The Hindu Business Line : Veejay Lakshmi Engg to go it alone as pact with Savio ends

THE joint venture agreement between the Coimbatore-based Veejay Lakshmi Engineering Works Ltd and Savio of Italy has come to an end with the former deciding to go on its own in manufacture, sales and service of its automatic cone winders and two-for-one twisters.

Veejay Lakshmi had, till December last depended on Savio for marketing these products. Though the tie-up was severed almost a year ago, company sources say that they were obliged to deliver the pending orders as per the earlier arrangement before deciding to market their range of machineries independently.

Having made the decision, Veejay Lakshmi is now planning to organise road shows and seminars across different locations to give thrust to is marketing activities.

According to Mr V.J. Jayaraman, Chairman and Managing Director, Veejay Lakshmi, the joint venture partners decided to part ways after Savio indicated that they would like to market their own range of machinery in India. "Since Savio has been handling our marketing activities, we did not have a chance to interact with our customers," he explained.

The company claims that its automatic cone winding machine design was more suited for the domestic market. Its market share in the two-for-one twisters is estimated at over 70 per cent. The monthly production of the two-for-one twisters stands at 40.

The company is upbeat about the future as the demand for the automated cone winding machines has started to look up. With the existing capacity, the company is manufacturing 7 to 8 machines every month.

"We have valid orders for 15 machines and discussions are at an advanced stage for more automatic cone winders. The delivery period is 3 months," a senior official of the company told Business Line.

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