Lakshmi Machine Works Ltd

Lakshmi Machine Works Limited (LMW) was incorporated on 14th September 1962, to provide the Indian Textile Mills with the latest Spinning Technology. The Company is a global player and one among the 3 manufacturers of the entire range of textile machinery. Presently, it is engaged into manufacturing and selling of textile spinning machinery, CNC Machine Tools, Heavy Castings and parts and components for Aerospace industry. The Company is helping to create the building block of textile super power, it manufactures equipment to support all textile processes from bale plucking, mixing, cleaning, carding and spinning and also LMW has diversified into manufacturing of CNC machine tools. The operations of the company are classified as Textile Machinery Division for spinning preparatory and yarn making machine, Machine Tool Division for CNC lathes and machining centres and Foundry Division for ductile iron and grey iron casting, all the divisions are ISO: 9000 certified. Government of India (GOI) approved the Companys collaboration agreement with Rieter Machine Works, Ltd. (RMWL) Switzerland in the year 1980 for the manufacture of improved and sophisticated ring frame Rieter Model G5/1 and also finalised the technical collaboration agreements with the same the company for the manufacture of open end spinning machines with Investa Czechoslovakia for the supply of spinning units. In January of the year 1982, the Company was granted a letter of intent for establishment of a pilot mill with 3,000 spindles at its existing site at Perianaickenpalayam (Coimbatore) for research and development purposes. The first sophisticated ring frame Rieter Model G5/1 was delivered in November of the year 1982. During the year 1988, LMW added to their formidable manufacturing resources, a new plant to produce CNC Machine Tools in technical collaboration with M/s. Mori Seiki Company Ltd of Japan. The Company entered into a collaboration agreement with M/s. Schubert Salzer, Ingolstadf, West Germany in the year 1989 for advance technology in the manufacture of openend rotors spinning machines. The Company jointly with (RMWL) had set up a new company in the year 1992 under the name of RieterLMW Machinery Ltd., as a 100% export unit for the manufacture of G5/3 family ring of frame assemblies. LMW had added a modern foundry division at Arasur during the year 1993 for manufacture of Grey Iron Castings of grade 20, 25 and 30 using chemical bonded process for captive requirement and also to meet the fast growing engineering sector in India and abroad. LMW promoted the Southern Iron and Steel Company Ltd (SISCOL) in the year 1994 along with Tamil Nadu Industrial Development Corporation Ltd (TIDCO) in Associate Sector for the Manufacture of Foundry Grade Pig Iron, Alloy Steel and Mild Steel. During the year 1995, LMW had entered into a longterm partnership with Mikron of Switzerland for manufacture of the universal milling and boring Mikron machines for their world market. The highspeed CNC machines in the Pilatus range, highpower CNC lathe in the Rigi range, vertical machining centres in the Kodi range, Ooty 40, these all are the new product range, which was introduced by the company in the year 1998. LMW had developed four stateoftheart machines during the year 1999, such as automatic bale plucking machine Flexifloc (outshined any other bale plucking machine in the world), carding machine LC300A, speed frame LFS 1660, and ring frame XLA30. In the same year 1999, India Precision Bearing Manufactures was merged with the company with effect from April. As of the year 2000, LMW had launched two CNC machines namely, Smarturn and Smash directly in the market.During April of the year 2002, the company acquired Jay Leasing Company Ltd and LMW Investments Ltd (subsidiary). During the year 2003, Board of Industrial Finance and Reconstruction (BIFR) approved the merger of Textool Company with LMW and also in the same year the companys board approved the acquisition of wholly owned subsidiaries of LMW Investments Ltd and Deejay Leasing Company Ltd. As of November 2005, LMW acquired the Jeetstex Engineering Ltd (JEL), Coimbatore a sick company engaged in the manufacture of textile machinery and castings, it has become a wholly owned subsidiary of the company. LMW had invested Rs. 205 crore in machinery for capacity enhancement during the year 200607. Also invested Rs. 336 crore across a twoyear period to acquire mother machines for increasing capacity. In the same year 200607, under in Machine Tool Division, the company had launched six new machines with improved features. For this division capacity enhancement, LMW invested Rs. 15 crore in mother machine during the identical period. In the year 200708, the company commissioned the expanded capacity of 3.5 million spindles. LMW created a Research Development Centre for product development under Textile Machinery Division investing 1.09% of its revenue in it in 200708. In the same period, under the division Machine Tool, LMW had developed a new HMC product in technical collaboration with a German Insititute and also launched three improved variants of the VMC machines, introduced line assembly concept for increasing shop floor productivity. In 200708, the companys Foundry Division commercialized the 12 new casting products for the transportation sector and also in the same period the division received an ISO 14001 certificate. LMW will set up a manufacturing unit in China to tap the market there with the initial investment of around USD 15 20 million. With this textile spinning machinery unit, the company expects to access the Pakistan market too.The Company has launched