The company has kept 40% of its production space open for future expansion and their projections indicate a 60% utilization of roto-moulding facility by 2026.
08 Mar 2025 | 3213 Views | By Shahkar Abidi
Lumax Cornaglia, which is involved in air intake systems, plastic fuel tanks, and urea tanks is undergoing a change in its business strategy after Tata Motors, its primary customer for plastic fuel tanks, reverted to metal tanks on multiple models. To optimize its Pune plant’s capacity, the company is exploring new ...
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Lumax Cornaglia, which is involved in air intake systems, plastic fuel tanks, and urea tanks is undergoing a change in its business strategy after Tata Motors, its primary customer for plastic fuel tanks, reverted to metal tanks on multiple models. To optimize its Pune plant’s capacity, the company is exploring new opportunities in air intake systems, plastic fuel tanks, and urea tanks.
Industry observers believe that one of the reasons for this switch possibly could be due to softening metal prices. Plastic as a material has several compatibility issues that need to be addressed. However, with CAFE II norms setting in, the regulations will eventually bring OEMs back to plastics, experts pointed out.
According to Vikas Marwah, CEO of Lumax Autotech Technologies, while metallic moulds are currently preferred for fuel tanks, roto-moulding remains crucial for vehicle exteriors and cabin structures. For instance, in electric three-wheelers (E3W), the industry is witnessing a shift from traditional soft-top canopies to hard-top plastic cabins. This transition is only possible through roto-moulding, which enables the production of large, durable plastic modules.
Sensing opportunity, Lumax Cornaglia has found new uses for its rotomoulding technology for vehicle cabin exteriors, and has signed up new OEMs, including Mahindra, with production set to start in the next three to six months. The company has kept 40% of its production space open for future expansion and their projections indicate a 60% utilization of roto-moulding facility by 2026, solidifying its role in our long-term growth strategy.
Furthermore, Lumax is in active discussion with its JV partner to potentially become a global sourcing base for some products, leveraging Cornaglia's international business.
Marwah pointed out that manufacturing of plastic and urea tanks remains a highly specialized domain, with only two major players in India. The high entry barriers in this sector—ranging from advanced technology requirements to stringent OEM approvals—mean that new entrants face a three-to-five-year timeframe to establish themselves. This gives Lumax Cornaglia a competitive advantage, ensuring a secure and stable business outlook from 2025 to 2030.