Textile machinery and machine tools manufacturer Lakshmi Machine Works (LMW) has started making vertical machining centre (CMX 600 Vi VMC) for DMG Mori for the Indian market.
The machine tool division of LMW will produce about 10 units a month for DMG Mori initially. “The production volume will increase in stages,” according to a statement from DMG Mori.
The production is outsourced to LMW in India, “which makes possible a shorter lead time until delivery than domestic production in Japan,” the statement added.
India is a market with potential for DMG Mori, Masahiko Mori, its president, informed the media here on Tuesday. The company has 14 factories in seven countries with a capacity to produce 12,000 machines a year.
“India is a growing market. We want to expand the customer base (in India) with the collaboration with LMW,” he said.
Sanjay Jayavarthanavelu, CMD, LMW, said the entire machinery will be assembled here and supplied. While the critical parts will be imported, LMW will do value addition. The existing facilities have been upgraded in some areas.
“We have the capacity to increase volumes,” he said. “The demand came from a product gap which is filled by competitors. We realised we could fill it together with the product (CMX 600 Vi VMC). So, we came together,” he said.
In a communication to the stock exchanges, LMW has informed that the activity does not involve any additional capital expenditure for the company.
The machine tool division of LMW makes turning centres, machining centres and turn mill centres currently for domestic and export markets. It makes 3,200 machines a year and a 57,000 square-feet second facility of the division is getting ready, according to sources.
