Lakshmi Machine Works (LMW), the Coimbatore-based textile machinery manufacturer, will establish an advanced technology centre at a cost of Rs. 30 crore to manufacture parts and components for the aero space and defence sectors.
Chief Financial Officer of the company R. Rajendran told The Hindu that the company proposed to manufacture components and parts as per the drawings provided by Hindusthan Aeronautics Limited’s (HAL) manufacturing units initially.
“We are in the process of registering as a vendor with HAL. Teams from HAL have visited our facilities,” he said. HAL would supply the materials required for the parts and components.
Lakshmi Machine Works had made a study to explore new business opportunities and use the infrastructure facilities available with it.
Based on the study, it proposed the advanced technology centre to enter into areas of aerospace and defence.
“On account of the offset clause stipulated for imports in the areas of aerospace and defence, ample opportunity is envisaged to manufacture mechanical and sheet metal parts by using the facilities,” he said.
The capital expenditure would be made out of internal accruals and need-based allocations would be made when required.
The sample parts and components were under trial as per the drawings and regular supplies would happen during the next financial year.
The proposed capital expenditure would also be made during 2010-11, Mr. Rajendran said.