UNO Minda , a leading automotive components manufacturer, has announced plans to invest up to ₹4.75 crore in a Special Purpose Vehicle (SPV) for solar power sourcing in Tamil Nadu. This strategic move marks the company's entry into renewable energy infrastructure, demonstrating its commitment to sustainable practices and green energy adoption.

Investment Details

The Mergers & Acquisitions Committee of UNO Minda's Board of Directors approved the investment during a meeting held on September 05. The key points of the investment are:

• Investment amount: Up to ₹4.75 crore
• Investment structure: To be made in one or more tranches
• Equity stake: Up to 30% in the SPV
• Timeline: Expected completion in Q4

Purpose and Benefits

The primary objectives of this investment include:

1. Renewable Energy Utilization: Increasing the company's use of renewable energy in Tamil Nadu.
2. Captive Open Access: Availing Captive Open Access Solar power for its operations.
3. Sustainability Initiative: Aligning with global trends towards cleaner energy sources in industrial operations.

SPV Details

The Special Purpose Vehicle, which is yet to be incorporated, will be dedicated to:

• Setting up solar power plants in India
• Generating solar power
• Distributing the generated power

This move into the renewable energy sector represents a diversification of UNO Minda's interests beyond its core automotive components business.

Regulatory Compliance

UNO Minda has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. The company has stated that no related party transactions are involved in this investment.

Conclusion

UNO Minda's investment in solar power infrastructure showcases the company's forward-thinking approach to energy management and environmental responsibility. As the automotive industry increasingly focuses on sustainability, this move could potentially enhance UNO Minda's operational efficiency and strengthen its position as an environmentally conscious manufacturer in the long term.

UNO Minda , a leading auto components manufacturer, has seen its shares reach a new pinnacle, touching a record high of ₹1,301. The stock has surged an impressive 18% since August 6, following the company's announcement of strong financial results for the June quarter.

Strong Financial Performance

The company reported a stellar performance for the first quarter:

The robust growth was driven by double-digit expansion across various divisions, including switches, lighting, seating, and others. The significant improvement in operating margin was attributed to prior period state incentives and gross margin expansion.

New Leadership Appointments

In a move to strengthen its management team, UNO Minda has made two key appointments:

• Sanjeev Kulkarni as CEO
• Garima Garg as HR head

These strategic hires are expected to contribute to the company's continued growth and operational excellence.

Limited Overseas Exposure

UNO Minda's limited overseas revenue exposure, standing at just over 10%, provides a buffer against potential international market volatility. Notably, the United States is not among the company's top five export destinations, which may offer some protection against higher US tariffs.

Future Growth Initiatives

The company has outlined ambitious plans for future growth:

• Guided capex of ₹1,600-₹1,700 crore for FY26
• Three-quarters of the capex allocated for growth initiatives
• Acquisition of land in Chhatrapati Sambhajinagar for ₹130.00 crore
• Announced ₹210.00 crore capex for EV four-wheel casting components

These investments underscore UNO Minda's commitment to expansion and its focus on emerging technologies, particularly in the electric vehicle segment.

Analyst Outlook

The strong performance and growth initiatives have led to positive revisions in analyst estimates:

• Emkay Global raised FY26-27 EPS estimates by 2%
• Asit C Mehta increased EPS estimates by over 4% for both FY26 and FY27

These upward revisions reflect growing confidence in UNO Minda's business model and future prospects.

The company's robust financial performance, strategic appointments, and forward-looking investments have collectively contributed to the positive market sentiment, driving the stock to new heights. As UNO Minda continues to navigate the evolving automotive landscape, investors and industry observers will be keenly watching its progress in the coming quarters.