Presentation on theme: "Eicher Motors Limited Global Fund Managers Meet Singapore& Hong Kong August 2005 Organised by ICICI Securities."— Presentation transcript:
Eicher Motors Limited Global Fund Managers Meet Singapore& Hong Kong August 2005 Organised by ICICI Securities
Eicher Motors Limited Presentation Agenda Eicher Group Business Portfolio Industry Outlook, Opportunities and EML Performance. Product range Financials FY 05 Significant events in FY 05
Eicher Motors Limited Business Portfolio Today A diversified business group with sales of over Rs. 20 bn ($ 450 m) engaged in : Commercial Vehicles Motorcycles Automotive Gears and Components. Engineering Solutions Global Sourcing Merchant Exports Maps and Guides Management Consulting Eicher Motors Ltd also has a wholly owned subsidiary Design Intent Engineering in Michigan, US. This company specializes in surface modeling for Engineering solutions and provides computer aided design services to tier1 and tier 2 OEMs.
Eicher Motors Limited Facilities Today 3 manufacturing facilities –vendor base of 400 –2350 Workforce. 7 Regional marketing offices in India –300 strong dealer network 3 International marketing offices
Eicher Motors Limited Automotive Businesses
Eicher Motors Limited Commercial Vehicles Established in 1986 in collaboration with Mitsubishi Motors Japan and one of the leading manufacturers of commercial vehicles in India. Product range includes 5ton, 7 ton, 9 ton, 11 ton, 16 ton & 25 ton GVW categories trucks ; bus range includes City buses, School bus, luxury coach Ready-To-Use application vehicles - Around 85 RTU built vehicles to suit a diverse range of applications. Manufacturing plant equipped with state-of-art facilities Stringent quality control norms - practices like Kaizen, Just-in-time, TQM and TQC etc.
Eicher Motors Limited Motorcycles- Royal Enfield Has a rich heritage of around 50 years in the Indian motorcycle industry. The only British bike manufactured anywhere in the world. Product range includes : The Bullet 350cc; The Bullet 500cc; The Bullet Machismo; The Thunderbird; The 2004 Electra Plant capacity to manufacture 32,000 bikes per annum. DET NORKSKE VERITAS Quality Management System Certificate awarded to Royal Enfield Motors Limited
Eicher Motors Limited Set up in 1964, in technical collaboration with Fratelli Daldi & Mattueucci of Italy Product range includes : Spiral & Hypoid gears ; Straight bevel gears ; Spur & Helical gears ; Camshafts ; Precision Machined components ; Machined housings Bagged National Productivity Council Awards Plant certified for QS 9000 since 1998 Gears & Components - Eicher Demm
Eicher Motors Limited Uniquely poised with its experience in the automotive area to ideate, design and deliver virtual and physical prototypes and products. Offers a wide spectrum of services in the area of CAD, CAM, CAE, PDM and Customization. Delivers turnkey projects on design and development, providing high quality, rapid time-to-market solutions. Executes engineering projects and is capable of delivering solutions to automotive, aerospace, heavy engineering, consumer durables, power generation and other segments Provides end to end solutions from design to sourcing Eicher Engineering Solutions
Eicher Motors Limited Maps & Travel Guides Set up as part of Eichers corporate initiatives Maps and guides compiled by a team of professionals considered best in their field Maps currently cover Delhi, Mumbai, Chennai, Bangalore and Kolkata. Travel Guides include guides on : Delhi, Sikkim, Varanasi, Hampi, Buddhist pilgrimages in India and World Cultural Heritage sites in India.
Eicher Motors Limited Digital Mapping & GIS Solutions The division was formalised in Dec 2000, with the Ministry of Defence, Government of India, according approval to Eicher for licensing the digital maps of Delhi and satellite towns. Provides solutions in the areas of : – Spatial Data – E-Mapper – E-Router – GIS applications – Web GIS Offers GIS products and services that cater to a wide spectrum of applications in the corporate, and in the infrastructure development segments
Eicher Motors Limited Management Consulting Formed in 1991 A 50 : 50 Joint Venture between Eicher & Strategic Decisions Group of USA Uniquely positioned in terms of: –Collaborative Consulting –Knowledge of Indian Market –Service –International Standards Practice Areas : HR & Change Management ; Strategy ; Operations, Quality Management incl. 6 Sigma, Supply Chain, Full Value Sourcing etc.
