Minda announces fresh round of capex and investment spendsUNOMINDA - 658 Change: -10.85 (-1.62 %)
News: As per recent exchange filing, Minda has announced fresh round of capex and investment spends which include (i) expansion in alloy wheel capacity across the 2-W & 4-W segments at a capex outlay of Rs.264 crore; (ii) formation of JV (50.1% stake) with FRIWO AG for electric vehicle components for 2-W/3-W (Motor Controllers, Off-board chargers, battery packs) with initial investment commitment of Rs. 71 crore (over next three years) and total capex envisaged at the JV company pegged at ~Rs.390 core over a six year period; (iii) equity investment in FRIWO AG through fresh issuance of shares for total value of €15 million (Rs.130 crore).
Views: The company has been at the forefront driving premisisation in the domestic automobile space. Alloy wheel capex is well positioned to capture the increasing consumer preference for the product as well as import substiions while JV in the EV components domain will help in substantial improvement in kit value in the electric vehicle. With likely commissioning of new projects over FY23-24E, the company is expected to sustain its out-performance in the domestic automobile space.