Uno Minda to increase stake in JV with Westport to 76%

Gurugram- Uno Minda Limited., a manufacturer and supplier of proprietary automotive solutions and systems to OEMs as Tier1, has announced that its Board has approved to increase stake in Minda Westport Technologies Limited., from 50% to 76% by acquiring additional 26% stake from its joint venture partner Westport Fuel Systems Italia S.r.l. For a 26% share, the buying price is roughly INR 14.81 crores. The purchase of shares is anticipated to be finished on or before March 31, 2024. In addition to including future hydrogen components in addition to CNG/LNG/LPG components and Kits in the joint venture territory of South Asia, which consists of India, Bhutan, Sri Lanka, and Nepal, Uno Minda and Westport are also modifying their joint venture agreement.

MWTL, is a manufacturers of Alternate Fuel Systems — CNG and LPG components and kits for OEMs and Aftermarket in India. MWTL has reported revenues of INR 181.05 Cr in FY23 which has grown 3x in last four years.

In addition to purchasing an additional 26% of Westport, MWTL is also buying Rohan BRC Gas Equipment Pvt. Ltd.'s assets, which is a Westport wholly-owned subsidiary. Compressed natural gas (CNG) pressure reducer production and sales to automotive equipment manufacturers are Rohan BRC Gas Equipment's main business activities. CNG conversion kits are also sold to OEMs and aftermarket channels. The collaboration will enable MWTL to provide more CNG, LNG, LPG, and hydrogen goods and services to the expanding Indian automotive market.

From roughly 3.5% of all passenger vehicle (PV) sales in CY 2019 to 11% in CY 2022, compressed natural gas (CNG)-powered automobiles have increased in popularity in India. By CY2027, it is anticipated that the penetration of CNG will reach levels of about 18% thanks to improved supply availability, new CNG model launches, and strengthened CNG infrastructure. Over the short to medium term, CNG is anticipated to overtake gasoline as the second most common powertrain due to rising penetration levels.

Mr Vivek Jindal, Director Uno Minda and Managing Director MWTL, said that, “Given its affordability and viability, the demand for CNG vehicles in India has surged tremendously and is projected to continue expanding rapidly in the years to come. This agreement will solidify Uno Minda as the industry leader in alternative fuel systems to harness the rapidly expanding Indian automobile market by integrating Uno Minda's production and engineering capabilities with Westport's technology and goods. The proposed combination, which would establish a manufacturing centre to service the Indian market for passenger cars, commercial vehicles, and the large three-wheel vehicle segment, has further cemented the two companies' ten-year collaboration.”

Mr. Bart van Aerle, Executive Vice President, OEM & IAM of Westport Fuel Systems, said that, Westport is certain that this newly structured partnership between Uno Minda and Westport will produce a more targeted, organized strategy that will ultimately be advantageous to our consumers as well as the expansion and profitability of MWTL.