BAHADURGARH, INDIA — Neolite Group would soon finalize a new joint venture partner for the automotive lighting business, according to JV's managing director.
Neolite has had a JV agreement with Austria's ZKW (Zizala Lichtsysteme GmbH) since 2007. But the Austrian partner is now more focused on the larger market in China, said Rajesh Jain, managing director of Neolite ZKW Lightings Pvt Ltd., at the company's Bahadurgarh plant, near Delhi.
ZKW owns a 26 percent stake in the JV.
Jain said Neolite hopes to finalize a deal with a new partner in the next two months.
ZKW is a major supplier to BMW, which sold 296,000 cars in China in 2012, but only 9,375 in India.
“The five-year-long venture started when the Indian auto market was booming,” Jain said.
Meanwhile, Neolite plans to build a new auto lighting plant in western India.
“We are considering setting up a new plant in Pune in the next couple of years,” Jain said.
Neolite has four facilities, with three in auto lighting and one for home lighting.