Uno Minda Approves ₹1,415 Crore Expansion Plan; New Plants Across Key Auto Hubs
Uno Minda Limited (NSE: UNOMINDA; BSE: 532539) has approved a major capacity expansion plan involving multiple new and expanded manufacturing facilities across Haryana, Tamil Nadu, Karnataka and Maharashtra.
At its Board meeting held on September 14, 2026, the company approved detailed project reports for four major projects involving an estimated combined investment of around ₹1,415 crore.
The Board has also approved the issuance of Non-Convertible Debentures (NCDs) of up to ₹600 crore and commercial papers with a revolving limit of up to ₹500 crore.
For investors, the announcement is important because it points to continued capacity expansion across Uno Minda’s automotive component businesses while also indicating additional funding requirements.
₹1,415 Crore Investment Across Four Projects
The approved projects cover two-wheeler alloy wheels, casting components, capacity expansion at a subsidiary’s Bengaluru facility and a new automotive components facility in Maharashtra.
The four projects are:
- ₹155 crore — Two-wheeler alloy wheel plant at Kharkhoda, Haryana
- ₹510 crore — New casting facility at Hosur, Tamil Nadu
- ₹80 crore — Capacity expansion at the Bengaluru plant of Uno Minda Kyoraku Limited
- ₹670 crore — New facility at Chhatrapati Sambhajinagar, Maharashtra, through Toyoda Gosei South India Private Limited
The combined estimated investment comes to approximately ₹1,415 crore.
₹155 Crore Alloy Wheel Plant at Kharkhoda
Uno Minda has approved a new two-wheeler alloy wheel plant at Kharkhoda, Haryana, with an annual capacity of 3.3 million wheels.
The project includes the strategic relocation of 2.0 million units of existing capacity from Supa, Maharashtra, to the new Kharkhoda facility.
The company said the new plant will be developed on an existing large land parcel at Kharkhoda, adjacent to several of its other operational and under-construction plants. This is expected to provide infrastructure and operational synergies.
Key details
- Existing AW2W business capacity: 8 million wheels per annum
- Existing capacity utilisation: approximately 70%
- Proposed incremental capacity: 1.3 million wheels per annum
- Estimated incremental investment: ₹155 crore
- Capacity addition: Phased
- Expected SOP: Q4 FY2028
- Funding: Term loan and internal accruals
Uno Minda said the project is being undertaken to support business growth and meet customer demand.
₹510 Crore New Casting Facility at Hosur
The company has also approved a new greenfield casting facility at Hosur, Tamil Nadu.
The facility will cater to multiple automotive applications, including:
- Engine applications
- EV and powertrain applications
- Structural applications
- General applications
- HPDC two-wheeler alloy wheels
The land required for the project has already been acquired.
The estimated incremental capex for the facility is ₹510 crore.
Uno Minda plans to consolidate and relocate its existing casting operations at Hosur to the new facility by Q1 FY2029.
Capacity expansion
The company’s existing casting capacity is 13,255 MT per annum, with capacity utilisation at 100%.
The project is expected to add another 20,557 MT per annum of capacity.
- Existing capacity: 13,255 MT p.a.
- Existing utilisation: 100%
- Incremental capacity: 20,557 MT p.a.
- Estimated investment: ₹510 crore
- Expected SOP: Q4 FY2028
- Funding: Term loan and internal accruals
The full utilisation of existing capacity makes this one of the more significant projects in the announcement from a capacity-expansion perspective.
Bengaluru Capacity Expansion at Uno Minda Kyoraku
The Board has approved a capacity expansion project at the Bengaluru plant of Uno Minda Kyoraku Limited, a subsidiary of Uno Minda.
The project involves an estimated investment of ₹80 crore.
The facility currently has a capacity of 3.28 million units per annum, with utilisation of approximately 91.9%.
The expansion is expected to add 1.38 million units per annum.
Project details
- Existing capacity: 3.28 million units p.a.
- Capacity utilisation: 91.9%
- Incremental capacity: 1.38 million units p.a.
- Estimated capex: ₹80 crore
- Expected SOP: Q1 FY2028
- Funding: Term loan and internal accruals
The company stated that the expansion is aimed at supporting business growth and meeting customer demand.
₹670 Crore Automotive Components Facility in Maharashtra
Another major project involves Toyoda Gosei South India Private Limited (TGSIN), a subsidiary of Toyoda Gosei Uno Minda India Pvt. Ltd., which is an associate of Uno Minda.
