Lumax Auto Technologies, manufacturer of automotive parts for two and three wheeler industry,  today announced its entry into the Indian aerospace and defence sector by formation of it's new joint venture with SIPAL S.p.A of Italy, part of the Turin based Euro 240 million FININC S.p.A. group.

As per the JV agreement, Lumax will hold 51% equity with management control over the JV and remaining by SIPAL S.p.A. in the new JV company under formation as ''Lumax SIPAL Engineering''.

Anmol Jain, managing director, said, "The Indian aerospace and defence market presents an attractive and significant opportunity for Indian and foreign companies. About 60% of its defence requirements are met through imports. This offers a great opportunity for Lumax."

The proposed JV is expected to become operational in FY 2017 and will be a full service provider for all type of integrated logistic support engineering having a strong knowledge and experience in technical publishing, product manufacturing engineering, process engineering, design and manufacture of toolings, design of systems of production lines related to the aerospace, defence & automotive sectors.

Shares of the company gained Rs 38.7, or 11.46%, to trade at Rs 376.50. The total volume of shares traded was 90,017 at the BSE (12.31 p.m., Thursday).