LML Limited

LML Ltd. is fast striding towards its goal of becoming a multi-product two wheeler company offering superior and more exciting products in various segments of the two wheeler market. The current production capacity of around 4,00,000 vehicles per annum will be enhanced to 7,20,000 two-wheelers annually during the next 24 months.
The products offerings come with an all comprehensive package of superior technology and a riding pleasure beyond compare. The two wheelers will include Mobikes, Step thrus, 4 Stroke scooters in both variator and geared transmission and scooterettes in varied engine capacities. The existing range of 150 cc scooters and scooterettes have been upgraded during the past one year of enhance the pleasure of riding. All two wheelers from the LML stable reaffirm its faith in the mantra of "STYLE - POWER - PERFORMANCE".
Apart from a restyled bodyline other features include digital ignition, disc brakes, and state-of-the-art front and rear suspensions systems.

All LML vehicles currently meet the year 2000 emission norms.

The offerings include 6 product categories in step-through and mobikes, all to be powered by multivative 4 stroke engines. These vehicles are presently designed in engine displacement of 100-125-150cc and would also be equipped with superior features like disc-brakes and electric start and would cover a wide band-width of customer segment, including models such as Classic, Sporty and Custom.

LML plans to launch its range of metal body 4S - 150cc scooters both in variator and geared version by the first quarter of Year 2001. These vehicles will be in 3 sub-variants.

Although LML excepts to close the current financial year witha lower volume of scooter sales, and profits, the new range of products are expected to reverse this trend.

The financial Year 2000-2001 will be the first year with LML's new range of motorcycles and LML excepts a significant improvement in its overall performance in volume and profitability.

It has already completed its first phase of financial restructuring by reducing debt; the present debt equity stand at 1:1, and the net worth of the Company has steadily grown to Rs.148 crores.

LML has made substantial restructuring of its Industrial, organisational and supply chain and has commenced a programme for creating a very flexible manufacturing system (to allow for shifts / movements amongst its various product offerings) and making its organisation lean and trim.

LML has already networked its local vendors (numbering 100) with its LML VENDNET; it shall also reduce its vendor base by 30% over the next 2 years. Presently about 1200 components arrive through a computer linked supply chain on JIT system with floor inventry ranging from 90 minutes to 6 hrs.

The ancillary base at Kanpur (109 units) is being enhanced to increase the supply needs and establish a totally new quality system. ISO certification by vendors is being made mandatory. LML reimburses between 75% to 100% of the cost of such certification to its ancillaries. 20 new ancillary units would be created and in some cases, LML would also participate as an equity partner.

LML, was the first in the country to start its exclusive chain of showrooms - LML WORLD, is now upgrading this dealer network to enable the distribution, display, retailing and customer care become fully congruent with the increased variety and volumes of its two wheelers.

LML has invested about Rs.350 crores during the last 3 years and would invest a further Rs.120 crores during the next 24 months to create a capacity of about 7.2 lacs two-whelers, covering almost all product categories save and except mopeds. This investment plan is based on a judicious mixture of debt, internal accruals, leasing and suppliers credit.

LML is carrying out extensive market research for possible new product categories like small and big wheel 4Stroke Scooters in Plastic body as also Electric scooters. If the research findings are positive then such vehicles would enter the market something during 2002.

On the export front, LML has recently stepped up its export activities and from an average of 400 per month, during the 1st nine months of the current FY; it is now exporting about 1,000 vehicles per month. It has taken steps to address specific country needs and excepts to export around 15,000 vehicles during the next FY.

LML is the only 2-wheeler producer with its own division producing state-of-the-art automotive electronics and devices - Industrial Electronics. This division has also expanded its product range and currently produces CDI, HT coils, Voltage regulators, Digital Ignition system, Cable - harnesses, Instrument Clusters and Components of the magneto systems.

LML has also sourced one of the most advanced SMT technologies and manufacturing system from Siemens and Phillips, which shall be commissioned by February this year. There are plans to spin-off this activity to an independent company to accelerate its growth and to cater to the needs of other customers in the 2 and 4 wheel segment.

In keeping with current move for protecting and enhancing investor friendliness and Corporate Governance LML plans to broad base its Boardwith independent Directors with varied and rich experience, The company's shares have already been dematerialized and are presently traded on all major stock exchanges of the country.

Veeresh Malik and Shailesh Khanolkar at the show
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