FRIWO AG (General Standard, Frankfurt) is an international manufacturer of technically leading power supply devices and e-drive solutions.

Minda Industries will hold a majority stake of 50.1% in the joint venture entity.

The company expects surge in two wheel electric vehicles over next 5-6 years in India. While joint venture plans to incur capex of approximately Rs 390 crore over a period of next 6 years to support such growth in India, the outlay in initial two years would be around Rs 160 crore.

Minda Industries plans to invest Rs 71 crore in one or more tranches as equity investment to partly fund the above expenditure. The remaining funding requirement will be met through mix of internal accruals, equity investment and debt.

The board of Minda Industries has also approved investment of Euro 15 million in FRIWO AG via a capital increase in order to strengthen the industrial partnership between the two groups. The planned transaction and the capital measure is subject to the regulatory approvals including Reserve Bank of India.

Nirmal K Minda, CMD, Uno Minda Group, said, "Electrification will play an important role in the transformation of the mobility industry and presents major opportunities to entire mobility ecosystem. We are delighted to partner with FRIWO to expand our product capabilities to serve such rising EV opportunities.

By combining our technologies and production capabilities, we can create a true leader in the rapidly growing e-vehicles market. Partnership has been forged at opportune time where EV Industry is on the cusp of growth trajectory facilitated by favorable government policy and incentives.”

The board of Minda Industries has approved formation of two wholly owned subsidiaries - UNO Minda EV Systems and UNO Minda Auto Systems. The first subsidiary will be used for the proposed joint venture with FRIWO GERATEBAU Gmbh, FRIEMANN & WOLF INDIA and FRIWO AG. The second one will help the company to cater the new business related to auto components business.

The company expects to complete the incorporation process by March 2022. It will make an initial cash investment of Rs 2,50,500 in UNO Minda EV Systems and an investment of Rs 1,00,000 in UNO Minda Auto Systems.

Separately, Minda Industries informed that its board had approved the expansion plans for its alloy wheel businesses considering increased demand for its alloy wheels from leading OEMs.

The company will be expanding its 2W Alloy wheel capacity by 2 million wheels per annum at its existing Supa Plant in Maharashtra. The total 2W Alloy wheel capacity of Uno Minda group shall be 5.6 Mn wheels per annum after completion of this expansion.

The additional capital expenditure for the aforesaid capacity expansion will be Rs 190 crore. The expanded facilities are expected to commence operations by quarter ending March 2023.

Minda Kosei Aluminum Wheel, one of the key subsidiary of Minda Industries, will be expanding its 4W Alloy wheel capacity by 30,000 wheels per month at its plant in Gujarat, to cater to the increased demand from leading OEMs in vicinity. This is in addition to the ongoing capex of 60,000 wheels per month at Bawal Plant.

The total 4W Alloy wheel capacity of Uno Minda group shall be 3,30,000 wheels per month after this enhancement.

The additional capital expenditure for the aforesaid capacity expansion will be Rs 74 crore. The expanded facilities are expected to commence operations by quarter ending June 2023.

Minda Industries is a flagship company of UNO MINDA Group, which manufactures automobile components for original equipment manufacturers (OEMs).

On a consolidated basis, the company's net profit jumped 13.41% to Rs 113.43 crore on a 29.51% surge in revenue from operations to Rs 2,113.99 crore in Q2 September 2021 over Q2 September 2020.