[TusharK]

In September 2017, LML had announced that it would lay off its workforce and suspend operations. In a recent development, the Kanpur-based 2-wheeler maker has decided to shut down its operations completely.



Bankers have rejected a resolution plan for the company after its top bidder Rimjhim Ispat offered a very low amount. Ispat offered Rs. 270 crore which was about Rs. 100 crore less than the liquidation value. Other bidders included Lohia Group, Panem Steel, Neil Industries and a joint offer by Dolphin Developers and Mohani Teal.

LML used to employ around 2,000 people. The company has a total debt of around Rs. 243 crore, while lenders and employees have claimed about Rs. 500 crore. Its lenders include the State Bank of India (SBI), Edelweiss, Asset Reconstruction Company, Bank of India and the Stressed Assets Stabilization Fund (SASF).

Having passed the final deadline to resolve the insolvency, a liquidation application will now be filed with the Allahabad National Company Law Board. Earlier, the company had moved the National Company Law Tribunal (NCLT) for admission under the Insolvency and Bankruptcy code.

Source: The Economic Times

[Technocrat]

Sad to see an iconic scooter fade away.

Originally Posted by TusharK

In September 2017, LML had announced that it would lay off its workforce and suspend operations. In a recent development, the Kanpur-based 2-wheeler maker has decided to shut down its operations completely.

Bankers have rejected a resolution plan for the company after its top bidder Rimjhim Ispat a very low amount. Ispat offered Rs. 270 crore which was about Rs. 100 crore less than the liquidation value. Other bidders included Lohia Group, Panem Steel, Neil Industries and a joint offer by Dolphin Developers and Mohani Teal.

The part in bold intrigued me, didn't Lohia group own LML (Lohia Machines Ltd.) how come they are an outside entity in this process?

[NetfreakBombay]

Originally Posted by Technocrat

The part in bold intrigued me, didn't Lohia group own LML (Lohia Machines Ltd.) how come they are an outside entity in this process?

This would be a different Legal entity that would be part of the same group.

Promoters cannot directly bid themselves for assets that are under IBC (Insolvency process, https://en.wikipedia.org/wiki/Insolv...tcy_Code,_2016) .

[MadRasTan4986]

Very sad to hear this news indeed. But it was hoping for too much for a revival since they have pretty much disappeared from most markets in India.

I'll always cherish the LML brand, since the scooter and bike I learnt to ride on were both LML.

[alpha1]

Originally Posted by TusharK

In September 2017, LML had announced that it would lay off its workforce and suspend operations.

But what were the employees doing all this while?
Were there any scooters and bikes in production till recently?

Also, aren't Lohias still present in this domain via UM Bikes? What do they plant to do differently this time?

[OrangeCar]

My Mom's cousin had bought a LML scooter, when I was very young. Almost 22-25 years ago. I loved it. It was so different from my dad's Bajaj Chetak.

It had fancy features like side stand (industry first if I recollect correctly); self start (again probably present in Kinetic Honda and Hero Puch).

The instrument cluster was different..big! Had a couple of small lamps to indicate head light on or off; and, left and right indicator arrows. Yes.. it came with indicators too, which our Chetak did not have.

Also came in fresh new colors such as dark green.

LML - only nostalgia. Nothing else!

[SmartCat]

Originally Posted by alpha1

But what were the employees doing all this while?
Were there any scooters and bikes in production till recently?

Yes, they manufactured 13000 scooters in FY16 and most of them were exported. A screenshot from their FY16 annual report (LML is a listed company)

[sgiitk]

I do not think the Lohia's or LML had a good reputation. They have another firm Lohia Starlinger Ltd, which makes textile machinery and is doing well. I think the management is different.

[swissknife]

Originally Posted by OrangeCar

My Mom's cousin had bought a LML scooter, when I was very young. Almost 22-25 years ago. I loved it. It was so different from my dad's Bajaj Chetak.

The spare wheel was housed in the left side "belly" of the bike instead of the rear like all scooters till then. It did take away storage space but made it easier for the pillion to get on and off.

[n.devdath]

Originally Posted by swissknife

It did take away storage space but made it easier for the pillion to get on and off.

That was not the actual intent. It was to balance the vehicle better by distributing the weight to the extent possible by maintaining some weight on the left side of the chassis.

[hillram]

Originally Posted by TusharK

In September 2017, LML had announced that it would lay off its workforce and suspend operations. In a recent development, the Kanpur-based 2-wheeler maker has decided to shut down its operations completely.

Attachment 1740713

The aforesaid LML Scooter is still owned by me to this day and runs well.
Lohia Machines had washed off their hands long time back, when it came to Authorised Services, but we still have some steady supply of spares for NV,Select models only.

[Technocrat]

Originally Posted by n.devdath

That was not the actual intent. It was to balance the vehicle better by distributing the weight to the extent possible by maintaining some weight on the left side of the chassis.

Exactly and the result was quite obvious to notice.