[DEPARTMENT OF MECHANICAL ENGINEERING]

3-C REPORT

EICHER MOTORS LIMITED

Submitted by :AMIT SURENDRA YADAV Mechanical Department. IIIrd Year/Vth Sem./Sec.:- A. Roll No.:- A-25.

Contents : Introduction Business structure Corporate identity History Products of Eicher motors
Trucks Buses Special purpose trucks Engineering components Non-automotive engines Royal Enfield Eicher engineering solutions

Product Development and Manufacturing Whos who in Eicher motors Ltd. Job Opportunities Capital Structure Financial Analysis Competitors Future Prospects SWOT analysis

INTRODUCTION:
Eicher Motors Limited (EML) is an Indian automaker company based in Gurgaon, India. Eicher Motors Limited, is the flagship company of the Eicher Group in India and a leading player of the Indian automobile industry. Its 50-50 joint venture with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient commercial vehicles of high quality and modern technology, engineering components and provides engineering design solutions. Eicher Motors also manufactures and markets the iconic Royal Enfield motorcycles that leads the premium motorcycle segment in India. The oldest motorcycle company in continuous existence, Royal Enfield has witnessed a huge surge in demand in the recent past; recording a growth of over 50% year on year for each of the last two years. EMLs 50:50 strategic joint venture with US based Polaris Industries Inc.
Head Office Eicher House, 12, Commercial Complex, Greater Kailash - II, (Masjid Moth) New Delhi - 110048 Delhi - India Phone : 41437600 Fax : 41437700

Corporate Office

#96, Sector - 32 Gurgaon - 122002 Haryana - India Phone : 6701700, 6701400, 4415600 Fax : 6701671

EICHER MOTORS LIMITED

Type Traded as Industry Founded Key people Products Revenue Net income Employees Website Public BSE: 505200, NSE: EICHERMOT Automotive 1948 Siddhartha Lal (CEO & MD) Commercial vehicles, engines 58.68 billion (US$900 million) (2012) 30.8 billion (US$470 million) (2012) 2500 (2012) www.eicher.in

Headquarters Gurgaon, India[1]

Business Structure:

Eicher Motors Ltd.

Royal Enfield Motorcycles (100%)
VE Commercial vehicles (54.4%)
Commercial Vehicles Engineering Components Engineering design

CORPORATE IDENTITY: LOGO:

History:Eicher Motors is a commercial vehicle manufacturer in India. The company's origins date back to 1948, when Goodearth Company was established for the distribution and service of imported tractors.In 1959 the Eicher Tractor Corporation of India Private Ltd. was established, jointly with the Eicher tractor company, a German tractor manufacturer. In 1960 the first tractor produced in India was put on the market. Since 1965 Eicher in India has been completely owned by Indian shareholders. The German Eicher tractor was partly owned by MasseyFerguson from 1970, when they bought 30 percent. Massey-Ferguson bought out the German company in 1973. In 2005 Eicher Motors Ltd. sold their tractors and engines business to TAFE Tractors (Tractors And Farm Equipment Ltd) of Chennai, the Indian licencee of Massey Ferguson tractors.

In October 1982 a collaboration agreement with Mitsubishi for the manufacture of Light Commercial Vehicles was signed in Tokyo and in the same period the incorporation of Eicher Motors Limited also took place. In February 1990, Eicher Goodearth bought 26% stake in Enfield India Ltd and by 1993 Eicher acquired a majority stake (60% equity shareholding) in Enfield India. In July 2008, EML and Volvo Group's 50:50 joint venture VE Commercial Vehicles (VECV) designs, manufactures and markets reliable, fuel-efficient commercial vehicles of high quality and modern technology, engineering components and provides engineering design solutions VE Commercial Vehicles Ltd (VECV) envisions to drive modernization in the CV Industry, in India and the developing world. In July 2012, EML and Polaris Industries Inc, USA announced a 50:50 joint to design, develop, manufacture and sell a full new range of personal vehicles.

Products of Eicher Motors:

Eicher trucks:
Eicher Trucks are built to deliver low Total Cost-of-Ownership. The Eicher haulage trucks range includes the E2 Plus series of 5T-14T Light & Medium Duty Trucks (LMD) - tagged as Mileage Ka Badshah and VE Series of Fuel efficient Heavy Duty Trucks (HD) of 16T-40T. Designed for superior performance with better fuel economy, higher rated payload and faster turnaround these trucks have low operating cost and, high reliability leading to higher profits.

