Uno Minda Approves INR 14.15 Billion Expansion Projects

Uno Minda Approves INR 14.15 Billion Expansion Projects

Uno Minda investment projects approved by the company’s board on September 14 carry an estimated total investment of about INR 14.15 billion across new plants and capacity expansions in Haryana, Tamil Nadu, Karnataka, and Maharashtra. The approved plans cover two-wheeler alloy wheels, casting components, automotive interior and exterior products, airbags, hoses, body-sealing parts, and additional manufacturing capacity. The projects are designed to expand production capabilities across several facilities and subsidiaries, with commissioning planned in phases between Q1 FY 2028 and Q4 FY 2029. Funding will combine term loans and internal accruals, alongside planned debt-market issuances.

Two-Wheeler Alloy Wheel Plant Planned in Haryana

Uno Minda will establish a two-wheeler alloy wheel plant at Kharkhoda, Haryana, with annual capacity of 3.3 million wheels. The project requires incremental capital expenditure of about INR 1.55 billion and will include the relocation of 2 million units of existing capacity from Supa, Maharashtra. Production is expected to begin in phases, with standard production scheduled for Q4 FY 2028, ending in March. The project therefore combines new manufacturing infrastructure with a transfer of existing capacity, increasing the company’s manufacturing footprint while reorganizing production between its facilities.

New Casting Facility to Expand Hosur Capacity

In Hosur, Tamil Nadu, the company will establish a new casting facility requiring an estimated investment of INR 5.1 billion. The project will add incremental capacity of 20,557 tonnes per year and will manufacture components for engines, electric vehicle powertrains, structural applications, and general applications, along with high-pressure die-cast two-wheeler alloy wheels. Existing casting operations in Hosur will be consolidated and relocated to the new facility by Q1 FY 2029. The project broadens the manufacturing scope of the site while adding dedicated capacity for multiple automotive component applications.

Bengaluru Plant Capacity Expansion

The board also approved INR 800 million for a capacity expansion at the Bengaluru plant operated by subsidiary Uno Minda Kyoraku Limited. The expansion will add 1.38 million units of annual production capacity, with production scheduled to begin in Q1 FY 2028. The investment forms part of the broader program covering multiple manufacturing locations and product categories. Unlike the larger greenfield facilities, this project focuses specifically on increasing output at an existing operation, allowing additional annual capacity to be introduced within the company’s established manufacturing network.

Toyoda Gosei Uno Minda India Facility in Maharashtra

Toyoda Gosei South India Private Limited, a subsidiary of Toyoda Gosei Uno Minda India and an associate of Uno Minda, received approval for a INR 6.7 billion project to establish a facility at Chhatrapati Sambhajinagar, Maharashtra. The plant will manufacture interior and exterior automotive products, airbags, hoses, and body-sealing parts, adding annual capacity of 150,000 units. Production is expected to start in phases by Q4 FY 2029. The project represents the largest individual investment among the approved initiatives and adds another manufacturing location to the group’s expanding automotive component production network.

Funding and Implementation Timeline

The approved projects will be financed through a combination of term loans and internal accruals. In addition, the board approved the issuance of non-convertible debentures of up to INR 6 billion through private placement and commercial paper of up to INR 5 billion on a revolving basis. The planned financing structure provides several funding channels for the investment program, while the individual projects follow staggered implementation schedules. Across the initiatives, production milestones range from Q1 FY 2028 for the Bengaluru expansion to phased production by Q4 FY 2029 for the Maharashtra facility.

Industry Impact & Outlook

The investment program strengthens India’s automotive component manufacturing capacity across several important production locations and product categories. Expansion in alloy wheels and casting supports higher component output, while the Maharashtra facility adds capacity for safety and body-related products. The geographic spread across Haryana, Tamil Nadu, Karnataka, and Maharashtra also broadens the manufacturing base involved in the program. The next meaningful developments will be the phased commissioning of the approved facilities and the planned consolidation or transfer of existing capacity as individual projects move toward their scheduled production milestones.

Frequently Asked Questions

What investment has Uno Minda approved for its expansion projects?
The board approved projects involving an estimated total investment of about INR 14.15 billion across new plants and capacity expansions in four Indian states. The program includes an alloy wheel plant in Haryana, a casting facility in Tamil Nadu, a Bengaluru capacity expansion, and a new automotive component facility in Maharashtra. The projects cover multiple product categories and are scheduled for phased production between Q1 FY 2028 and Q4 FY 2029, with funding planned through term loans, internal accruals, non-convertible debentures, and commercial paper.