Minda Industries has entered into a Joint Venture agreement with FRIWO AG Germany, a leading international manufacturer of innovative power supply units and e-drive solutions, to combine their manufacturing prowess and technical expertise to manufacture and supply various electric vehicle components in Indian subcontinent. The company will hold a majority stake of 50.1% in the joint venture entity.
The company is eyeing surge in two wheel electric vehicles over next 5-6 years in India. While joint venture plans to incur capex of 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 company 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.
Minda Industries offers a range of products across various verticals of auto components, such as switching systems, acoustic systems and alloy wheels, among others.
| Company Name | CMP |
|---|---|
| SamvardhanaMotherson | 125.00 |
| Tube Investments | 2789.65 |
| Bosch | 37505.60 |
| UNO Minda | 1097.30 |
| CIE Automotive India | 490.15 |
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