Auto components maker Uno Minda on Friday said its board has approved enhancing stake in a joint venture firm to 76 per cent.
The company's board has approved increasing stake in Minda Westport Technologies Ltd (MWTL) from 50 to 76 per cent by acquiring an additional 26 per cent stake from its joint venture partner Westport Fuel Systems Italia, Uno Minda said in a statement.
The purchase consideration for 26 per cent stake is around Rs 15 crore, it added.
The acquisition of shares is targeted to be completed on or before March 31, 2024.
Uno Minda and Westport are also amending its joint venture agreement to include future hydrogen components in addition to CNG/LNG/LPG components and Kits in JV territory of South Asia comprising India, Bhutan, Sri Lanka and Nepal, the company said.
MWTL is one of the leading manufacturers of alternate fuel systems -- CNG and LPG components and kits for OEMs (Original Equipment Manufacturers) and aftermarket in India.
Minda said MWTL is acquiring the assets of Rohan BRC Gas Equipment, a wholly-owned subsidiary of Westport.
Rohan BRC Gas Equipment is engaged primarily in manufacture and sales of Compressed Natural Gas (CNG) pressure reducers and CNG conversion kits.
The share of CNG-powered vehicles in India has increased from about 3.5 per cent of total passenger vehicle (PV) sales in 2019 to 11 per cent in 2022.
"The CNG vehicle segment's demand in India has increased significantly and is further expected to grow exponentially in coming years given its cost effectiveness and feasibility," Uno Minda Director and MWTL Managing Director Vivek Jindal stated.
The decade-long partnership with Westport has been further strengthened with the proposed consolidation, creating a manufacturing hub to serve the Indian market for passenger cars, commercial vehicles and the large three-wheel vehicle segment, he added.