Eicher Motors Ltd

Eicher Motors Limited (EML) is an Indian, multinational automotive company that has diversified interests in motorcycle and commercial vehicles manufacturing. The Company is engaged in the manufacturing and selling of motorcycles, spare parts and related services. It manufactures the iconic Royal Enfield brand of motorcycles, which leads the premium motorcycle segment in India. Royal Enfield is the oldest motorcycle brand in continuous production worldwide since 1901. Royal Enfields product lineup includes the Bullet, Classic and Thunderbird models in 350cc. Eicher Motors Limited (EML) is an Indian, multinational automotive company that has diversified interests in motorcycle and commercial vehicle manufacturing. Listed on the Bombay and National Stock Exchanges, EML is the listed parent company of Royal Enfield, the worlds oldest motorcycle brand in continuous production since 1901. EML has a joint venture with Swedens AB Volvo VE Commercial Vehicles (VECV). The Company is engaged in the manufacturing and selling of motorcycles, spare parts and related services.EMLs 5050 joint venture with the Swedens AB Volvo , VE Commercial Vehicles Limited (VECV), designs, manufactures and markets reliable, fuelefficient trucks and buses is one of Indias leading manufacturer of trucks,buses, engines and engineering components. VECV has a wide product range from 5t to 40t GVW trucks and 15 to 65 seater buses. The buses are sold under the Skyline and Starline brands.Eicher Motors Ltd was incorporated in the year 1982. The company in technical collaboration agreement with Mitsubishi Motor Corporation of Japan produced the Light Commercial Vehicle in India. The commercial production as commenced in their plant at Pithampur in Madhya Pradesh, with the launch of Canter truck in June 1986. The agreement with Mitsubishi ended in March 1994 after successful transfer of technology and achieving total Indigenization.The demerger of Tractors, TwoWheelers, Engines and Gears businesses from Eicher Ltd was transferred to the company with effect from April 1, 2003. In May 25, 2005, the company acquired 100% of the shares of Design Intent Engineering Inc, USA, which is engaged in the business of providing computer aided engineering design services for a consideration of USD 2.5 million.The companys Tractor division at Mandideep, Gears division at Parwanoo and Engines division at Alwar had been sold to TAFE Motors and Tractors Ltd, a wholly owned subsidiary of Tractors and Farm Equipment Ltd, for a consideration of Rs 310 crore with effect from June 1, 2005. The company acquired a transmission gear manufacturing plant at Dewas having a gear cutting capacity of 5 lacs gears per annum with effect form November 1, 2006.During the year 200607, the company acquired the 100% equity shares of Hoff and Associates (Hoff), Plymouth, Michigan (USA) along with Hoffs two wholly owned subsidiaries in Beijing and Shanghai, China for a consideration of USD 3.5 million. In order to synergize the activities between the two subsidiary companies in USA, Hoff and Associates merged with Design Intent Engineering Inc with effect from January 1, 2008 and the name of Design Intent Engineering Inc was changed to Eicher Engineering Solutions Inc.In May 2008, the company signed a definitive agreement with Aktiebolaget Volvo, Sweden for a formation of a joint venture company through transfer of the existing Commercial Vehicle Business along with related Components and Design Services Business. In August 2008, they transferred the Components and Design Services Business to VECV, the joint venture company with effect from July 01, 2008.On 11 June 2010, VE Commercial Vehicles (VECV) announced an investment of Rs 288 crore in its Pithampur, Madhya Pradesh plant for the production and final assembly of the Volvo groups new global mediumduty engine platform.On 12 July 2011, Eicher Motors announced that it has been allotted land government at the SIPCOT Industrial Growth Centre, Oragadam by the Tamil Nadu state for building a new plant for the manufacture of Royal Enfield motorcycles. On 30 April 2013, Royal Enfield announced that it had started commercial production from its new manufacturing facility at Oragadam, Tamil Nadu. In July 2012, Eicher Motors signed an equal joint venture with Polaris Industries Inc. to set up a greenfield project. EMLs joint venture with Polaris Industries Inc. Eicher Polaris Private Ltd (EPPL) launched Multix a new 3in1 vehicle for the independent businessman in June 2015.In December 2013, VECVs Eicher Trucks and Buses division (ETB) launched the future of Indian trucking with the introduction