Auto components manufacturer Uno Minda announced on Thursday that its board has approved the establishment of a new manufacturing facility for two-wheeler alloy wheels in Bawal, Haryana, with an estimated investment of Rs 2 billion.

The proposed plant will have an installed capacity of 1.5 million alloy wheels per annum. This expansion is aimed at fulfilling recently secured orders and meeting growing market demand, the company stated in a regulatory filing.

In addition, Uno Minda has commenced commercial production of a further two million alloy wheels at its Supa facility in Maharashtra. With this development and the planned Bawal plant, the company’s total annual production capacity for two-wheeler alloy wheels will rise from 8 million to 9.5 million units.

At the time of the announcement, Uno Minda shares were trading 0.25 per cent lower at Rs 925.25 each on the Bombay Stock Exchange.