Uno Minda Manufacturing Expansion Gains Rs 1,415 Crore

Uno Minda Approves Four Manufacturing Projects

Uno Minda manufacturing expansion is set to accelerate after the company's board approved Detailed Project Reports for four manufacturing projects with combined capital expenditure of approximately Rs 1,415 crore. The decisions were taken at a board meeting held in Manesar, Gurugram, on September 14, 2026. The approved projects cover alloy wheels, casting components, automotive products, airbags, hoses, and body sealing parts across facilities in Haryana, Tamil Nadu, Karnataka, and Maharashtra. The board also approved fundraising through listed Non-Convertible Debentures of up to Rs 600 crore and Commercial Papers of up to Rs 500 crore, providing additional financing capacity alongside term loans and internal accruals.

Kharkhoda Alloy Wheel Plant Adds 1.3 Million Wheels

The first project involves a new two-wheeler alloy wheel plant at Kharkhoda, Haryana, with incremental capex of about Rs 155 crore. The facility is planned to provide annual capacity of 1.3 million wheels, increasing total two-wheeler alloy wheel capacity to 9.3 million wheels per year. The project also includes relocation of 2.0 million units of existing capacity from Supa, Maharashtra. The company's existing 8 million-wheel two-wheeler alloy wheel facility is operating at approximately 70% capacity utilization, while the additional capacity will be introduced in phases. Start of production is targeted for Q4 FY2028.

Hosur Casting Facility Expands Annual Capacity

The board also approved a greenfield casting facility at Hosur, Tamil Nadu, with estimated incremental capex of Rs 510 crore. The project will add 20,557 MT of annual capacity to the existing 13,255 MT base, which is currently operating at full utilization. The new facility is intended to manufacture components for engine, EV and powertrain, structural, and general applications, as well as HPDC two-wheeler alloy wheels. Existing Hosur casting operations are planned to be consolidated and relocated to the new facility by Q1 FY2029. The project follows a smaller Hosur casting expansion approved in February 2025 with capacity of up to 15,000 MT annually and capex of Rs 65.59 crore.

Capacity Expansions Approved in Bengaluru and Maharashtra

At the Bengaluru plant of subsidiary Uno Minda Kyoraku Limited, the board approved a capacity expansion involving estimated capex of Rs 80 crore. The project will add 1.38 million units of annual capacity to the existing 3.28 million units, which is operating at 91.9% utilization, with start of production targeted for Q1 FY2028. A separate project for Toyoda Gosei South India Private Limited, a subsidiary of associate company Toyoda Gosei Uno Minda India Pvt Ltd, will establish a facility at Chhatrapati Sambhajinagar, Maharashtra. The Rs 670 crore project will manufacture interior and exterior automotive products, airbags, hoses, and body sealing parts, adding 1.5 lakh units to existing annual capacity of 4.5 lakh units.

Manufacturing Projects and Planned Capacity

The four approved projects address capacity requirements across several automotive component categories and manufacturing locations. Their planned investments range from Rs 80 crore for the Bengaluru expansion to Rs 670 crore for the Chhatrapati Sambhajinagar facility. The projects also have different production timelines, with SOP targets extending from Q1 FY2028 through Q4 FY2029. Existing utilization levels provide the stated operational context for several expansions, including full utilization at the current Hosur casting operation and utilization of approximately 90% or higher at the Bengaluru and Maharashtra facilities. The disclosures identify business growth and customer demand as the rationale for the four investments.

Uno Minda Manufacturing Investment Breakdown

The approved investment program covers four distinct manufacturing initiatives, each with a specified capital expenditure and capacity objective. The Kharkhoda project focuses on two-wheeler alloy wheels, while the Hosur project significantly expands casting capacity. The Bengaluru initiative increases unit capacity at an existing facility, and the Chhatrapati Sambhajinagar project broadens manufacturing capability for automotive interior and exterior products, airbags, hoses, and body sealing parts. The following table presents the disclosed project details without changing the reported investment, capacity, utilization, relocation, or production-start figures.

Fundraising Approvals Support Capital Program

Alongside the manufacturing approvals, the board authorized the issuance of listed Non-Convertible Debentures of up to Rs 600 crore in one or more tranches. The tenure, coupon, and security terms will be determined by the company's NCD Committee. The board also approved Commercial Papers, listed or unlisted, up to a revolving limit of Rs 500 crore from time to time. The current NCD limit represents an increase from the in-principle board approval received in February 2025 for NCDs of up to Rs 500 crore. The company stated that all four capital expenditure projects will be funded through a combination of term loans and internal accruals.

Investment Targets Growth and Customer Demand

The scale and geographic spread of the projects indicate a capacity-building program across multiple parts of the company's manufacturing portfolio. The Kharkhoda investment adds two-wheeler alloy wheel capacity while relocating 2.0 million units from Supa, whereas the Hosur project addresses casting capacity at an operation currently running at full utilization. The Bengaluru and Chhatrapati Sambhajinagar projects similarly expand facilities where reported utilization is approximately 91.9% and 90%, respectively. By linking the projects to business growth and customer demand, the company has identified capacity requirements as the central rationale for the investment program.

Industry Impact & Outlook

The approvals position Uno Minda Limited to increase manufacturing capacity across alloy wheels, cast components, and other automotive systems while extending its production footprint across key Indian automotive manufacturing regions. The capacity additions could support future customer requirements as the company's existing facilities approach high utilization, particularly in casting and selected component operations. The phased SOP schedule means the benefits will emerge over several fiscal years rather than simultaneously. The combination of project financing through term loans and internal accruals, alongside higher approved debt-market limits, also gives the company additional funding flexibility as these manufacturing investments progress toward execution.

Frequently Asked Questions

What is the total capex approved by Uno Minda for the four projects?
Uno Minda's board approved approximately Rs 1,415 crore of combined capital expenditure for four manufacturing projects across Haryana, Tamil Nadu, Karnataka, and Maharashtra. The projects include a two-wheeler alloy wheel plant at Kharkhoda, a greenfield casting facility at Hosur, a capacity expansion at Bengaluru, and a new automotive products facility at Chhatrapati Sambhajinagar. The investments are intended to support business growth and customer demand, with production start targets ranging from Q1 FY2028 to Q4 FY2029. The projects will be funded through a combination of term loans and internal accruals.