LML is also in talks with a few european manufacturers, senior company officials said.

However, the company is firm on not divesting equity in favour of the foreign partner. "We will be looking at technological tie-ups with the foreign firms," LML managing director Deepak Singhania said.

In addition, the company is also looking at initiating talks withits existing partner - Daelim of South Korea - to commence joint production of bikes for India.

The company is planning to invest Rs 100 crore in the entire expansion and diversification programme, Mr Singhania said. The expansion is being funded through a mix of internal accruals (Rs 30 crore), ECBs (Rs 30 crore) and loans from banks and financial institutions.