Lumax Auto And Francisco Albero S.A.U., Announce JV Company Lumax FAE Technologies
Lumax DK Jain Group announced its joint venture with Francisco Albero S.A.U., (FAE) Spain to manufacture and supply Oxygen Sensors to the Indian automotive industry. Lumax Auto Technologies will own the 51% of the joint venture company, “Lumax FAE Technologies Pvt. Ltd”, with FAE owning the remaining 49% .
The JV company will make an initial investment of Rs 14 crores for an installed capacity of 2 million Oxygen Sensors, and the production is expected to commence from early 2019. With this move, Lumax FAE Technologies Pvt. Ltd. will be a key supplier for technologically advanced, innovative & affordable Oxygen Sensors (O2) for the India market, with further scope for expanding the product line.
The joint venture will capitalise on the strong reputation of Lumax DK Jain Group, as a leading provider of Automotive components in India and having a good understanding of the requirement of Indian customers’. FAE’s strength in manufacturing technologically advanced products to meet the ever-evolving need of emission norms, deep knowledge in ceramic sensing Technology and international validation procedures will help maintain the leadership position among the key auto component supplier.
The new entity, Lumax FAE Technologies Pvt. Ltd., will invest both in development and localisation of manufacturing capability to become the pioneer supplier of this product in India. The manufacturing location is yet to be decided and the company is in discussion with its various customers in India.
Speaking on the occasion, Mr. Deepak Jain, Promoter Director, Lumax Auto Technologies, said “Owing to the Bharat stage VI emission regulations, which will come into force by 2020 and become mandatory, there will be a significant potential for the Oxygen Sensors. FAE has more than 60 years of experience and has a team of R&D experts working dedicatedly on developing the technology for O2 sensors for over a decade and we have found mutual growth opportunities.”
Mr Francisco Marro, Chairman, FAE, Spain, at the occasion, stated, “I am truly pleased to announce the creation of this Joint venture, which will enable us to reach a wider market and cater to the demand of one of the fastest growing automotive markets. The demand for the 2-wheelers in India by 2020 is estimated to be 20 million units, we are gearing up for this future demand.”
“The joint venture company, will be geared to offer customised and world-class product solutions to customers in India. The company will deliver environment friendly solution, meeting the upcoming emission regulation norms and address the menace of Pollution, which is a concern in India. This is the group’s commitment through its new product lines that will help to ensure clean and green environment,” said Mr Anmol Jain, Managing Director, Lumax Auto Technologies at the JV announcement.
The O2 sensor monitors the gases emitted by the vehicle engine thereby maintaining the appropriate airfuel mixture to facilitate efficient functioning of the engine in accordance to the emission regulatory norms. The product can significantly enhance the fuel efficiency of a vehicle and plays a critical role in aligning with the BSVI emission norms. Besides, it also prevents early damage to some critical parts thus adding to the longevity of the vehicle.