Interview with Dr D Jayavarthanavelu

Dr D Jayavarthanavelu
Chairman & MD
Lakshmi Machine Works Limited (LMW)

Founded in 1962, Lakshmi Machine Works Limited (LMW) is today a global player ranking one amongst the three in the world to produce the entire range of Spinning Machinery. LMW has 60% market share in Indian Textile Spinning Machinery Industry. The Group has also diversified into CNC Machine Tools and is a brand leader in manufacturing customized products. LMW Foundry makes Precision Castings for industries the world over. It is the only company in Asia outside Europe to manufacture OE products for Mikron of Switzerland. Company’s global presence has grown over the years and it has won the Top Export Award in textile machine exports for the past seven years. Backed by workforce of around 3800 employees, the Group embarks annual turnover of Rs. 2000 Crores. Dr D Jayavarthanavelu is the Chairman and MD of LMW Group. He is also the Chairman of Rieter LMW Machinery Ltd, a joint venture company of Rieter, Switzerland and LMW, Coimbatore. He has been nominated by the Indian Government to the Central Board of Reserve Bank of India and is also a Member of its Inspection and Audit Sub-committee. Having equipped himself in the Faculty of Engineering at Coimbatore, Dr Jayavarthanavelu studied B.S. Textiles at Philadelphia College of Textiles and Science, Philadelphia, USA and took intensive training in Production and Management at Rieter Machine Works Ltd, Switzerland. He has been conferred with Doctor of Letters (Honoris Causa) by the Pondicherry University and Doctorate by the Annamalai University. He has also received the 'Vivekananda National Award for Excellence' by Ramakrishna Mission Vidyalaya. Dr Jayavarthanavelu had been the Chairman of the Textile Machinery Manufacturers Association, India, in 1983-84. In May 1995, he was granted the ‘STATUS OF COMPANION’ of the Textile Institute, Manchester. He had been the former Chairman of the Indian National Office of the Textile Institute, Manchester, UK and the ‘WORLD PRESIDENT' of Textile Institute for the period 1998-2000 (first Asian to hold this high office). Besides, Dr Jayavarthanavelu is also a Committee Member of Federation of Indian Chamber of Commerce and Industry (FICCI), New Delhi, and Patron of the Institute of Indian Foundrymen. On personal front, Dr Jayavarthanavelu is fond of the scout movement, shooting and photography and plays a lead role in various Charity Trusts. In an exclusive interview with Face2Face team, along with market overview, Dr D Jayavarthanavelu

Survey reports suggest that Indian textile industry requires 5 mn spindles every year up to the year 2012 translating into 30 mn spindles over the next five years. What market share has LMW targeted?

The Textile Ministry has projected a textile volume of Rs.110billion by the year 2012 of which Rs.60 billion is for domestic consumption and Rs.50 billion for exports. Based on this it was estimated 5mn spindles per annum is required ie., 3mn for expansion and 2mn for replacement. LMW has created a capacity of 3.5mn spindles. Hope to have a market share of 60-65 percent!

Great ! Our Best Wishes for this. How about China- that has emerged as a competitive low priced sourcing destination for textile, apparel and allied industry machinery and also making inroads in Indian markets in a big way?

No doubt China has got a installed spindles of more than 90mn spindles and have sizeable share in the global textile market. They have also machine building capacity to cater the needs of their textile industry. As India is in second position in number of spindles it is an emerging market for the Global players to have their market share in Textile Machinery. On account of their faster delivery China has an edge over Indigenous and European machine manufacturers. However in case the Indigenous manufacturers/ imports could address the delivery constraints the Chinese machinery to India will not be big threat on account of its performance.

We have also learnt that your order book is overflowing for the next three-four years, an envy for all your competitors! How will your company cope up with this?

LMW is booking orders with 10 % advance and price ruling at the time is applicable on account of longer delivery period. The customers have also the option to defer their delivery and wait for opportune moment for expansion/modernization. The deadline fixed for Technology Up gradation Scheme is also a driving force for buildup of Order book since we have expanded our capacity we could able to meet the customer’s requirements fast than before.

So, what is expert’s say on latest trend emerging on the global textile machinery front in the coming times?

The Textile Machinery Industry globally is striving hard to bring out high tech machines with improved productivity, quality and less power consumption

Beside these add-ons in product features, what advantages LMW has to offer its customers?

LMW machines are able to offer value to the customers by way of Price, Performance parameters coupled with uniform pricing policy and commercial terms.

In view of the high exports target set by the Textile Vision 2010 document for India at US $50 billion, do you visualize this happening in face of delayed deliveries of textile machineries and slack execution of new plants and infrastructure?

As all the sectors are geared up to achieve the targets it is possible to reach the goal.

Do you foresee any major ‘across the board’ price hike in the textile machinery manufacturing sector in the near future?

The prices are decided by the market forces in an open economy. Without value addition to customers any price revision will not be supported in the market.

What goes in to the R & D efforts made by your company?

In order to be a global player we are bringing out new products developed by our R & D to add value to the customers. It’s a continuous effort and we will bring out new models in our products range to meet the customers requirements.

Looking forward, what 'more-good' do you see on the growth front of your esteemed company?

We are confident that the existing expanded capacity of 3.5mn spindles will meet the customers demand so that the dominance of Indian spinners will be maintained globally.

Is any change expected in your company focus from spinning to other textile industry sectors?

We have no plans other than spinning sector.

Published on: 14/04/2008

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.