The very mention of Coimbatore instantly brings to one’s mind the Lakshmi Group’s long association and its rich contribution for the development and growth of the city and its surroundings. In fact, Coimbatore wouldn’t have been able to retain its status as a global textile hub but for the special efforts made by the Lakshmi Group companies.
The Lakshmi Group, and more particularly, Lakshmi Machine Works (LMW) has been largely responsible for the growth of the textile spinning industry in India. “LMW has helped the Indian textile industry remain competitive globally”. This is the opinion expressed by many of the leading textile companies in India. LMW today stands tall and is undoubtedly the pride of the Indian textile industry.
Thanks to the presence of LMW, Coimbatore has become a hub for textile spinning machinery and component manufacturing industry. Most of the textile-related companies featured in this edition started as component suppliers to LMW, and today they have become market leaders in their respective segments, not just within India but globally too. To that extent, LMW has also been quite aggressive globally, and its foraying into the Chinese market with its local manufacturing presence is indeed a shot in the arm for the company.
LMW opened a new plant in China last June, which was built at an outlay of $29 million. The new plant would be a major boost to LMW’s plans to consolidate its hold both in the Indian and Chinese markets. Built in just one year, the opening of the high-cost plant coincided with that of the ITMA Asia expo.
The 22,000 sq.mtr. factory has been built on over 8.5 acres provided by the Chinese Government. The plant which is eligible to all the tax concessions being offered by China for high technology units will eventually be a total solution provider by manufacturing the entire range of spinning machinery for supply to the Chinese market.
LMW’s strategy of entering the Chinese market has not only opened up the domestic market in China to the group but has also enabled it to participate in projects being set up overseas by Chinese entrepreneurs. ITMA Asia + CITME 2014 proved a big success to LMW. Customers across the globe visited its stall and witnessed the wide range of innovations displayed.
Back home in India, LMW did quite well during 2013-14, recording a turnover of Rs. 2,16,518.15 lakhs (2012-13: Rs. 1,86,432.75 lakhs), resulting in a net profit of Rs. 26,062.08 lakhs before tax (2012-13: Rs. 17,068.97 lakhs). Increase in demand for textile machinery in the domestic and international markets, stability in commodity prices, favourable foreign exchange rates and other input costs have contributed to the growing turnover and profits.
The Textile Machinery Division of LMW recorded during 2013-14 a turnover of Rs. 1,92,941.08 lakhs as against Rs. 1,62,879.57 lakhs during the previous year, marking an increase of 18.46 per cent over the previous year.
After minimal growth during the previous year, 2013-14 saw demand increase for Indian textile products from traditional markets abroad and for high quality Indian yarn from China. During the same period higher domestic consumption of textile products within India was also seen. All these factors together have helped revive the fortunes of the Indian textile and apparel industry during 2013-14.
Mr. R. Rajendran, Director – Finance, LMW, says: “LMW is supplying the entire range of innovative spinning machinery, thereby creating value addition and cost competitiveness for its customers. Constant upgradation of technology and increased automation of spinning machinery have enabled LMW’s customers to become more competitive in the market”.
India’s globalising textile trade has now exposed the industry to competition wherein manufacturers have to ensure quality and also be cost competitive in the final product that they deliver to the end user. This has made the Indian textile industry embrace technology for modernisation. The modernisation drive has also invariably helped Indian spinners to develop capacities to meet growing market demands.
On the other hand, proactive government initiatives to boost the Indian textile sector like extension TUFS during the 12th Plan period (2012-2017), initiatives to optimise the operational costs of the industry, rationalization of taxes on textile products, allocation of funds for setting up of 21 additional integrated textile parks, etc., have led to the creation of the healthy atmosphere needed for the industry to modernise rapidly.
Globally demand for niche textile products like functional clothing is picking up rapidly. India is already a big player in the production of conventional yarn, and currently the shift is towards setting up of capacities to offer niche products. This is expected to spur further modernization and capacity building.
India’s growing population has been a key driver of textile consumption growth in the country. Changing lifestyle, rising incomes and mounting demand for quality products are set to fuel demand for apparels.
According to Mr. Rajendran, all these developments augur well for the Textile Machinery Division of LMW. Augmentation of internal capacity through initiatives under the Accelerated Competency for Manufacturing Excellence Programme (ACME) has helped the Division to free up capacity, minimise waste and refocus its efforts on the core strength. This DNA-transformative initiative has encouraged every member of the LMW team to seek novel ways of doing the same things differently, thereby multiplying productivity. As a result, LMW has become leaner, fitter and faster.
He further observes: “Innovation is a continuous process at LMW with an emphasis on upgradation of products which meet customer requirements. Every effort is taken in all products to enhance the quality at higher productivity levels with lowest energy consumption. LMW’s machinery in each of its sub-systems, viz., card sliver system, combing system and ring spinning system, delivers the customers highest production and quality, lowest power consumption and optimal raw material realization. For instance, Comber LK69 is the Fastest Comber in the World with 600 npm, while the compact Ring Frame LRJ 9 Series features hi-tech Unique Suction Compact System enabling ease in handling”.
Success of the Indian textile industry lies its ability to integrate vertically, from fibres up to garments. It is encouraging to note that the industry today is characterized by the presence of both volume players and niche value adders.
Despite its several natural advantages, burning issues like inadequate power, shortage of manpower, poor finance, general reluctance to upgrade technology, and Government policy uncertainties continue plaguing the textile industry.
The presence of an ever-growing fashion-conscious population necessitates constant upgradation of textile mills. This is an opportunity for any company in the field to take to continuous upgradation of manufacturing technology to be able to provide the complete range of contemporary textile machinery at competitive prices.
Mr. Rajendran asserts: “LMW’s is the first company to deliver a large number of LR9 Ring Frames with 1,824 spindles per machine. Supplies have mainly gone to many greenfield projects as it requires adequate infrastructure to install this machinery. The performance of these machines is satisfactory. LMW will be constantly updating the spinning machinery with a view to offering cost competitiveness and value addition to its customers”.
Having been a primordial economic activity, textiles as a major industry sector has an important role in the country’s economic development. Currently, the sector contributes to about four per cent of the GDP and provides direct employment to about 45 million people. As per the 12th Plan Working Group on Textiles and Apparel, the sector is expected to create additional employment for about 20 million people by 2020.
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The number of machines sold during the period is as follows: (in Nos) Particulars 2013-14 2012-13 Spinning preparatory machinery 2,497 2,261 Yarn making machinery 1,589 1,421 |