Auto component major Uno Minda has more than doubled its capex line up for the current financial year upping it from INR 700-800 crore guidance at the beginning of the year to around INR 1,900-2,000 crore now.
Sunil Bohra, executive director & group CFO, Uno Minda, said: “We have already spent INR 540 crore in H1 and we’re lining up another INR 540 crore for a four-wheel alloy wheel plant in north India.”
The company, he added, is also lining up around INR 500-600 crore as investment on building a land bank and will spend another INR 300-400 crore on normal capex in H2.
“We have 7-8 ongoing projects in different businesses so going forward the capex momentum will continue as we are looking at significant growth,” he added.
As for building a land bank, the company is looking at north, west and south. “In the south, Tamil Nadu will be a key state as we are already present in Hosur and Bengaluru is nearby so we will build a land bank in Tamil Nadu,” added Bohra.
Additionally the company is looking at Maharashtra, Haryana and Gujarat and has already bought 86 acre in Pune.
The company which is increasing footprint in EV only products while insulating the rest of its product profile by making them EV or ICE agnostic is focusing on growing its export business.
“Our exports were 10% of our revenue five years ago but now it’s 15% even as revenue has doubled so our exports have trebled,” said Bohra.
“Our target is to take it to 20% of revenue in the next five years.”
The company exports products like lamps, seats or switches and while “volumes are lower than anticipated, we have been able to insulate ourselves by adding more business,” he added.
On electrification business, the company has added a complete range of EV specific products for two and three wheelers including motors, chargers, DC DC converters and cables.
“In low voltage (electric two and three wheelers) we have focused on R&D, collaborations and developing our own products and now for electric passenger vehicles we are looking at a similar strategy,” he added.
