Shares of this BSE 500 company rallied on the bourses after announcing a Rs 300 crore Capex
The company is set to expand its manufacturing capacity of 4W Alloy Wheels and 4W Automotive switches.
The shares of UNO Minda were buzzing on the bourses today. At the closing bell, the shares of the company were trading at Rs 562.3 apiece, higher by 2.24% over the previous closing price.
This surge came on the back of an announcement made by the company today. As per the exchange filing, UNO Minda is going to invest around Rs 300 crore to expand its manufacturing capacity of 4W Alloy Wheels and 4W Automotive switches. This step has been taken to meet rising demand.
Minda Kosei Aluminum Wheel, one of the key subsidiaries of Uno Minda, will be expanding its 4W Alloy wheel capacity by 60,000 wheels/month to 240,000 wheels/month at its plant in Bawal, Haryana. For this capacity expansion, the company shall incur an additional capital expenditure of Rs 190 crore.
The expansion is expected to be commissioned in two phases with the first phase of 30,000 wheels/month in December 2023 and the remaining in June 2024. The expansion will cater to increased demand driven by increasing application factors. Alloy wheels have also emerged as one of the most sought-after accessories for 4W buyers in India.
Mindarika (MRPL), another key subsidiary of Uno Minda, is establishing a new manufacturing plant at Farrukhnagar (Gurugram, Haryana). This action has been taken to cater to the increased demand for 4W Automotive switches from Indian and International customers. The project cost for setting up Phase 1 of the manufacturing plant at Farrrukhnagar will be Rs 110 crore. This project will be completed by September 2023. Phase 1 of the plant will manufacture part products to be used for manufacturing auto components.
UNO Minda is engaged in the business of manufacturing auto components including auto electrical parts and their accessories and caters to both domestic and international markets.
Today, the scrip opened at Rs 559.00 and touched a high and low of Rs 570 and Rs 553.20, respectively. Further, 13080 shares were traded on the BSE.
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