Uno Minda approves ₹1,395 crore capex for new plants, debt issuance
- Uno Minda approved ₹1,395 crore in capex for four new or expanded plants
- Largest single project is ₹670 crore for associate TGSIN in Maharashtra
- Board authorized issuance of NCDs up to ₹600 crore and CPs up to ₹500 crore
- Existing casting capacity at Hosur runs at 100% utilization, driving new greenfield plant
- Two-wheeler alloy wheel capacity relocates from Maharashtra to Haryana
*this image is generated using AI for illustrative purposes only.
Uno Minda Ltd approved a combined capital expenditure of approximately ₹1,395 crore across four strategic projects during its board meeting on September 14, 2026. The expansion includes new facilities in Haryana, Tamil Nadu, and Maharashtra, alongside capacity upgrades at its Bengaluru subsidiary. To fund these initiatives, the company authorized the issuance of Non-Convertible Debentures (NCDs) up to ₹600 crore and commercial papers up to a revolving limit of ₹500 crore.
The board’s decision signals a significant push into two-wheeler alloy wheels and casting domains. The largest single investment is a ₹670 crore facility for associate Toyoda Gosei South India Private Limited (TGSIN) in Chhatrapati Sambhajnagar, Maharashtra. This project aims to manufacture interior and exterior automotive products, airbags, hoses, and body sealing parts.
Capital Expenditure Breakdown
The approved Detailed Project Reports (DPRs) outline specific capacity additions and investment requirements. The funding for all capex projects will be sourced through term loans and internal accruals.
| Project Location | Division/Subsidiary | Capex (₹ crore) | Capacity Addition |
|---|---|---|---|
| Kharkhoda, Haryana | AW2W Division (LPS) | 155 | 1.3 million wheels p.a. |
| Hosur, Tamil Nadu | Casting Division (LPS) | 510 | 20,557 MT p.a. |
| Bengaluru, Karnataka | Uno Minda Kyoraku Ltd | 80 | 1.38 million units p.a. |
| Chhatrapati Sambhajnagar, MH | TGSIN (Associate) | 670 | 1.5 lakh units p.a. |
Operational Details
The Haryana plant will produce two-wheeler alloy wheels with an annual capacity of 3.3 million units. This initiative involves relocating 2.0 million units of existing capacity from Supa, Maharashtra, to leverage infrastructure synergies at the Kharkhoda site. The start of production (SOP) for this incremental capacity is targeted for Q4 FY28.
In Tamil Nadu, the new greenfield casting facility will handle engine applications, EV/Powertrain components, structural parts, and HPDC two-wheeler alloy wheels. Existing operations at Hosur will consolidate into this new facility by Q1 FY29. The current casting division operates at 100% capacity utilization, with an existing output of 13,255 MT per annum.
Uno Minda Kyoraku Limited’s Bengaluru plant expansion will add 1.38 million units annually to its existing base of 3.28 million units. The subsidiary currently operates at 91.90% capacity utilization. SOP for this expansion is scheduled for Q1 FY28.
Debt Issuance Authorization
To support these growth initiatives, the board approved the issuance of listed NCDs up to ₹600 crore in one or more tranches. The NCD Committee has been authorized to determine offer details, tenure, coupon rates, and security charges. Additionally, the company can issue commercial papers, listed or unlisted, up to a revolving limit of ₹500 crore from time to time.
What the Numbers Show
The capital allocation reveals a distinct split between core business expansion and associate-level investments. While Uno Minda’s direct subsidiaries and divisions account for ₹745 crore in capex (Haryana, Hosur, and Bengaluru), the associate TGSIN represents the single largest outlay at ₹670 crore. This suggests a strategy where high-value safety and interior component manufacturing is being scaled through joint ventures or associates, potentially sharing risk while maintaining supply chain integration. Furthermore, the move to relocate 2.0 million units of wheel capacity from Maharashtra to Haryana indicates a geographic consolidation effort aimed at optimizing logistics and infrastructure costs rather than purely organic growth.
Historical Stock Returns for UNO Minda
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.89% | -5.31% | -6.71% | +7.82% | -5.37% | 0.0% |
How will the ₹600 crore NCD issuance impact Uno Minda's debt-to-equity ratio and interest coverage ratios in the coming fiscal years?
What are the potential supply chain risks associated with consolidating 2.0 million units of wheel capacity from Maharashtra to Haryana by Q4 FY28?
How does the heavy investment in TGSIN for safety components like airbags align with Uno Minda's long-term strategy to increase value-added product mix?
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