Royal Enfield and Volvo Eicher to be the two businesses Eicher Motors' focus
This report in MoneyControl says that Eicher Motors MD and CEO Siddartha Lal has clarified that even as the company winds up Eicher Polaris Pvt Ltd (EEPL), it isn't looking for new verticals to expand its business. EEPL was a joint venture with America's Polaris that developed and sold the Multix. Unfortunately, low traction led to the announcement in March that EEPL would be wound up and the joint venture dissolved.
Eicher Motors has a profitable presence in the commercial vehicle market through its 50:50 joint venture with Volvo - VECV, Volvo Eicher Commercial Vehicles. MoneyControl quotes Siddartha Lal saying, "We are aboslutely [sic] 100 percent focussed on motorcycles, nothing else...Other than motorcycles we don't have any intention to get into any other vertical,"
As you know, Royal Enfield has done exceedingly well in India in the recent few years and is currently on a strong drive to expand into new markets with the aim of becoming the world's largest middleweight motorcycle maker.
TheMoneyControl article further quotes Lal saying that the Eicher Motors group saying that outside of Royal Enfield, VECV is the sole other business and that Eicher Motors is not open to anything else.
Lal also revealed that Eicher Motors is currently working towards wholly-owned subsidiaries in Thailand and Indonesia. The company says the traction for its motorcycles has been good and a marketing company is the first step to capitalising on the warm reception the Royal Enfields have received. Lal said Royal Enfield is also considering the option for contract manufacturing in those two markets at a later stage.
Royal Enfield is now represented by 540 dealers in 50 countries. The company intends to spend Rs 800 Crore this fiscal, and that includes the second phase of the new Vallam Vadgal motorcycle factory, the company's third manufacturing facility. The original plant is at Tiruvottiyur, Chennai while the second one is at Oragadam, outside Chennai. The capital expenditure also includes the continuing construction of the Chennai technical centre as well as new product development.
Royal Enfield is gearing up to launch its new 650 Twin-powered Interceptor and Continental GT motorcycles in India and outside.