of its Pro series range of trucks and buses ranging from 549 tonne.In February 2015, Royal Enfield started retail operations in Colombia with the opening of two exclusive stores in Bogota and Medellin.In May 2015, Royal Enfield acquired Harris Performance, a motorcycle engineering and design firm based in UK.On 24 August 2015, Royal Enfield announced its entry in Indonesia at GAIKINDO Indonesia International Auto Show (GIIAS) 2015. Royal Enfield opened its first exclusive store in Jakarta in January 2016.In December 2015, Royal Enfield announced its entry in Thailand at the Thailand International Motor Expo in Bangkok.In June 2016, Royal Enfield announced its tieup with Flipkart, Indias largest ecommerce marketplace to sell Royal Enfield gear and accessories.Royal Enfield opened its flagship store in Milwaukee, North America in September 2016. Two exclusive stores were also added in Europe in October 2016, one each in Barcelona and Valencia in Spain.On 18 March 2017, VE Commercial Vehicles Limited announced that it had divested 100% shares of its wholly owned subsidiary Eicher Engineering Solutions Inc in United States of America (USA) to SegulaTecnologias Espana, S.A.U., a Spanish corporation. The total enterprise value of the deal was pegged at 1,852,000.In August 2017, EML commenced commercial production of motorcycles at its third manufacturing facility at Vallam Vadagal near Chennai. In September 2017, Royal Enfield launched two variants of its bestselling motorcycle model, Classic Stealth Black in 500cc and Gunmetal Grey in 350cc with a contemporary and stylish matt finish.In October 2017, Royal Enfield forayed into Vietnam, the fourth biggest motorcycle market in the world, and opened its first store in Ho Chi Minh City.In November 2017, Royal Enfield unveiled its groundup modern twin motorcycles the Interceptor INT 650 and the Continental GT 650 at the EICMA Motor Show, Milan, Italy.In November 2017,the company opened the Garage Cafe in Goa. Reflecting the motorcycling way of life, the 120seater Garage Cafe on the banks of the Baga River in Baga, Goa offers a relaxed, unhurried experience and is conceptualised to be an inclusive, engaging space. The Garage Cafe is a oneofitskind format that is an amalgamation of the various dimensions of Royal Enfield. The cafe houses a motorcycle museumand exhibition area, an exclusive gear store, a motorcycle customisation area and a service bay.During 20172018, the company in an effort to allow easier discovery and access to preowned Royal Enfield motorcycles, introduced first preowned motorcycle store Vintage in Chennai. A pioneering initiative in the twowheeler industry, Royal Enfield Vintage will deal exclusively in preowned, refurbished and restored motorcycles offering hasslefree sale and purchase experience to consumers. The company also added 150 new dealerships in India taking the total retail outlet strength to 825 exclusive stores in the country, making the company the strongest premium motorcycle distribution in the country by a large margin.In June 2018, the company introduced the limited edition Pegasus at the Imperial War Museum in Duxford, U.K. Inspired by the RE/WD motorcycle, lovingly known as the Flying Flea, which played a pivotal role in World War 2, only 1,000 motorcycles were available across the world. The company sold all the 250 motorcycles meant for India in just 178 seconds via an online sale. The company also successfully introduced Antilock Braking Systems (ABS) on all our motorcycles, well ahead of the regulatory deadline, starting with the Signals, inspired by our long association with the Indian armed forces.During 20192020 under review,The companies flagship business Royal Enfield sold 6,97,582 motorcycles and in an effort to increase the retail footprint in India and to cater to smaller towns and cities, Royal Enfield announced the Studio Stores format and launched 600 new Studio Stores during the year. These, together with the 921 dealerships, take Royal Enfields retail touchpoints to 1,521 across India. The company also also launched new variants of the Royal Enfield Bullet 350 and the Classic 350 during the year, to further enhance accessibility for consumers. In addition to the BS VI compliant Classic 350, Bullet 350, the 650 Twin motorcycles, Royal Enfield also launched the BS VI Himalayan in the fourth quarter of the fiscal year. The Himalayan BS VI has a vibrant new look and improved features that have made it instantly successful in India and across the world. The new motorcycle has received great reviews from media, experts and from consumers.In the international markets, the company now has 