About
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 world-wide since 1901. Royal Enfield's product line-up 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 world's oldest motorcycle brand in continuous production since 1901. EML has a joint venture with Sweden's AB Volvo - VE Commercial Vehicles (VECV). The Company is engaged in the manufacturing and selling of motorcycles, spare parts and related services.
EML's 50-50 joint venture with the Sweden's AB Volvo , VE Commercial Vehicles Limited (VECV), designs, manufactures and markets reliable, fuel-efficient trucks and buses is one of India's 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, Two-Wheelers, 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 company's 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 2006-07, the company acquired the 100% equity shares of Hoff and Associates (Hoff), Plymouth, Michigan (USA) along with Hoff's 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 group's new global medium-duty 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. EML's joint venture with Polaris Industries Inc.- Eicher Polaris Private Ltd (EPPL) launched Multix- a new 3-in-1 vehicle for the independent businessman in June 2015.
In December 2013, VECV's 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 5-49 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 tie-up with Flipkart, India's largest e-commerce 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 ground-up 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 120-seater 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 one-of-itskind 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 2017-2018, the company in an effort to allow easier discovery and access to preowned Royal Enfield motorcycles, introduced first pre-owned motorcycle store - Vintage - in Chennai. A pioneering initiative in the two-wheeler industry, Royal Enfield Vintage will deal exclusively in pre-owned, refurbished and restored motorcycles offering hassle-free 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 Anti-lock 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 2019-2020 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 Enfield's 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 multi-brand outlets. Royal Enfield expanded its retail footprint in the Asia-Pacific region during 2019-20 by setting up its first standalone, flagship store in Seoul, South Korea.
During the year 2019-20, the company completed the set-up of our Global Headquarters in Chennai which also houses a world-class product development and technology centre.
Following the outbreak of COVID-19, the Government of India declared a lockdown on March 23, 2020, which resulted in suspension of operations. COVID-19 has impacted the normal business operations of the Company by way of interruption in production, supply chain, etc., during the lock-down 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 2020-21, 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 72-seater 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. Twenty-six 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 2021-22, the Company has an installed production capacity of Rs. 10 lakhs.
In FY'22, the Company launched India's biggest CNG truck, Pro 2114XP and industry's 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 FY'22, 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 2021-22.
In FY 2021-22, 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 2021-22, 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 e-commerce companies.
In 2021-22, the production capacity was augmented to 12 Lakhs (including both Oragadam and Vallam plants) by adding plant's 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 brand's 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 Enfield's potential in Asia Pacific markets, It established first CKD facility in the region in Thailand, a major hub for the automotive sector.
During 2022-23, 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 Electro-Mobility 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 2022-23.
Eicher Motors Ltd
Chairman Speech
Dear Shareholders,
I hope you and your families are doing well.
As the pandemic continues to wane globally, humanity and businesses have learnt
invaluable lessons over the last couple of years, and have also developed skills and
competencies to survive and thrive despite the impact of the pandemic. The last couple of
years were testing for the industry and for us at Eicher Motors Ltd., but we were able to
weather the challenges and have continued to progress on our vision under the able
leadership of B Govinda-rajan at Royal Enfield and Vinod Aggarwal at VE Commercial
Vehicles, backed by the resilience and commitment of our teams.
At Eicher Motors Ltd., our clear priority, apart from ensuring the safety and
wellbe-ing of our employees and partners, was to sustain the momentum and the exponential
growth and success that we have been able to achieve over the last several years.
In addition to building some of the world’s most recognized and awarded personal
and commercial transportation solutions, we have successfully worked towards nurturing
organizations and cultures that are reflective of our vision, and communities that reflect
the guiding philosophies and principles of our brands.
We have significantly grown beyond Indian shores with the expansion of our
manufacturing and allied units across the world, growth and global successes of our
product portfolio, and expansion of our markets and retail network. We have seen inclusive
and comprehensive growth across our businesses in India and in international markets, and
across business divisions.
While this success and scale has created exceptional opportunities for us, it has also
brought upon us greater responsibilities. We’ve reflected on our journey as a brand
that has withstood the test of time over centuries and took some conscious steps to shape
the next stage of growth for the company.
As a niche brand over the years, or as a successful global organization today, we have
always stayed true to our core values and have maintained a challenger brand approach. We
have remained committed to ensuring better value, and bigger and better pure motorcycling
experiences. But in addition to pursuing excellence in productivity and profitability,
companies such as ours have always served a greater social purpose. As the global society
today tackles an ever-increasing series of environmental, health and geopolitical crises,
we stand committed to being part of the solution rather than part of the problem.
