Indian auto parts maker to enter defence market with Italian firm
Sourcing products and services from the joint venture company can help organisations in meeting their offset obligations arising out of major deals in the defence sector, says Anmol Jain, Managing Director, LumaxDelhi-based Lumax Auto Technologies on Thursday announced its entry into the aerospace and defence sector by setting up a joint venture with Italian firm SIPAL S.p.A. “The proposed JV is expected to become operational in FY 2017 and will be a full service provider for all type of integrated logistic support engineering having a strong knowledge and experience in technical publishing, product / manufacturing engineering, process engineering, design and manufacture of toolings, design of systems of production lines related to the aerospace, defence & automotive sectors,” the Indian auto component maker said a statement. As per the agreement, Lumax will hold 51% equity with management control over the joint venture to be called “Lumax SIPAL Engineering Private limited”. According to Anmol Jain, Managing Director, Lumax, the deal will give a boost to the ‘Make in India’ initiative and help the country to become a major source of defence components in the long run. “India is one of the largest importers of conventional defence equipment and spends about 32% of its total defence budget on capital acquisitions. About 60% of its defence requirements are met through imports. This offers a great opportunity for Lumax and we are happy to join the ‘Make in India’ and ‘Digital India’ initiatives,” said Jain. Sourcing products and services from the joint venture company can help organizations in meeting their offset obligations arising out of major deals in the defence sector. He said that global aerospace majors have already started focusing on India to source components for their Indian as well as global requirements. And, “Indian auto component manufacturers, with their proven capabilities, make ideal candidates as supply chain partners in aerospace and defence” sectors.
November 26, 2015 |12:38pm IST
to success.