Eicher Terra series of 16T & 25T offer enhanced value to customers in areas which are critical to a tipper operating economics. The USP of Eicher Tippers is their better uptime and pulling power, stronger aggregates, and the ability to run more number of trips. Terra tippers offer enhanced benefits which accrues from the results of extensive research done by the company in the market understanding of the usage pattern and various duty cycle of its operation.

Eicher 40.40 (Articulated Tractor) from the VE series is built to Deliver More! Fitted with Cummins Engine of 132.5 Kw, Max Torque of 650 Nm and the ET-80 gear box, the optimized power and torque benefits come along with the High Fuel Efficiency, stronger aggregates which offer high reliability and durability. The soft suspended Cabin offers higher driving comfort which means faster turnaround and more trips leading to higher revenues.

Eicher buses:
The latest offering from Eicher -Skyline LIMO - AC Bus for the Tourist Segment. Eicher Skyline has established new bechmarks in the Bus Industry. Aesthetic superiority, high passenger comfort & Economical performance have made this bus class apart. With a new offering in the 7.5 ton category with Direct drive AC and Push Back seats, Eicher Skyline LIMO is all set to redefine the travel for the the Tourist Segment.

Eicher introduced SKYLINE - The First Safe School Bus in India, developed in association with IRTE (Institute of Road Traffic Education) in the year 1996,

thereby pioneering the concept of School Bus. The school bus specific features have now become a norm in the industry. Apart from being safest the popular Skyline school bus is now available in enhanced features, superior aesthetics & increased passenger comfort.

Eicher Skyline has made staff commutation as comfortable as it can be. Aesthetic superiority, high passenger comfort & Economical performance has made this bus class apart. The faith of customers & industry is reflected with the fact that Skyline Executive was awarded with CV-Apollo Award 2010 for LCV" Bus of the year. Eichers philosophy has always been to provide a perfect platform for a perfect bus. In this endeavour Eicher offers a wide range of chassis suitable for the various applications. Eicher bus chassis consists of an assembly of all the essential parts like engine, transmission, driveshaft, differential and suspension, but without the bus body.

Eicher special application trucks:

Eicher Ambulance is a state of art van with all facilities pertaining for an emergency medical vehicle. Vehicle is equipped with on board equipments not just for safe and swift transfer of patients but also for providing emergency medical aid. Eicher MS container options are unique with respect to fine engineering design and flexibility requirements. Engineered design, Fine workmen-ship and rugged but light in weight are few features of Eicher containers offered with 18 months of warranty on container.

Low operating cost, efficient and durable water tankers. Fully built Water Tankers options available in 3.5 KL, 5KL, 6KL & 9KL.

Non-automotive engines:
Eicher Agro engines stand for - low fuel consumption, reliability, and value for money. Agro engines with their features like low vibration, low noise, good cooling effect and strong power have particularly been made for Harvester Applications. The Genset Application engines are low on noise, vibrations and maintenance, and deliver superior power in all load conditions. Eicher engines have better fuel economy, easy service and spares availability. We give a warranty of 2 years or 2500 hrs. on our engines from the date of sale.

Eicher Marine engines undergo a 15 point inspection to ensure quality, reliability and durability. Our Marine engines are environment friendly, energy & fuel saving engines with a new design concept. Our engines come with the advantages of compact structure, Optimum dynamic and economic performance, and high reliability. Its best for fresh water, transportation, fishery etc.

 Eicher engineering components:

In-house Products

Manufacturing a varied range in its state-of-the-art plants spread across the country, Eicher produces the finest automotive components in the industry.

Gearbox Assemblies EEC specializes in providing high quality gearboxes by assembling in-house manufactured gears and outsourced parts

Outsourced Products EEC provides a complete range of customer-centric critical components that are supplied by its trusted partners after a stringent quality inspection.

 Royal Enfield:
Eicher Motors also manufactures and markets the iconic Royal Enfield motorcycles that leads the premium motorcycle segment in India. The oldest motorcycle company in continuous existence, Royal Enfield has witnessed a huge surge in demand in the recent past; recording a growth of over 50% year on year for each of the last two years.

