Date:18/02/2007 URL: http://www.thehindubusinessline.com/2007/02/18/stories/2007021802590200.htm

Back Lokesh Machines bags German export order

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Hyderabad Feb. 17 Lokesh Machines Ltd has announced it has bagged an export order of Rs 20 crore for supply of machine tools and automotive components to German company Wenig Wemas.

The company said it has also completed the expansion project for supply of engine blocks for Ashok Leyland Ltd and expects to supply them shortly.

Addressing a press conference here on Friday, the Managing Director of Lokesh Machines, Mr M. Lokeswara Rao, said this export deal is a vindication of the company's capability and it expects to step up exports significantly over the next two-three years.

While the export order would be executed in the next financial year, representatives of the German company, who were here said that they expect to procure 200 more machines after the completion of initial order of 100. These machines would be deployed for automotive and aircraft component manufacturing.

From the current export figure of 10 per cent, Lokesh Machines is looking at expanding this to about 40 per cent by 2010.

Export revenue

From the current revenues of Rs 100 crore, it has projected revenues of Rs 250 crore by 2010 and of this, about Rs 100 crore could potentially be from exports to Japan, Germany, Italy, Mr Rao said.

Representatives of Wenig Wemas Gmbh, Mr Karl Wenig and Mr Jeroen Dijkink, said that they have been offering tools to aerospace suppliers for the likes of Airbus and Fokker.

"The demand for such machines is going up and we expect to place repeat order for 200 more machines," they said.