- The valuation of this sale is Rs 148.5 crore
- India Japan Lighting is in the process of setting up its third plant in Gujarat
According to a report by Hindu Business Line, Japan-based automotive electricals manufacturer, Lucas TVS is selling its 30 per cent stake in India Japan Lighting (IJL) to its joint venture partner Koito Manufacturing. The valuation of this sale is Rs 148.5 crore.
In IJL, Koito has 70.1 stake per cent while 29.9 per cent is held by Lucas-TVS group. As per the report, a statement of Koito said that in India, the automotive market is expected to grow over the long-term. It will be necessary for the Koito Group and IJL to accelerate its decision-making.
Paid-up capital of the IJL will be increased to Rs 404 crore
The report also said that Koito further added that as 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, it added. The paid-up capital of the IJL will be increased to Rs 404 crore from Rs 184 crore.
Koita had established IJL in 1997 with Lucas TVS as its local partner. This was done to manufacture and sell automotive lighting equipment. IJL has been supplying automotive lighting equipment mainly to Japanese automotive manufacturers in India since the, as per the report.
Rs 500 crore investment in Gujarat facility
IJL has facilities in Chennai and Bawal. It is in the process of setting up another plant in Gujarat. The investment for this plant is Rs 500 crore. It is expected that operations in this palnt will commence in August 2020.
