Uno Minda Limited has announced that its Board has approved to increase its stake in Minda Westport Technologies Limited (MWTL) from 50% to 76% by acquiring an additional 26% stake from its joint venture partner, Westport Fuel Systems Italia S.r.l. The purchase consideration for a 26% stake is approx. INR 14.81 crore. The acquisition of shares is targeted to be completed on or before March 31, 2024.
MWTL is one of the leading manufacturers of alternate fuel systems — CNG and LPG components and kits for OEMs and aftermarket in India. It has reported revenues of INR 181.05 crore in FY23, which has grown three times in the last four years.
Uno Minda and Westport are also amending their joint venture agreement to include future hydrogen components in addition to CNG/LNG /LPG components and kits in the JV territory of South Asia comprising India, Bhutan, Sri Lanka and Nepal.
Besides acquiring an 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 makes CNG pressure reducers for automotive equipment manufacturers and sells CNG conversion kits to OEMs and aftermarket channels.
Vivek Jindal, Director Uno Minda and Managing Director, MWTL, said that the CNG vehicle segment’s demand in India has increased significantly and is expected to grow exponentially in the 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 a market leader in alternate fuel systems and allow it to tap into the ever-growing Indian automotive market, Jindal added.
Bart van Aerle, Executive Vice President, OEM & IAM, 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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