The Board approved the DPR for setting up a new facility at Chhatrapati Sambhajinagar, Maharashtra.
The facility will manufacture a range of automotive products, including:
- Interior and exterior automotive products
- Airbags
- Hoses
- Body sealing parts
The estimated investment for the project is ₹670 crore.
Capacity and investment
The existing capacity is approximately 4.5 lakh units per annum, with utilisation of around 90%.
The new project is expected to add 1.5 lakh units per annum.
- Existing capacity: 4.5 lakh units p.a.
- Existing utilisation: approximately 90%
- Incremental capacity: 1.5 lakh units p.a.
- Estimated investment: ₹670 crore
- Expected SOP: Q4 FY2029
- Funding: Term loan and internal accruals
This project has the longest implementation timeline among the four major projects approved by the Board.
Uno Minda Approves ₹600 Crore NCD Issue
Alongside the expansion projects, Uno Minda has approved the issuance of Non-Convertible Debentures of up to ₹600 crore through private placement.
The NCDs may be issued in one or more tranches.
The securities are proposed to be listed on either the BSE or NSE, while details such as tenure, coupon, maturity, and security will be determined by the NCD Committee when the issue is undertaken.
This approval provides the company with an additional funding route as it proceeds with its expansion plans.
₹500 Crore Commercial Paper Limit
The Board has also approved the issuance of commercial papers, listed or unlisted, up to a revolving limit of ₹500 crore from time to time.
Commercial paper can provide the company with a short-term funding avenue to manage working capital and other corporate funding requirements.
What Does the Announcement Mean for Investors?
The key takeaway is that Uno Minda is entering another sizeable investment cycle.
The company is expanding capacity across several automotive-component segments rather than concentrating the investment in a single product category.
The projects also have different strategic characteristics.
The Kharkhoda alloy wheel project increases capacity while relocating existing capacity closer to Uno Minda’s other facilities in the region.
The Hosur casting project stands out because existing casting capacity is already operating at 100% utilisation, while the approved project adds a significant 20,557 MT of capacity.
The Bengaluru expansion is relatively smaller in value but addresses a facility that is already operating at around 91.9% utilisation.
The Maharashtra project broadens manufacturing capacity across airbags, hoses, body sealing and other automotive components through the Toyoda Gosei-related business.
Funding Will Be an Important Investor Watchpoint
While the projects are being funded through a combination of term loans and internal accruals, Uno Minda has simultaneously approved up to ₹600 crore of NCDs and a ₹500 crore commercial-paper limit.
This does not mean the entire approved funding limits will necessarily be utilised immediately.
However, investors should monitor:
- Actual capex spending versus the announced project estimates
- New debt additions
- Capacity utilisation after commissioning
- Customer orders supporting the new capacity
- Revenue contribution from new plants
- Return on capital from the expansion
- Cash-flow generation during the investment cycle
The eventual financial benefit will depend on how quickly the new capacity is commissioned and utilised.
Key Numbers at a Glance
Uno Minda’s September 14 Board approvals include approximately ₹1,415 crore of project investments, comprising ₹155 crore for the Kharkhoda alloy wheel plant, ₹510 crore for the Hosur casting facility, ₹80 crore for the Bengaluru expansion and ₹670 crore for the Chhatrapati Sambhajinagar facility.
The company has also approved funding avenues of up to ₹600 crore through NCDs and ₹500 crore through commercial papers.
Investor Takeaway
Uno Minda’s latest announcement is a material capacity-expansion update and could be relevant for investors tracking the Indian auto-ancillary sector.
The scale of the planned investment, expansion across multiple product categories and the high utilisation levels at some existing facilities indicate that the company is preparing capacity to support future customer demand.
At the same time, investors should not treat announced capex as immediate earnings growth. The key factors to watch will be project execution, commissioning timelines, customer ramp-up, capacity utilisation, incremental margins and the impact of funding on the balance sheet.
For now, the announcement signals a significant expansion phase for Uno Minda, with several projects expected to come on stream between Q1 FY2028 and Q4 FY2029.
Source: Uno Minda Limited, Board Meeting Outcome dated September 14, 2026.
Disclaimer: This article is for informational and educational purposes only and should not be considered investment advice, a recommendation to buy or sell any security, or a guarantee of future returns. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.