Westport Fuel Systems Inc. has signed definitive agreements with its joint venture partner in India, UNO MINDA Group (“UNO MINDA” or the “Group”), to sell the assets of its wholly owned subsidiary Rohan BRC Gas Equipment Pvt. Ltd. to Minda Emer Technologies Ltd., a 50%/50% joint venture owned by Westport Fuel Systems and UNO MINDA.
Rohan BRC Gas Equipment primarily manufactures and sells compressed natural gas (“CNG”) pressure reducers to automotive original equipment manufacturers (“OEMs”) and sells CNG conversion kits to the aftermarket under the “Rohan BRC” brand in India. Minda Emer Technologies primarily manufactures and sells CNG valves to automotive OEMs in India. Minda Emer Technology is purchasing the assets of Rohan BRC Gas Equipment to combine the product lines, provide a single point of contact and offer a better selection for automotive customers in India.
The manufacturing facility of Rohan BRC Gas Equipment is currently located in Ahmedabad, Gujarat, and this manufacturing capability will be consolidated into Minda Emer Technology’s manufacturing location in Manesar, Haryana, providing cost efficiencies and furthering the partnership.
Additional Westport Fuel Systems products will be consolidated into Minda Emer Technologies and, where possible, manufacturing for the India market will be localized in the joint venture. The joint venture will become Westport Fuel Systems’ operational hub to serve the Indian market for passenger cars, commercial vehicles and the large three-wheel vehicle segment.
“India is one of the largest and fastest growing markets for CNG vehicles given its commitment to sustainable and cost-competitive transportation” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “The combination of Westport Fuel Systems’ technologies and products with UNO MINDA’s local expertise and relationships strongly positions us to compete and grow in India. Building on our decade-long and successful partnership with UNO MINDA, we are very pleased to take this next step with them to serve this strategically important market.”
“Improving air quality is an important national objective in India and UNO MINDA is committed to this goal” said Nirmal K. Minda, Chairman and Managing Director of MINDA Industries Ltd (“MIL”). “Our partnership has been further strengthened with Westport Fuel Systems through the consolidation of business in India. This expanded partnership is an important milestone to achieve our objective of becoming the technology and market leader for CNG products in the Indian automotive market.”
Financial terms of the asset purchase and sale are not being disclosed. Minda Emer Technologies expects to commence selling Rohan BRC products in approximately 30 days.