Minda surges 8% to 52-week high as firm inks manufacturing JV pact with FRIWO AG Germany

NEW DELHI: Shares of Minda Industries zoomed 8 per cent in early trade on Monday as the auto components manufacturer said that it has entered into a joint venture agreement with FRIWO AG Germany to manufacture and supply various electric vehicle (EV) components in the Indian subcontinent.

The announcement sent Minda’s counter soaring to a 52-week high of Rs 1,019 on the National Stock Exchange versus the previous close of Rs 942.

The domestic auto parts marker said over the weekend that it has a planned capital expenditure of Rs 390 crore in the next six years.

“Based on our internal assessment based on which the board has approved the investment of Rs 390 crore we are looking at minimum of 3x-4x of revenue in next 5-6 years.” Sunil Bohra, Group CFO of Minda Industries was quoted as saying in reports.

The company said on Friday that Minda Industries Limited, which is the flagship firm of the Uno Minda Group, will possess a majority stake of 50.1 per cent in the joint venture with FRIWO AG Germany. The German firm is an international manufacturer of innovative power supply units and e-drive solutions, Minda said in a regulatory filing.

In the release, Minda Industries said that the two companies will take advantage of their manufacturing abilities and technical know-how to offer full line e-drive-solutions for electric two- and three-wheelers in the Indian subcontinent market.

“"While joint venture plans to incur capex of around Rs 390 crore over a period of next six years to support such growth in India, the outlay in initial two years would be around Rs 160 crore," the company was quoted as saying in reports.

Separately, Minda said that it will also increase production capacities of its two-wheeler and four-wheeler alloy wheels business for which a total capital expenditure outlay of Rs 264 crore has been made.