Lumax Auto Technologies Limited is strategically focussed on building capabilities in the future of architecture which will define our position as one of the top leaders in Auto Component space with global reputation.
They say, ‘the future is for us to determine’. As we write this message, the world is battling a human tragedy, a future scenario that none of us could ever determine or imagine. March 2020 marked the Covid-19 outbreak in the Indian Sub-continent. The pandemic, today, is threatening lives and livelihoods across the globe. It is disrupting economies and communities at a speed, scale, and severity that no one could foresee.
The pharmaceutical companies and researchers are racing against time to decode the virus and crack a vaccine. The Governments and businesses are working hard to steer through this crisis and come up with strategies that best protect lives and livelihoods. Lumax Auto Technologies took an impact. But we did not stop. The severity of a crisis depends a lot on how we respond to it. Such situations often bring out the best in people, acting as catalysts as we navigate our way through a new route. We, at Lumax Auto Technologies, responded to safeguard and support our stakeholders’ community and our team.
We are the market leaders in Gear Shifters. By following the direction of growth and wind, we have transitioned and shaped ourselves keeping pace with market changes and dynamics, as also our customer needs. Our new clientele includes the renowned MG Hector in Air Intake Systems and we are confident of adding to our revenue base.
Lumax Ituran has generated business enquiries from OEMs preparing for regulatory norms to implement the track and trace devices with additional features for future models. The trial phase has already started, and the response is encouraging. We expect to realise revenues from FY 2020-21.
Lumax FAE plant, for oxygen sensors, is under commissioning and will be operational by Q3 FY2020-21.
Changing regulations offer new opportunities to diversify into new segments. Our goal is to increase the content per vehicle with new-generation architectures. We have always endeavoured and believed in expanding our business with the current and future global partners. We wish to expand into new areas of plastics, electronics, electrification, and light weighting, to build a robust future. Until last year, the Company had 6 partnerships. As we actively seek inorganic opportunities, during the year, we signed one new joint venture.
The FY 2019-20 witnessed the slowest demand in the past two decades. The underlying causes being weak economic environment, higher vehicle prices and strict lending rules. Then came along December 2019, with signs of green shoots. The pace of decline in demand of Passenger Vehicles reduced, though on a low base. However, this building momentum, largely due to improvement in the rolling average, collapsed in the last month of the financial year due to the outbreak of Covid-19.
During the year, we signed an equal JV with the Japanese firm Yokowo, to manufacture and supply on-board antennas and other vehicle communication products to the Indian automotive industry.
Our team is committed in this journey of transformation as we move to the next orbit. We have developed synergies with global leaders in technology and are filled with passion for excellence. The results are visible in our leadership positioning across the key auto-component space. We remain actively engaged with regulatory and industry organisations, even as new operational protocols are being proposed and developed. We have taken all necessary measures to protect our skilled workforce and safeguard our business, while planning for business resumption.
Warm regards,
