Uno Minda to Increase Stake in JV with Westport to 76%, Accelerate Growth in CNG and Other Alternate Fuel Market

Uno Minda Limited, a leading global manufacturer of automotive solutions, has announced that it will increase its stake in Minda Westport Technologies Limited (MWTL) from 50% to 76% by acquiring an additional 26% stake from Westport Fuel Systems Italia S.R.L. The purchase consideration is approximately Rs 14.81 crore. The acquisition is expected to be completed by March 31, 2024.

Uno Minda and Westport are also amending their joint venture agreement to include future hydrogen components in addition to CNG, LNG & LPG components and kits in the JV territory of South Asia.

MWTL is one of the leading manufacturers of alternate fuel systems in India. It has reported revenues of Rs 181.05 crore in FY23, which has grown 3x in the last four years.

In addition to the acquisition of an additional 26% stake from Westport, MWTL is also acquiring the assets of Rohan BRC Gas Equipment Pvt Ltd, a wholly owned subsidiary of Westport. Rohan BRC Gas Equipment is engaged primarily in the manufacture and sales of compressed natural gas (CNG) pressure reducers to automotive equipment manufacturers and sells CNG conversion kits to OEMs and to Aftermarket Channels.

The synergies from the acquisitions are expected to help MWTL offer a wider range of CNG, LNG, LPG and hydrogen products and services to the growing Indian automotive market.

The share of CNG-powered vehicles in India has gone up from about 3.5% of total passenger vehicle (PV) sales in CY 2019 to 11% in CY 2022. With better availability of supplies, new CNG model launches, and strengthening of CNG infrastructure, the CNG penetration is further expected to increase to levels of about 18% by CY2027. With increasing penetration levels, CNG is expected to emerge as the second most popular powertrain over the near to medium term.

Minda Industries Limited, the flagship company of the N.K. Minda Group is one of the most diversified auto component manufacturers in India. It is a technology leader in the auto components industry and a leading tier-1 supplier of proprietary automotive solutions to OEMs.

Today, shares of UNO Minda opened at Rs 607.95 per share. The stock is currently trading at Rs 605.90 per share, up 1.80%. The stock’s 52-week high is Rs 660.30 per share and its 52-week low is Rs 443 per share.

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