indiamarkets: Please tell us about LML. How did it start?
Subodh Kumar: LML started as a textile machine manufacturing unit in 1974. Twisting and crimping machines were made at that time for nylon and polyester yarn. This continued till we made an entry into the scooter business. In 1981, we happened to talk to Piaggio during the Milan Fair. That was when we got into a tie-up for production of scooters. Gradually, we tapered off the textile machine business.

indiamarkets: Where is the technology from?
Subodh Kumar: Earlier, we had the Vespa technology from Piaggio of Italy. But now the tie-up with Piaggio is over. We currently have a technology tie-up with Daelim of Korea. This tie-up is for transfer of technology for 100 cc motorcycles, for the composite body technology as well as for the engine.

indiamarkets: Can you tell us about the new range of bikes LML is planning to bring into the market?
Subodh Kumar: LML is planning to bring out motorcycles of different cc, suitable for different segments in the market. Various segments currently on LML's mind are the economy market, the high cc motorcycle market and sport motorcycles.

Currently, LML has motorcycles in the 100-175 cc range. However LML, in terms of cc, can go down as low as 70 cc and as high as 250 cc, depending upon the market.

indiamarkets: Is LML eyeing the export market too?
Subodh Kumar: Yes, LML is looking towards the export market too. But this will happen with a mutual understanding between Daelim and LML. Countries under consideration for export are Latin American countries, the Middle East and South East Asia.

indiamarkets: Where are the components being sourced from?
Subodh Kumar: All the critical components are being made internally.  External sourcing is being done through our ancillary units for our proprietary and specialized nature of items.

indiamarkets: What R&D activities is LML involved in?
Subodh Kumar: We have a highly specialized R&D center based at Kanpur. An investment of more than Rs 10 crore has been made for the R&D centre and its activities. Currently, we are working on the development of different cc engines for motorcycles. Also, elegant new designs are being developed for motorcycles. Work on 4-stroke scooters is also on - this is expected to be launched either at the end of this year or early next year.

indiamarkets: How do you foresee competition in the market in the future?
Subodh Kumar: Currently, the market is very competitive. However, I see the market later fitting itself into various segments. We have Style, Power and Performance - qualities on which we will compete in the market. Honda is competing on fuel economy as a basis and Bajaj bases itself on being cost competitive. We are present in both segments. There is competition from TVS, Bajaj and Honda. The two-wheeler market will increase at a 10 per cent growth rate.

indiamarkets: What will be LML's thrust area?
Subodh Kumar: Scooter sales are dipping and we are facing it. An over-all growth in the two wheeler segment, however, will be seen. Our major thrust will be on motorcycles.