Uno Minda Limited shares jumped 2 percent in the early trade on September 29 after the company announced an increase in stake in its joint venture with Westport to 76 percent to accelerate growth in growing CNG and other alternate fuel markets.
"The board has approved to increase stake in Minda Westport Technologies Limited from 50 percent to 76 percent by acquiring an additional 26 percent stake from its joint venture partner Westport Fuel Systems," the company said in an exchange filing on September 28.
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The automotive solutions manufacturer said the stake would be picked for about Rs 14.81 crore. The acquisition of shares is targeted to be completed on or before March 31, 2024.
Uno Minda and Westport are also in the process of modifying their joint venture agreement to encompass forthcoming hydrogen components alongside CNG, LNG, and LPG components and Kits within the joint venture's designated region of South Asia, which includes India, Bhutan, Sri Lanka, and Nepal.
Uno Minda director Vivek Jindal said, "The CNG vehicle segment’s demand in India has increased significantly and is further expected to grow exponentially in coming years given its cost-effectiveness and feasibility.
"By integrating Uno Minda's manufacturing and engineering expertise with Westport’s technologies and products, this partnership will cement Uno Minda as a market leader in alternate fuel systems to tap the ever-growing Indian automotive market."
Westport is one of the leading manufacturers of Alternate Fuel Systems — CNG and LPG components and kits for OEMs and aftermarkets in India. MWTL has reported revenues of Rs 181 crore in FY23.
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