We are scouting for land parcels say about 10-15 kms from existing sites. We will acquire double the size, keeping future growth in mind, says Uno Minda Group CFO and CEO Safety and Comfort Systems Sunil Bohra.
| Photo Credit: Special Arrangement
Auto component maker Uno Minda Ltd. is undertaking a major expansion drive to increase production capacity as its plants are running at full capacity, said Chairman and Managing Director Nirmal K. Minda.
“As we expect industry size of two-wheelers to be about 30 million by 2030, we are gearing up to set up additional capacities. We are scouting for land and are in the process to acquire them in different parts of the country,” he said during an interaction.
The leading manufacturer and supplier of automotive solutions and systems to original equipment manufacturers has set aside a capex of ₹2,000 crore for expansion spanning over the next the few years and about ₹600 crore for land acquisitions.
The Gurugram-based company has 73 plants globally and 13 joint ventures. It has already acquired 86 acre in Pune from private parties and process is on to acquire 40 acre in Hosur and 100 acre in North India.
“We are scouting for land parcels say about 10-15 kms from existing sites. We will acquire double the size, keeping future growth in mind,” said group CFO and CEO Safety and Comfort Systems Sunil Bohra.
According to him, the capex would be incurred on increasing production capacities of blow moulding and paint shop in Bengaluru, 4W (four-wheel) alloy wheels (Gujarat and Bawal in Haryana), 2W (two-wheel) alloy wheels (Pune) and EV traction motor production facility (Bawal). Expansion is also happening in Hanoi through a JV partner.
Besides, new facilities are planned for making 4W switches (Chennai and 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 projects, 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 ₹11,236 crore. Of the total pie, 2W accounted for 43% of which the share of EVs is 11%.
“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 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.