77 exclusive stores outside of India, and a retail network spread across 60 countries. The company has opened new consumer touchpoints in Thailand, Brazil, Argentina, France and the UK, taking our total dealer touchpoints in international markets to over 660 stores including multibrand outlets. Royal Enfield expanded its retail footprint in the AsiaPacific region during 201920 by setting up its first standalone, flagship store in Seoul, South Korea.During the year 201920, the company completed the setup of our Global Headquarters in Chennai which also houses a worldclass product development and technology centre.Following the outbreak of COVID19, the Government of India declared a lockdown on March 23, 2020, which resulted in suspension of operations. COVID19 has impacted the normal business operations of the Company by way of interruption in production, supply chain, etc., during the lockdown period. The Company gradually commenced operations during the month of May 2020 after obtaining necessary approvals. Pursuant to the approval of the shareholders at the Annual General Meeting of the Company held on August 10, 2020, each equity share of face value of Rs. 10/ per share was subdivided into ten equity shares of face value of Re. 1/ per share, with effect from the record date, i.e., August 25, 2020.In FY 202021, Royal Enfield, a unit of EML, sold 6,12,350 motorcycles of which 5,73,728 units sold in the domestic market and 38,622 units in markets overseas. New products including the Skyline Pro with wider body and a 72seater school bus was launched to cater an emerging segment. A 20.15 LHD with new facia and other improvements was developed for the Middle East market. Additionally, Skyline Pro LHD has also been established in international markets, which will enhance the volume in Middle East and Africa region. Twentysix new market specific products and variants were introduced in new generation Pro2000, Pro3000, Pro6000 trucks and Skyline bus range. Meteor 350 was launched in India, USA, Asia Pacific, Latin America, Thailand, UK, Europe and Australia. In 202122, the Company has an installed production capacity of Rs. 10 lakhs. In FY22, the Company launched Indias biggest CNG truck, Pro 2114XP and industrys first 11.5T GVW CNG truck Pro 2095XP PLUS CNG. It created a new segment with the first 17.5TGVW truck, Pro 3015XP, a hallmark of its customer centric product planning. First fruits or synergy with Volvo Bus were delivered with Eicher front engine Intercity Coach and Sleeper buses. Apart from this, it launched new range of Volvo Trucks of FM FMX Range. Royal Enfield launched the All New Royal Enfield Classic 350. In FY22, Royal Enfield, a unit of EML commenced operations in Singapore with a new flagship store in Ubi Road. The Company participated in over 40 activation events across America and conducted many distinguished rides and events such as, Tour of Argentina, Tour of Colombia and Gladiadores Colombia. Vallam Vadagal plant won the Frost Sullivan Award for Manufacturing Excellence in 202122.In FY 202122, Royal Enfield, a unit of EML, sold 6,02,268 motorcycles of which 5,21,236 units sold in the domestic market and 81,032 units in export market. The Company rapidly expanded its presence and increased exclusive stores count from 77 across 21 countries, to 132 exclusive stores across 26 countries. During the year 202122, VECV made a significant move with the acquisition of Volvo Buses India (VBI). VECV partnered with, and delivered Volvo FM tractors and trailers to, leading logistics and ecommerce companies.In 202122, the production capacity was augmented to 12 Lakhs (including both Oragadam and Vallam plants) by adding plants powder coating and packing facilities. Royal Enfield enhanced its portfolio with the launch of the All New Classic 350, the 120th Anniversary Limited Edition 650 Twins and the Scram 411, the brands first ever ADV crossover. The Company grew its presence in international markets with a second assembly line in Buenos Aires. It established a CKD facility in Colombia, its second such facility after Argentina, in the Latin America region. Leveraging Royal Enfields potential in Asia Pacific markets, It established first CKD facility in the region in Thailand, a major hub for the automotive sector.During 202223, the Company launched the thoroughbred cruiser Model, Super Meteor 650 Motorcycle in January, 2023. It launched the New Hunter 350 Motorcycle in Bangkok, in Aug 22. VE ElectroMobility Limited, a 100% subsidiary of VE Commercial Vehicles Limited was incorporated on April 27, 2022 and became the subsidiary of the Company during the financial year 202223.