several new machines/variants of existing machinery like Special Pickup Spindle VtL LVS25 besides other tooled up and automated solutions during the year 2014.The Advanced Technology Centre division has received orders from leading international Tier II Aerospace product suppliers from USA, France, Canada and Netherlands. The Company has invested in facilities necessary to meet with special requirements of clients and has obtained all the necessary quality certification during the year 2015.In terms of the Resolution passed by the Board of Directors at their meeting held on 26th October, 2016 and after receiving necessary comments from Securities and Exchange Board of India (SEBI) and after complying with necessary requirements, the offer of the Company to buyback 3,11,000 equity shares of face value of Rs10/ each on a proportionate basis from all the existing shareholders/beneficiary owners excluding the promoter/promoter group at a price of Rs 4,450/ per equity share for an aggregate maximum amount of Rs13,839.50 lakhs remained open from 13th December, 2016 to 26th December, 2016. Shares offered in the buyback were more than the offer size and hence the Company bought back the intended 3,11,000 equity shares, which were extinguished on 6 January 2017.During FY 2017, the Company partnered with renowned Japanese consultants for system and process realignment, which improved the accuracy and efficiency of mother machines. In addition, the Company worked on improving assembling efficiencies by implementing solutions to the manufacturing excellence drive findings in the machine tool division.During FY 2017, the Company launched new machines and variants, which offer efficient and accurate operations to customers. It launched machines targeting the tools and dies sector widening its opportunity canvass in the in the machine tool division.As on 31st March 2017, the Company installed 28 WEGs with a total capacity of 36.80 MW. This division generated 937 Lakh units of power during 201617. About 88% of the wind power generated has been captively consumed by the manufacturing units within the Company and thereby helped to reduce the power cost in the wind energy division.In FY 2017, the Company extended a bank guarantee of USD 3.5 million to secure a loan to be availed by its wholly owned subsidiary company, LMW Textile Machinery (Suzhou) Company Limited.As on 31st March 2018, the Company installed 28 Wind Energy Generators (WEG) with a total capacity of 36.80 MW. This division has generated 830 Lakh units of power during 201718. About 91% of the wind power generated has been captively consumed by all the divisions of the Company and thereby helped to reduce the power cost in the wind energy division.During FY 201718, the Company held special significance as the advanced technology center division successfully completed and delivered the Airborne Warning Control System its first step towards graduating from component to subassemblies. In addition, the division completed prestigious orders entailing supply of critical engine and structural parts and sheet metal components to national and international aerospace original equipment manufacturers (OEM). In terms of Resolution passed by the Board of Directors at their meeting held on 22nd October, 2018 and after complying with necessary requirements of SEBI (Buy Back of Securities) Regulations, 2018, the Company had bought back 2,72,504 Equity Shares of Rs 10/ each at an average cost of Rs 5,852.47/ aggregating to Rs 15,948 Lakhs through Stock Exchanges from the existing shareholders / beneficial owners excluding the promoter / promoter group. The BuyBack commenced on 2nd November 2018 and closed on 1st January 2019. During the BuyBack equity shares were bought on the Stock Exchanges and extinguished in tranches in compliance with the SEBI (BuyBack of Securities) Regulations, 2018 and SEBI (Depositories and participants) Regulations, 2018. As on 31st March, 2020 the Company had installed 28 Wind Energy Generators (WEG) with a total capacity of 36.80 MW. Cumulatively windmills generated 731 Lakhs units of power during 201920. It had a 10 MW of Solar Power Generating facility, which generated220 Lakh units of power.During FY 202021, Company completed the Elan Project at Parasakthi Nagar, Coimbatore with M/s. Sobha Limited (Developer) and sold all the 236 residential apartments.As on 31st March, 2021 the Company had installed 28 Wind Energy Generators (WEG) with a total capacity of 36.80 MW. Cumulatively windmills generated 652 Lakh units of power during 202021. It also had a 10 MW of Solar Power Generating facility, which generated212 Lakh units of power.As on 31st March 2022, Company had 28 Wind Energy Generators (WEG) with a total power generation capacity of 36.80 MW. Cumulatively, windmills generated 708 Lakhs units of power during 202122. It also had a 10 MW of Solar Power Generating facility, which generated 209 Lakh units of power.During FY22, the Board of Directors of the Company had approved Scheme of Arrangement between the Company and LMW Aerospace Industries Limited for transfer of Advanced Technology Centre business undertaking of the Company into LMW Aerospace Industries Limited, a wholly owned subsidiary company, on a going concern basis through slump sale.During the year 202223, the Companys second unit of Machine Tool Division commenced operations.As on 31st March 2023, the Company had 28 Wind Energy Generators (WEG) with a total power generation capacity of 36.80 MW. Cumulatively, windmills generated 734.64 Lakh units of power during 202223. The Company had a 10 MW of Solar Power Generating facility, which generated 206.44 Lakh units of power.