Uno Minda Limited’s Board has decided to increase its stake in Minda Westport Technologies Limited (“MWTL”) from 50% to 76% by acquiring additional 26% stake from its joint venture partner Westport Fuel Systems Italia S.r.l.
The purchase consideration for 26% stake is approx. Rs 14.81 Crores.
The acquisition of shares is targeted to be completed on or before 31st March 2024.
Uno Minda and Westport are also amending its joint venture agreement to include future hydrogen components in addition to CNG/LNG /LPG components and Kits in JV territory of South Asia comprising of India, Bhutan, Sri Lanka and Nepal.
MWTL is one of the leading manufacturers of Alternate Fuel Systems — CNG and LPG components and kits for OEMs and Aftermarket in India.
MWTL has reported revenues of Rs 181.05 Cr in FY23 which has grown 3x in last four years.
Besides the acquisition of additional 26% stake from Westport, MWTL is also acquiring the assets of Rohan BRC Gas Equipment Pvt. Ltd, a wholly owned subsidiary of Westport. Rohan BRC Gas Equipment is engaged primarily in manufacture and sales of compressed natural gas (CNG) Pressure Reducers to Automotive Equipment Manufacturers and sells CNG conversion kits to OEMs and to Aftermarket Channels.
The synergies shall help MWTL to offer wider CNG/LNG/LPG/Hydrogen products and services to the growing Indian automotive market.
The share of compressed natural gas (CNG) powered vehicles in India has increased from about 3.5% of total passenger vehicle (PV) sales in CY 2019 to 11% in CY 2022.
With better availability of supplies, new CNG model launches, strengthening of CNG infrastructure, the CNG penetration is further expected to increase to levels of about 18% by CY 2027. With increasing penetration levels, CNG is also expected to emerge as the second most popular powertrain over the near to medium term.
Vivek Jindal, Director Uno Minda and Managing Director MWTL said, “The CNG vehicle segment’s demand in India has increased significantly and is further expected to grow exponentially in coming years given its cost effectiveness and feasibility. By integrating Uno Minda’s manufacturing and engineering expertise with Westport’s technologies and products, this partnership will cement Uno Minda as market leader in alternate fuel systems and allow it to tap into the ever-growing Indian automotive market. The decade long partnership with Westport has been further strengthened with the proposed consolidation, creating a manufacturing hub to serve the Indian market for passenger cars, commercial vehicles and the large three-wheel vehicle segment.”
Bart van Aerle, Executive Vice President, OEM & IAM of Westport Fuel Systems, said, “Westport has confidence that this restructured arrangement with Uno Minda and Westport will result in a more focused, streamlined approach which will ultimately benefit our customers and the growth and profitability of MWTL.”
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