Laxmi Hydraulics Private Limited, with its manufacturing and administrative headquarters in Solapur, makes for an ideal case-study about how a particular approach can take it from being a tiny unit to a product leader across the country, and even abroad. Special Correspondent Huned Contractor travelled to LHP's works at Solapur and interacted with Mr Sharadkrishna Thakre, Managing Director, LHP, for this story.

Never say no to a customer. Though this may look like an often heard clich?, at the Solapur-based Laxmi Hydraulics Private Limited, this is ground reality and a commitment that has not only turned it around from a fledgling unit back in the early 1980s to one of the fastest growing manufacturers of motors and pumps but has also established the fact that even a small town business entity can get into the global sphere. Today, with its annual turnover of Rs 180 crore, LHP, as is it popularly known, has the capacity to make 20,000 motors and pumps a month and is yet unable to fulfil the demand. "We have a target of reaching a turnover of Rs 500 crore by 2016," says Mr Sharadkrishna Thakre, the company's managing director, who is now busy with the expansion of their new manufacturing facilities at Chincholi MIDC.

What makes LHP's history interesting is the entrepreneurial spirit driving it ahead. In 1976, when Thakre was working with an engineering firm, he was offered an opportunity to make a part investment in a foundry and without much ado he left the security of his job and jumped into the fray of independent enterprise. With his family's roots in agriculture, Thakre had always been sensitive to the use of pumps on the fields and this is what led him to diversification. Pumps apart, he also identified huge potential for electric motors. "In 1980, I observed that there were two categories of motor manufacturers: on the one hand were the giant multinationals offering quality but demanding unreasonable prices and then there were the small scale manufacturers offering quicker deliveries but not able to make quality products. I therefore decided to offer good quality motors with reasonable pricing and quick delivery time," Thakre recalls.

It turned out to be one of the best decisions he could have made. LHP now is an ISO 9001-2008 certified company with the capability to supply CE marked products and CE ATEX-certified flame proof motors. Its portfolio includes several types of LT motors up to 355L frame size (315 kW/425 HP) that include standard induction motors, gear motors, brake motors, energy-efficient motors and different combinations thereof. These find applications in a wide gamut of sectors such as mining, food processing, textiles, defence equipment, etc. There also are motors for special applications and LHP has so far developed over 6,000 such customised products. "We have also joined hands with Fritz Kubler of Germany to introduce encoder motors in India. The available options include fail-safe brakes, auxiliary cooling thermistors, etc.," Thakre informs.

This unending quest to offer solutions rather than just products is what has given LHP its average annual compounded growth rate of 18 per cent. "We are targeting a growth of 40 per cent this year. Our growth during the last two quarters was 60 per cent," Thakre adds. It is also their refreshingly honest attitude that has led them to a joint venture with Eura Drives Electric Co Limited of China to launch AC drives and soft starters. The AC drives for automation and control are in the range of 230 V, single phase, 0.12 to 3 kW and 400 V, three phase, 0.75 to 800 kW. In the arena of pumps, LHP has continued to be a strong contender for the MNCs with a wide range of fluid handling solutions for use in the agricultural, domestic and industrial applications. "The salient features of our pumps are low power consumption, adaptability for voltage fluctuations from 160-240 V, low starting current, compact design, high efficiency, low noise and vibration and better suction lift properties," Thakre says.

However, what exactly was the mantra that helped LHP reach out to buyers across India despite its rather 'interior' location? To this, Thakre replies: "Having created our brand through good quality motors and pumps, we identified technically sound people with good marketing skills across 26 locations in the country and made them the regional heads. They are like entrepreneurs in their own right but sell only LHP products. They are also capable of providing after-sales service. This strong network has helped us to also reach into the strongholds of the MNCs and create our own presence." All such efforts have been backed by LHP's investment in research and development. "We believe in innovating all the time, investing efforts and money into developing motors and pumps that can take care of any need. This is based on the feedback from our customers such as the Indian Railways and major PSUs like BHEL, Engineers India Ltd, Udhe India, and others," Thakre adds.

All set now to enter into its next phase of growth, LHP's future plans include extending the range of LT motors beyond the 355 frame and initiating a production facility for HT motors with technical know-how from some of the best known companies in the world. "We also want to develop PMSM and planetary gear boxes," Thakre says. With its existing market share of about 8 per cent, LHP wants to further consolidate its position with the introduction of new products that will now also adhere to the diktats of 'green' technology. "We have already started making motors and pumps that are high on operational efficiency and low on power consumption and are well-prepared for all kinds of mandatory requirements that may be introduced in the near future regarding environment-friendly products," he states.

For a company that has never laid off its employees even during the worst of financial slowdowns or has never had labour problems leading to shutdowns, LHP's next dream project is to become a global player. "We already have exports of up to 25 per cent (direct and indirect) with our motors and pumps being sold in the European and other countries. The future may even see us setting up manufacturing platforms in those countries. There are no restrictive borders now for growing companies, are there?" Thakre asks. Not for those who have their mission, vision and philosophy right.

(Laxmi Hydraulics Pvt Ltd, B-11, MIDC, Chincholi, Solapur, Maharashtra 413 255. Tel: 0217-2357001, 2357002, 2357003. Fax: 91-217-2357006. Email: lhpindia@lhpmotor.com)