Uno Minda Expands Into Passenger Vehicle Seating Systems With New Maharashtra Plant

Uno Minda Ltd has approved a major expansion into the complete passenger vehicle seating systems business, marking an important step in broadening its automotive component portfolio. The decision was approved on July 7 by the company's Board's Investment, Mergers & Acquisitions Committee. The expansion will be executed through Uno Minda Tachi-S Seating Pvt Ltd (UMTS), the company's joint venture with TACHI-S Company Limited of Japan. As part of the project, a greenfield manufacturing facility will be established in India at Chhatrapati Sambhajinagar, Maharashtra.

The proposed project involves an estimated capital expenditure of INR 3.2 billion and is scheduled to begin commercial operations during the fourth quarter of FY 2027-28. Production capacity will continue to increase in phases until FY 2030-31, enabling the facility to support long-term customer requirements. The plant is designed to add an annual manufacturing capacity of 240,000 seating system units, strengthening the joint venture's ability to serve the passenger vehicle market while supporting future business growth.

Uno Minda and TACHI-S first established their joint venture in September 2022 to manufacture and market passenger vehicle seat recliners as the initial phase of their collaboration. The latest investment extends the partnership into complete four-wheeler passenger vehicle seating systems, significantly expanding the scope of operations. This strategic move allows the joint venture to provide more comprehensive seating solutions while leveraging the combined manufacturing and engineering expertise of both companies.

The expansion project will be financed through a combination of equity contributions and term loans. In addition, the Investment, Mergers & Acquisitions Committee has approved a further equity investment of up to INR 930 million in UMTS. The investment will be made in one or more tranches in proportion to the existing shareholding pattern, ensuring that there will be no change in the ownership percentage of the joint venture while supporting its planned expansion activities.

Frequently Asked Questions

Why is Uno Minda expanding into passenger vehicle seating systems?
Uno Minda is expanding into complete passenger vehicle seating systems to strengthen its automotive components portfolio and support future customer demand. The company will execute the project through its joint venture, Uno Minda Tachi-S Seating Pvt Ltd, with a new manufacturing facility in Maharashtra. The investment includes a planned capacity of 240,000 units annually, commercial production beginning in Q4 FY 2027-28, and phased expansion through FY 2030-31 while maintaining the existing ownership structure.