Minda Industries share price: Minda jumps 8% to 52 weeks as company signs joint venture agreement with FRIWO AG Germany
The announcement pushed Minda’s counter to a 52-week high of Rs 1,019 on the National Stock Exchange from the previous close of Rs 942.
The national auto parts marker said over the weekend that it was forecasting capital spending of Rs 390 crore over the next six years.
“Based on our internal assessment on the basis of which the board of directors approved the investment of Rs 390 crore, we envision a minimum of 3x-4x income over the next 5-6 years.” Sunil Bohra, chief financial officer of Minda Industries group, has been cited in reports.
The company announced on Friday that Minda Industries Limited, which is the flagship company of the Uno Minda group, will hold a controlling 50.1% stake in the joint venture with FRIWO AG Germany. The German company is an international manufacturer of power supply units and innovative electric drive solutions, Minda said in a regulatory filing.
In the statement, Minda Industries said the two companies will leverage their manufacturing capabilities and technical know-how to deliver complete electric driving solutions for both electric and three-wheelers in the Indian subcontinent market.
“While the joint venture plans to make investments of around Rs 390 crore over the next six years to support such growth in India, spending in the first two years would be around Rs 160 crore,” the company said in reports.
Separately, Minda said that it will also increase the production capacities of its two and four wheel alloy wheels business for which a total capital expenditure of Rs 264 crore has been made.