Eicher Motors Limited Implemented SAP in most of its Business units. Eichers SAP Solutions Group (SSG) is Indias first (sixth in Asia Pacific) SAP certified Customer Competence Centre Business Today- One of the 13 Best Managed Companies- Feb 2005 Outlook Money- Best Mid- Cap company- Feb 2004 Successfully deployed several collaborative software tools for its various processes across locations for faster turnaround time for products, services and speedier functions. Winner of the Seagate Intelligent Enterprise Award and NASSCOM* IT User Award 2004 EICHER GROUP- Awards SAP Certificate Seagate Award Nasscom IT User Award * National Association of Software and Service Companies
Eicher Motors Limited Industry Outlook and Opportunities
Eicher Motors Limited CV Market The Markets in which we operate in India Trucks & Buses –Large market : 350,000 units p.a. –High long term growth potential as investments in highway and road infrastructure are made and the GDP 5-7% p.a. –6 local and 2 global players (Volvo and Tatra) –Range from 1 ton to 40 ton Gross Vehicle Weight –Eicher – strong presence in the light and medium truck / bus (7- 11 Ton) segment and has a market share of 30%. –Recently made an entry into the heavy (> 16 T GVW) truck & bus segments.
Eicher Motors Limited Motorcycle Market The Markets in which we operate in India Motorcycles –Second Largest 2 -wheeler auto market in the world : 4 million motorcycles, scooters and mopeds p.a. –Motorcycles account for two-thirds (2.64 million) and growing at over 25% p.a. –3 global players (Honda, Yamaha & Suzuki) and 5 local players (3 in part alliance with Kawasaki, Hyosung & Daelim). –Range from 100 cc to 350 cc –Eicher present in the top end niche of power bikes with its well known Royal Enfield brand.
Eicher Motors Limited COMMERCIAL VEHICLE INDUSTRY GROWTH
Eicher Motors Limited INDUSTRY CHALLENGES
Eicher Motors -CV Growth
Eicher Motors Limited EICHER MOTORS % GROWTH AS COMPARED TO INDUSTRY
Eicher Motors Limited
Industry growth Rapid growth in 7-11T Passenger segment to boom Shift from 16T to 25T Rapid growth in 7-11T Passenger segment to boom Shift from 16T to 25T EML's product strength Reputation for higher quality / better economics Good response to HCV -speed advantage to benefit from road infrastructure Strong in 7-11T Reputation for higher quality / better economics Good response to HCV -speed advantage to benefit from road infrastructure Strong in 7-11T Discontinuity in market Emission norms would force upgrade Overloading likely to go Built up trucks and buses to become the norm Increasing focus on life cycle economics Emission norms would force upgrade Overloading likely to go Built up trucks and buses to become the norm Increasing focus on life cycle economics Growth in 7-11T Opportunity in new segments HCV, Passenger Global opportunity Global norms met Growth in 7-11T Opportunity in new segments HCV, Passenger Global opportunity Global norms met FUTURE OPPORTUNITY IN MARKET –OUR POSITION
Eicher Motors Limited Customer engagement enhancement workshops conducted at dealerships. Fleet Management Software available. Works manager conference regularly held across locations. Over 900 ASP and 4000 trained mechanics across India MARKET INITIATIVES
Eicher Motors Limited Improvement in customer and dealer engagement levels. Reach the Customers – Target Fastest Service Response Vehicle Delivery Quality enhancement Nurturing Trained Private Mechanics through Dealership Salesmen MARKET INITIATIVES
Eicher Motors Limited
Eicher Motors Limited Commercial Vehicles Our product range : Some of our Trucks Eicher 10.50Eicher Eicher Eicher Eicher 11.10Eicher 20.16
Eicher Motors Limited Some of our international offerings Eicher Ton GVW Eicher Ton GVW Eicher / G 7 / 6 Ton GVW Eicher Ton GVW Commercial Vehicles
Eicher Motors Limited Passenger Buses Cruiser Skyline Skyline CNG Our product range : Buses School Bus
Eicher Motors Limited Royal Enfield Our product range : Motorcycles Bullet 350cc Bullet Machismo Bullet 500 Thunderbird The 2004 Electra
Eicher Motors Limited GROWTH IN SALES OVER THE YEARS DATA REGROUPED
Eicher Motors Limited MAJOR EVENTS IN EML During Q1 of FY 06 the Tractors, Gears and Engine Division were sold on slump basis to TAFE Motors and Tractors ltd at a consideration of Rs 310 crs. The net profit on this sale was Rs crs. EML during Q1 acquired 100% of the shares of Design Intent Engineering Inc,USA. This company is engaged in the business of providing computer aided engineering and design services to tier 1 and 2 suppliers of OEMs.