Lumax to invest Rs 40 crore on R&D

Auto component manufacturer Lumax Industries today said it plans to invest Rs 40 crore this fiscal on research and development (R&D) activities.     

The light and gear shifting systems manufacturer is also eyeing 10 per cent growth this financial year on the back of new launches and volume growth.     

"We will be investing Rs 40 crore during the remaining period of the fiscal specially for upgrading our R&D. Last year, we incurred a loss of Rs three crore while this year, we are looking at 10 per cent growth from new launches and volume growth," Lumax Industries Senior Executive Director Deepak Jain told reporters on the sidelines of ACMA annual conference.     

As a result of cost cutting measures and topline growth, the company is working on achieving about 10 per cent margin this year, Jain said.     

The company had a margin of 7.5 per cent last fiscal.     

"We had frozen investment worth Rs 60 crore last year and that is still on hold. However this year, we are going ahead with investments for our R&D activities," Jain said.     

The company's clientele include major auto firms including Mahindra & Mahindra and Maruti Suzuki India.  

Asked about its proposed space in Tata Motors upcoming plant at Sanand, Gujarat where the small car Nano will be built, Jain said, "The discussions are on but any final decision will take at least one year."