Companies

Lucas-TVS to sell its JV stake to Japanese partner for ₹148 crore

G Balachandar Chennai | Updated on December 24, 2019 Published on December 24, 2019

Japan-based leading automotive lighting equipment maker Koito Manufacturing Co Ltd will acquire 30 per cent stake from Lucas-TVS group in India Japan Lighting Pvt Ltd (IJL), a joint venture between Koito and Lucas-TVS, for ₹148.5 crore.

In IJL, Koito has 70.1 per cent while the remaining 29.9 per cent is held by Lucas-TVS group.

Now under a deal agreed by both the partners, Koito will acquire 29.9 per cent stake of Lucas-TVS for ₹148.5 crore.

“In India, where the automotive market is expected to grow over the long-term, it would be necessary for the Koito Group and IJL to accelerate its decision-making.

‘Furthermore, as swift decision-making contributes to the growth of IJL’s profitability and to the mid- and long-term growth of the Koito Group, Koito has decided to acquire all of the shares of IJL owned by the L-TVS Group, and make IJL a wholly-owned subsidiary. The Koito Group has also decided to increase IJL’s capital to strengthen its financial base,” according to a statement of Koito.

The paid-up capital of the IJL will be increased to ₹404 crore from ₹184 crore.

Koito established IJL in 1997 with Lucas TVS as its local partner to manufacture and sell automotive lighting equipment. Since then, IJL has been supplying automotive lighting equipment mainly to Japanese automotive manufacturers in India.

IJL has units in Chennai and Bawal (Haryana) and is in the process of setting up a third plant at an investment of ₹500 crore in Gujarat and it is expected to commence operations in August 2020. In 2018-19, it reported a revenue of ₹800 crore. Its customers include Maruti-Suzuki, Tata Motors, Toyota-Kirloskar Motors, Honda, Yamaha, lsuzu, Daimler, Ashok Leyland, Nissan and Renault-Nissan.

Published on December 24, 2019
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