 "Italy's Sipal form JV with Lumax Auto for aerospace & defence sector")
Lumax Auto Technologies Ltd, a part of the DK Jain Group and maker of auto components, has entered into the Indian aerospace and defence sector by signing a joint venture agreement with Italy's Sipal SpA, a part of the Euro 240-million Fininc SpA group and provider of engineering services to global aircraft manufacturers.
Lumax will hold 51 percent equity with management control in the JV, named Lumax Sipal Engineering Pvt Ltd, while Sipal will hold the remaining 49 percent equity. The proposed JV is expected to become operational in FY 2017 and will be a full service provider for all type 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.
The Indian aerospace and defence market presents an attractive opportunity for companies across the supply chain as the country has the third-largest armed forces in the world with a defence budget of about 2.5 percent of its GDP. With the government gearing up to increase domestic production of defence equipment, global firms are entering this sector to reap the benefit.
Sourcing products and services from the JV can help organisations in meeting their offset obligations arising out of major deals in the defence sector. Explaining the current scenario, Anmol Jain said, “Global aerospace majors have started focusing on India to source components for their Indian & global requirements. And auto component manufacturers in India, with their proven manufacturing capabilities make ideal candidates as supply chain partners in aerospace & defence.”
Lumax will hold 51 percent equity with management control in the JV, named Lumax Sipal Engineering Pvt Ltd, while Sipal will hold the remaining 49 percent equity. The proposed JV is expected to become operational in FY 2017 and will be a full service provider for all type 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.
The Indian aerospace and defence market presents an attractive opportunity for companies across the supply chain as the country has the third-largest armed forces in the world with a defence budget of about 2.5 percent of its GDP. With the government gearing up to increase domestic production of defence equipment, global firms are entering this sector to reap the benefit.
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Anmol Jain, managing director, Lumax Auto Technologies, said that India is one of the largest importers of conventional defence equipment and spends about 32 percent of its total defence budget on capital acquisitions. About 60 percent of its defence requirements are met through imports. This offers a great opportunity for Lumax and we are happy to join the ‘Make In India’ and ‘Digital India’ Initiatives.”
Sourcing products and services from the JV can help organisations in meeting their offset obligations arising out of major deals in the defence sector. Explaining the current scenario, Anmol Jain said, “Global aerospace majors have started focusing on India to source components for their Indian & global requirements. And auto component manufacturers in India, with their proven manufacturing capabilities make ideal candidates as supply chain partners in aerospace & defence.”