The board approved the detailed project reports for a new two-wheeler alloy wheel plant at Kharkhoda in Haryana, a new casting facility at Hosur in Tamil Nadu, capacity expansion at the Bengaluru plant of Uno Minda Kyoraku Ltd and a new facility at Chhatrapati Sambhajinagar in Maharashtra.
Kharkhoda alloy wheel plant
Uno Minda will set up a two-wheeler alloy wheel plant at Kharkhoda with an annual capacity of 3.3 million units. The project involves the strategic relocation of 2 million units of existing capacity from Supa, Maharashtra, to Kharkhoda.
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The estimated incremental capex is ₹155 crore. The company said the plant will be set up on an existing large land parcel at Kharkhoda, adjacent to multiple other operational and under-construction plants.
For its alloy wheel business, existing capacity is 8 million wheels per annum, with capacity utilisation of around 70%. The proposed incremental capacity is 1.3 million wheels per annum, to be added in phases with commercial production scheduled for the fourth quarter of FY28.
₹510 crore Hosur casting facility
The board also approved a new greenfield facility at Hosur, Tamil Nadu, for the Casting Division of the company’s LPS domain.
The facility will manufacture products for engine applications, electric vehicle and powertrain applications, structural applications, general applications and high-pressure die-casting two-wheeler alloy wheels.
The project has an estimated incremental capex of ₹510 crore. Land required for the project has already been acquired, while existing Casting Division operations at Hosur will be consolidated and relocated to the new facility by the first quarter of FY29.
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Existing casting capacity stands at 13,255 MT per annum, with utilisation at 100%. The new facility will add 20,557 MT per annum of capacity, with commercial production scheduled in phases from the fourth quarter of FY28.
Bengaluru plant expansion
Uno Minda has approved a capacity expansion project at the Bengaluru plant of its subsidiary, Uno Minda Kyoraku Ltd, involving an estimated investment of ₹80 crore. The plant currently has a capacity of 3.28 million units per annum, with utilisation at 91.9%. The expansion will add 1.38 million units per annum, with commercial production scheduled for the first quarter of FY28.
₹670 crore Maharashtra facility
The board also approved the detailed project report of Toyoda Gosei South India Private Ltd (TGSIN), a subsidiary of Toyoda Gosei Uno Minda India Pvt Ltd, which is an associate of Uno Minda.
TGSIN will set up a facility at Chhatrapati Sambhajinagar, Maharashtra, for manufacturing interior and exterior automotive products, airbags, hoses and body sealing parts.
The project involves estimated capex of ₹670 crore. Existing capacity is 4.5 lakh units per annum, with utilisation of around 90%, while the proposed expansion will add 1.5 lakh units per annum. Capacity will be added in phases, with commercial production scheduled for the fourth quarter of FY29.
Fundraising plans
Uno Minda’s board approved the issuance of NCDs through private placement of up to ₹600 crore in one or more tranches. The securities are proposed to be listed on BSE Ltd or the National Stock Exchange of India Ltd.
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The board also approved issuance of commercial papers, listed or unlisted, from time to time, up to a revolving limit of ₹500 crore.
The four plant projects will be financed through a combination of term loans and internal accruals. The company said the rationale for the capacity additions is business growth and meeting customer demand.
On Friday (September 11), shares of UNO Minda Ltd ended at ₹1,202.40, down by ₹21.10, or 1.72%, on the BSE.
