The New Indian Express ·
Economy, business and finance
Uno Minda announces Rs 1,415 crore investment to boost manufacturing capacity
Auto Component major Uno Minda on Tuesday announced it plans to invest Rs 1,415 crore to expand its manufacturing capabilities across key divisions. The capital expenditure will cover setting up a new aluminium casting unit in Hosur, Tamil Nadu, as well as expanding and relocating its two-wheeler alloy wheel manufacturing operations in Kharkhoda, Haryana.
With the existing Hosur facility at the current location having reached its practical expansion limits, the company said it will establish a new greenfield facility on another existing land parcel at Thally Road, Hosur, with an estimated additional capex of Rs 510 crore.
Existing Hosur operations will be consolidated and relocated to the new facility by Q1FY2, the company said, adding that the aluminium casting capacity at the Hosur location will go up to 34,000 MT at peak from around 13,000 MT.
The company has received Board's approval for setting up a 3.3 million-unit two-wheeler alloy wheel capacity plant at Kharkhoda in Haryana at an additional capex of Rs 155-crore. The initiative includes the strategic relocation of 2-million units of existing capacity from Supa in Maharashtra to the Kharkhoda plant.
This plant, which is to be implemented in a phased manner over the next two years, with phase 1 expected to commence production by Q4FY28.
Besides these, the company said it has lined up an additional capex of Rs 80-cr for the expansion of a moulding facility in Bangalore under its subsidiary Uno Minda Kyoraku Ltd, to cater to increased demand. The facility is expected to commence operations by Q1FY28, it said.
Uno Minda further said its JV with Japanese firm Toyoda Gosei will also set up a new plant at Chhatrapati Sambhajinagar in Maharashtra under Toyoda Gosei South India Pvt Ltd to manufacture interior and exterior automotive parts, airbags, hoses, and body sealing parts at an estimated capex of around Rs 670 crore with the new facility. The facility is expected to commence operations by Q4FY29.
The announcements include the expansion projects in two-wheeler alloy wheels, aluminium casting, moulding, and interior, exterior parts and sealing systems, Uno Minda said. “With a combined capital expenditure of Rs 1,415 crore, these expansions represent a disciplined approach to capturing high-growth opportunities while strategically diversifying across product verticals and geographies," said Sunil Bohra, Group CFO at Uno Minda Ltd.