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Wednesday, Nov 03, 2004

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LML in expansion drive, eyes bigger share in bike market

V. Rishi Kumar

Hyderabad , Nov. 2

THE two-wheeler major LML , has embarked on an expansion drive that would see the company expanding its manufacturing capacity and launching a series of bikes including an entry level motorcycle and gearless scooter.

The Executive Director of LML, Mr G.S. Maheshwari, told Business Line that the company is in the process of finalising its expansion plans that would see an overall investment of about Rs 80 crore this year into its manufacturing base. It would also launch a series of motorcycles and scooters during the year to cover the entire range.

"We are in the process of negotiating with various financial institutions for the proposed investments. The expansion project would in all probability be completed by the end of this fiscal. This would enable LML to not only scale up overall production but also cater to new segments, " he explained.

Launching a range of motorcycles in the Andhra Pradesh market, Mr Maheshwari said, "From a predominantly scooter manufacturer, we have scripted a new direction for the company to address the growing motorcycle market in the country. We initiated this process with the launch of 110 cc Freedom bike, and have thus far sold about 300,000 motorcycles. This is significant given the fact that we are present in several motorcycle segments. With the launch of this new range of motorcycles addressing new segments, and further scaling up the overall manufacturing capacity, we would be able to garner about 20 per cent market share by next year."

"The entry level bikes, ranging between Rs 30,000 to Rs 35,000 account for about 50 per cent of the country's overall motorcycle market, which is about 300,000 vehicles a month. We are set to enter this segment shortly and this would mean that LML would be able to reach out to a larger section. Along with the launch of this bike, we are in the process of rolling out a gearless scooter, the market for this segment has picked up after the entry of Honda," he said.

"Earlier, LML launched three bikes — LML Freedom Topper priced at Rs 38,901, yet another bike in the 110 cc category and two bikes in the 125 cc category named LML Freedom Prima priced at Rs 41,151 with four gears and drum brakes and LML Freedom Prima, priced at Rs 43,401 with five gears and disc brake option. This would be complimented by a 150 cc bike, Beamer, which would complete the entire executive bike range.

"With the launch of the entry-level bike shortly, we would cover the entire spectrum of bikes thus exposing us to greater market share. With just one bike, we have managed excellent sales and expect to continue this turnaround strategy leaning towards motorcycles," he said.

More Stories on : New Projects | Two/Three Wheelers

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