As the world urgently evaluates how we can ensure a brighter future for generations to
come, it is now clear that we at EML need to recalibrate and renew our mission so that we
can continue to make a significant contribution to society – not just as a
corporation, but as a force for good. This, combined with our razor sharp business
strategy, including key focus areas like electric vehicles both at VECV and Royal Enfield,
will fuse together to form a holistic mission for Eicher Motors Ltd.
Our philosophy of Pure Motorcycling has always been about a constant search for balance
between man, machine and terrain. Today, in a world out of sync with itself, we must
extend this quest to our business – so that we can restore equilibrium between
commercial objectives, community goals and the collective ecosystem that we all inhabit;
realign our priorities to sit at the intersection of business performance and social
purpose
To mark this phase of our evolution, our 2022-25 strategic vision will elevate our
greater socio-economic purpose over our business priorities, so we have a singular clarion
call to ride towards, as we navigate constantly shifting sands of global commerce. With a
strong and robust business model, led by pure motorcycling, we will now adopt a larger
purpose to REBALANCE - balance profit and profitability, balance social and commercial
objectives, balance the existing product portfolio of internal combustion engines and the
future with electric vehicles, balance a strong brand-led customer experience
ROYAL ENFIELD
DESPITE THE CHALLENGES IN THE EXTERNAL ENVIRONMENT, EICHER MOTORS LIMITED RECORDED ITS
HIGHEST EVER TOTAL REVENUE FROM OPERATIONS -REFLECTING THE BUSINESS OF ROYAL ENFIELD
MOTORCYCLES AT RS. 10,298 CRORES IN FY22. YOUR COMPANY’S EBITDA WAS RS. 2,172
CRORES, UP BY 22.0% AS COMPARED TO RS. 1,781 CRORES IN FY21, AND PROFIT AFTER TAX WAS
RECORDED AT RS. 1,677 CRORES, UP BY 24.5% AS COMPARED TO RS. 1,347 CRORES FOR THE SAME
PERIOD LAST YEAR- UNDERSCORING OUR STRONG BUSINESS FUNDAMENTALS THAT HAVE SEEN US THROUGH
TWO YEARS OF PANDEMIC INDUCED UNCERTAINTIES.
This year, we made concerted efforts towards becoming a premium, global player - with
an ambition to sustainably grow our overseas presence and business, and with a focus on
some of the toughest motorcycle markets in the world. I am happy to state that we recorded
tremendous success on this front over the last year.
Our international business focus has been driven by our long-term strategy - a
carefully mapped approach wherein the intent has been not merely to grow retail presence,
but to actually create a brandled pure motorcycling ecosystem within markets.
Over the last few years, we have sharply focused on growing strong and empowered teams
in global markets in addition to growing our infrastructure capabilities. We have invested
hugely in growing our distributor and retail network, strategically setting up
subsidiaries and assembly units and optimizing supply chain infrastructure in critical
geographies. From the approach of single store in a nodal city,we today have over 160
exclusive stores and more than 675 multi-brand outlets with unique retail identity, in
over 60 countries around the world.
We now have greater collaboration with distributors, with many of them willing to
partner with us across entire regions. Understanding the criticality of building greater
accessibility and time to market, we set up assembly units in Thailand and Colombia this
year, in addition to Argentina, with plans to set up one more in Brazil.
Over and above building world-class motorcycles targeted at global motorcycling
enthusiasts, we have sharply focused on increasing brand awareness and resonance, and have
nurtured distinct riding cultures and communities.
Our carefully crafted strategy in international markets has borne excellent results as
we recorded a more than 100% year-on-year increase in export volumes. Today, over 12% of
our overall volumes come from international markets, and Royal Enfield ranks among the
top-3 best selling brands in the mid-size segment in markets like Europe, New Zealand, and
Thailand, over and above leading the Indian mid-segment market.
As we continue our strategic focus in global markets, we strongly believe that our
journey has only just begun; our international business is at an in-ection point. Our
understanding of these markets and consumers gives us the confidence that there is
considerable headroom for sustained growth in the future.
At home in India, we continue to define the middleweight segment, and perform
consistently as compared to the industry.
