Uno Minda on land acquisition spree for capacity expansion, as demand soars
The development comes just months after Uno Minda completed two new electric vehicle plants.
Uno Minda, a leading supplier to the automotive sector, has completed the acquisition of 86 acres of land in Khed, near Pune, while discussions are underway for the acquisition of three more similar-sized land parcels in the north, west, and southern parts of India, the company said in its investor presentation.
The development comes just months after Uno Minda completed two new electric vehicle plants. The first, which was rolled out in Q1 FY24 under a joint venture with FRIWO, is operational. While supplies have started, further ramp-up is expected to take place in the coming quarters. Likewise, the second EV systems plant under a JV (joint venture) with Buehler, which was commissioned in August, is expected to begin supplies by Q4 FY24.
Meanwhile, Uno Minda reported a net profit of Rs 225 crore, which is a 32% year-on-year jump when compared with Rs 170 crore reported in Q2 FY23. Correspondingly, the company's consolidated revenues increased by 26% year over year to Rs 3,621 crore for Q2 FY24 as against Rs 2877 crore registered during the previous year.
Uno Minda's management updated that it has received the first orders for capacitive touch-based switches from an Indian four wheeler OEM (Original equipment manufacturer). The company's expansion of 4W switch plants in Chennai was commissioned in October. The company's revenues from the switch segment stood at Rs 933 crore during Q2 FY24.
Secondly, in the lighting segment, the company won an order for ambient lighting during Q2 FY24 from an Indian OEM for its EV model. Uno Minda has completed the expansion of lighting facilities in MIVCL. Furthermore, the greenfield 4W lighting plant project at Khed City, Pune, is on track. The company's revenues from the lighting segment stood at Rs 834 crore during Q2FY24.
In the casting segment, Uno Minda claims to have done its highest ever production of a 2W alloy wheel and a 4W alloy wheel. The company commissioned two lines, aggregating an additional 1.4 million metric tonnes of capacity out of the total 2.0 million planned at the 2W alloy wheel plant at Supa.
Additionally, the company earlier announced a new greenfield plant with a capacity of 120,000 flow-forming GDC alloy wheels per month in a phased manner. The casting segment contributed Rs 753 crore in revenues during Q2 FY24.
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