Distribution Channel for LML Bikes &

Causes of FailurePresented by:-

Pinkesh Kumar Ritesh Kumar Deepti Choudhary Gaurav Somani Ankit Jain Priyanka Suman Damini Sinha Vinod Pawar Rahul Dalvi

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Company LML – Lohia Machines Pvt. Ltd.

1978 - Engaged in manufacture of synthetic yarn manufacturing machines

1984 - Technical agreement signed with Piaggio of Italy and to start its scooter project

1990 – Technical agreement converted into Joint Venture between LML and Piaggio

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1999 - Joint venture with Piaggio ended and agreement was signed with Daelim Motor Company of South Korea to manufacture 4-stroke motorcycles

2000 - Company was recognized by the Indian Ministry of Science and Technology for remarkable success in introducing new models/upgrades of scooters in the market

2006 - Company closed down its operation in Kanpur Plant

2008 - still to add point

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LML Product Portfolio

Scooters

• NV SPL• Sensation• Select II• Supremo• Star Xpress

MOPEDS TRENDY

Motorcycles

• LML Beamer• LML Energy FX• LML Graptor • LML Adreno FX• LML Freedom• LML Freedom DX• LML Freedom Prima 110 • LML Freedom 125

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Main LML BikesLML FreedomLML Energy

LML Adreno LML Graptor

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Shares of Two-Wheeler Manufacturers in Industry Sales (FY 2000 – 9M FY 2005)

Source: ICRA Analysis January 20056

LML Bikes Distribution Channel

Manufacturing Unit

Main Dealer

Sub Dealer

Customer7

Reasons of Failure in LML Distribution Channel • High Targets, inadequate supply

• Company unable to meet dealer requirements as per customer demands

• Dissatisfied distributors - major reason that backfired the distribution channel revamp

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General Reasons Behind Failure of LML Bikes

• Financial Crisis

• Mediocre product quality (Adreno & Energy)

• Shift in brand positioning - not smooth

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Thank You

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