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Lakshmi Machine Works Ltd.

BSE: 500252 Sector: Industrials
NSE: LAXMIMACH ISIN Code: INE269B01029
BSE 00:00 | 18 Oct 3629.80 -0.45
(-0.01%)
OPEN

3645.05

HIGH

3732.35

LOW

3600.05

NSE 00:00 | 18 Oct 3624.80 -1.15
(-0.03%)
OPEN

3639.95

HIGH

3734.35

LOW

3601.05

OPEN 3645.05
PREVIOUS CLOSE 3630.25
VOLUME 1073
52-Week high 6431.40
52-Week low 3147.25
P/E 22.50
Mkt Cap.(Rs cr) 3,877
Buy Price 3629.80
Buy Qty 5.00
Sell Price 3629.80
Sell Qty 22.00
OPEN 3645.05
CLOSE 3630.25
VOLUME 1073
52-Week high 6431.40
52-Week low 3147.25
P/E 22.50
Mkt Cap.(Rs cr) 3,877
Buy Price 3629.80
Buy Qty 5.00
Sell Price 3629.80
Sell Qty 22.00

Lakshmi Machine Works Ltd. (LAXMIMACH) - Company History

In 14th September of the year 1962 Lakshmi Machine Works Limited (LMW) was born to provide the Indian Textile Mills with the latest Spinning Technology today a global player and one among the three manufacturers of the entire range of Textile Machinery. The Company is engaged in the manufacturing and selling of textile spinning machinery CNC Machine Tools Heavy castings and parts and components for Aerospace industry. The group caters to both domestic and international markets.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 Company's 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 3000 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 open-end rotors spinning machines. The Company jointly with (RMWL) had set up a new company in the year 1992 under the name of Rieter-LMW 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 long-term partnership with Mikron of Switzerland for manufacture of the universal milling and boring Mikron machines for their world market. The high-speed CNC machines in the Pilatus range high-power 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 state-of-the-art 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 company's 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 2006-07. Also invested Rs. 336 crore across a two-year period to acquire mother machines for increasing capacity. In the same year 2006-07 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 2007-08 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 2007-08. 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 2007-08 the company's 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; LVS-25 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 311000 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 4450/- per equity share for an aggregate maximum amount of Rs13839.50 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 311000 equity shares which were extinguished on 6 January 2017.