Scooter-maker LML, which ceased production of scooters and motorcycles, to take upgraded version of NV abroad.
NEW DELHI: Scooter-maker LML is getting back into action. The company, which ceased production of scooters and motorcycles in March this year and subsequently registered itself with the Board of Industrial and Financial Reconstruction (BIFR) due to complete networth erosion, says it will restart production at its Kanpur manufacturing unit over the next two-three months.
LML has been in the red for more than four years, with accumulated losses pegged at over Rs 200 crore. The company was earlier looking for a strategic partner and held talks with Piaggio and even Mahindra & Mahindra but nothing came of these talks.
RK Srivastav, a director with LML, said: “We will begin production of the 150 NV scooter as well as of the APE 3-wheeler that was earlier being manufactured under a collaboration with Piaggio. Initially, 10,000 units of the NV will be made every month and sold in overseas markets. We have no plans to service the domestic market initially”.
He said the engine of the old NV would be upgraded; the company already has “sufficient” export orders for this model and would refrain from manufacturing bikes at present.
Srivastav said LML had abandoned its earlier plan of roping in a strategic partner and is working out its revival package with BIFR- it has begun discussions with various creditors to finance the revival.
At its peak capacity, LML’s Kanpur plant used to produce 40,000 vehicles a month, but labour unrest and the precarious financial position had brought it down to 10,000 vehicles per month before the shutdown in March. There are about 3,000 workers at the site.
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