The bullet Starting off as a unique British overhead valve single cylinder design boasts of the longest production run of any motorcycle having remained continuously in production since 1932. The Bullet marque is the oldest in our family and the names as its evident derives from the company's links with the Royal Small Arms Factory in Enfield, London. Its unique hand-painted pinstripes and bold black tank along with the headlamp casing adorning the tiger eyes pilot lamps signify the vi sual appeal. Packed with modern features now and still much in demand this motorcycle is definitely here to stay.

The classic The power, the fuel efficiency, the reliability and simple, yet drop dead gorgeous classic styling. The classic turns heads not because it wants to but because it cant

help it. You will appreciate the beat not just for the music it creates but also for the muted feeling of strength and power that it signifies. The Classic Battle Green and Desert Storm comes to you with a paint scheme reminiscent of the War era, a time when Royal Enfield motorcycles proved their capabilities and battle worthiness by impeccable service to soldiers.

The thunderbird Is a cruiser style motorcycle first introduced in the year 2002 with an AVL lean burn engine and five-speed gearbox. It was designed exclusively for the Indian market and revolutionised how highway riding and leisure motorcycle shaped itself in the country. The AVL Engine was later replaced by the Unit Construction engine and in 2012 with the advent of the Thunderbird 500 this family matured up to become the flagship of the stable and redefine how Royal Enfield addresses the needs of the enthusiasts and riders.

 Eicher engineering silutions

Annual turnover of 581 MINR / 83 MSEK in 2011 Comprehensive product development services - Class A surfacing, CAD, CAE, prototyping, etc. Supplying to Global Clients such as JCB, TEREX, Navistar, GM, Nissan etc besides in-house Eicher requirements .

Product Development and Manufacturing

Product Development spend is 2.0~2.5% of the Turnover PD Manpower of 300 in 2011 will be going up to 450 by 2012 HD Platform indigenously developed at very low cost. End End product development capability Fully Equipped Engine, Transmission & Vehicle Development Center Cab weld shop with robotic welding and integrated testing facilities State of the art CED Paint Shop under commissioning Extensive Supplier base with Strategic Ancillaries located around Indore

 Whos who in Eicher motors Ltd.

Siddhartha Lal: MD and CEO
Siddhartha Lal is Managing Director & CEO of Eicher Motors Ltd., the flagship listed company of the Eicher Group in India. From July 2008 to July 2010, Siddhartha also took charge as CEO of VE Commercial Vehicles (VECV), a newly formed 50:50 joint venture between Volvo group and Eicher Motors Ltd. (EML). VECV is the third largest Commercial Vehicles (CV) player in India and has ambitions to drive modernization in commercial transportation and becoming a leading trucks and buses company in India and emerging world markets. During 2000-2004, in his tenure as CEO of motorcycle manufacturer Royal Enfield (a division of EML), Siddhartha helped revive the companys fortunes and also strengthened stakeholders involvement with the brand

S.Sandilya: CHAIRMAN
Mr. S. Sandilya is the Chairman of the Eicher Group. He is a Commerce Graduate from the Chennai University and an MBA from the Indian Institute of Management, Ahmedabad (1969). Mr. Sandiliya moved to Eicher Group Headquarters in 1998. In addition to being Managing Director of Eicher Motors Ltd., he was in charge of Group Finance, Strategic Planning, Audit and Information Technology.

He was appointed Vice Chairman of Eicher Group in October 1999 and subsequently Group Chairman and CEO in April 2000.

M.J.Subbaiah: Independent Director

Mr. M. J. Subbaiah is an Independent and Non-Executive Director w.e.f April 27, 2009 on the board of Eicher Motors Ltd. He is chairman of the Audit Committee of the board. He has vast experience of over 30 years in financial services industry. He started his career in State Bank of India and was Dy. General Manager there before moving to Shipping Credit and Investment Corporation of India (SCICI) as Executive Director on the board. SCICI merged with ICICI, where he was Senior General Manager. Mr. Subbaiah has served as nominee director of ICICI Bank on the boards of Usha Martin Ltd. and Jaiprakash Associates Ltd. where he was a member of the Audit Committee and Chairman of the Compensation Committee.

