The board of Uno Minda, an auto components maker, has given approval for increasing its stake in the joint venture firm, Minda Westport Technologies Ltd (MWTL), to 76%. Uno Minda’s board has sanctioned the acquisition of an additional 26% stake in MWTL from its joint venture partner, Westport Fuel Systems Italia. The purchase price for this 26% stake amounts to approximately Rs 15 crore, as stated by Uno Minda.
In addition to this stake increase, Uno Minda and Westport are making amendments to their joint venture agreement to encompass future hydrogen components alongside CNG/LNG/LPG components and kits within the South Asian territory, comprising India, Bhutan, Sri Lanka, and Nepal, according to the company.
MWTL is a prominent manufacturer of alternative fuel systems, specifically CNG and LPG components and kits, catering to both Original Equipment Manufacturers (OEMs) and the aftermarket in India.
Uno Minda also mentioned that MWTL is in the process of acquiring the assets of Rohan BRC Gas Equipment, which is a wholly-owned subsidiary of Westport. Rohan BRC Gas Equipment specializes in the production and sale of Compressed Natural Gas (CNG) pressure reducers and CNG conversion kits.
The share of CNG-powered vehicles in India has risen from approximately 3.5% of total passenger vehicle (PV) sales in 2019 to 11% in 2022. Uno Minda’s Director and MWTL’s Managing Director, Vivek Jindal, emphasized the increasing demand for CNG vehicles in India due to their cost-effectiveness and feasibility, predicting significant growth in the coming years.
He further stated that the proposed consolidation would strengthen the decade-long partnership with Westport and create a manufacturing hub aimed at serving the Indian market, encompassing passenger cars, commercial vehicles, and the sizable three-wheel vehicle segment.
