New entity Lumax FAE Technologies to make BS-VI oxygen sensors
Lumax DK Jain Group has announced a joint venture with Francisco Albero S.A.U., (FAE) Spain to manufacture and supply oxygen sensors to the Indian automotive industry. Lumax Auto Technologies will own the 51% of the JV company ‘Lumax FAE Technologies Pvt. Ltd.’, with FAE owning the remaining 49% stake.
The JV company will make an initial investment of Rs. 14 crores for an installed capacity of two million oxygen sensors, with the production expected to commence by early 2019. With this move, Lumax FAE Technologies Pvt. Ltd. will be a key supplier of technologically-advanced, innovative and affordable oxygen (O2) sensors for the India market, with further scope for expanding the product line.
The JV will capitalise on the strong reputation of Lumax DK Jain Group as a leading provider of automotive components in India and having a good understanding of the requirement of Indian customers. FAE’s strength in manufacturing technologically-advanced products to meet the ever-evolving emission norms, sound know-how in ceramic sensing technology and international validation procedures will help the JV firm take a leading position among key auto component suppliers in the country.
The new entity Lumax FAE Technologies will invest both in development and localization of manufacturing capability to become a pioneer in the supply of O2 sensors in India. The manufacturing location is yet to be decided and the company is currently in discussion with its various customers across the country.
Speaking at the JV-signing ceremony, Mr. Deepak Jain, Promoter Director, Lumax Auto Technologies, said: “Owing to the Bharat Stage VI emission regulations which will come into force by 2020 and become mandatory, there will be a significant potential for oxygen sensors. FAE has more than 60 years of experience and has a team of R&D experts working dedicatedly on developing the technology for O2 sensors for over a decade. We have found mutual growth opportunities through this partnership.”
Mr. Francisco Marro, Chairman, FAE, Spain, stated: “I am truly pleased to announce the creation of this joint venture which will enable us reach a wider market and cater to the demand of one of the fastest growing automotive markets in the world. The demand for two-wheelers in India by 2020 is estimated to be 20 million units and we are gearing up for this future demand.”
“The JV company will be geared to offer customized and world-class product solutions to customers in India. The company will deliver environment-friendly solutions meeting the upcoming emission regulation norms and address the menace of pollution which is a huge concern in our country. This is our group’s commitment through our new product lines which we are sure will help maintain the environment clean and green,” said Mr. Anmol Jain, Managing Director, Lumax Auto Technologies.
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 certain critical vehicle parts thus adding to the longevity of the vehicle.