Priya Brat: Independent Director

Mr. Priya Brat is an Independent and Non-Executive Director on the Board of Eicher Motors Ltd. w.e.f. July 23, 2001. He is also Chairman of the Shareholders and Investors Grievance Committees of EML and Chairman of Audit Committee and Remuneration Committee of Dhanuka Agritech Ltd. Mr. Priya Brat also served as a Director on the Board of erstwhile Eicher Ltd. (EL), as Chairman of the Shareholders and Investors Grievance Committees and as a member of the Audit Committees of EL.

 R.L.Ravichandran: Executive Director

Mr. R L Ravichandran is Executive Director of Eicher Motors Ltd.Mr. Ravichandran has real time "hands-on" experience in understanding customers brand perceptions and has created some of the outstanding communication tools in mass media. Since 2005, he has taken up the responsibility as CEO of Royal Enfield (RE). Besides being a Bullet-enthusiast and rider himself he has arrived with a dream of making his "First Love" - "The Royal Enfield Bullets" into a multimillion dollar brand from India. From January 2011, he has been elevated to the rank of E.D. and he will also be in the Board of EML with the specific task of guiding RE into the Global Arena in terms of Brand and business strategy.

Prateek Jalan: Independent Director

Mr. Prateek Jalan is a law graduate from Trinity College, University of Cambridge and subsequently he did Master of Laws from the University of Michigan School of Law, Ann Arbor, U.S.A. Mr. Jalan is professionally associated with Supreme Court Bar Association, New Delhi, Delhi High Court Bar Association, New Delhi and the Bar Library Club, Calcutta High Court.

He is serving as a Director on the Board of Eicher Motors Ltd. (EML), VE Commercial Vehicles Ltd. and Associated Advisory Services Private Ltd. He is also a member of the Audit Committee of EML.

 JOB OPPORTUNITIES IN EML

Senior Manager Base Engine
Expectations of EML:
1.Worked in the area of Diesel Engine Design preferable commercial vehicle 2.Leadership: Should have lead some engine project or some CFT 3.Core knowledge in the area of Base Engine Design including 5C Components 4.Basic knowledge of Electrical and Electronic systems related to Engines; Understanding of EMS system 5.Project Management involving internal resources and suppliers 6.Good knowledge of Emission standards and regulations and their implication; Knowledge of After treatment systems 7.Knowledge of Engine Simulation & Analysis tools and Hands on experience of working on one of them. 8. 10-15 years experience.

Deputy Manager
Expectations of EML:
1. Worked in the area of suspension design, automotive domain preferably in commercial vehicles. 2. Knowledge in the area of vehicle dynamics & suspension geometry. 3. Good understanding of Suspension requirements for vehicle. 4. Knowledge of Pro-E & PDM link (Wind chill). 5. 4 years experience.

 Assistant Manager
Expectations of EML:
1.Experience in design of Sheet metal components preferably cabin design. 2.Good knowledge of mechanical design aspects & Sheet metal design. 3.Good knowledge of Sheet metal materials & their properties. 4.Good knowledge about pressing & welding processes and standards. 5.Basic knowledge about Cab regulations in India & other countries. 6.Ability to generate the concept & criteria sections based on benchmarking, 7.Carryover item or hand sketches. 8.Experience in BIW panels & assembly design of Passenger car/Truck. 9.Capable of creating manufacturing drawings for components & assemblies. 10.Capable of handling BOM generation & releases 11.Experience & fully capable in CATIA V5 (Modeling, Surfacing, Asm, drafting) 12.Basic working capability in PRO-E creo.

Manager-Technical Support (QAG)

Expectations of EML:
1. Excellent Technical knowledge relating to commercial vehicles.

2. Analytical skills 3. Diagnostic Skills 4. Team spirit 5. Urge to take initiatives 6. Knowledge sharing.

 CAPITAL STRUCTURE

Capital Structure (Eicher Motors) Period From 2011 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1995 1994 1993 1992 1991 1990 1989 1988 To 2012 2011 2010 2009 2008 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1995 1994 1993 1992 1991 1990 1989 Instrument Authorized Capital
(Rs. cr)

Issued Capital
(Rs. cr)

-PAIDUPShares (nos) 27000983 26992583 26937783 12660119 28093950 28093950 28093950 28093950 28093950 19999200 19999200 19999200 19999200 19999200 19999200 19999200 19998700 19998700 10000000 10000000 10000000 10000000 10000000 Face Value 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 Capital 27 26.99 26.94 12.66 28.09 28.09 28.09 28.09 28.09 20 20 20 20 20 20 20 20 20 10 10 10 10 10

Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share

30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 20 20 14.5 14.5 14.5

27 26.99 26.94 12.66 28.09 28.09 28.09 28.09 28.09 20 20 20 20 20 20 20 20 20 10 10 10 10 10

 FINANCIAL ANALYSIS:
Key Financial Ratios of Eicher Motors Dec '12 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) 13.86 11.71 12.22 14.78 14.78 13.21 13.21 26.81 23.01 23.01 232.97 232.97 27.67 11.98 9.36 10.04 15.29 15.29 17.33 17.33 20.85 23.06 17.93 200.07 200.07 21.37 10.13 7.09 7.69 14.27 14.27 15.73 15.73 15.05 16.51 12.61 169.53 169.53 15.52 7.30 4.29 4.63 11.71 11.71 9.19 9.19 11.43 9.66 9.71 306.85 306.85 12.10 10.00 20.00 53.86 388.60 --10.00 16.00 29.75 248.10 189.46 -10.00 11.00 16.63 164.07 158.91 -10.00 7.00 21.83 298.97 295.53 -Dec '11 Dec '10 Dec '09

 COMPETITORS:
The competitors of Eicher Motors Ltd.(ECM) are: 1.Ashok Leyland Ltd. 2.Force Motors Ltd. 3. SML Isuzu Ltd. 4.Tata Motors Ltd.
Eicher Motors Ltd. is facing competition from existing players like Tata Motors, Swaraj Mazda and Ashok Leyland in the ICV segment. Players like Asia Motor Works; Daimler and Mahindra have entered into the heavy-duty segment. Further Mercedes, Kammaz have planned entry into the heavy-duty goods segment. With Eicher Motors Ltd. planning to increase presence in the heavy goods segment, it is likely to face intense competition.

Peer Comparison:
Peer comparison Net Sales (` Mn) PBDIT (` Mn) PBDITM % Net Profit (` Mn) NPM % ROCE% RONW%

TATA motors
454,301.4 48,536.4 10.7 18,355.2 4.0 16.2 15

Ashok Leyland
102,282.2 10,992.0 10.7 5,557.3 5.4 14.3 11.5

Eicher motors
39,586.1 3,845.0 9.7 2,314.1 5.8 21.0 15.3

Tata Motors is market leader in the commercial vehicle industry with presence across the segments. It commands overall market share of about 60%. It also has the support of the captive financing arm Tata Motors Finance, which acts as an added advantage for the company.

 Ashok Leyland commands market share of ~12% of the overall industry. Ashok Leyland is primarily present in the medium and the heavy duty commercial vehicle market (above 12 tonnes). EML is present primarily in the medium commercial market and commands market share of roughly 6%. In partnership with Volvo,the company is planning to increase presence in the heavy duty goods segment. Although Ashok Leyland and ECM have been in the industry for long time, their market share is limited due to minimal presence in the fast growing LCV goods segment

FUTURE

PROSPECTS:

The Indian motorcycle industry slowed down in year 2012. However, the company's Royal Enfield unit continued its growth trend in 2012. The exciting variants of classic models such as desert storm and chrome have expanded the consumer base that look for distinctive style and leisure riding. The New Thunderbird 500 and Thunderbird 350, positioned for long distance riding with value added features, are attracting a wider section of followers and very effective media launches have generated a healthy order book and brand recall. With the market evolving towards motorcycling and leisure riding activities, this growth trend is likely to continue. The company is carrying a very healthy order book for execution in coming years as well. In order to augment the production for growing market demand, the company has acquired 50 acres of land for construction of its new manufacturing facility at Oragadam, Chennai, Tamil Nadu. This will enhance Royal Enfields annual production capacity to 150,000 units.

SWOT Analysis

Strengths :
One of the leading manufacturers having established brand and extensive dealer network Tie up with Volvo would enhance presence in CV market Sufficient Cash on balance sheet for funding.

Weakness:
Minimal presence in the fast growing LCV goods segment Having manufacturing presence in only one location Lack of captive financing

Opportunities:
Use of Volvo overseas network to boost exports Increased sourcing by Volvo from VECV (e.g. engines) Increasing share of road in freight movement

Threats :
Intense competition from existing players Global players entering the market would further aggravate competition.