Auto components maker Uno Minda Ltd announced on Tuesday (September 15) that its board has approved projects involving an estimated ₹1,415 crore in incremental capital expenditure across four facilities. According to reports from Business Standard, the board also approved the issuance of up to ₹600 crore of non-convertible debentures (NCDs) and commercial papers with a revolving limit of up to ₹500 crore. The four plant projects will be financed through a combination of term loans and internal accruals, with the rationale for capacity additions being business growth and meeting customer demand. As per Business Standard, the combined proposed investment in these four projects is approximately ₹1,415 crore, with the announcements including expansion projects in Two-Wheeler Alloy Wheels, Aluminium Casting, Moulding, and Interior, Exterior Parts and Sealing Systems.
The board approved a new two-wheeler alloy wheel plant at Kharkhoda in Haryana with an annual capacity of 3.3 million units. As reported by Business Standard, the project involves the strategic relocation of 2 million units of existing capacity from Supa, Maharashtra, to Kharkhoda. The estimated incremental capex is ₹155 crore, with the plant to be set up on an existing large land parcel at Kharkhoda, adjacent to multiple other operational and under-construction plants. According to Business Standard, this new facility will strengthen geographical diversification, enhancing Uno Minda's presence in North India for two-wheeler alloy wheel business. For its alloy wheel business, existing capacity is 8 million wheels per annum with capacity utilisation of around 70%, and 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.
The board approved a new greenfield facility at Hosur, Tamil Nadu, for the Casting Division of the company's LPS domain. According to Business Standard, 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, with existing casting capacity 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. As per Business Standard, the company will establish a new greenfield facility on another existing land parcel at Thally Road, Hosur, with an estimated additional capex of ₹510 crore. Existing Hosur operations will be consolidated and relocated to the new facility by Q1FY28, with aluminium casting capacity at the Hosur location increasing to 34,000 MT at peak from around 13,000 MT.
The board approved a capacity expansion project at the Bengaluru plant of subsidiary Uno Minda Kyoraku Ltd, involving an estimated investment of ₹80 crore. As reported by Business Standard, the plant currently has a capacity of 3.28 million units per annum with utilisation at 91.9%, and the expansion will add 1.38 million units per annum, with commercial production scheduled for the first quarter of FY28. Additionally, the board approved the detailed project report of Toyoda Gosei South India Private Ltd (TGSIN), a subsidiary of Toyoda Gosei Uno Minda India Pvt Ltd, which 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 and is expected to commence operations by Q4FY29.
According to Business Standard, "With a combined capital expenditure of ₹1,415 crore, these expansions represent a disciplined approach to capturing high-growth opportunities while strategically diversifying across product verticals and geographies." As per Business Standard, Sunil Bohra, Group CFO at Uno Minda Ltd, stated that these expansions represent a disciplined approach to capturing high-growth opportunities while strategically diversifying across product verticals and geographies. Ravi Mehra, Managing Director at Uno Minda Ltd, emphasized that these projects mark another significant step forward in the company's long-term growth journey, with each project anchored in clear principles of investing backed by orders or firm demand visibility, staying close to customers, and building state-of-the-art manufacturing capabilities that are scalable, efficient and future-ready.
