Advertisement
Thursday, Dec 02, 2021
Outlook.com
Outlook.com

Lumax group sets aside Rs 250 cr for capex

Lumax group sets aside Rs 250 cr for capex
outlookindia.com
1970-01-01T05:30:00+0530
Mumbai, May 12 (PTI) Leading auto ancillary player Lumax Group is investing Rs 250 crore in capital expenditure this fiscal to set up an electronics plant at Bawal in Haryana and augment capacity at the Sanand plant in Gujarat.

The Gurguram-based Rs 2,900-crore Lumax-DK Jain Group manufactures and supplies auto components at its 33 plants.

The group has two publicly traded companies--Lumax Industries, which manufactures auto lighting solutions; and Lumax Auto Technologies that is into gear shifters, telematics, antennas, air-intake systems, plastic modules, two-wheeler chassis and lighting, and seat structures among others.

While in auto lighting it controls over 50 per cent of the market, it dominates the gear-shifters market with over 65 per cent of the market.

"We have allocated Rs 250 crore capex this fiscal, some of which is carry-forward from last fiscal because of the lockdowns," group chief executive Vineet Sahni told PTI.

The capex is primarily for a Rs 100-crore greenfield electronics plant in Bawal in Haryana and Rs 80-100 crore will be invested to expand capacity to 5 lakh units from 3 lakh units now at the Sanand plant in Gujarat, Sahni said, adding the work on this brownfield project had in fact started last November.

The Sanand facility, commissioned in 2017, manufactures automatic electric lights including human sensor switches and bulbs for automobiles.

The initial capacity was to cater to 3 lakh vehicle sets per annum with the augmented capacity it will 5 lakh vehicle sets, he said, adding the plant is close to the existing facility.

On the proposed electronics plant, Sahni said it will come up at Bawal at an investment of Rs 100 crore and is for captive consumption only.

On the overall business environment amidst the second wave of the pandemic, Sahni said the new year had started off well with order levels reaching over 90 per cent in the first half of April but since then most auto OEMs have advanced their annual maintenance shutdowns to late April-early May to align with the lockdowns. So it needs to be seen how long the lockdowns will last to take a call on the Q1 performance.

Yet he noted that absentism has increased to 30 per cent among migrant labourers at the plant though no reverse migration has been reported yet. This had the capacity utilisation going down 12 per cent for April, Sahni said.

The group employs 7,000, workers, of who 4,000 are on contract and the rest 3,000 are permanent employees.

Lumax serves all major OEMs--from two-wheeler to four-wheeler to commercial vehicles to farm equipment. It also supplies to defence establishments and emergency services. Some of its international clients include Renault, Nissan, Audi, Truck-Lite, CNH, and John Deere among others.

Both the companies are yet to declare their March quarter earnings. PTI BEN

MR MR


Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI

More from Website

Stocks To Buy Today: Maruti Suzuki, Infosys, Raymond Could Give Profitable Gains

Stocks To Buy Today: Maruti Suzuki, Infosys, Raymond Could Give Profitable Gains

According to market experts, this trade pattern indicates a formation of a pullback rally or a downtrend. This pullback is expected to be short-lived and the weakness could emerge again.

SL Vs WI, Second Test, Live Cricket Scores: West Indies Have Slight Edge Vs Sri Lanka

SL Vs WI, Second Test, Live Cricket Scores: West Indies Have Slight Edge Vs Sri Lanka

Follow live cricket scores of Day 4 of the second Test between Sri Lanka vs West Indies in Galle. The West Indians are trying to win their first-ever Test match in Sri Lanka.

Elon Musk Compares Twitter CEO Parag Agrawal To Joseph Stalin, Meme Goes Viral

Elon Musk Compares Twitter CEO Parag Agrawal To Joseph Stalin, Meme Goes Viral

Elon Musk has tweeted a meme that shows the face of new Twitter CEO Parag Agrawal on Russian dictator Joseph Stalin's face and co-founder and former CEO Jack Dorsey's on the aide of Stalin whom he got executed.

More from Outlook Magazine

Letter From The Issue Editor

Letter From The Issue Editor

Home Together

Home Together

It’s an orphanage for young transgenders and others, who are socially ostracized.

Elvis Plays A Different Game

Elvis Plays A Different Game

Advertisement

Outlook Newsletters

Advertisement
Advertisement