Labour strike at LML's Kanpur unit

Production at the LML's Kanpur factory of has been disrupted due to labour strike over a wage dispute. The factory employs around 2,000 people and rolls close to 500 two-wheelers in a day.

Meanwhile, in a communique to the Bombay stock exchange the company said that some workmen "instigated by external rowdy elements have disrupted the peaceful atmosphere and working of the factory and have resorted to illegal strike".

Company officials said that strike is unlikely to have a serious impact on its operations and is will be resolved soon. The company has a recognised union, in which its workmen are members.

The timing of the strike does not augur well for the company which is currently in a restructuring mode. The company, has been, trying to overcome working capital problems for quite some time.

Earlier last week, a company official had admitted that production of its latest offering LML-CRD has not achieved full capacity due to liquidity issues.

While arrangements are underway to address this problem, it is also looking for a foreign partner for possible technical and financial tie-up. For the quarter ending December 31, 2005, LML had reported a net loss of Rs 22.53 crore on a turnover of Rs 111.2 crore.