Jan 27, 2007

0 News Confirmed: LML ceases two wheeler production in India

LML dealer confirms that LML has finally stopped manufacturing two wheelers...

In October last year I made a post on this blog about how the Indian two wheeler manufacturer of LML was facing financial crisis..


"LML bikes, the "Energy", "Edreno" and the "Freedom" were quite popular in Assam till they were in production.."

Recently I went to a LML dealer in my town "Jorhat" in Assam and inquired whether LML had stopped two wheeler production. The dealer confirmed that the news was indeed true. There were just 4 LML CRD100 models in the showroom left and the dealer was waiting to sell those off so that he could close the dealership.


Two of the four LML CRD100 left with the LML Dealer I visited


It is sad to see a "Desi" bike manufacturer bite the dust.. the transformation of LML from scooter manufacturer to a bike manufacturer wasn't successful. It wasn't surprising as I hardly got to see any LML bikes (at least in the Southern part of India) till date.


What surprised me though was that LML bikes did have quite a presence in Assam (at least till Jan 2006, when I last visited Assam). The 100 C.C LML duo of Energy and Edreno were quite popular till they were produced. I also get to see quite a lot of 100 C.C LML "Freedom" when I visited my hometown last January.

Pics from my Hometown


LML Adreno and Energy

The "Energy" and "Adreno" twins were quite ubiquitous in Assam once.



LML CRD100 and Freedom
LML Freedom and LML CRD100 in the Streets of my hometown



But LML isn't totally dead yet. It seems there is a restructuring plan.

Source: Hindu BusinessLine


New Delhi , Dec. 27

Beleaguered two-wheeler maker LML on Wednesday said that it was working on a restructuring package for the company which it would be submitting to the Board for Industrial and Financial Reconstruction for approval shortly.

According to Mr R.K. Srivastava, Vice-President, LML, the company expects to restart production in 2-3 months after approval of the package. LML had declared a lockout at its facilities in March this year.

As per its plan, LML will only be producing one scooter model and will also roll out a three-wheeler. "We have decided not to make motorcycles for the time being. We will only manufacture one scooter model, NV for the export market and that too without any collaboration. The technology to make three wheelers is already available with us," Mr Srivastava said.

He, however, declined to comment on how the company plans to raise funds for its restructuring plan.

The company had been negotiating for several months to rope in a strategic partner. However, nothing has materialised on that front.LML had announced reference to BIFR in September this year, after complete erosion of its net worth.



Wishing our "Desi" two wheeler manuacturer a better innings this time.


Related Posts:







Results of Opinion Poll posted on my blog a few weeks back..

My last post was about how Marketers have used the female form to tickle the senses of the male psyche and entice him to buy their products..

The Results of the Opinion Poll which was put up on my blog a few weeks back suggests that they (bike manufacturers) are spot on with the positioning of their bikes..

Here are the results of the Opinion Poll..






I thank all those who participated in the Opinion Poll





Disclaimer:

This is to remind that the Views or Opinions in the blog are entirely mine unless explicitly stated. The Views and Opinions published in this blog should in no way be related to any other person or organization associated -- directly or indirectly -- with me.




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