Torrent brings group power companies under Torrent Power
Ahmedabad: The Ahmedabad-based Torrent Group will bring its three group companies in the power sector under a common umbrella brand name - Torrent Power.

Accordingly, Ahmedabad Electricity Company (AEC) will now be known as Torrent Power AEC Ltd and Surat Electricity Company will be called Torrent Power SEC Ltd, according to a company release. The two companies, along with Torrent Power Generation Ltd would, however, continue to remain separate legal entities, the release said.

With the new Electricity Act coming into force, the Torrent Group is seeking to expand beyond Gujarat and has bid for generation and distribution licences in Uttar Pradesh, it added.
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LML to raise Rs200 crore towards restructuring
New Delhi: LML Ltd has announced plans to raise about Rs200 crore through the issuance of fresh equity to overseas investors, warrants, and foreign currency convertible bonds (FCCBs).

The restructuring is aimed at mobilising funds for the company to increase its motorcycle manufacturing capacity as well as reduce the debt burden from Rs310 crore to Rs105 crore. LML currently has a bike making capacity of 180,000 units and is aiming to scale this up to 10 lakh units by 2007-08.

The LML board of directors will convene an EGM of shareholders to obtain approval for issuance of the fresh capital, mobilisation of substantial fresh funds and amendments to the Articles of Association, including increasing the company's authorised share capital from the current level of Rs60 crore to Rs250 crore.

According to the restructuring package, LML would issue preference and equity capital to its existing lenders (banks and financial institutions) for Rs120 crore as part of the negotiated settlement proposal with them.

LML has also extended its financial year from September 2004 to March 2005 to help the company complete the restructuring transaction and clean up its balance sheet.

The company has been going through a difficult business phase owing to the shift of the market from geared scooters to motorcycles, as a result of which it has perceived the need to realign its business model and strategy. According to the statement, LML has suffered immensely due to lack of a viable motorcycle manufacturing capacity.

Post-restructuring, LML also plans to focus on the export markets and is looking at garnering 15 per cent of its volumes from exports. It is working on plans to establish assembly units in West Asia and South America.
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