Automotive electricals manufacturer Lucas TVS is selling its entire 30% stake in India Japan Lighting to its joint venture partner Koito Manufacturing for Rs 148.5 crore, according to statements issued by the two companies on Monday.
The deal makes Koito the sole owner of 22-year-old India Japan Lighting which counts top carmakers among its clients. Koito will turn the venture into a wholly owned subsidiary by the end of the month, Lucas TVS said in a statement.
Lucas TVS, which is run by TVS Group scion Arvind Balaji, said the decision to focus on their respective strategic initiatives was due to “changes taking place in the automotive industry”.
An executive at Lucas TVS said regulatory and market changes around a gamut of issues shaped Lucas TVS’ decision. “Doing more in the field of electric vehicles will be one of our core focus areas, going forward,” said the executive, who requested not to be named.
Source: Economic Times