Lakshmi Machine Works (LMW) (NSE: LAXMIMACH) is the undisputed leader in textile spinning machinery in India with a market share of 60% by value and 70% by volume, far ahead of Switzerland’s Rieter’s 15% market share. Globally, LMW is #3 with a 10% market share, behind Rieter (23%) and privately-held German firm Truzler. LMW is one of the only three companies in the world that manufactures the complete range of spinning machinery. LMW has played a significant role in making the Indian spinning industry globally competitive. It is no exaggeration to say that there is an LMW machine in every textile mill in India which has a current total capacity of 52m spindles countrywide. LMW has over 1,300 domestic textile customers out of a total of around 1,600. LMW was established in 1962 by the late Dr. G.K. Devarajulu (GKD) and GKD’s son Dr. D Jayavarthanavelu helmed the family business for 4 decades before third-generation Sanjay took over the leadership baton in 2010. The promoters own 28.3% of LMW.
1) What Makes It a Wide-Moat Business?
Members, log in below to access the restricted content.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About The Author: Koon Boon Kee
Koon Boon is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets.
Starting his career at a boutique hedge fund in Singapore and later, at Korea’s largest mutual fund company, Koon Boon started to make headway into the investment arena. In his early successes, Koon Boon was part of the core investment decision committee which achieved 700% in returns (net of fees), in its flagship Asian fund.
A prolific writer and thought leader, Koon Boon has contributed hundreds of articles to Bamboo Innovator and BeyondProxy, an acclaimed series of subscription-based, research-intensive publications for serious investors; and is Managing Editor of the Moat Report Asia, a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia. He had also presented in top banking and finance conferences in Sydney, Cape Town, HK and Beijing, as well as in the Emerging Value Summit and Wide Moat Investing Summit. His work has been featured in local and international media such as, TEDxWallStreet, Investopia, BeyondProxy, Greatinvestors.tv, Jakarta Post, Straits Times Singapore, TODAY Singapore, Business Times Singapore, as well as a publication in the BoğaziçiJournal.
With the wide occurrences of financial fraud committed by listed firms in China during 2015, Koon Boon went to further his studies, from which he saw a gap in the curriculum for accounting fraud. He went on to pioneer the first-of-its-kind course on Accounting Fraud in Asia, which is now an official course in the SMU curriculum.
Today Koon Boon is the Chief Investment Officer at 8I Holdings Limited, where he is responsible for the sustainable growth and outperformance of listed Asian equities investments in the Hidden Champions Fund.
More posts by Koon Boon Kee