The outperformers 2020

Lumax Industries’ headlamps have always been ahead of the curve

Its foray into LEDs will keep the auto-lighting supplier ahead of the competition, reckons CEO Vineet Sahni 

Commanding over 50% of the auto-lighting business, Lumax Industries truly ‘owns’ the road. It works with leading two-wheeler and four-wheeler manufacturers in India, with Maruti accounting for 36% of its business, and Honda Motorcycle and Scooter India for 16%. Between FY16-20, its revenue increased from Rs.12.55 billion to Rs.16.02 billion, at a CAGR of 6.29%. Over the same period, its net profit has gone up from Rs.368.8 million to Rs.598.1 million at CAGR of 12.85%.

This growth is largely on the back of its LED business. In a halogen-light-partial India, the company seized the LED market opportunity at the right moment, and the vertical has seen its revenue share take off from only 2-3% in 2015 to an impressive 35% today. For its peers, the same vertical currently accounts for 22-23% of their revenue.

One of the reasons Lumax got it right in LED is taking the lead early. According to Pankaj Bobade, head of fundamental research at Axis Securities, a big plus was the presence of Japan’s Stanley Electric as a strategic investor (they hold 37.5% stake, while DK Jain Group holds an equal proportion). “They managed to capitalize on the technological knowhow of their partner and that helped in getting aggressive,” says Bobade.

Their big bet on LED hinges on Indian customers’ love for bling. The lights are costlier than the halogen ones, but Vineet Sahni, CEO of Lumax Industries, says that people don’t mind shelling


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