Uno Minda Limited, a prominent global manufacturer and supplier specializing in exclusive automotive solutions and systems for Original Equipment Manufacturers (OEMs) as Tier-1 partners, has recently announced its Board’s approval to enhance its ownership stake in Minda Westport Technologies Limited (MWTL) from 50% to 76%. This increase in ownership will be facilitated by the acquisition of an additional 26% stake from its joint venture partner, Westport Fuel Systems Italia S.r.l. (“Westport”). The agreed purchase price for this 26% stake amounts to approximately Rs 14.81 Crores. The acquisition of these shares is slated for completion on or before March 31, 2024.
In addition to this strategic ownership expansion, Uno Minda and Westport are also in the process of amending their joint venture agreement. The modification will encompass future hydrogen components, in addition to their existing portfolio of Compressed Natural Gas (CNG), Liquified Natural Gas (LNG), and Liquified Petroleum Gas (LPG) components and kits. This expansion of offerings will apply within the joint venture’s territory, which encompasses South Asia, including India, Bhutan, Sri Lanka, and Nepal.
MWTL stands as a foremost manufacturer in the realm of Alternate Fuel Systems, specializing in CNG and LPG components and kits for OEMs and the Aftermarket sector in India. In the fiscal year 2023, MWTL reported an impressive revenue of Rs 181.05 Crores, marking a remarkable threefold growth over the past four years.
In addition to the increased stake acquisition from Westport, MWTL is also poised to acquire the assets of Rohan BRC Gas Equipment Pvt. Ltd., a wholly-owned subsidiary of Westport. Rohan BRC Gas Equipment primarily engages in the production and sale of Compressed Natural Gas (CNG) Pressure Reducers to Automotive Equipment Manufacturers. It also supplies CNG conversion kits to OEMs and Aftermarket Channels. This strategic move is expected to yield synergistic benefits, enabling MWTL to offer an expanded range of CNG, LNG, LPG, and Hydrogen products and services to the burgeoning Indian automotive market.
The adoption of CNG-powered vehicles in India has witnessed substantial growth, surging from approximately 3.5% of total passenger vehicle (PV) sales in the calendar year 2019 to an impressive 11% in the calendar year 2022. With the improved availability of supplies, the introduction of new CNG models, and the strengthening of CNG infrastructure, it is anticipated that CNG penetration will continue to rise, reaching levels of around 18% by the calendar year 2027. As penetration levels increase, CNG is poised to emerge as the second most popular powertrain option in the near to medium term.