Textile machinery manufacturer Lakshmi Machine Works (LMW) plans to expand the range of products manufactured at its subsidiary LMW Textile Machinery (Suzhou) in China.
Director (Finance) R. Rajendran told The Hindu here on Thursday that the China subsidiary had made profits this year because of better price realisation. The manufacturing facility was functioning out of a ready-built factory now and land has been allotted to have its own premises. LMW would invest totally $12.5 million in China, and the subsidiary would meet the remaining expenses for expansion through loan or internal accruals.
In India, the textile industry was seeing revival and the company had orders for Rs.3,700 crore. It received orders to the tune of Rs.1,100 crore during the last fiscal. But, the profits had dropped because of higher labour, power and input costs. “It may be difficult to pass on the cost increase to customers,” he said.
