Uno Minda Approves ₹1,415 Crore Capital Outlay for Four Major Plant Expansions

Uno Minda Limited's board has greenlit an incremental capital expenditure program totaling ₹1,415 crore to expand, consolidate, and relocate four automotive components manufacturing facilities across Haryana, Tamil Nadu, Karnataka, and Maharashtra. The investment targets alloy wheel, casting, and advanced automotive product lines to capture rising domestic demand for lightweight structural components and premium vehicle features. To ensure robust balance-sheet support for the infrastructure push, the board cleared debt-raising mandates authorizing up to ₹600 crore in Non-Convertible Debentures and a ₹500 crore revolving commercial paper limit.

The strategic capital allocation aims to accelerate the company transition toward large-scale, consolidated manufacturing hubs to achieve operational efficiencies and mitigate land acquisition lag times. The multi-state expansion encompasses major new production units and regional plant relocations, addressing fragmented legacy footprints while locking in supply chain relevance with major Indian passenger vehicle and two-wheeler original equipment manufacturers.

The capital outlay includes a ₹510 crore incremental investment dedicated to constructing a new greenfield facility for the Casting Division in Hosur, Tamil Nadu. This plant expansion will drive a proposed greenfield casting capacity addition of 20,557 metric tonnes per annum, representing a significant scaling up from the existing 13,255 metric tonnes baseline capacity.

In parallel, the board authorized ₹155 crore to set up a dedicated two-wheeler alloy wheel plant with a manufacturing capacity of 3.3 million units at Kharkhoda in Haryana. This facility will be built on an existing land parcel adjacent to current operational assets, allowing the company to capitalize directly on pre-existing infrastructure and accelerate construction timelines.

Beyond greenfield investments, the expansion plan incorporates a substantial ₹670 crore capital expenditure earmarked for an associate-linked facility of Toyoda Gosei South India Private Limited, slated for Chhatrapati Sambhajinagar in Maharashtra. The infrastructure initiative also triggers a broader asset relocation strategy involving the systematic consolidation of legacy operations, including existing Supa alloy wheel and Hosur casting plants, into higher-efficiency regional campuses.

The consolidation efforts are designed to optimize supply networks and streamline operational workflows for Tier-1 original equipment manufacturers. These projects build upon recent corporate moves, including the July 2026 greenfield manufacturing venture in Chhatrapati Sambhajinagar to enter the passenger vehicle seating systems business via a 51 percent joint venture with Japan's Tachi-S Company involving an investment of ₹320 crore.

The aggressive capital buildout will be funded through a diversified financing mix combining the newly authorized ₹600 crore in Non-Convertible Debentures and ₹500 crore in commercial paper limits, alongside traditional term loans and internal accruals. The commercial paper program is backed by a strong IND A1+ credit rating, maintaining financial flexibility while underwriting the multi-year infrastructure development.

Project timelines extend across medium-term operational milestones, introducing specific execution monitoring points for market observers. Commissioning targets include the completion of the Kharkhoda alloy wheel plant by the fourth quarter of fiscal year 2028, followed by the consolidation and commissioning of the Hosur casting operations by the first quarter of fiscal year 2029.