Lumax scales down investments, growth estimate on Maruti issues
The company had invested Rs 125 crore of which Rs 90 crore was in capacity expansion.
New Delhi: Automobile lighting systems maker Lumax Industries on Wednesday said it is scaling down investments and may miss growth target due to workers' agitation recently at Maruti Suzuki India's (MSI) Manesar plant.
"For this fiscal we had planned a Rs 100-crore investment but we are refraining from going aggressive on that," Lumax Industries Senior Executive Director Anmol Jain told reporters on the sidelines of Automotive Component Manufacturers Association of India (ACMA) annual convention here.
He said the growth of the passenger vehicle industry was mainly driven by MSI and Mahindra & Mahindra, but with MSI having a tough time no one would like to risk investments on the growth of just one company (M&M).
Jain said that last fiscal the company had invested Rs 125 crore of which Rs 90 crore was in capacity expansion.
"We had made that investment predominantly for Maruti but since they have had a lockout, our margins have been impacted as a consequence," Jain said.
MSI had closed its Manesar plant for a month from on July 21 following violence in which a senior company official was killed and 100 others injured.
Commenting on the growth prospects for Lumax Industries, Jain said: ""We envisaged a growth of about 25 per cent at the beginning of the fiscal. At present we are growing at 12-15 per cent and that is where I expect to close the current fiscal."
The company had clocked Rs 1,850 crore in revenue last fiscal.