Professional Documents
Culture Documents
Siddhartha Lal
MD & CEO, Eicher Motors Ltd.
Investor Presentation
In this Presentation
1.
Journey so far
EML: Overview 2. Royal Enfield
3.
4.
21
Forms JV with AB
Royal Enfield
motorcycles acquired
Volvo of Sweden;
transfers CV business to the JV
1959
1984
JV with Mitsubishi Motors to make Canter trucks
1991
1993
JV with Mitsubishi ended, enters MD bus segment
2002
2005
Divests tractor and allied businesses to focus on CV and motorcycle businesses
2008
32
Institutional Investors
24.9%
AB Volvo
8.4% 55.2%
Promoter Group
45.6%
EML
54.4%
Royal Enfield
3 5
Strong Values
Corporate conduct rooted in highest standards of ethics, integrity and transparency Highly professional work ethic based on mutual respect Very strong HR and IR culture and brand Long-term orientation Long history of institutionalized CSR and community activities
64
Moving forward...
ROYAL ENFIELD
6 29
Royal Enfield
Royal Enfield Bullet is the longest running model in continuous production. Royal Enfield Motorcycles are unique in terms of the engine character - Single Cylinder, Air-Cooled, Push-rod &Valve operated for the distinctive Bullet beat. The authentic vintage styling , traditional paint schemes, 1950s style, nacelle and toolboxes contribute to its distinctive classic appeal.
1901: Royal Enfield rolls out its first Motor Cycle 1955: Enfield India is incorporated.
7 26
After successfully managing 2010, the year of transition, Royal Enfield continues to grow and evolve
80000 70000
Sales Volume(units)
60000 50000
Introduced UCE engine in Bullets export model & launched Classic 500 with UCE
41.9
45 40 35 30 25 20 15 10 5 0
Sales Volume (units)
Demand continues to be ahead of capacity; optimising production in TVT; commencement of capacity expansion at new site in Oragadam
Growth (*%)
40000 30000
20000 10000 0
17.7 12.7 5.5 4.1 2003 1.7 2004 2005 2006 2007 2008 7.2
20.0
20000 15000
10606
40.2 14871
50 40
10000 5000 0
YTD Feb '11 YTD Feb'12
30
20 10 0
Bullet
Investor Presentation Joint Investors Meet Presentation
Thunderbird
Classic
8 27
Growth (%)
Enhanced Product
Removed perceptual & physical purchase barriers
10
Improve profitability
Focus on cost management Exploit significant opportunities after market
12
Moving forward...
13 29
Eicher strengths
VECV vision
Volvo strengths
Leadership in LD / MD segments Specialist skills and experience in developing low cost, better performance products Wide dealer network After sales infrastructure for LD / MD Cost effective operations
To be recognised as the industry leader driving modernisation in commercial transportation in India and the Volvo demerged Eicher transferred its CV,developing Volvo Truck Indias world components and engineering
solutions businesses into VECV
Global expertise Leadership in product technology Good infrastructure facilities Well-defined processes and controls Brand image and customer relationships
14 12
VECV milestones
Dec 2007: Signing of Letter of intent May 2008: Signing of definitive agreements Jul Aug 2008: Commencement of JV Dec 2008: Volvo Board Visit Mar 2009: Launch of Quality Improvement CSI-1 Initiative April 2009: Inauguration of the new gear plant at Dewas Jan 2010: Launch of VE-series of Eicher HD trucks June 2010: Launch of MDE Project October 2010: Groundbreaking ceremony of MDEP plant site February 2012: Groundbreaking ceremony of Eicher Bus manufacturing plant site at Dhar, Madhya Pradesh
15 13
VECV Overview
16 14
100,000
including 11000 exports
80,000 60,000
17,500
16%
38181
inclusive of 2717 exports
36,400
35%
Best fuel economy Reliable products Superior service quality Safety and comfort setting industry standards
Culture incorporating best of Eicher values and Volvo Way Professionalism, honesty, people caring to attract best talents in industry
Long term operating margin target >8% over a business cycle Customer satisfaction to reach >80%
17 24
Moving forward...
FINANCIALS
18 29
EML Consolidated: Optimising returns on capital employed and effective cash management
Return on operating capital employed (%)
140 120 100 80 60 40 20 0 CY09 CY10 CY11
125.0
10.0
10.0
8.4 7.1
77.0 56.1
2.0
0.0 CY09 CY10 CY11
In INR Million
(563)
43,971 -800
10000 9250
11936 10347
8832
(1,289)
-1600 10,000
CY09 CY10 CY11
10000
7160 6090
CY09 CY10 CY11
(1,815)
-2000 7500
5500
19
THANK YOU
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