Uno Minda has announced a strategic expansion into the complete Four-Wheeler (4W) Passenger Vehicle Seating Systems segment, entailing a total project cost of ₹320 crore. The Board of Directors approved the establishment of a state-of-the-art greenfield manufacturing facility in Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra, on July 7, 2026. This move marks a decisive shift up the automotive value chain, targeting one of the highest-value product categories to increase per-vehicle revenue potential.

The project will be executed under Uno Minda Tachi-S Seating Private Limited, a Joint Venture with TACHI-S Company Limited, Japan. The facility is expected to commence operations by Q4FY28. The company has already secured an anchor customer order from a leading OEM, validating its engineering capabilities and manufacturing readiness for this new product line.

Investment and Capacity

The Investment, Mergers & Acquisitions Committee of the Board sanctioned the investment to drive business growth and meet customer demand. The proposed capacity addition is 2,40,000 units per annum, to be achieved in phases until FY 2030-31. The project will be financed through a mix of equity and term loans.

Investment in Subsidiary

The Committee also approved a further investment of up to ₹93 crore in the equity capital of Uno Minda Tachi-S Seating Private Limited. This infusion will be disbursed in one or more tranches in cash until FY 2027-28. The investment is proportionate to the current shareholding, meaning there will be no change in the percentage of shareholding or control in the target entity. Uno Minda currently holds a 51% equity stake in the joint venture.

Financials of Target Entity

Uno Minda Tachi-S Seating Private Limited, incorporated on October 31, 2022, operates within the automotive industry in India. The entity has reported a steady increase in turnover over the past three financial years based on audited financial statements.

The transaction does not fall within related party transactions and will be conducted at arm's length. No prior governmental or regulatory approvals are required for the acquisition or the capacity expansion.

Members of the promoter group of Uno Minda have entered into a shareholders' agreement to formally document the existing understanding regarding the exercise of their shareholder rights. The agreement, dated July 7, 2026, was executed to preserve mutual respect, goodwill, and harmony among family members. The parties collectively hold 67.80% in the company.

The agreement was signed by Nirmal Kumar Minda, Suman Minda, Pallak Minda, Paridhi Minda, and several promoter group entities including Minda Investments Limited, Singhal Fincap Limited, and Minda Finance Limited. Samaira Jindal, a relative of a promoter group member, and the Nirmal Suman Minda Family Trust are also parties to the agreement. The disclosure was made to the stock exchanges pursuant to Regulation 30 and 30A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Terms of the Agreement

The shareholders' agreement outlines specific provisions regarding board representation and leadership. During the lifetime of Nirmal Kumar Minda, the parties will continue to be represented on the board by three directors, subject to necessary approvals. Following this period, the representation will reduce to a minimum of two directors. Additionally, Nirmal Kumar Minda will continue to serve as the chairman of the company during his lifetime, subject to board and shareholder approvals.

The agreement also includes customary rights such as the right of first refusal and tag-along rights. A significant restriction imposed by the agreement prohibits the parties from transferring their shares to a competitor.

Impact on Management and Control

The agreement explicitly states that there is no impact on the existing management or control of the listed company. The management and control of Uno Minda will continue to remain with the promoter group. The filing confirmed that there is no potential conflict of interest arising from this agreement and that the transaction does not fall within related party transactions.