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Uno Minda Unveils Strategic Growth Plans with Acquisitions and Expansion

28 May 20243 mins read by Angel One
Uno Minda Limited is focused on enhancing business capabilities by acquiring stakes in automotive companies and expanding its plant capacity.
Uno Minda Unveils Strategic Growth Plans with Acquisitions and Expansion
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Uno Minda Limited (formerly Minda Industries Limited), a leading automotive component supplier, has outlined a series of strategic initiatives to bolster its market presence and production capabilities. These announcements encompass an equity stake acquisition, in-principle approval for another acquisition, and a planned plant expansion.

Stake in Toyoda Gosei

Uno Minda announced the acquisition of a 1.97% stake in Toyoda Gosei Minda India Private Limited (TGMI) from Minda Investments Ltd. This move strengthens their existing partnership with TGMI, in which Uno Minda currently holds a 49.90% equity stake.

While the impact on immediate operations is minimal, the acquisition aligns with Uno Minda’s broader investment strategy for future growth. The transaction, valued at ₹16,97,53,500 in cash, is expected to be completed by the end of December 2024 and faces no regulatory hurdles.

Expanding Horizons with Minda Nabtesco Acquisition (Subject to Approval)

The Board of Directors granted in-principle approval for acquiring a 49.00% stake in Minda Nabtesco Automotive Private Limited (MNAPL) from Nabtesco Automotive Corporation, Japan. This potential acquisition, subject to further negotiations and approvals, signifies Uno Minda’s commitment to expanding its product portfolio and technological expertise. While specific details remain undisclosed, the strategic partnership with MNAPL holds significant promise for Uno Minda’s future endeavours.

Ramping Up Production at AW2W Plant

To cater to the rising demand for automotive components, Uno Minda’s Board has approved the expansion of its AW2W (Antilock Braking System with Two-Wheeler) plant located in Supa, Ahmednagar. The expansion plans include increasing the plant’s annual production capacity for wheel units. This strategic investment will enhance Uno Minda’s ability to meet market requirements and potentially expand its market share in the two-wheeler segment.

About Uno Minda Ltd

Uno Minda Ltd. was incorporated in 1985. It manufactures and supplies Automotive Solutions and systems to Original Equipment Manufacturers. On May 24, 2024, the shares of Uno Minda opened at ₹855.10 and touched the day high of ₹876.30 at 12:33 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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