DESPITE STRONG
MACROECONOMIC HEADWINDS AND CONSIDERABLE SUPPLY CHAIN CHALLENGES BECAUSE OF PARTS
SHORTAGE, WE HAVE MAINTAINED A STEADY MARKET SHARE OF 5.8% IN THE OVERALL
MOTORCYCLE SEGMENT, AND CLOSED Q4 AT 7%. WE INCREASED OUR MARKET SHARE IN THE MORE THAN
125CC SEGMENT BY 2.8% DURING THE YEAR, TO 28.7%, AS WE CONTINUE TO DOMINATE THE SEGMENT
ABOVE 250CC SEGMENT WITH AROUND 90% MARKET SHARE. OUR PREMIUM DOMESTIC DEALER NETWORK
DURING THE YEAR EXPANDED TO OVER 2100 RETAIL TOUCHPOINTS, AS WE CONTINUE TO GROW WHAT IS
THE MOST PREMIUM GLOBAL DISTRIBUTION NETWORK IN THE SEGMENT.
As the overall supply chain seems to be stabilizing, there is a sharp increase in
inflation and interest rates. Despite this, in a market driven by aspiration and
premiumization, we strongly believe that our distinct, world-class product portfolio
combined with strong brand resonance will help us further grow.
This year,we re-envisioned our most loved and iconic motorcycle, the Classic, with the
launch of the all-new Royal Enfield Classic 350. The Classic has been a huge catalyst in
growing and expanding the middleweight segment across the globe, while also being
instrumental in unlocking a thriving sub-culture of leisure riding among young and
experienced riders across the world. The all-new Classic 350 carries forward this legacy,
and is built to reflect the familiar timeless design language, with a completely modern
and reimagined ride experience. Retaining the retro appeal in entirety, the new Classic
350 aims to take the legacy of its predecessor forward. Since its launch, the motorcycle
has won a slew of awards across diverse geographies. We believe that the all new Classic
350 will galvanize the riding spirit amongst modern riders and redefine the mid-size
motorcycling segment globally.
Creating niche riding cultures has been a key focus for us. With the Himalayan we were
able to successfully build a unique subculture of accessible adventure touring across
global communities. Its pure and unique design and well-rounded capability, made it among
Royal Enfield’s best selling motorcycles across the world. Cementing that proposition
and in an effort to further build in-roads into the adventure category, we launched a new
subspecies - the Scram 411, our first ADV crossover motorcycle this year. The Scram 411 is
a capable street scrambler, with the heart of an adventure motorcycle. We believe the
Scram 411 will unlock a new segment of riders for us.
To further catalyse the growth of motorcycling subcultures, we marked our maiden foray
into motorsports this year, with the first edition of the
Continental GT Cup 2021. The GT Cup sits at the intersection of increasing interest
in motorcycle track racing, and the need for accessible forms of racing and training in
India. The first racing season was completed to resounding response from young racers
across India. To further encourage young motorsports talent in the country, we intend to
introduce racetrack schools with an intent to provide professional training access to
eager enthusiasts.
At the EICMA Motor Show this year, we unveiled a stunning new concept motorcycle - the
Royal Enfield SG650 Concept. The motorcycle is a glimpse into our engineering and
contemporary design prowess, while being truly representative of our rich legacy of custom
motorcycles. A neo-retro interpretation that pushes the boundaries of what a Royal Enfield
motorcycle could look like, the SG650 was hugely appreciated at the global motor show held
in Milan.
As Royal Enfield completed 120 years in 2021, we also showcased a major centerpiece of
our anniversary celebration at the EICMA, with the unveiling of ‘Project
Origin’, a faithful working replica of the brand’s very first
‘motor-bicycle’. This was the very machine that built the foundations upon which
we have created the enduring legacy of pure motorcycling.
The enduring 120-year old legacy of the brand is nothing without the community, and so
to pay an ode to all Enfielders who’ve dared to explore beyond the ordinary, the
company undertook 90? South - a first-of-its-kind motorcycle expedition that dared to go
where no brand has gone before - the South Pole. We successfully completed this quest on
December 16 last year, as two of our riders reached the geographic South Pole after an
arduous, but historical 15-day ride from the Ross Ice Shelf.
In commemoration of 120 years of pure motorcycling, we also launched special
Anniversary Edition models of the Interceptor and Continental GT 650 motorcycles. With a
stunning black-chrome colour scheme and hand-made brass tank badges, these motorcycles
were unveiled at EICMA with an exclusive, limited run of just 480 units for global
markets. We also launched an exclusive range of bespoke, limited-edition helmets,
consisting of 12 designs - one for each decade of the brand’s legacy.
