LML Electric plans to raise up to Rs 500 crore to fund setting up of its own manufacturing plant and scale up business, according to company MD and CEO Yogesh Bhatia.
The company is gearing up to launch its first product in the Indian market in the second half of 2023 to mark the return of one of the popular two-wheeler brands of yesteryears, LML in an electric reincarnation.
LML Electric has already entered into a partnership with Saera Electric Auto Pvt Ltd, which had acquired American cult bike maker Harley Davidson’s manufacturing plant at Bawal in Haryana, to roll out its products in the initial phase.
“We are planning to launch three products and all are in different categories. Our first product, an electric bike (bicycle), is coming in the first half of 2023 for the European and the US market. Our second and third products will be launched in the second half of 2023 for India and other markets,” Bhatia told PTI.
The second product will be a “hyper bike” — a crossover between an electric scooter and motorcycle — while the third one will be an electric scooter, he added.
When asked about the investments, Bhatia, who is also the promoter of SG Corporate Mobility which had acquired the LML brand and intellectual property last year in August, said Rs 350 crore has been earmarked for the first phase, including the acquisition of the brand, product development and initial production.
He further said LML Electric is “exploring to raise Rs 400 crore to Rs 500 crore” to fund its future expansion plans in India and abroad, including setting up of its own manufacturing unit.
While the company has signed an MoU with Saera Electric Auto to roll out its products from the latter’s Bawal plant, Bhatia said, “Parallelly, we are also exploring to set up our own manufacturing plant…Over 18 months to two years we will set up our own facility.”
In terms of production capacity, he said, “We are looking at almost one million units annually after 2025.”
The Bawal manufacturing facility has an annual capacity to produce 2.25 lakh units per year, he added.
On the sales network, Bhatia said the company’s plan is to have a footprint in every district of India with a partner in the next three to five years.
One of the popular two-wheeler brands in the 1990s, Kanpur-based LML had fallen into tough times and went into insolvency. It was ordered for liquidation by National Company Law Tribunal (NCLT), Allahabad Bench in March 2018.
The Bhatia-controlled SG Corporate Mobility, which is into electronic consumer products and electric two-wheeler under its flagship Detel brand, had acquired the LML brand and intellectual property from the erstwhile promoters Singhania family last year.