Uno Minda shares in focus as firm enters 4-wheeler seating systems segment with Rs 320-crore capex

Shares of Uno Minda will be in focus on Wednesday after the company announced its entry into the four-wheeler passenger vehicle seating systems segment, expanding its presence into one of the highest-value product categories in the automotive supply chain.

To support the new business, the company's board has approved the setting up of a greenfield manufacturing facility at Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra, with a proposed capital expenditure of around Rs 320 crore. The plant is expected to commence operations in the fourth quarter of FY28.

The project will be undertaken through Uno Minda Tachi-S Seating Private Limited, the company's joint venture with Japan's TACHI-S Company Limited. Uno Minda said it had entered into the joint venture with TACHI-S in September 2022 to manufacture and market passenger vehicle seat recliners as the first phase of the partnership. The latest expansion marks its entry into complete four-wheeler passenger vehicle seating systems.

The company said the move will significantly increase its revenue potential per vehicle by expanding its product portfolio within the passenger vehicle segment.

Uno Minda also said the joint venture has secured an anchor order from a leading original equipment manufacturer (OEM), providing early validation of its engineering capabilities and manufacturing readiness. The company did not disclose the name of the customer.

Commenting on the development, Managing Director Ravi Mehra said the expansion into complete passenger vehicle seating systems marks a strategic step for the company by increasing its per-vehicle value potential and strengthening its presence in a key automotive segment. He added that the proposed greenfield facility reflects Uno Minda's focus on expanding domestic manufacturing capabilities.

“This greenfield facility reflects our unwavering commitment to advanced domestic manufacturing and delivering the kind of high-performance seating comfort that India's rapidly evolving automotive market demands,” the company said in a regulatory filing.