Lumax Auto forms JV in aerospace and defence with Italy's SIPAL

NEW DELHI: Lumax Auto Technologies Ltd today said it has entered the Indian aerospace and defence sector through a joint venture with Italy's SIPAL.

"As per the JV agreement, Lumax will hold 51 per cent equity with management control over the JV and SIPAL S.p.A. will hold 49 per cent equity in the new JV company under formation as Lumax SIPAL Engineering Private Ltd," Lumax Auto Technologies said in a BSE filing.

It further said: "The proposed JV is expected to become operational in fiscal 2017 and will be a full service provider for all types 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."

Lumax Auto Technologies Managing Director Anmol Jain said: "The Indian aerospace and defence market presents an attractive and significant opportunity for Indian and foreign companies across the supply chain... About 60 per cent of its defence requirements are met through imports. This offers a great opportunity for Lumax."

Lumax stock was trading at Rs 372.30, up 10.21 per cent, on the BSE.