Lumax heads for Uttaranchal

Leading automotive lighting manufacturer Lumax Industries is in the process of setting up two separate plants in Uttaranchal to cater exclusively to Tata Motors and Bajaj Auto for the vehicle-makers' soon-to-be-implemented Uttaranchal projects. While Tata Motors will be producing the popular Tata Ace at its new plant, it is not known which product would finally be assembled at the Bajaj plant.

While Lumax Industries will be directly focussing on Tata Motors, one of its ancillary companies will cater to Bajaj Auto. Lumax will be setting up two independent plants at a “substantial” investment as per sources. Confirming this Lumax Industries’ executive director Deepak Jain told Autocar Professional that the company will begin production at these two new plants by January 2007. “The customer has given us a target,” he said.

EXPORT FOCUS

Jain also said that Lumax plans to supply lamps to an Iran-based OEM in the passenger car segment. “We have got some orders from Iran for supply to an OEM. Our strategy is more towards the agro-based and commercial vehicle segments. As and when opportunities in passenger cars arise, we shall exploit them. Iran is still a maturing market,” he said.

Incidentally the Renault Logan, which is to be made in India by Mahindra-Renault, is also made in Iran and exported. Lumax will be supplying headlamps and tail-lamps for the India project through a technical tie-up with global auto lighting major Valeo of France.

Meanwhile the company, which is aggresively looking to increase its market share in both the export and domestic markets, will be interacting with its Japanese partner, Stanley Electric in a closer manner and plans to leverage its design capabilities. “Stanley Electric is our principal technology as well as financial partner, a 22-year relationship,” said Jain.

Lumax had plans to set up an export plant in Chennai for which construction was slated to begin in April 2007. However, there could be a change in plan. ”We have already acquired land in Chennai but now due to a number of SEZs coming in, we are gauging between Pune and Chennai and conducting a feasibility study,” noted Jain.

At present, OEM exports constitute only 3.5 percent of Lumax’s total turnover. “Two years ago it was zero percent. This year we plan to grow our exports by 100 percent. Since the domestic market is also growing, we are focussing on this market also to maintain our leadership position,” pointed out Jain.

Besides, the company will also be kick-starting the business project Enterprise Resource Planning (ERP) module now that it is becoming multi-locational. “We will be going in for a SAP implementation for Lumax Industries this fiscal. With the auto scenario changing, our business will focus more on product quality. SAP gives you better control on financial and workshop-related data and also helps to timely evaluate the company,” he said.