(Business Line, Internet edition)
LML to pump in Rs 245 cr; rolls out `Graptor'
Mr Deepak Singhania, Managing Director, LML Ltd, at the launch of 150cc bike `LML Graptor' in the Capital on Wednesday. - Kamal Narang
New Delhi , Jan. 14
IN a bid to capture a sizeable marketshare in the two-wheeler market, LML is planning to invest about Rs 245 crore over the next 1-3 years towards expanding capacity for its motorcycles as well as foraying into the gearless scooters segment.
"We are planning to invest Rs 125 crore towards expanding our motorcycle capacity to 600,000 units from the current 200,000 units by 2005. We would also be investing another Rs 120 crore towards launching our gearless scooters in the next two years," Mr Deepak Singhania, Managing Director, LML Ltd, said on Wednesday at a press conference announcing the launch of the company's new bike, Graptor.
The investment will be made through both debt and equity, with 60 per cent coming from debt.
LML also said it is hopeful of making profits this year (in the financial year ending September 2004).
"The company will see a turnaround this fiscal. We have been able to contain our losses. We are hopeful of getting volumes and improving our topline as we roll out more models in the market," Mr Singhania said. LML has total accumulated losses of Rs 90 crore.
The company is targeting sales of 350,000 bikes and 40,000 scooters in the current calendar year.
LML intends to boost its product line-up further this year.
It is planning to launch several new products this year, including a 125-cc bike and a cruiser bike.
In a bid to make a mark in the lifestyle segment, LML on Wednesday launched a 150-cc bike called Graptor.
"We are aiming to capture 18 per cent marketshare in the lifestyle bikes category with this launch. The Graptor should get sales of about 65,000 units per annum," Mr Singhania said.
Though the company will announce the pricing for the new bike in March, the Graptor has been positioned against the Bajaj Pulsar.
On LML's intended foray into overseas markets, Mr Singhania said the setting up of assembly units abroad are unlikely; the company, however, may go ahead with an alliance in Egypt to sell its scooters. LML has been exporting the 110-cc Freedom and hopes to commence exports of the Graptor soon.