Uno Minda board approves 81.69% stake acquisition in Kosei Minda Aluminium to bring together 4W alloy business

On Monday, March 20, Uno Minda Ltd announced that its board gave a go-ahead signal to raise its stake to 81.69 per cent in Kosei Minda Aluminium and 49.90 per cent in Kosei Minda Mould, expecting the move to help Uno Minda consolidate its 4W alloy business.  

Uno Minda, located in North India, is a conglomerate engaged in manufacturing, developing and selling diverse automotive components for global and domestic automotive markets. In 2015, it formed a joint venture with Kosei International Trade and Investment Company Ltd, a part of Kosei Group - Japan's leading alloy wheel manufacturer. The JV named Kosei Minda Aluminium was established in Chennai, India.

The acquisition of additional stakes will reportedly occur through a composite scheme of merger with Uno Minda Ltd through a swap of shares. The transaction will amount to INR 60 crore and INR 11 crore, respectively.

"Kosei has been a very important partner in our growth journey in the last few years ...The acquisition will further consolidate Uno Mind's leadership position in the segment," said Nirmal K Minda, Chairman and Managing Director of Uno Minda Group.

Uno Minda will start managing the business and operations of Kosei Minda Aluminium and Kosei Minda Mould with effect from April 1, 2023. However, the merger will be subject to various statutory authorities.

 "We have been extremely positive on the 4W Alloy wheel industry which is expected to grow around 4 times over next decade depending on increasing alloy wheel penetration coupled with vehicle volume growth," said Sunil Bohra, CFO at Uno Minda Group.