Minda Industries share price touched a 52-week high of Rs 1,019, scaling over 7 percent in early trade on December 13, after the company signed a deal with FRIWO AG Germany to manufacture and supply electric vehicle components in the subcontinent.
“Minda Industries’ board approved to enter into joint venture agreement with FRIWO AG, Germany and its affiliates and accordingly to make a joint venture company with FRIWO for EV products and authorised to make investments up to Rs 71 crore from time to time in one or more tranches over next three years for 50.1 percent stake in a proposed joint venture company in India, subject to requisite approval of appropriate authority if any,” according to a press release.
The JV company will be a subsidiary of Minda Industries.
The total capital expenditure to be incurred over the period of six years in the proposed joint venture company would be approximately Rs 388 crore, it said.
Through its subsidiary FRIWO GmbH, FRIWO AG has an India arm, Friemann and Wolf India Private Limited. The existing business of Friemann and Wolf will be transferred to the joint venture.
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Minda Industries also approved the expansion of its two-wheeler alloy wheel capacity by 2 million wheels per annum at its existing Supa Plant in Maharashtra. This is part of the two-phase expansion planned by the company at the time of foraying into two-wheeler alloy wheel business.
The current capacities are now booked with incremental demand from OEMs that calls for further expansion its capacities. The capacity of Uno Minda group will be be 5.6 million wheels per annum after completion of this expansion, the company said in another release.
The additional capital expenditure for the aforesaid capacity expansion will be Rs 190 crore and the said expanded facilities are expected to commence operations by the quarter ending March 2023.
Also, Minda Kosei Aluminum Wheel Private Limited, one of the key subsidiaries of Minda Industries, will be expanding its four-wheeler alloy wheel capacity by 30,000 wheels per month at its Gujarat plant.
The additional capital expenditure for this expansion will be Rs 74 crore. The expanded facilities will start operation by the quarter ending June 2023, the company said.
At 9:35am, Minda Industries was quoting at Rs 1,004.50, up Rs 58.95, or 6.23 percent, on the BSE.
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