Stanley taking over Lumax
- Date: 2007-07-13 - Word Count: 391
Share This!
While discussing the potential of the Indian supplier industry in the global context with one of my European colleagues, I pointed out to him that most Indian suppliers are home-bred entrepreneurs, who have realized the opportunity window and mostly used the technical collaboration / minority equity stake method to bring in technical know-how, unlike China where most supplier ventures are joint-ventures with global suppliers, formed out of compulsion.
His contention was that as soon as the Indian industry reaches a significant size, the Boschs, Mahles and Danas of the world will start looking at it with a different perspective and will strengthen their presence in the country. At that point of time, the Indian entrepreneurs - at least some of them - will have to step aside as they will not be able to match the deep pockets and long-term staying power of the global majors. India will also be more important to these global suppliers as it will be an important sourcing centre for global vehicle programs as well as the aftermarket.
And you won't like an important base to be manned by allies, especially when the Indian entrepreneurs tend to partner a dozen global suppliers (look at Anands, Rane, TVS, Amalgamations etc etc) in different ventures at the same time.
The recent increase of stake in Lumax by Stanley electric certainly points in the direction predicted. Stanley sees Lumax as an important player in the Indian industry (reports suggest that Lumax has a 60% stake in the Indian automotive lighting market) and with global sourcing becoming a buzzword, it would be prudent to have Lumax under your own control.
And Stanley is not the only case here. Bosch is keen to increase its stake in its Indian venture, even though it already has management control. On the other hand, Federal Mogul booted out its Indian partner Escorts last year - Escorts wasn't doing a great job there - to assume control of Goetze India.
But is this going to be a trend? Maybe! In selective cases, where the Indian partner is pre-occupied with other things, it may be prudent to take control of things and run them yourself. However, in cases like the Rane Group, TVS group companies and some other respected entities, it may make sense to let the Indian partner do the day-to-day management.
For more details on Stanley and Lumax visit www.theautodiary.com
His contention was that as soon as the Indian industry reaches a significant size, the Boschs, Mahles and Danas of the world will start looking at it with a different perspective and will strengthen their presence in the country. At that point of time, the Indian entrepreneurs - at least some of them - will have to step aside as they will not be able to match the deep pockets and long-term staying power of the global majors. India will also be more important to these global suppliers as it will be an important sourcing centre for global vehicle programs as well as the aftermarket.
And you won't like an important base to be manned by allies, especially when the Indian entrepreneurs tend to partner a dozen global suppliers (look at Anands, Rane, TVS, Amalgamations etc etc) in different ventures at the same time.
The recent increase of stake in Lumax by Stanley electric certainly points in the direction predicted. Stanley sees Lumax as an important player in the Indian industry (reports suggest that Lumax has a 60% stake in the Indian automotive lighting market) and with global sourcing becoming a buzzword, it would be prudent to have Lumax under your own control.
And Stanley is not the only case here. Bosch is keen to increase its stake in its Indian venture, even though it already has management control. On the other hand, Federal Mogul booted out its Indian partner Escorts last year - Escorts wasn't doing a great job there - to assume control of Goetze India.
But is this going to be a trend? Maybe! In selective cases, where the Indian partner is pre-occupied with other things, it may be prudent to take control of things and run them yourself. However, in cases like the Rane Group, TVS group companies and some other respected entities, it may make sense to let the Indian partner do the day-to-day management.
For more details on Stanley and Lumax visit www.theautodiary.com
Related Tags: automobiles, auto diary, stanley, lumax
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Improve the Value of Your Truck With a Truck Bed Cover
If you are a truck owner and are looking for a way to increase the value and also protect your inves - An Overview of Emergency Road Services
Anyone that owns a vehicle definitely understands that there are truly countless facets of driving a - Buying From Car and Truck Auctions in Canada
Buying a vehicle from an auction can be a good way to pick up a bargain as long as you know what you - 2011 Green Car Of The Year- Who's In It To Win It!
The Green Car of the Year award is a program designed by Green Car Jouranl to recognize and honor ve - Honda's 2010 Odyssey is Efficient, Practical and Convenient
If you are looking for a minivan that has a seating capacity of up to eight persons and handles almo - Greener Trucks For Delivery Work
Green' is a word you'll hear a lot when it comes to transportation, from bicycles to buses - but you - The Courier and Haute Couture
Some jobs just ooze opportunity to flaunt yourself and show off your latest togs but sadly that's ra - All-New 2011 Toyota Camry
The Toyota Camry has been a continuous leader for years in the family midsize sedan class by being a - The Various Benefits Of Summer Tires
As you probably know , different tires are optimized for different conditions. Not only that, someth - A Couple of Tips on Buying a Used Cars in Toronto
If your old car has finally kicked the bucket and you need to get yourself a new mode of transport t
Most viewed articles in this category:
- How to Remove Window Tint
Applying tinting film to car or household windows may be fun, but removing it can be tricky if yo - Transporting Your Car
If you are relocating to another state or another country for employment or family reasons, you may - Choosing The Right Sticker For The Motorcycle Helmet
When people decide to buy a motorcycle, the dealer will usually throw in a helmet. This is because s - Suzuki's 2007 Xl7, “wave” Grand Vitara Debuts at the 2007 Scias
In the news: American Suzuki Motor Corporation has presented its array of cars and SUVs at the 2007 - Nissan Skyline GTR: A Racer That Is Affordable
If you've ever eyed a Porsche 911 or a Ferrari Testarossa, but thought the price was too steep, the - How To Buy Cheap Cars
There are a number of seized car auctions held in various places every month or at least quarterly. - Federal Agencies Expands Hybrid Fleet
Three federal agencies in Kansas recently added hybrid vehicles to their fleet. The hybrid vehicles - New Cars, New Gadgets Presented at the 2007 Naias
The 2007 North American International Auto Show has become an event of glamour, fashion and technolo - Aura Green Line Added to 3 Federal Fleets in Kansas
Three Kansas City area federal agencies added Monday the new 2007 Saturn Aura Green Line hybrid vehi - Top Vehicles by Autoweek Editors Honored at 2007 Naias
Everybody has favorites. Bill may like Ford cars. Susan may be attracted much by the power of pi
