The company is allocating Rs 600 crore to drive sustainable growth in anticipation of an expected increase in demand.
Sunil Bohra, the CFO and CEO of Safety and Comfort, has outlined a comprehensive strategy that underscores Uno Minda’s commitment to substantial growth through strategic land acquisitions and investments in the electric vehicle (EV) sector. To date, the company has allocated approximately Rs 170-180 crore towards these initiatives, showcasing its proactive approach to expansion and innovation.
Bohra detailed the acquisition of significant land parcels, including 86 acres in Pune, with ongoing negotiations to secure an additional 40 acres in South India. Furthermore, Uno Minda is in the process of obtaining 95 acres from the Haryana government and is actively seeking opportunities in Gujarat’s automotive hub. These acquisitions are pivotal to Uno Minda’s strategy, addressing the scarcity of land near its existing facilities and laying the foundation for future growth.
Highlighting the company’s forward-thinking vision, Bohra emphasized the establishment of a land bank as a strategic measure to surmount expansion challenges. He anticipates the completion of these land acquisitions within the next 6 to 12 months, ensuring that Uno Minda has the necessary infrastructure to support its ambitious growth plans.
In tandem with its land acquisition strategy, Uno Minda has made significant strides in the EV market. The company inaugurated a new EV systems plant in Farukhnagar, Haryana, through a joint venture with FRIWO AG Germany and launched a second plant in Bawal, Haryana, under Uno Minda Buehler Motor Private Limited (UMBM). These facilities are set to manufacture critical components for EVs, such as traction motors/BLDC motors, catering to the growing demand for electric two-wheelers and three-wheelers.
The strategic moves have already borne fruit, with Uno Minda securing new orders with an annualized peak value of over Rs 600 crore for EV systems in Q1 FY24, pushing its aggregate order book to more than Rs 2500 crore. With a target to achieve Rs 1500 crore in revenue from its EV systems division by FY26, Uno Minda is positioning itself as a key player in the electric mobility revolution.
Together, these initiatives reflect Uno Minda’s holistic approach to growth, combining infrastructural development with cutting-edge technological advancements in the EV sector. This blend of strategic land acquisitions and investments in the burgeoning field of electric mobility underscores the company’s dedication to securing a leading position in the automotive industry, both now and in the future.