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- 12 Apr 2024
- ICICI Securities
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CONDUCTS GROUNDBREAKING CEREMONY FOR GREENFIELD PLANT IN PV - ALLOY WHEEL SEGMENT
UNOMINDA - 865 Change: -25.15 (-2.82 %)News: Uno Minda Limited, in a regulatory filing has announced conducting groundbreaking ceremony for its upcoming greenfield PV alloy wheel plant with a capacity of 120,000 wheels per month at Kharkhoda, Haryana. The plant with a capital outlay of ₹ 542 crore will be set up in a phased manner over the next 5 years with phase 1 commissioning in Q2FY26. Uno Minda had recently secured an allotment of a strategic land parcel of 94.3 acres at Kharkhoda, Haryana HSIIDC, to fuel its ongoing and future expansions. A part of this land i.e. ~ 25 acres has been designated for this greenfield Alloy wheel plant.
Views: This land parcel secured by Uno Minda is in close proximity to the new greenfield plant being set up by Maruti Suzuki India with a slated peak capacity of 10 lakh units (Phase 1 of 2.5 lakh units expected to be commissioned in CY25). Setting up a new plant by Uno Minda which counts Maruti as one of its anchor clients is a step in right direction and is beneficial for both the company as well as the OEM. The new alloy wheel plant is expected to have an asset turnover of ~1x with ~15%+ return ratios profile and is expected to be earnings accretive for the company going forward. On a broader scale, Uno Minda has been proactively securing land parcels in all major auto hubs to be ready to meet the growing demand from OEMs. Last year, it had acquired 86 acres of land at Khed City Industrial Park, Pune followed by recent acquisition of 37 acres in Hosur Tamil Nadu and 94.32 acres in Kharkhoda Haryana. The Company is also in a process of acquiring land parcel in Gujarat.
Impact: Positive