Uno Minda, Buhler Motor form JV to make and market traction motors

Representative image (Source: Reuters)

Uno Minda, formerly known as Minda Industries, has entered into a joint venture agreement with Buehler Motor GmbH to develop, manufacture and market traction motors in India and other SAARC nations with an investment of up to Rs 17 crore.

The joint venture will offer traction motors for battery-driven EV (electric vehicle) two-wheelers and three-wheelers.

According to a statement from the company, the equity investment of up to Rs 17 crore will be made in one or more tranches for a 50.1 percent stake in the proposed JV company in India. The JV will be a subsidiary of Uno Minda. The total capital expenditure to be incurred over the period of six years in the proposed JV company would be Rs 110 crore.

The board has also approved an investment of Rs 15.30 crore in the equity shares of Minda Katolec Electronics Services under the right issue. Minda Katolec Electronics Services is a joint venture between Uno Minda and Katolec Corporation, Japan in which Uno Minda holds 51 percent equity shares and Katolec holds 49 percent.

According to the company release, Uno Minda will be setting up a new 4W Lighting plant of the company in India. The location is yet to be decided. The total capital expenditure (including sustaining capex) in the project would be around Rs 400 crore with an initial investment of Rs 230 crore over the next two years.

The total period of the project to be of five years. The commercial production is expected to start from the fourth quarter of FY 2023-24.

Uno Minda manufactures and supplies auto components for two-wheelers, cars and commercial vehicles. Germany-based Buhler Motor GmbH provides electrical drive solutions for manufacturers in the automotive, medical and industrial market segments.

In September, Uno Minda announced setting up a joint venture with Japanese firm Tachi-S Company to manufacture and market seat recliners for four-wheeler passenger vehicles in the country.

In December 2021, Uno Minda entered into a joint venture agreement with FRIWO AG Germany to manufacture and supply various electric vehicle components in the Indian subcontinent with a planned capex of Rs 390 crore in the next six years.

Uno Minda reported a consolidated net profit of Rs 170.12 crore for the quarter ended September 2022 as against Rs 94.72 crore a year back. Revenue from operations stands at Rs 2,876.84 crore as against Rs 2,114 crore during the same period.