Interviews
News Flash
LMW Chinese subsidiary to turn profitable
26 May '11
2 min read
The Coimbatore-based Lakshmi Machine Works (LMW) expects its wholly owned China-based subsidiary LMW Textile Machinery (Suzhou) Co Ltd., to turn profitable in 2011-12.
LMW has already invested nearly US$ 5 million in its Chinese subsidiary which started its operations in September 2010. The company has announced that it will put a limit on its Chinese subsidiary at one million spindles per annum.
The textile machinery maker has reported net profit of Rs. 442 million for the fourth quarter of 2010-11 as against a profit of Rs. 306.8 million during the same period in 2009-10.
The company's total income during the quarter also rose to Rs. 5.39 billion from Rs. 3.63 billion in the same period a year ago.
During the current financial year, the company expects to make operating profit margins on account of recent increase in prices by 3 to 7.5 percent. This will enable the company to sustain its current 17-18 percent growth rate.
Rieter-LMW Machinery (RLM), a joint venture of LMW, has already turned profitable and LMW plans to turn it into a wholly owned subsidiary shortly, which its plans to fully acquire by June-July 2011.
Post-acquisition, LMW will be able to fully utilize RLM's capacity of one million ring frames.
LMW has already invested nearly US$ 5 million in its Chinese subsidiary which started its operations in September 2010. The company has announced that it will put a limit on its Chinese subsidiary at one million spindles per annum.
The textile machinery maker has reported net profit of Rs. 442 million for the fourth quarter of 2010-11 as against a profit of Rs. 306.8 million during the same period in 2009-10.
The company's total income during the quarter also rose to Rs. 5.39 billion from Rs. 3.63 billion in the same period a year ago.
During the current financial year, the company expects to make operating profit margins on account of recent increase in prices by 3 to 7.5 percent. This will enable the company to sustain its current 17-18 percent growth rate.
Rieter-LMW Machinery (RLM), a joint venture of LMW, has already turned profitable and LMW plans to turn it into a wholly owned subsidiary shortly, which its plans to fully acquire by June-July 2011.
Post-acquisition, LMW will be able to fully utilize RLM's capacity of one million ring frames.
Fibre2fashion News Desk - India
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
