonesai India