Automotive lighting
manufacturer Neolite Industries on Sunday announced that Austria-based ZKW
Zizala Lichtsysteme GmbH will pick up a 26 per cent stake in the company for an
undisclosed amount.
“Neolite Industries has inked a joint venture
agreement with ZKW- Zizala Lichtsysteme GmbH. ZKW will be taking an initial
stake of 26 per cent in existing business of Neolite group, with an option to
increase its stake up to 40 per cent,” a company release said.
Under
the agreement, all existing automotive lights operations of Neolite would be
integrated with the proposed JV company and the existing company would be
rechristened 'Neolite ZKW Lightings Pvt Ltd', it added.
With an
annual turnover of over 200 million Euros from automotive lighting business, ZKW
is one of the leading OEM (original equipment manufacturer) suppliers for the
front lighting for premium segment vehicles in Europe.
The JV firm
would be setting up new state-of-the art manufacturing facilities at strategic
locations in India. The first of new plant is expected to come into operation by
2009 with an annual capacity to produce 2.5 million lamps.
“With
this strategic alliance Neolite plans to become a leading supplier in the
premium car segment in India,” the release said.
ZKW would be
providing to the JV company engineering and technical support in developing and
manufacturing the latest technology lamps including LED, Xenon & AFS
technology to the existing as well as new customers in cars and truck segment.
Neolite Group has been supplying automotive lights to over 25 OEMs
in India and overseas besides exporting to over 85 countries worldwide.
Source: Economic Times