Additional investment plans to the tune of Rs 1,000 crores by end of next year are also planned and will include bus manufacturing facility and expansion of its current truck manufacturing plant as well.
The company will be producing Euro VI compliant engines from this new engine plant which has been set up with an initial investment of INR 375 crores with 25,000 engines being produced per annum in Phase I. A further investment by 2015 will see production capacity increase to 1 lakh units per annum with each of these engines being Euro Vi compliant to meet the requirements of medium duty engines. The company will also be supplying these engines to the Volvo plant at Venissieux, France.
The engines will be produced on same engine platform to be adapted for Euro III and Euro IV compliance so as to cater to the needs of VE Commercial Vehicle requirements and that of Volvo Group in Asia. These engine based on Volvo Group technologies are highly durable and reliable and VE Commercial Vehicles plan on using these engines in their existing range of trucks as well as in the new range which they plan on unveiling by end of this year.
Eicher Motors Limited announces H1/Q2 Results for CY 2013
~For H1 ending June 2013, total income from operations at Rs. 3394.2 crores, EBIT at Rs. 279.6 crores and PAT at Rs. 258.6 crores
~For Q2 ending June 30, 2013, total income from operations at Rs. 1669.9 crores, EBIT at Rs. 136.6 crores and PAT at Rs. 125.8 crores
Eicher Motors Limited today announced the unaudited consolidated financial results for the half year and second quarter ended June 30, 2013.
The Board of Directors at Eicher Motors Limited approved the results with the performance highlights as follows:
Eicher Motors Limited (EML) reported the following sales numbers and market share (MS) across both its divisions- Royal Enfield and EML’s 50:50 joint venture with the Volvo Group – VE Commercial Vehicles (VECV)
Commenting on VECV’s performance Mr Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “Despite the commercial vehicle industry continuing on its cyclical downward trend, VECV has outpaced the industry and improved its overall CV market share, particularly in the buses segment. We have sold 3331 buses in Q2 2013 registering a significant growth of 19.6% compared to 2784 units over same period last year.”
In Q2 2013, Eicher Motors Limited reported the best ever standalone quarterly total income from operations at Rs 381.8 crores, an increase of 49.7% over Rs. 255.1 crores in Q2 2012.
Concluding his remarks, Mr Siddhartha Lal, Managing Director & CEO, Eicher Motors Limited said, “At Eicher, our focus has always been on building a strong foundation that will prepare us for our long term strategic growth. We have recently started production at VECV’s Medium Duty Engine Plant (MDEP) at Pithampur, Madhya Pradesh. This is the most advanced engine manufacturing plant in India and possibly in the world. The plant has been set up with an initial capacity of 25,000 units per annum in Phase I, at an investment of Rs 375 crores. The capacity will be increased in a phased manner to 100,000 units per annum as per the market requirements with an additional investment of around Rs 125 crores. The MDEP plant will produce 5 and 8 litre Euro VI compliant base engines for Volvo’s global requirements. In addition, the same base engine will be used to produce the most advanced BS III & IV compliant engines for Eicher’s heavy duty trucks and buses for Indian and export markets. This engine platform gives us a distinct competitive advantage in the industry. Further starting end 2013 till 2015, VECV’s Eicher Trucks and Buses division (ETB) will be renewing its entire product portfolio by launching its new range of trucks and buses across light, medium and heavy duty. We continue to invest in all our strategic projects in VECV. By end of CY 2014, we would have invested Rs. 2500 crores since the creation of the joint venture in mid 2008.”