Minda Industries Ltd (MIL) announced that it has formed a joint venture with FRIWO AG of Germany, a global provider of innovative power supply units and e-drive solutions, to manufacture and supply various electric vehicle components in India, with a capital expenditure of Rs 390 crore anticipated over the next six years.
MIL, Uno Minda Group’s flagship company, will own 50.1% of the company, with the balance held by FRIWO AG, according to a regulatory filing.
The collaborators will combine their production skills and technical experience to offer a full range of e-drive solutions for electric two- and three-wheelers in the Indian subcontinent market, according to MIL.
“In the first two years, the outlay will be roughly Rs 160 crore,” MIL stated.
MIL intends to spend Rs 71 crore as an equity investment in one or more tranches to partially pay the following expenses. The remaining funds will come from a combination of internal accruals, equity investment, and debt.
The board also granted a capital increase of €15 million to FRIWO AG in order to deepen the industrial relationship between the two companies.
Intending to be a true leader in the fast increasing e-vehicle sector, Nirmal K Minda, CMD of Uno Minda Group, stated that the JV will play a significant part in the electric transition, by merging world-class technologies and production capabilities.
“We are confident to play a key catalyst role in the electric vehicle revolution and sustainable mobility in India,” Minda said, adding that the coalition was formed at a suitable term when the EV sector is on the verge of a positive trend aided by advantageous government policy and incentives.
The joint venture will offer a unique product portfolio with shared facilities, advanced but market-proven technology, and high quality and engineering standards from both FRIWO and UNO MINDA, all at reduced prices to benefit customers, said Rolf Schwirz, CEO, FRIWO.
In a separate filing, MINDA plans to invest Rs. 194 crore in expansion of two-wheeler alloy wheel capacities, taking it to an aggregate of 56 lakhs wheels per annum. Which is expected to be operational by the end of March 2023.
MIL said its subsidiary Minda Kosei Aluminum Wheel Pvt Ltd will raise its four-wheeler alloy wheel capacity at its Gujarat plant by 30,000 wheels per month to meet rising demand from OEMs.
After the increase, the Uno Minda group’s total four-wheeler alloy wheel output would be 3.3 lakh wheels per month, with an outlay of Rs. 74 crores.
The new facilities are slated to begin operations by the quarter ending June 2023.
