Lumax Auto forms JV with Italy's SIPAL

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% equity with management control over the JV and SIPAL S.P.A. will hold 49% 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% 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%, on the BSE.