Eicher Motors -
A Quick Read

Royal Enfield

Royal Enfield is fast becoming a very important player in the global mid-size motorcycle market and is working towards re-inventing this space with motorcycles that are evocative and engaging and great fun to ride. Royal Enfield’s product line up in India includes the Bullet, Classic and Thunderbird models in 350 and 500cc displacement along with Continental GT 535cc café racer and the newly launched purpose built Himalayan powered by the new LS410 engine.

Royal Enfield operates through 17 company-operated stores and more than 500 dealers in all major cities and towns in India, and exports to over 50 countries across the world including the USA, Japan, UK, several European and Latin American countries, as well as the Middle East and South Asia.

In 2015-16, Royal Enfield recorded its highest ever sales, and total income. It opened several new stores and rolled out its new Brand Retail Identity across a majority of its dealer network.

VE Commercial Vehicles (VECV)

In operation since July 2008, the company includes the complete range of Eicher branded trucks and buses, VE Powertrain, Eicher’s components and engineering design services businesses, the sales and distribution business of Volvo Trucks as well as aftermarket support to Volvo Buses in India. The trucks and buses business did very well in all segments during the period under review by increasing its market share in Light Medium Duty trucks (5-15 Ton) to 33.9%, 4.0% in Heavy Duty trucks, and to 15.8% in buses.

EICHER POLARIS PRIVATE LIMITED (EPPL)

EPPL launched Multix, a new 3-in-1 vehicle for the independent businessman in June 2015. With Multix, EPPL has created a new category of Personal Utility Vehicles in India’s automotive industry. Its plant is based in Jaipur, Rajasthan, and it has been rapidly expanding footprint across target markets. EPPL is now present in 34 locations across 8 states. It continues to build a distribution network to gain momentum and has a strong funnel of customers.

Business Highlights*

ZERO
EML continues to be debt free company
96%
Royal Enfield’s market share in the mid-size motorcycles^ segment
6x
Growth in motorcycle sales in last 5 years
52,096.78
Market Capitalisation (Rs. Crores) (as on March 31, 2016)
28.3%
Royal Enfield’s EBIDTA margin in FY16, a benchmark in the automobile industry
33.9%
VE Commercial Vehicles market share in domestic LMD# (5 - 14 tonne) segment
3,464
Net Worth (Rs. Crores)
8.1%
VE Commercial Vehicles EBIDTA margin in FY16, best in class

*All figures mentioned are for period 1st April 15 to 31st March 16 • ^Mid-size motorcycles refers to engine capacity between 250cc-750cc • # Light & Medium Duty Vehicles

Shareholding Pattern
(AS ON MARCH 31, 2016)

Key Milestones

1959

India’s first tractor rolls out of Eicher factory in Faridabad.

1993

JV with Mitsubishi ended, enters medium duty bus segment.

2008

Forms JV with AB Volvo of Sweden; transfers commercial vehicle business to the JV.

 

1984

JV with Mitsubishi Motors
to make ‘Canter’ trucks.

2002

JV with Mitsubishi Motors
to make ‘Canter’ trucks.

1959

Forms JV with Polaris Industries Inc. USA, to
design, manufacture & market personal vehicles.

 

1991

RE motorcycle acquired.
 

2005

Divests tractor & allied businesses to focus on
commercial vehicles and motorcycles

2015

Commencement of business by Eicher Polaris.