The Hindu : Business : LMW firms up China plans

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Saturday, Nov 01, 2008
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LMW firms up China plans

M. Soundariya Preetha

Takes a factory on lease

Project cost is Rs. 65 crore
Will produce ring frames

COIMBATORE: Lakshmi Machine Works (LMW), Coimbatore-based manufacturer of textile machinery, plans to start operations at its wholly-owned subsidiary in China next year (2009).

Chief Financial Officer of the company R. Rajendran told The Hindu that the outlay for the project was about Rs. 65 crore and the plant would manufacture ring frames. The company had taken a factory on lease at an industrial park in Suzhou for this purpose. The components would be sent from India and the plant would be assembling the frames. “In five years, we plan to achieve an annual production of a million spindles at the China plant,” he said. Later, some of the components could also be sourced from China.

Both the Indian and the Chinese manufacturing facilities would be complementary. “We are entering with a single product. We will understand the market and can consider other products too at a later stage,” he said.

The frames would be for the Chinese market first and the supply could be gradually extended to the neighbouring countries. With modular construction system, the LMW machinery was easier to erect and the spindles had a higher speed. China had the largest number of spindles installed in the world and hence, had a market, he said.

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