The Gurgaon-based Uno Minda Group has announced plans to invest INR 115.5 crore to buy out its Japanese partner Kosei's remaining 22.64 per cent ownership in its joint venture company, Minda Kosei Aluminium Wheels. In India, alloy wheels are increasingly being used on both two- and four-wheeled vehicles, according to the firm, and it plans to take advantage of this potential opportunity in the years to come.
By the end of March 2023, the Tier-1 major will have completed the acquisition, turning the alloy wheel manufacturer into a wholly owned subsidiary. According to the group, the joint venture business will enter into a technical-licensing deal with Kosei when the transaction is complete to guarantee the continuation of technological assistance.
"The automotive industry experienced a healthy revival in FY23, aided by economic activity, increased mobility, and improved discretionary spending. Uno Minda is well placed to capitalise on the developments proposed in the recent Budget with its focus on localisation delivering best-in-class products to both existing and potential customers. Our ability to deliver new and premium products is fuelled with continuous R&D, aiding in increasing our share of business with OEMs across categories," said Nirmal K Minda, CMD, Uno Minda Group.
In addition to having a well-diversified product range that includes lighting and acoustic systems, alloy wheels, powertrain solutions, and safety and comfort system goods like airbags, Uno Minda Group is a market leader in the country for automotive switches and control systems OEM supplies.
The Uno Minda Group also disclosed its Q3 FY2023 results, with its consolidated revenue coming in at INR 2,915 crore, up 34 per cent year over year (YoY) (Q3 FY2022: INR 2,181 crore). With a 44 per cent YoY increase, the Group recorded consolidated EBITDA of INR 338 crore (Q3 FY2022: INR 235 crore). On the other side, the consolidated PAT finished at INR 162 crore, representing a gain of 60 per cent YoY (Q3 FY2022: INR 101 crore).
“Our consolidated revenues were backed by diversified product portfolio, increasing content per vehicle and cross selling of our products among customers. On the back of technological upgradation and new OEM launches in the pipeline, we are geared up to capitalise our long-standing relationship with customers,” added Sunil Bohra, CFO, Uno Minda Group.
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