Royal Enfield has been committed and making consistent efforts to foster a pure
motorcycling ecosystem for enthusiasts globally. Our robust plans for both apparel and
accessories business continue to enable options for self expression and personalization
for our consumers and yield impressive business results for the company. In 2021, our
focused initiatives resulted in a 45% year-on-year growth in our non-motorcycling business
backed by razor sharp focus on growing service and spares business, as well as our
motorcycle apparel and accessories business.
As we move forward, we remain focused on creating a strong business vision, a robust
product portfolio and experiences that stay true to our philosophy of pure motorcycling
and also tie back into our larger mission to REBALANCE.
VECV
Despite the challenges posed by two waves of the Covid pandemic, supply chain
disruptions caused by lockdowns and the situation in Ukraine, VECV registered handsome
growth both in volumes as well as total income. Sales of our trucks and buses grew by
38.3% to 57,077 units during FY22. Despite the pandemic, we also brought on-line the
Industry 4.0 compliant Bhopal Plant with a total capacity of 40000 vehicles per annum.
VECV also continued on our journey to become a whole-hearted customer-centric
organization - something we started in 2018. Customer- centricity is taking deep roots
within VECV and we note initial recognition by our customers and dealers as demonstrated
by being Ranked No.1 in Dealer Satisfaction Survey 2021 by the Federation of Automobile
Dealer Associations, India. We treat this as just the beginning and it remains our
constant endeavor to consistently keep improving our partnership with dealers and
customers and to set new benchmarks in the industry. Our initiatives of Retail Excellence,
Uptime, Network development backed by a strong industry infrastructure, a strong product
line up, and an efficient digital backbone provides us with a strong foundation in our
journey towards being a truly customer-centric organization.
As part of our quest of becoming an
Uptime company and No.1 in customer satisfaction we have also focused on creating a
very agile and efficient dealer network. Last year alone we added close to 150 new touch
points with state-of-the-art facilities for enhanced customer experience across the
country. Majority of our workshops are now Uptime Certified delivering remote diagnostics
and predictive maintenance to our 100% connected truck and bus fleet by linking these in
real-time to our Uptime Center.
VECV is also happy to share that digitalization has taken firm roots within the company
with the industry leading My Eicher App launch in FY22 being the latest in a series of
initiatives being taken.
We continued to have a granular and immersive go to market approach with the
introduction of several new products in different segments. To address the growing demand
of CNG trucks we launched India’s biggest CNG truck, Pro 2114XP and industry’s
first 11.5T GVW CNG truck- Pro 2095XP ‘PLUS’ CNG. We also created a new segment
with the first 17.5TGVW truck, Pro 3015XP, a hallmark of our customer centric product
planning. First fruits or synergy with Volvo Bus were delivered with Eicher front engine
Intercity Coach and Sleeper buses.
We also successfully launched the all new range of Volvo Trucks’ of FM & FMX
Range. These new range of trucks have the most modern features optimally designed to push
the limits of productivity and uptime.
And just as the financial year was ending, we received further recognition that our
Volvo 9400 B8R won Coach of the Year, Eicher Skyline Pro Staff 3010 L CNG won the
L&ICV People Hover of the Year and Eicher Pro 2114XP CNG has won both the ICV Cargo
Carrier of the Year, and the Apollo CV of the Year
I am also happy to share that VECV is accelerating focus on Electric Vehicles and
alternate fuels. We have won our first tender for electric buses from the prestigious City
of Chandigarh and this transformation towards sustainable operations and products will
continue as part of our roadmap to protect the world for future generations.
Above all, appreciable efforts are being made to bring down cost and improving value
delivered to our customers in the face of a fiercely competitive market. This has resulted
in excellent performance whereby we have been the only major Indian CV manufacturer to
remain profitable through the pandemic and as well as improve our customer and dealer
satisfaction scores. We also continue to expand our footprint in international markets and
in FY 22 achieved highest ever sales in Africa and Middle East while also adding new
export markets. We have also recorded performances in our components (EEC) and
Non-Automotive Engine Business.
All signs indicate that the Indian economy and CV industry will grow at a rapid pace in
the coming few years. Based on the strong foundation, high degree of customer-orientation,
and excellent execution VECV is well positioned to realize our vision to be recognized as
the Industry Leader driving modernization in commercial transportation in India and the
developing world.
