TVS motors which is the third largest two-wheeler manufacturer in the country selling products such as the Apache RTR motorcycles and Scooty and Wego brand of scooterettes has been rumoured to be in talks for purchasing the Stake in LML.
LML which was once a scooter pioneer in the country selling the scooter range from Piaggio went out of business half a decade ago. The company has since restarted production with investment from Credit Suisse. The company has narrowed losses over the years selling scooters to exports markets and recently entered domestic markets in the northern circuits in and around Delhi and UP. The company is on its way to post a profit in the next couple of years looking to its constant growth.
TVS motors has found and excellent footing in the export market in LML. Also available is the huge idle capacity that TVS can utilize to increase volume and share in the 2-wheeler market. Since the assets of LML are highly undervalued it is a classic opportunity for TVS motors.
Let's hope TVS brings us the export oriented LML scooters with smaterings of chrome soon.
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