Lumax Auto Inks MoU With Francisco Albero For Oxygen Sensors
Lumax Auto Technologies, a leading manufacturer of diverse products catering to the two, three and four-wheeler segments, has inked a joint venture (JV) agreement with Spanish electrical products maker Francisco Albero SAU (FAE) to manufacture oxygen sensors for the Indian market.
Christened Lumax FAE Technologies, the newly-formed entity will initially produce oxygen sensors for two-wheelers and would eventually cater to four-wheelers, three wheelers and other segments.
As part of the agreement, Lumax Auto Technologies will own 51 per cent stake in the JV Company while FAE will hold the remaining 49 per cent stake. The company is betting big on the BS-VI norms to be implemented from April 2020, which will make the use of oxygen sensor compulsory in two-wheelers.
Deepak Jain, Promoter Director, Lumax Auto Technologies, told reporters, “FAE has more six decades of experience and has a team of R&D experts working dedicatedly on developing the technology for O2 sensors for over a decade and we have found mutual growth opportunities.”
Jain further said the JV Company is planning on phase-I to corner 10 per cent of the market share out of the potential up to Rs 1,000 crore market size of the sensors in India.
It was announced during the press conference that Lumax FAE Technologies Pvt Ltd will make an initial investment of Rs 14 crore for an installed capacity of 2 million oxygen sensors and the production is expected to commence either at Pune/NCR from early 2019.
With this move, Lumax FAE Technologies Pvt Ltd will be a key supplier for technologically advanced, innovative & affordable Oxygen Sensors (O2) for the India market, with further scope for expanding the product line.
Francisco Marro, Chairman, FAE, stated, “This JV will enable us to reach a wider market and cater to the demand of one of the fastest growing automotive markets. The demand for the 2-wheelers in India by 2020 is estimated to be 20 million units, we are gearing up for this future demand.”
“The JV Company will deliver environment friendly solution, meeting the upcoming emission regulation norms and address the menace of pollution, which is a concern in India. This is the group’s commitment through its new product lines that will help to ensure clean and green environment,” said Anmol Jain, Managing Director, Lumax Auto Technologies at the JV announcement.
It is to be mentioned that the O2 sensor monitors the gases emitted by the vehicle engine thereby maintaining the appropriate air-fuel mixture to facilitate efficient functioning of the engine in accordance to the emission regulatory norms.
The product can significantly enhance the fuel efficiency of a vehicle and plays a critical role in aligning with the BS-VI emission norms. Besides, it also prevents early damage to some critical parts thus adding to the longevity of the vehicle.
