“Currently we hold an order book of around 5,930 Crores and these have been lined up for execution over the next four quarters. As, you know, TMD, for the last 2 years performed consistently and we have been able to, quarter on quarter hit higher turnover levels. The project orders stand at 42 % of the total order book available for execution. Exports turnover had increased by 49% for FY 22-23 compared to previous year. The ratio of domestic, export and spares stands at 65%, 24% and 11% during the year. Currently, we are running at full capacity and so our focus going forward will be to continue and ensure that we’re able to deliver as fast as possible to the customers.”
– Mr. Senthil, Chief Financial Officer in Q4FY23 Concall
| Stock Data | |
| Ticker | LAXMIMACH |
| Exchange | NSE |
| Industry | MACHINERY |
| Price Performance | |
| Last 5 Days | +5.93% |
| YTD | +0.35% |
| Last 12 Months | +33.94% |
*As of 08.06.2023
Company Description:
Lakshmi Machine Works Limited (LMW) is a renowned Indian company that specializes in manufacturing and distributing textile machinery and CNC machine tools. Founded in 1962, the company has grown to become a key player in the global textile and engineering industries.
Business Segments:
LMW operates in two major segments: Textile Machinery and Machine Tools. In the Textile Machinery segment, LMW offers a wide range of products, including spinning machinery, knitting machinery, and weaving machinery, catering to the needs of the textile industry. In the Machine Tools segment, LMW manufactures CNC machine tools, such as turning centers, machining centers, and grinding machines, serving various industries like automotive, aerospace, and general engineering.
Business Operations:
- Manufacturing Facilities: LMW boasts state-of-the-art manufacturing facilities located in Coimbatore, India. The company’s facilities are equipped with advanced machinery and technologies, enabling high-quality production and customization according to customer requirements. These facilities have a significant production capacity to meet both domestic and international demand.
- Product Portfolio: LMW’s Textile Machinery segment offers a comprehensive range of products that cater to the entire textile manufacturing process. This includes machinery for processes like spinning, knitting, and weaving, as well as auxiliary equipment for preparation and finishing. In the Machine Tools segment, LMW provides a wide array of CNC machine tools, including turning centers, machining centers, and grinding machines, which are known for their precision, reliability, and advanced features.
- Research and Development (R&D): LMW has a strong focus on research and development to continuously innovate and improve its product offerings. The company invests significantly in R&D activities to develop cutting-edge technologies, enhance product efficiency, and meet the evolving needs of its customers. LMW collaborates with industry experts, research institutions, and customers to drive innovation and stay ahead in the competitive market.
Competitive Analysis:
Industry Landscape:
The global textile machinery and CNC machine tools industries are highly competitive and dynamic. Rapid technological advancements, evolving customer preferences, and market globalization pose challenges and opportunities for companies in these industries. The market is characterized by the presence of both domestic and international players.
Competitor Analysis:
LMW faces competition from various domestic and international players in the textile machinery and CNC machine tools sectors. Competitors include companies like Rieter, Trützschler, Toyota Industries Corporation, and Mazak Corporation. Each competitor has its unique strengths, market positioning, and product offerings, contributing to the overall competitive landscape.
Competitive Advantage:
LMW maintains a competitive advantage in the industry due to several factors. These include its strong brand reputation, extensive product portfolio, technological expertise, and customer relationships. The company’s commitment to innovation, customer-centric approach, and after-sales services have helped LMW differentiate itself from competitors and build long-term customer loyalty. This is showcased by the company’s increased profitability.
Future Prospects:
LMW has significant growth opportunities, including expanding its market presence in emerging economies, meeting the rising demand for textile machinery in India and abroad, and capitalizing on technological advancements. Additionally, diversifying its product portfolio and exploring new industry segments could further contribute to LMW’s growth.
Conclusion:
Lakshmi Machine Works Limited (LMW) has established itself as a leading player in the textile machinery and CNC machine tools industries through its rich history, diverse product portfolio, strong financial performance, and competitive advantage. With a focus on innovation, customer satisfaction, and strategic growth initiatives, LMW is well-positioned to capitalize on emerging opportunities and navigate challenges in the dynamic market landscape. The company’s commitment to excellence and continuous improvement will be critical in sustaining its growth and maintaining its leadership position in the industry.