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HARYANA, 27 September 2022: LML Electric, plans to raise up to INR 500 crore to finance for the construction of its own manufacturing facilities and the growth of the company, according to company MD and CEO Yogesh Bhatia.
2023: The first product for the Indian market
The company intends to launch its first product in the Indian market in the second half of 2023 to commemorate LML’s return as an electric reincarnation of one of its well-known two-wheeler brands from the past.
LML Electric has already teamed up with Saera Electric Auto Pvt Ltd, which acquired the Harley Davidson production site in Bawal, Haryana, to debut its goods first.
“Three new products that fall under various categories are what we’re intending to introduce. In the first half of 2023, we’ll release our first item—an electric bike (bicycle)—for the European and American markets. In the second half of 2023, we’ll release our second and third items for India and other markets “said Bhatia to PTI.
He stated that the third product would be an electric scooter while the second would be a “hyper bike,” a hybrid between an electric scooter and a motorcycle.
Investment for future expansion
In response to a question regarding the investments, Bhatia—who is also the promoter of SG Corporate Mobility, which acquired the LML brand and intellectual property in August of last year—said INR 350 crore had been set aside for the first phase, which included the brand acquisition, product development, and initial production.
He added that LML Electric is “exploring to raise INR 400 crore to INR 500 crore” in order to finance its future expansion ambitions both domestically and internationally, including the establishment of its own manufacturing facility.
Production capacity
In order to distribute its products from the latter’s Bawal plant, the company and Saera Electric Auto have signed an MoU, according to Bhatia “In addition, we are exploring the possibility of opening our own manufacturing facility. We will set up our own facilities over the course of 18months to two years.”
He stated, “We are looking at roughly one million units annually after 2025,” in terms of production capacity. He noted that the Bawal manufacturing facility has a yearly capacity to produce 2.25 lakh units.
Regarding the sales network, Bhatia said that in the following three to five years, the business expects to have a partner in each district of India.
LML background
LML, established in Kanpur and one of the most well-known two-wheeler brands in the 1990s, came into financial difficulties and declared bankruptcy. In March 2018, the Allahabad Bench of the National Company Law Tribunal (NCLT) issued a liquidation order. The LML brand and intellectual property were purchased from the former promoters Singhania family last year by the Bhatia-controlled SG Corporate Mobility, which deals in electronic consumer goods and electric two-wheelers under its flagship Detel brand.
Image credit: zeenews.india.com
