UNO Minda Limited, a leading automotive components manufacturer, has announced significant changes in its partnership with Buehler Motor GmbH. The company executed three key agreements that reshape their business relationship.

Key Agreements Executed

1. Joint Venture Termination Agreement: UNO Minda Limited, its subsidiary UNO Minda Buehler Motor Private Limited (UMBM), and Buehler Motor GmbH, Germany (Buehler) have agreed to terminate their existing joint venture.

2. Share Purchase Agreement: This agreement was signed among UNO Minda Limited, UMBM, and Buehler. The details of the share purchase have not been disclosed.

3. Amended Technical License Agreement (TLA): UMBM and Buehler have entered into a revised TLA, suggesting ongoing technical collaboration despite the joint venture termination.

Impact and Effectiveness

UNO Minda has stated that there will be no material impact on the company's business operations following these changes. The agreements are structured to become effective upon fulfillment of conditions stipulated in the Share Purchase Agreement and completion of UNO Minda's acquisition of Buehler's stake.

Agreement Details

Disclosure and Compliance

The company has made this disclosure in compliance with Regulation 30 of SEBI Listing Regulations, as amended by Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. UNO Minda has also confirmed that the detailed disclosure is available on the company's website at www.unominda.com .

This strategic move by UNO Minda appears to be a realignment of its partnership with Buehler, potentially allowing for more flexibility in operations while maintaining technical cooperation. Investors and stakeholders will be keen to observe how this restructuring influences UNO Minda's future business strategies and market position in the automotive components sector.

UNO Minda Limited, a prominent player in the automotive components sector, has announced strategic moves to consolidate its position in the electric vehicle (EV) market and streamline its operations.

Acquisition of Joint Venture Stake

UNO Minda's board has approved the acquisition of Buehler Motor GmbH's entire 49.90% equity stake in UNO Minda Buehler Motor Private Limited. This acquisition, valued at INR 10.64 lakh, will transform the joint venture into a wholly owned subsidiary of UNO Minda Limited.

Termination of Joint Venture Agreement

Concurrent with the stake acquisition, UNO Minda will terminate its existing joint venture agreement with Buehler Motor GmbH. This move is expected to give UNO Minda greater control and flexibility in managing the operations of UNO Minda Buehler Motor Private Limited.

Investment in EV Subsidiary

In a separate but related development, UNO Minda has approved an investment of up to INR 40 crores in its wholly owned subsidiary, UNO Minda EV Systems. This significant capital injection is aimed at supporting the working capital requirements of the subsidiary, which specializes in manufacturing EV components for electric two and three-wheelers.

Strategic Implications

These corporate actions highlight UNO Minda's commitment to strengthening its position in the rapidly growing electric vehicle market. The table below summarizes the key aspects of these strategic moves:

By fully integrating the joint venture and bolstering its EV subsidiary, UNO Minda is positioning itself to capitalize on the growing demand for electric vehicle components in the Indian market, particularly in the two and three-wheeler segments.

These strategic decisions reflect UNO Minda's proactive approach to adapting to the changing automotive landscape and its commitment to playing a significant role in the electric mobility sector. As the EV market in India continues to evolve, UNO Minda's enhanced capabilities and focused investments could potentially strengthen its competitive position in this high-growth segment.