Lml To Tie Up With Chinese Firm

Even as it prepares to launch Daelim motorcycles during the coming festive season, LML Ltd is tying up with a Chinese two-wheeler manufacturer to make scooterrettes and step-thrus. Sources at LML disclose that the company is likely to sign a licencing agreement with this Chinese firm within the next four months. These products are slated for a launch towards the end of next year. Though it has a technological collaboration with Daelim of South Korea, LML is also looking at this company's mobike portfolio and may also enter into another agreement with this Chinese firm for motorcycles if the need arises, the source said. However, the name of this Chinese firm was not disclosed. LML had initiated talks with two Chinese two-wheeler producers and one of them has been shortlisted. LML is currently examining the product portfolio of this Chinese firm. "Once the validation process is over, we will enter into a licence agreement with this firm," the source said. The entire exercise is likely to be completed within the next four months. LML's strategy is to have products in all the two-wheeler segments by the close of 2001. While two Daelim bikes are expected to be launched in the first week of September, work on the scooterrettes and step-thrus would begin by the year-end. LML has, in fact, also spruced up its range of metal-body scooters. These "new look" scooters are likely to be launched along with the Daelim bikes next month. LML has improved the looks and the driving comfort of its scooters. "The idea is to add more value for the buyers of metal body scooters," the source added. Meanwhile, the company is beefing up its dealerships for the launch of Daelim motorcycles. Dealers are being trained on how to service motorcycles and showrooms are being done up for the launch. LML is also making a foray into the information technology sector by becoming a solutions provider for the automobile sector. The IT division of the LML would be hived off into a separate company by the year-end. Meanwhile, the Singhanias of LML are going to increase their stake from 47.2 per cent to 51 per cent at a cost of Rs 8.8 crore using the preferential issue route. The board of LML Limited had ratified the evaluation of the issue when it met on June 29 in order to approve the results. The preferential issue of the company would be approved at the annual general meeting scheduled to be held in September this year. After buying off the 23.6 per cent stake of its partner "" Piaggio Cspa "" in LML Limited, the three promoters "" Deepak Singhania, Lalit Singhania and Sanjiv Shreya "" together have a stake of 47.2 per cent in the company.