New Delhi: Uno Minda Board has approved 26% increase in the stake in Minda Westport Technologies Limited (MWTL) to 76%, from 50%, by acquiring it from its joint venture partner Westport Fuel Systems Italia S.r.l. (Westport) for about INR 14,81 crore
The acquisition of shares is targeted to be completed by March 31, 2024. Uno Minda and Westport are also amending the 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, the company said.
MWTL,is one of the leading manufacturers of Alternative Fuel Systems — CNG and LPG — components and kits for OEMs and aftermarket in India. MWTL has reported revenues of INR 181.05 crore in FY23 which has grown 3x in the past four years. Besides the acquisition of 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 is engaged primarily in the manufacture and sale of compressed natural gas (CNG) pressure reducers to automotive equipment manufacturers. It also sells CNG conversion kits to OEMs and to aftermarket channels. The synergies shall help MWTL to offer wider CNG/LNG/LPG/Hydrogen products and services to the growing Indian automotive market.
The share of CNG-powered vehicles in India has gone up from about 3.5% of total passenger vehicle (PV) sales in CY 2019 to 11% in CY 2022. With better availability of supplies, new CNG model launches, strengthening of CNG infrastructure, the CNG penetration is expected to increase to about 18% by CY2027. With the increasing penetration levels, CNG is expected to emerge as the second most popular powertrain over the near to medium term.
Vivek Jindal, Director Uno Minda and Managing Director MWTL, said, “The CNG vehicle segment’s demand in India has increased significantly and is further expected to grow exponentially in coming years given its cost effectiveness and feasibility. By integrating Uno Minda manufacturing and engineering expertise with Westport’s technologies and products, this partnership will cement Uno Minda as market leader in alternate fuel systems to tap the ever-growing Indian automotive market. The decade-long partnership with Westport has been further strengthened with the proposed consolidation, creating a manufacturing hub to serve the Indian market for passenger cars, commercial vehicles and the large three-wheel vehicle segment.”
Bart van Aerle, Executive Vice President, OEM & IAM of 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.”
