Tier 1 supplier Uno Minda (formerly known as Minda Industries) is accelerating its ambition to grow its four-wheeler alloy business through organic and inorganic routes in the Indian market.
The company after making several moves has now announced that its Board has approved acquisition of 81.69 percent stake in Kosei Minda Aluminum and 49.90 percent stake in Kosei Minda Mould from its joint venture partner Kosei, Japan.
The acquisition is planned through composite scheme of merger with Uno Minda through swap of shares. The tier 1 supplier will bear an expense of around Rs 60 crore and Rs 11 crore respectively for the acquisition.
While merger will be subject to various statutory authorities, Uno Minda will start managing the business and operations of these two entities with effect from April 1.
It will also be entering into a technical license agreement with Kosei Japan for 10 years and shall be renewed thereafter with mutual consent, to ensure continuity of technical support.
Nirmal K Minda, CMD, Uno Minda Group said; “Kosei has been a very important partner in our growth journey in last few years where we have become the leading player in 4 W Alloy wheel player in the country facilitating self-reliance. The acquisition will further consolidate Uno Mind’s leadership position in the segment.”
Sunil Bohra, CFO, Uno Minda Group said, “We have been extremely positive on 4W Alloy wheel industry which is expected to grow around 4 times over next decade depending on increasing alloy wheel penetration coupled with vehicle volume growth. The proposed transaction is one more step towards gaining significant pie of this growing 4W Alloy wheel market, simplification of the group structure and to facilitate achievement of economies of scale. “