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LML Strategy- Slower Comeback to Indian market, zonewise.

The two-wheeler maker LML which is hoping for a re-invigorated brand life reportedly expects to re-enter western and eastern markets later this year, though the southern market will see their scooters and bikes only by 2013. Kanpur based LML is one of the oldest two-wheeler makers in the country and the company had become dormant for a few years due to financial and labour troubles. It had stopped nationwide sales in 2006 as it began restructuring operations, but restarted business with export sales from 2007.
According to a report in The Business Line, the company's network is at present limited to the northern markets, such as Haryana, Western Uttar Pradesh, Punjab, Delhi and Jammu and Kashmir. The report quoted P.S. Chowdhury, LML's Head of Sales and Marketing as saying “The next step is to have a footprint pan-India, except in the South. Dealers have to be profitable through sales consistency, which is why we are taking it slow. We'll be inaugurating our new Ahmedabad dealership in a few days. Then, we will start appointing more dealerships in the western States of Rajasthan, Madhya Pradesh, Gujarat and Maharashtra from November. These dealers would be active by April-May 2012.”

It was mentioned that the company has retained plans to enter Karnataka, Tamil Nadu, Andhra Pradesh and Kerala till 2013. “LML has traditionally been stronger in the Hindi belt, so that's the first priority. We hope to enter South India by 2013. This is because there are many languages in the region, which makes marketing very expensive. We are on a revival path and do not have huge funds to spend on communication activities,” he said.

The report stated that it was the supply-side constraints that forced LML to adopt a phased growth strategy — production is limited to 7,000 units a year. Increasing sales from northern and western markets will give the company funds and confidence to invest in capacity by re-activating its second plant in Kanpur. It was also mentioned that the intention to expand sales network follows Deepak Singhania-led company's plans to launch four products this fiscal. While it plans to re-enter the mass-biking segment with the Freedom range by end-2011, a 200cc geared scooter will be launched in a few months, followed by a gearless one. LML, the largest scooter exporter in the country, had invested significantly in product research and development. “At present, we have 650-700 employees in the company. Costs had to be significantly reduced as part of the revival process, which is not yet over. We chose to restart with exports as contract-manufacturing was more profitable since there was no marketing expenditure. But it was more risky as well. Egypt was one of our biggest markets, before the political situation worsened,” Chowdhury said, adding that the company now wants to have an equal focus on the domestic market, according to the report.


Source: http://www.wheelsunplugged.com/ViewN...x?newsid=10650

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I couldn't agree more with the strategy of LML. I mean, think about it- if you enter more markets than you can control, its like chewing more than you can swallow; it will just bring pain and problems.
LML should take one step at a time and improve their products while keeping, I STRESS, a strong FEEDBACK SYSTEM from the dealers and customers.
If they have few dealers and customers in the starting, its much easier to sort niggles and take feedback, like no other company could. And they can solve problems and recall products with more economy and speed.

Slowly, they could expand to other zones and compete with the bigger manufacturers. Provided a proper effort, geared scooters might make it, if they're accompanied by a good price tag, good looks and eye grabbing mileage. And then, marketing is required too.

Noor

News approved

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princesirohi

this is good news, but what will be their product line up???

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Guru_DTSi

Here in Hyderabad, you will still find spares for the LML Scooters. I am assuming they still have a hold over the dealer network.
Quick Query : How many colors did they offer for the Freedom? (I think it was more than 20).

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accelerator

during my visit to nainital in uttarakhand, I saw many 4 stroke lml nv`s, so I think they would be launching the scooters here in UP very soon which was once a very big market.