Outcome of the Committee Meeting held today May 08, 2025 for Capacity Addition
UNOMINDA · price
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Uno Minda's board committee approved setting up a new two-wheeler alloy wheel manufacturing facility at Bawal, Haryana, with an installed capacity of 1.5 Mn wheels per annum and a capex of around Rs. 200 Crores, to be funded through internal accruals and term loans. In parallel, the company has commenced commercial production of its 2.0 Mn alloy wheel expansion at Supa, Maharashtra, originally announced in May 2024. With this addition, total 2W alloy wheel capacity will rise from 8 Mn to 9.5 Mn wheels per annum, and the Bawal facility is expected to be operational by Q2 FY27. The move is aimed at fulfilling recently secured orders and meeting rising demand, with current capacity utilization already running at 85-90%.
This signals management's confidence in growing two-wheeler alloy wheel demand and order book expansion. The Rs. 200 Cr investment is modest relative to the company's size and is funded through a healthy mix of internal accruals and debt, limiting balance sheet strain. Positive for long-term revenue growth, though the Bawal facility's contribution will only flow in from Q2 FY27 onwards.