UNO Minda Limited has informed the Exchange regarding a press release dated May 08, 2025, titled "Press Release dated May 08, 2025 titled "Uno Minda to Set Up two-wheeler Alloy Wheel facility in Bawal Haryana"".
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UNO Minda's Board has approved setting up a new two-wheeler alloy wheel manufacturing facility in Bawal, Haryana with an installed capacity of approximately 1.5 million wheels per year. The project will involve a capital expenditure of around ₹200 crore, to be funded through a mix of debt and internal accruals, and is expected to start operations by Q2 FY27. In parallel, the company has begun commercial production of an additional 2.0 million wheel capacity expansion at its existing Supa, Maharashtra plant, which was originally announced in May 2024. Once the Bawal plant is fully operational, the company's total two-wheeler alloy wheel capacity will rise to about 9.5 million wheels annually, up from the current 8.0 million at Supa.
This is a growth-oriented capex announcement funded partly by debt, which could put mild pressure on the balance sheet in the near term but supports long-term revenue expansion. New capacity of 1.5 million wheels signals management's confidence in rising two-wheeler demand, which is a positive signal for shareholders, though benefits will only start reflecting from FY27 onwards.