Minda Industries, FRIWO to create JV to expedite EV products initiatives
Minda Industries, an Indian manufacturer and supplier of automotive solutions, has agreed to form a joint venture (JV) with FRIWO AG, a Germany-based manufacturer of power supply units and e-drive solutions.
The JV will bring together the manufacturing prowess and technical expertise of the two firms to manufacture and supply multiple electric vehicle components in the Indian subcontinent.
Minda Industries will own a majority stake of 50.1% in the joint venture, while its German partner will hold the remaining stake.
According to Minda Industries, the JV intends to spend around INR 390 crores over a period of the coming six years to support such growth of two wheeler electric vehicles in India. The outlay in the initial couple of years will be nearly INR 160 crores.
Minda Industries will invest INR 71 crores in one or more tranches as an equity investment to partially fund the expenditure. The requirement for the remaining funding will be met via a combination of internal accruals, equity investment, and debt.
Minda Industries, FRIWO to create JV to expedite EV products initiatives. Photo courtesy of FRIWO Gerätebau GmbH.
Additionally, Minda Industries will make an investment of €15 million in FRIWO AG through a capital increase for bolstering the industrial partnership between the two firms.
The planned deal is contingent on the regulatory approvals from the Reserve Bank of India and others.
Rolf Schwirz — CEO of FRIWO said: “This Joint Venture is a great opportunity for FR/WO to facilitate its expertise and innovation driven e-mobility business. The Joint Venture will have a distinct product portfolio with shared facilities, sophisticated, but also market proven technology, high quality and engineering standards from both FR/WO and UNO MINDA, at optimized costs to the customers’ benefit.
“This winning combination will enable the Joint Venture to successfully establish a leading position in the two and three-wheeler electric vehicles markets in India, as well as unlock the potential of other markets”.
The joint venture will be combining expertise in manufacturing and technology of Uno Minda, the parent firm of Minda Industries, and FRIWO’s long-term experience in e-mobility solutions to manufacture and market e-drive solutions for electrical two-and three wheelers in India.
Nirmal K Minda — CMD of Uno Minda Group said: “Electrification will play an important role in the transformation of the mobility industry and presents major opportunities to entire mobility ecosystem. We are delighted to partner with FR/WO to expand our product capabilities to serve such rising EV opportunities. By combining our technologies and production capabilities, we can create a true leader in the rapidly growing e-vehicles market.
“Partnership has been forged at opportune time where EV Industry is on the cusp of growth trajectory facilitated by favorable government policy and incentives. We are confident to play a key catalyst role in electric vehicle revolution and sustainability mobility in India.”