Uno Minda, a prominent auto components maker, announced on Friday that its board has granted approval to increase its stake in a joint venture firm, Minda Westport Technologies Ltd (MWTL), to 76 percent. This decision involves acquiring an additional 26 percent stake from its joint venture partner, Westport Fuel Systems Italia.
The company stated that the purchase consideration for the 26 percent stake amounts to approximately Rs 15 crore. The acquisition is projected to be completed by March 31, 2024.
Alongside this, Uno Minda and Westport are revising their joint venture agreement to encompass hydrogen components in addition to CNG/LNG/LPG components and Kits. This collaboration will cover South Asia, including India, Bhutan, Sri Lanka, and Nepal.
MWTL is recognized as one of the leading manufacturers of alternate fuel systems, specifically CNG and LPG components and kits for OEMs and the aftermarket in India.
Furthermore, MWTL is acquiring the assets of Rohan BRC Gas Equipment, a wholly-owned subsidiary of Westport. This subsidiary specializes in the production and sale of Compressed Natural Gas (CNG) pressure reducers and CNG conversion kits.
In India, the share of CNG-powered vehicles in total passenger vehicle (PV) sales has increased from 3.5 percent in 2019 to 11 percent in 2022. This growth can be attributed to the cost-effectiveness and feasibility of CNG vehicles.
Vivek Jindal, Director of Uno Minda and Managing Director of MWTL, affirmed that the demand for CNG vehicles in India has significantly risen and is expected to continue growing in the coming years. The consolidation of this partnership with Westport will further strengthen the decade-long collaboration, creating a manufacturing hub to cater to the Indian market for passenger cars, commercial vehicles, and the large three-wheel vehicle segment.
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