In an expansion drive, auto component maker Uno Minda is aiming to increase capacities as its plants are running at optimum levels. It has kickstarted the process of acquiring land parcels near its existing manufacturing facilities.The leading global supplier of proprietary automotive solutions and systems to OEMs has set aside a capex of Rs 2,000 crore for expansion spanning over the next the few years and about Rs 600 crore for land acquisitions.
Nirmal K Minda, chairman and MD, Uno Minda, said, “We are gearing to set up additional capacities. We are scouting for land and are in the process to acquire them in different parts of the country.”The Gurugram-based company has 73 plants globally and 13 joint ventures. It has already acquired 86 acres in Pune from private parties and process is on to acquire 40 acres in Hosur and 100 acres in North.“We are scouting for land parcels say about 10-15 kms from the existing site. We will acquire double the size, keeping the future growth in mind,” said Sunil Bohra, group CFO and CEO, Safety and Comfort Systems.
According to him, the capex would be spent on increasing production capacities of blow moulding and paint shop in Bengaluru, 4W alloy wheels (Gujarat & Bawal), 2W alloy wheels (Pune) and EV traction motor production facility (Bawal). Expansion is also happening in Hanoi through JV partner.Besides, new facilities are planned for making 4W switches (Chennai & Gurugram), 4W lighting (Gujarat and Pune) and EV specific products (Gurugram). Recently, the board cleared a `542-crore proposal to make 4W alloy wheel and the location is yet to be decided. “For most of the project, the capex is on track. It will be met mostly through internal accruals and borrowings,” he said.
In FY23, the company clocked a revenue of Rs 11,236 crore. Of the total pie, 2W accounts for 43%, of which EV share is 11%. The company manufactures and supplies over20 categories of automotive components and systems to leading Indian and international OEMs based in India, Asia, South and North America and Europe.“In the EV space, currently we are focusing on two-wheelers and going forward, we will focus on the passenger vehicle segment too,” he said. The company’s EV product portfolio for 2W and 3W consists of battery management system, on board charger, off board charger, RCD cable, body control module, smart plug and telematics. Traction motors, battery packs and acoustic vehicle alert system are under development.
