Lumax Auto Technologies Limited announced the approval of an equity investment of up to ₹7 Crores in its Joint Venture, Lumax Alps Alpine India Private Limited (LAAIPL). This strategic move aims to support the capital expenditure and working capital requirements of the JV. LAAIPL, which focuses on manufacturing automotive components like switches and sensors, reported a turnover of ₹4,917.60 Lakhs in FY 2024-25.
Board Approves Strategic JV Investment
The Board of Directors of Lumax Auto Technologies Limited met on Friday, March 27, 2026, and approved a significant proposal to invest in its Joint Venture Company, Lumax Alps Alpine India Private Limited (LAAIPL). The total proposed investment is structured as equity, amounting to upto Rs. 7 Crores (approx.).
The transaction was confirmed to be conducted on an “arm’s length basis”, despite the company currently holding 50% of the equity share capital in LAAIPL. The Board meeting commenced at 12:30 P.M and concluded at 01:20 P.M.
Rationale and Impact
The rationale behind this investment is to provide financial support for LAAIPL’s ongoing operational needs. Specifically, the funds are intended to support Capex/working capital and other general corporate/business purpose requirements of the JV. The company stated that this investment will have no major impact on Lumax Auto Technologies Limited itself.
Target Entity Financial Overview (LAAIPL)
The target entity, LAAIPL, operates in the Automotive Components industry. It was incorporated on September 21, 2021, and its primary business involves manufacturing automotive power window switches, sensors, and control modules, with its facility located in Gurugram.
Key financial highlights for LAAIPL based on the latest audited financials provided are:
- FY 2024-25 Net Worth: Rs. 2,634.46 Lakhs
- FY 2024-25 Turnover: Rs. 4,917.60 Lakhs
- FY 2024-25 Profit After Tax: Rs. 270.52 Lakhs
- Turnover FY 2023-24: INR 3073.51 Lakhs
- Turnover FY 2022-23: INR 3096.76 Lakhs
Transaction Details
The consideration for the acquisition is Cash consideration, amounting to Upto Rs. Seven Crores (approx.). The indicative time period for the completion of this acquisition is estimated to be 3 Months (approx.).
Source: BSE
