Uno Minda Committee Approves Rs 320 Crore Greenfield Facility for 4W Passenger Vehicle Seating Expansion
Uno Minda Limited has announced that its Investment, Mergers & Acquisitions Committee has approved a significant expansion project aimed at establishing a greenfield manufacturing facility. The initiative targets entry and growth within the 4W Passenger Vehicle Seating Systems segment.The project is set to be executed under Uno Minda Tachi-S Seating Pvt. Ltd. (UMTS). UMTS operates as a subsidiary and Joint Venture of Uno Minda, in partnership with Tachi-S Company Ltd. of Japan. The Committee's approval covers the setup of this facility, which has a total project cost budgeted at Rs 320.00 Crores.
The Board committee also approved further investment into the Equity Capital of UMTS. This capital injection is slated to be made in one or more tranches, with an authorized limit of up to Rs 93.00 crores.
This expansion initiative is positioned within the Automotive Industry segment. Uno Minda Limited currently holds a 51% equity stake in the target entity (UMTS). The approved further investment will be proportionate to this existing shareholding, meaning there will be no change in the percentage of control in UMTS following the capital injection.
Expansion and Capacity Details
The proposed capacity addition details illustrate the scale and timeline for the manufacturing expansion:| Metric | Detail |
|---|---|
| Proposed Capacity Addition | 2,40,000 Units per annum |
| Investment Required (Approx.) | Rs 320.00 Crores |
| Financing Mode | Equity and Term Loan |
| Target Completion Period | Q4 FY 2027-28 to FY 2030-31 |
The Business Growth rationale for this undertaking is to meet the increasing demand of customers in the seating systems market. The target entity, UMTS, has been engaged in the business of Seating Systems since its incorporation on October 31, 2022.
UNOMINDA Stock Price Movement
UNO Minda Limited shares today slipped by 1.05%, settling at ₹1129.2 after the stock shed ₹12.00 in trading. The equity saw active participation during the session, with a total traded volume of 528,204 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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