LML scripts expansion plan

Hyderabad: LML, the Kanpur-based two-wheeler manufacturer, wants a bigger slice of the two- wheeler market and is scripting an expansion plan that will enable it to be present in all two- wheeler segments. LML is thus planning to launch a series of motorcycles and scooters during the year to cover the entire range. The ultimate aim is to gain at least a 20 per cent share in a market where Hero Honda is the leader with more than 40 per cent share.

To this end LML is planning a comprehensive manufacturing expansion strategy that would back its plan to be present in all two-wheeler segments.

G S Maheshwari, executive director, LML, said the expansion plans are being backed by an overall investment of about Rs80 crore this year into its manufacturing base. He said LML is talking to various financial institutions for the proposed investment and the expansion project is likely to be completed by the end of this fiscal. He said the expansion would enable LML to scale up overall production and cater to new segments, he said.

Launching a range of motorcycles in Andhra Pradesh, Maheshwari said, "We have scripted a new direction for the company to address the growing motorcycle market in the country since we were predominantly a scooter manufacturer earlier."

LML became a dominant force in the motorcycles segment with the launch of 110 cc Freedom bike. So far it has 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 acquire about 20 per cent market share by next year."

The Indian motorcycles market is split between entry-level bikes priced between Rs30,000 and Rs35,000 which account for about 50 per cent of the country's overall motorcycle market. The executive segment priced above Rs35,000, though smaller, is the fastest growing segment. The premium segment with bikes priced above Rs 45,000 is the smallest. The size of the motorcycle market is about 300,000 vehicles a month. The company is in the process of rolling out a gearless scooter.

LML had launched three bikes earlier — LML Freedom Topper priced at Rs 38,901, a bike in the 110cc category, LML Freedom Prima in the 125cc category 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. According to Maheshwari, a new 150cc bike, Beamer, would compliment LML's entire executive bike range.