Uno Minda to raise stake to 76% in JV with Westport

29 Sep 2023 , 11:30 AM

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

The buying price for a 26% share is around Rs 14.81 crore.

The acquisition of shares is expected to be completed by March 31, 2024. Uno Minda and Westport are also modifying their joint venture agreement in South Asia to incorporate future hydrogen components in addition to CNG/LNG/LPG components and Kits in the JV territory of India, Bhutan, Sri Lanka, and Nepal.

In India, MWTL is a significant manufacturer of Alternate Fuel Systems — CNG and LPG components and kits for OEMs and aftermarket. MWTL recorded revenues of Rs 181.05 crore in FY23, a 3x increase over the previous four years.

MWTL is also purchasing the assets of Rohan BRC Gas Equipment Pvt. Ltd, a wholly-owned subsidiary of Westport, in addition to acquiring an additional 26% share from Westport. Rohan BRC Gas Equipment principally manufactures and supplies compressed natural gas (CNG) pressure reducers to automotive equipment manufacturers, as well as CNG conversion kits to OEMs and aftermarket channels.

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