Uno Minda (formerly known as Minda Industries), a Tier-1 supplier of proprietary automotive solutions and systems to OEMs, has announced that its Board has approved the acquisition of an 81.69% stake in Kosei Minda Aluminum (KMA) and 49.90% stake in Kosei Minda Mould (KMM) from joint venture partner Kosei, Japan.
The acquisition is planned through a composite merger scheme with Uno Minda through a swap of shares. The enterprise value of KMA and KMM considered for the purpose of the transaction is INR 60 crore and INR 11 crore, respectively.
Nirmal K Minda, CMD, Uno Minda Group, said, “Kosei has been a very important partner in our growth journey in the last few years where we have become the leading 4W alloy wheel player in the country facilitating self-reliance. The acquisition will further consolidate Uno Mind’s leadership position in the segment. We are confident that we will scale this business to newer heights.”
While the merger will be subject to various statutory authorities, Uno Minda will start managing the business and operations of these two entities with effect from 1st April 2023. The company will also enter into a technical license agreement with Kosei Japan for ten years, and shall be renewed thereafter with mutual consent of the parties to ensure continuity of technical support.
Sunil Bohra, CFO, Uno Minda Group, said, “We have been extremely positive on the 4W alloy wheel industry which is expected to grow around four times over the next decade depending on increasing alloy wheel penetration coupled with vehicle volume growth. The proposed transaction is one more step towards gaining a significant pie of this growing 4W alloy wheel market, simplification of the group structure and facilitating the achievement of economies of scale.”
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