Lakshmi Machine Works Ltd (LMW), a textile machines manufacturer, is planning entry into the aerospace sector. The BSE-listed company has said it would cater to Hindustan Aeronautics Limited and will take up job works to start with. Besides, the company would invest around Rs 100-120 crore in the coming fiscal.
R Rajendran, chief financial officer, Lakshmi Machine Works Ltd, said that the company had set up a separate division within the group to take care of the new business. It would infuse around Rs 25 crore into the new division.
He said the company would take up job works, mainly component works for Hindustan Aeronautics Limited (HAL), for which drawing and raw materials will be supplied by HAL. “Initially our focus will be on components which are highly replaceable. Going forward, we will look at assembly also,” he said.
This would be in addition to Rs 100-120 crore lined up as capex for modernising and automating its units. The debt-free company has ruled out any possibility of raising money from the public for the proposed capex plan.
The company, which currently has an order book of valued around Rs 3,600 crore, said it would execute these orders in the next two years and would likely close the current fiscal with a turnover of around Rs 1,500-1,600 crore, as compared to Rs 1,150 crore last year.
On the company's new subsidiary in China -- LMW Textile Machinery (Suzhou) Co Ltd -- Rajendran said that production commenced during the first quarter, adding, “Demand is good, and the company is likely to bring a revenue of around Rs 100-150 crore." The company's greenfield project is situated in the Wujiang Economic Zone, Jiangsu, China.
