Lakshmi Machine Works (LMW) is a leading textile machinery manufacturer which enjoys a marketshare of 60% in the organised sector. It produces a complete range of state-of-the-art textile machinery in collaboration with Reiters, Switzerland, and high precision CNC machine tools in collaboration with Mori Seiki, Japan. A large new foundry has also been commissioned. LMW has also diversified into the iron and steel, telecom, granite and agro sectors.The company plans to manufacture blow room lines, twin delivery auto levellers, combers, preparatory and combing machines and high speed rings.

The demand for textile machinery has increased during the last 6-7 years. However, the demand for indigenous machinery has not recorded a proportionate increase as most of the demand is met through imports. The domestic textile machinery industry which had an installed capacity of Rs 3,600 cr during the year 1999-2000, could utilise only 30% of the installed capacity. This was mainly due to the government permitting imports of second-hand machinery without restrictions till 31 Mar.’99.

The global recession in the textile industry and the availability of machinery at discounted prices from Europe contributed to the poor performance of textile machinery manufacturers. The Technology Upgradation Fund, meant for the modernisation of the textile industry, has not resulted in more inflows of orders as expected since banks and financial institutions are reluctant to support textile mills. It is expected that the latest Textile Policy may bring some changes in the working and growth of the textile units.

For the year ended Mar.2000, LMW clocked a turnover of Rs 431.21 cr, an increase of 5%. Net profit doubled in FY 2000 compared to FY 1999. For the half year ended Sep.2000, the company achieved a sales turnover of Rs 236.73 cr, exhibiting an impressive increase of 50% over the corresponding previous period. Net profit was up by 93% to Rs 11.50 cr.

LMW has stepped up its capacity utilisation to 70% from 45% sustained during the first six months of the last financial year. On the exports front, demand is brisk as inquiries from the Asian markets are picking up. Textile manufacturers in these countries had suspended capacity additions due to prolonged economic crisis. LMW is also looking at new markets like Turkey and Mexico which have better demand for textile machinery.