LML makes Rs 70cr expansion plan

LML Limited plans to invest Rs 70 crore to increase the production capacity at its Kanpur plant over the next 12 months. The company, which currently manufactures around 15,000 bikes per month, plans to increase its production to around 85,000 bikes after the expansion of its facility.

Speaking to Business Standard, G S Maheshwari, executive director (sales), LML Limited, said: "The demand for motorcycles have gone up tremendously over the last couple of years. The present demand across the country is around 3.5 lakh bikes per month and to meet this demand and to have a good market share the company has planned the expansion."

Apart from investing in increasing the capacity, the Rs 70-crore expansion also includes investments in research and development activities of the company.

LML also expects the Kanpur plant to be able to roll out 10 lakh bikes in 12-15 months time. The company, which recorded a turnover of Rs 700 crore last fiscal, expects around 25 per cent growth this fiscal.

The company will be also be launching two new products "" an entry-level motorcycle and a gearless scooter "" over the next few months, which is expected to help the company expand its portfolio, besides increasing its market share substantially.

The company, which currently has a market share between three per cent and eight per cent in different states across the country, expects its market share to cross 20 per cent with the launch of its new products.

Maheshwari said that the planned entry-level motorcycle and the gearless scooter would give a broader bouquet of products for consumers and would be launched in the next three to four months.

The company on Saturday launched three models of motorcycles in the Andhra Pradesh market, the Freedom Topper, Freedom prima 125cc and Freedom prima 125DS models.

While the Freedom Topper costs Rs 38,901, the Freedom prima 125cc costs Rs 41,151 and the Freedom Prima 125DS costs Rs 43,401, ex-showroom Hyderabad. Maheshwari said that with the launch of the three new models, LML was now longer a 'one product wonder'. The company also plans to launch the Beamer, a 150 cc motorcycle soon in Andhra Pradesh.

LML will also be increasing the number of its sale points in southern India from 200 to 500 by March next year. The company, which currently has a four per cent market share in the state, plans to increase this by having more sale points.

"We currently have 50 sale points in the state and in the next four months we would be increasing it to around 90," he said.

Maheshwari said that the company expects volumes to touch around 2,000 vehicles in the next six months and the company was expecting revenues to touch Rs 8 crore. The company is also looking at investing a substantial amount in advertisements and promotional activities.

"In the last two months itself we have invested around 22 crore for this purpose and we would continue to do so," Maheshwari said.