6,600 Per Cent Multibagger Returns: Auto Company to Set Up Greenfield Aluminium Die Casting Facility in Maharashtra to Support Growing EV Demand
The stock is up by 39 per cent from its 52-week low of Rs 768.10 per share and has given multibagger returns of over 6,400 per cent in 10 years.
Uno Minda Limited, a prominent global technology leader in automotive components, has announced a significant strategic expansion: the establishment of a greenfield manufacturing facility for aluminium die casting in Sambhaji Nagar (Aurangabad), Maharashtra. This move is a direct response to the burgeoning demand for casting components, especially within the rapidly expanding electric two-wheeler (e-2W) and four-wheeler (e-4W) segments. As the automotive industry pivots towards electric mobility, lightweight and high-performance vehicle platforms are becoming increasingly crucial, making advanced aluminium die casting an essential requirement for modern EV powertrains and body applications. Electric vehicles, by nature, require substantially more aluminium-based structural and thermal components than their internal combustion engine counterparts.
The new facility will also play a critical role in Uno Minda's backwards integration strategy. It's set to supply vital casting components to the company's upcoming 4W-EV powertrain plant, ensuring a seamless and efficient supply chain. The strategic location in Sambhaji Nagar (Aurangabad) was chosen for its logistical efficiency and its proximity to both the new EV powertrain plant and other key OEM customers in the region, optimising distribution and collaboration.
This ambitious project represents a total planned capital investment of approximately Rs 1,210 crore, which will be deployed in a phased manner over the next five years. The funding will be a balanced mix of internal accruals and debt. Phase 1 of the plant is anticipated to commence commercial operations by Q2 FY27. This substantial investment underscores Uno Minda's unwavering commitment to bolstering domestic manufacturing capabilities, supporting localisation initiatives, and maintaining a leadership position in the fast-evolving electric mobility landscape.
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About the Company
Established in 1958, Uno Minda Limited is a leading global manufacturer and supplier of advanced automotive technology and systems for various vehicle segments, including ICE and electric/hybrid. The company holds leadership positions in automotive switching, lighting, acoustics, seating, and alloy wheels, driven by a strong focus on technology and innovation for over six decades. With a global presence encompassing 74 manufacturing facilities and 37 R&D centres across multiple countries, along with 19 joint ventures and technical agreements, Uno Minda demonstrates its significant reach and collaborative approach in the automotive sector.
UNO Minda Ltd has a market cap of over Rs 60,000 crore and has delivered good profit growth of 24.7 per cent CAGR over the last 5 years. The stock is up by 39 per cent from its 52-week low of Rs 768.10 per share and has given multibagger returns of over 6,400 per cent in 10 years.
Disclaimer: The article is for informational purposes only and not investment advice.