Looking ahead we are committed to take forward our journey of making VECV a customer-
centric organization with consistent progress in network development, retail excellence,
superior uptime, and digitalization initiatives. We are also gearing up for the future by
addressing sustainability in all aspects of our business and evolving the right products,
services, business models, people and capabilities
LOOKING AHEAD
We introduced our first Integrated Report last year on the back of renewed commitment
to focus on Environment, Social and Governance (ESG) performance parameters. Over the last
few years, we have not only established a strong and resilient business model, but also
made critical strides to deliver positive results towards our ESG vision. In recognition
of these efforts, Dow Jones ranked EML as one among only ten global automotive companies
to feature on its elite list of Dow Jones Sustainability Indices 2021 (DJSI) in the
Emerging Markets category. Also in December last year, Royal Enfield was recognized with
the ‘Challengers Award’ in the Mega Large Automotive Business category at the
Frost & Sullivan and TERI Sustainability 4.0 Awards 2021.
Moving forward we will continue to sharpen our overarching Environmental, Social and
Governance (ESG) vision with a firm focus on REBALANCE. All aspects of business at EML
will be developed and driven with REBalance at its very heart.
We will continue our efforts to create motorcycles that are loved and revered by
motorcycling enthusiasts across the world. Our electric vehicle plans will form a critical
part of our product development process moving forward, while we continue our work on the
internal combustion engine offerings. Our focus on EV will be driven by our ethos of
creating modern classic motorcycles accessible and appealing to consumers of today.
Riding ahead towards new horizons and challenges, I am confident that our teams will
power the Company on this new journey as we realize the long term market potential for
both Royal Enfield and VECV. At Royal Enfield, we are at the cusp of incrementally scaling
up our international business, and turning a new chapter in India as well. To further fuel
this plan in a strategic direction, we have created a new empowered, multicultural,
cross-functional management team structure that will work with Govindarajan and me to push
forward on the next growth journey.
EML draws its success from its numerous stakeholders including its people, business
partners, and communities. I would like to extend my sincere gratitude to each and every
one of them and their families for their support and faith and for always inspiring us to
step up to challenges and explore our potential to scale newer heights.
Thank you
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Eicher Motors Ltd
Company History
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 world-wide since 1901. Royal Enfield's product line-up 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 world's oldest motorcycle brand in continuous production since 1901. EML has a joint venture with Sweden's AB Volvo - VE Commercial Vehicles (VECV). The Company is engaged in the manufacturing and selling of motorcycles, spare parts and related services.
EML's 50-50 joint venture with the Sweden's AB Volvo , VE Commercial Vehicles Limited (VECV), designs, manufactures and markets reliable, fuel-efficient trucks and buses is one of India's 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, Two-Wheelers, 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 company's 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 2006-07, the company acquired the 100% equity shares of Hoff and Associates (Hoff), Plymouth, Michigan (USA) along with Hoff's 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 group's new global medium-duty 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. EML's joint venture with Polaris Industries Inc.- Eicher Polaris Private Ltd (EPPL) launched Multix- a new 3-in-1 vehicle for the independent businessman in June 2015.
In December 2013, VECV's 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 5-49 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 tie-up with Flipkart, India's largest e-commerce 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 ground-up 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 120-seater 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 one-of-itskind 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 2017-2018, the company in an effort to allow easier discovery and access to preowned Royal Enfield motorcycles, introduced first pre-owned motorcycle store - Vintage - in Chennai. A pioneering initiative in the two-wheeler industry, Royal Enfield Vintage will deal exclusively in pre-owned, refurbished and restored motorcycles offering hassle-free 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 Anti-lock 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 2019-2020 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 Enfield's 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 multi-brand outlets. Royal Enfield expanded its retail footprint in the Asia-Pacific region during 2019-20 by setting up its first standalone, flagship store in Seoul, South Korea.
During the year 2019-20, the company completed the set-up of our Global Headquarters in Chennai which also houses a world-class product development and technology centre.
Following the outbreak of COVID-19, the Government of India declared a lockdown on March 23, 2020, which resulted in suspension of operations. COVID-19 has impacted the normal business operations of the Company by way of interruption in production, supply chain, etc., during the lock-down 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 2020-21, 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 72-seater 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. Twenty-six 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 2021-22, the Company has an installed production capacity of Rs. 10 lakhs.
In FY'22, the Company launched India's biggest CNG truck, Pro 2114XP and industry's 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 FY'22, 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 2021-22.
In FY 2021-22, 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 2021-22, 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 e-commerce companies.
In 2021-22, the production capacity was augmented to 12 Lakhs (including both Oragadam and Vallam plants) by adding plant's 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 brand's 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 Enfield's potential in Asia Pacific markets, It established first CKD facility in the region in Thailand, a major hub for the automotive sector.
During 2022-23, 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 Electro-Mobility 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 2022-23.