New Delhi
Auto component
maker Lumax Auto Technologies Ltd (LATL) signed a joint venture agreement with
Alpine Co Ltd (ALPS), Japan, to establish a joint venture company (JVC) of
50:50 equity holding in India. Both
parties have agreed to manufacture and sell electric devices, components and
software related to the automotive industry, according to a regulatory filing.
LATL mentioned
that there would be six directors on the Board of the proposed joint venture
company. Both LATL and ALPS will have the right to appoint three directors
each. The Chairman and Managing Director of the joint venture company will be
elected from among the directors nominated by LATL.
The regulatory
filing further added that the JV partners have the right to subscribe to the
additional shares in proportion to their respective shareholding in the JVC.
Any change in the capital structure of the JVC will require the consent of both
parties.
Lumax Auto
Technologies is a part of the leading auto ancillary player Lumax Group. The company
manufactures gear shifters, telematics, antennas, air-intake systems, plastic
modules, two-wheeler chassis and lighting, and seat structures.
Lumax Group
invested Rs 2.5 billion in capital expenditure, this fiscal, to set up an
electronics plant at Bawal in Haryana and augment the capacity at the Sanand
plant in Gujarat.
Source – ET Auto
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