Jonathan Aerogel

India has been importing the machines that build its factories. Now, that import bill could become a growth opportunity for domestic manufacturers. And LMW could be sitting right in the middle of this transition. Here's why this shift matters. India's machine tool market is estimated at $2–2.5 billion. Historically, imports accounted for 50–55% of the market by value. But as domestic manufacturing capabilities improve, Indian companies are increasingly finding local alternatives to imported machines. LMW is already seeing the impact. Its Machine Tool Division, along with Foundry, reported H1 FY27 revenue of ₹794 crore, growing ~43% YoY. Management expects growth to approach 50% for FY27. And this isn't just an automotive story anymore. Demand is expanding into electronics manufacturing, defence, tooling and general engineering. LMW's capacity utilisation is already at 75–80%, with assembly expansion underway. There's another interesting opportunity. LMW entered the auto-winder market through its Lakshmi Winder product. A segment that was previously entirely import-dependent now has a domestic manufacturer. The bigger picture? India's manufacturing ambitions need more than factories. They need the machines, technology and precision equipment that make those factories productive. That's where the import substitution opportunity lies. For LMW, the opportunity is significant — but execution will matter. Global machine tool manufacturers are also strengthening their local presence in India. The question investors should watch: Can LMW convert India's manufacturing push into sustained market share gains and profitable growth?