Uno Minda To Increase Stake In Its Joint Venture With Westport To 76%

Uno Minda To Increase Stake In Its Joint Venture With Westport To 76%

The purchase consideration for 26 percent stake is approx. Rs 14.81 Crores. The acquisition of shares is targeted to be completed on or before 31st March 2024.

FPJ Web DeskUpdated: Friday, September 29, 2023, 01:27 PM IST
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Uno Minda To Increase Stake In Its Joint Venture With Westport To 76% | Image: Uno Minda (Representative)

Uno Minda Limited (Uno Minda), a leading global manufacturer and supplier of proprietary automotive solutions and systems to OEMs as Tier1, has announced that its Board has approved to increase stake in Minda Westport Technologies Limited (MWTL) from 50 percent to 76 percent by acquiring additional 26 percent stake from its joint venture partner Westport Fuel Systems Italia S.r.l. (Westport), the company on Thursday announced through an exchange filing.

The purchase consideration for 26 percent stake is approx. Rs 14.81 Crores. The acquisition of shares is targeted to be completed on or before 31st March 2024.

Uno Minda and Westport is also amending its joint venture agreement to include future hydrogen components in addition to CNG/LNG /LPG components and Kits in JV territory of South Asia comprising of India, Bhutan, Sri Lanka and Nepal.

Abour MWTL

MWTL,is one of the leading manufacturers of Alternate Fuel Systems — CNG and LPG components and kits for OEMs and Aftermarket in India. MWTL has reported revenues of Rs 181.05 Cr in FY23 which has grown 3x in last four years.

Besides the acquisition of additional 26 percent 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 manufacture and sales of compressed natural gas (CNG) Pressure Reducers to Automotive Equipment Manufacturers and also sells CNG conversion kits to OEMs and to Aftermarket Channels. The synergies shall help MWTL to offer wider CNG/LNG/LPG/Hydrogen products and services to the growing Indian automotive market.

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

Uno Minda Limited shares

The shares of Uno Minda Limited on Friday at 1:24 pm IST were trading at Rs 605.50, up by 1.66 percent.

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