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Lumax Industries commences commercial production
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Lumax Industries has completed setting up of its greenfield project in Pantanagar-Uttarakhand for supplies of automotive lighting to Tata Motors, which has commenced commercial production.

Lumax Industries manufactures and markets automobile lighting systems and solutions.

The company manufactures a range of auto lighting equipment, which includes head lamps and tail lamp assemblies, sundry lamps and auxiliary lamps for passenger cars, commercial vehicles, motorcycles, scooters, ..etc.

Shares of the company gained Rs 5.95, or 4.47%, to trade at Rs 138.95. The total volume of shares traded was 194 at the BSE (3.26 p.m., Friday).

Lakshmi Precision plans Uttarakhand unit 

Lakshmi Precision Screws (LPS), the Rs 210 crore manufacturer of fasteners, is planning to set up a facility in Uttarakhand by fiscal-end.

The facility will be either at Pantnagar, where customer Tata Motors has a manufacturing unit, or at Haridwar, where Hero Honda has set up a new motorcycle unit.

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A leading supplier of fasteners and cold forgings, LPS has three plants in Haryana, two of which are in Rohtak and one in Manesar. These will meet the needs of its customers Maruti Suzuki and Honda Motorcycle & Scooter India (HMSI). Last fiscal, LPS invested $6.6 million for ramping up capacity at its plants. The benefits of the investment may be seen this year, subject to the economic conditions in the country.
 
Lalit Kumar Jain, the chairman and managing director of LPS, said that the company hoped to achieve topline growth of 15-16% this fiscal. "This translates to nearly Rs 250 crore. Our target of Rs 500 crore for 2010-11 will be a challenge, what with raw material prices going through the roof," he said.

According to Jain, this fiscal will be "a period of huge uncertainty where inflation has crossed 10% and growth could be severely hampered in the short term."

He said suppliers were able to absorb the cost burden till December last year but had to pass on a part of it to their customers later.

"Our profits are being affected and we are trying to make up for it through diversification, change in product mix and new parts such as gears, blanks and high precision forgings," he said.

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The company caters to the tractor businesses of Mahindra & Mahindra, John-Deere and Case New Holland; the light trucks segment of Swaraj Mazda and Eicher; and Volvo's heavy commercial vehicles business plus a part of its Sweden, Brazil and US operations.

 http://sify.com/finance/fullstory.php?id=14726903

ndia: JBM Auto to set up three new joint venture plants
Automotive World (subscription), UK - 1 hour ago
In May, it entered into an agreement with local truck and bus manufacturer Ashok Leyland, to set up a JV plant in Pantnagar, in Uttarakhand

Delta India inaugurates ‘green’ factory in Rudrapur


RUDRAPUR, INDIA: Delta announced the official launch of its first green factory at Rudrapur, Uttarakhand. The grand opening ceremony featured speeches by Dr BS Bisht, VC, Pantnagar University; Poldej Worachat, General Minister of Thailand; Puo-Suz Shih, Acting Representative, Taipei Economic and Cultural Center and Yancey Hai, VC and CEO, Delta Electronics.

Hai commented, "Our new green factory in India is an important project for Delta. It not only supports Delta's green mission, but also presents a significant opportunity for our strong growth in India. Delta is well positioned to help this dynamic economy with the latest power management solutions across industries. We are committed to providing energy efficient solutions as well as being environmentally conscious by reducing wastes and carbon emissions across the world."

Delta's Rudrapur factory spans 16,657.48 sq m of manufacturing space and will manufacture products for power management, display solutions, components, industrial automation, automotive electronics and networking solutions. The factory has been designed and built using environmental conservation measures, and it will provide a healthy and safe workplace for employees.

Dalip Sharma, MD, Delta Electronics (India) said, "Energy efficiency and environmental preservation have long been an important part of Delta's mission. The green factory at Rudrapur is an initiative towards the same. As a result of this operation, we also anticipate substantial job growth in manufacturing, facility maintenance, delivery and administration."

The Sewage Treatment Plant has been put up to recycle and reuse water. It functions on anaerobic bacterial action and the water is used for non-contact applications. Storm water harvesting is also being carried out to conserve water.

Ace Construction signs MoU with Chinese firm

Action Construction Equipment (ACE) has signed a Memorandum of Understanding (MoU) with a Chinese construction equipment manufacturing company and is busy doing the due diligence to acquire it.

“The due diligence is going on and should be final in the next 4-5 days,” says Sorab Agarwal, director of ACE. If the report is positive, Action intends to close the deal within August. According to company sources, ACE will be investing a total of $15-16 million on the acquired entity, which includes $8-10 million for acquisition.

“It is not a large company but it has the potential to grow 1000% over the next two years. Their problem is that they lack capital and so haven’t been able to grow quickly,” he says. ACE is acquiring the company for its advanced technology as well as to have a ready international production base. “Chinese construction equipment is more acceptable internationally,” he explains.

Action will use the Chinese company’s technology, export the joint-branded equipment and get it into India as well. “We will provide the Chinese entity a captive market in India and that itself will help it grow 5-6 times. It is a good way for us to expand inorganically rather than greenfield expansion,” explains Agarwal.

In India, Action is setting up its fifth plant. The plant, to be set up at Kashipur in Uttarakhand, should be up and running next year, informs Agarwal. The plant will churn out 250 units of construction equipment a month and Action will be investing close to $3 million for setting it up. “This is our second plant in Uttarakhand. We chose the state for its tax subsidies,” he says.

The company is also entering the road-making machinery segment and concrete batching plant business in the near future. The road making machinery equipment will be launched in the next two months, informed Agarwal. ACE is a listed company with a turnover of Rs 401 crore in 2007-08 with a top line growth of 64% and bottomline growth of 82% in 2007-08.

The net profit of ACE rose 62.09% to Rs 12.27 crore in the quarter ended June 2008 as against Rs 7.57 crore during the previous quarter ended June 2007. Sales rose 66.96% to Rs 137.29 crore in the quarter ended June 2008 as against Rs 82.23 crore during the previous quarter ended June 2007.

The ISO 9001 company, started by a technocrat, is one of the fastest growing crane manufacturers. The company manufactures hydraulic mobile pick-n-move cranes, wheeled loaders, tower cranes, road making machinery and hydraulic mobile cane handler.

ACE cranes can be adapted for a vast range of possible applications due to their versatility. ACE also offers customised solutions for specific requirements. The company’s full-fledged production facilities are located in the industrial township of Faridabad near New Delhi.

The company’s 25 sales-cum-service centres across the country ensure prompt supply of spare parts and quality service to customers. The client base includes Reliance, ACC, Gujarat Ambuja, KEC International, Patel Engineering, Western Coal Fields, BHEL and Nalco.