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Uno Minda embarks on strategic expansion plan

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Last Updated : Apr 10 2024 | 4:31 PM IST

With its upcoming greenfield passenger vehicle alloy wheel plant at IMT Kharkhoda, Haryana

Uno Minda has marked a significant milestone with the groundbreaking ceremony for its upcoming greenfield passenger vehicle alloy wheel plant with a capacity of 120,000 wheels per month at IMT Kharkhoda, Haryana. The plant with a capital outlay of Rs 542 crore will be set up in a phased manner over the next 5 years with phase 1 commissioning in Q2 FY26.

Uno Minda had recently secured an allotment of a strategic land parcel of 94.32 acres at IMT Kharkhoda, Haryana HSIIDC, to fuel its ongoing and future expansions. A part of this land i.e. around ~ 25 acres has been designated for this greenfield Alloy wheel plant. Uno Minda's proactive land acquisitions and greenfield project demonstrate its commitment to staying ahead of the curve in the rapidly evolving Indian auto landscape.

IMT Kharkhoda is evolving as a thriving industrial centre with a mega plant from a leading passenger car OEM already under construction and various downstream units securing land for their own investment. The authorities are further boosting the region by offering streamlined clearances under one roof. This location offers Uno Minda logistical advantages for sourcing and supply with its various suppliers and customers at the Industrial Township as well as in the vicinity.

Considering the growth prospects as OEMs announce large capacity expansions, Uno Min.da is also strategically aligning its own growth trajectory. Uno Minda has been proactively securing land parcels in all major auto hubs to be ready to meet the growing demand from OEMs. Last year, Uno Minda had acquired 86 acres of land at Khed City Industrial Park, Pune followed by recent acquisition of 37 acres in Hosur Tamil Nadu and 94.32 acres in IMT Kharkhoda Haryana. The Company is also in process of acquiring land parcel in Gujarat.

These acquisitions also mark a shift in the company's strategy, moving from buying pocket of land as per the exact requirement every time we expand to buying a large plot of land to meet current and as well as future needs. This revised strategy offers two key advantages: First Uno Minda avoids delays associated with land acquisition by having readily available land, enabling a quicker response to growth opportunities. Secondly, larger plots allow for building bigger plants and consolidating existing ones, leading to improved operational management and economies of scale.

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First Published: Apr 10 2024 | 4:12 PM IST

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