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[DEPARTMENT OF MECHANICAL ENGINEERING]

3-C REPORT

EICHER MOTORS LIMITED

Submitted by :-

AMIT SURENDRA YADAVMechanical Department.

IIIrd

Year/Vth

Sem./Sec.:- A.

Roll No.:- A-25.

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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

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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 CommercialVehicles 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 - 110048Delhi - IndiaPhone : 41437600Fax : 41437700

Corporate Office #96, Sector - 32Gurgaon - 122002Haryana - IndiaPhone : 6701700, 6701400, 4415600Fax : 6701671

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EICHER MOTORS LIMITED

Type Public

Traded as BSE: 505200, NSE: EICHERMOT

Industry Automotive

Founded 1948

Headquarters Gurgaon, India[1]

Key people Siddhartha Lal (CEO & MD)

Products Commercial vehicles, engines

Revenue 58.68 billion (US$900 million) (2012)

Net income 30.8 billion (US$470 million) (2012)

Employees 2500 (2012)

Website www.eicher.inBusiness Structure:

Eicher MotorsLtd.

Royal Enfield Motorcycles

(100%)

VE Commercial vehicles

(54.4%)

Commercial Vehicles

Engineering Components

Engineering design

http://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=505200http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=EICHERMOT&section=7http://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Gurgaon,_Indiahttp://en.wikipedia.org/wiki/Gurgaon,_Indiahttp://en.wikipedia.org/wiki/Gurgaon,_Indiahttp://en.wikipedia.org/w/index.php?title=Siddhartha_Lal&action=edit&redlink=1http://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/Engineshttp://en.wikipedia.org/wiki/Net_incomehttp://www.eicher.in/http://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://www.eicher.in/http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Engineshttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/w/index.php?title=Siddhartha_Lal&action=edit&redlink=1http://en.wikipedia.org/wiki/Gurgaon,_Indiahttp://en.wikipedia.org/wiki/Gurgaon,_Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=EICHERMOT&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=505200http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Public_company

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CORPORATE IDENTITY:

LOGO:

History:-

Eicher Motors is a commercial vehicle manufacturerin India. The company's origins date back to 1948, when GoodearthCompany was established for the distribution and service of importedtractors.In 1959 the Eicher Tractor Corporation of India Private Ltd. wasestablished, jointly with the Eicher tractor company, a German tractormanufacturer. In 1960 the first tractor produced in India was put on themarket. Since 1965 Eicher in India has been completely owned by Indianshareholders. The German Eicher tractor was partly owned by Massey-Ferguson from 1970, when they bought 30 percent. Massey-Ferguson

bought out the German company in 1973.

In 2005 Eicher Motors Ltd. sold their tractors andengines business to TAFE Tractors (Tractors And Farm Equipment Ltd) ofChennai, the Indian licencee of Massey Ferguson tractors.

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In October 1982 a collaboration agreement withMitsubishi for the manufacture of Light Commercial Vehicles was signed inTokyo and in the same period the incorporation of Eicher Motors Limitedalso took place. In February 1990, Eicher Goodearth bought 26% stake inEnfield India Ltd and by 1993 Eicher acquired a majority stake (60% equityshareholding) in Enfield India.

In July 2008, EML and Volvo Group's 50:50 jointventure VE Commercial Vehicles (VECV) designs, manufactures andmarkets reliable, fuel-efficient commercial vehicles of high quality andmodern technology, engineering components and provides engineeringdesign solutions VE Commercial Vehicles Ltd (VECV) envisions to drivemodernization 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 fullnew 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.

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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-80gear box, the optimized power and torque benefits come along with the High FuelEfficiency, stronger aggregates which offer high reliability and durability. The softsuspended Cabin offers higher driving comfort which means faster turnaround andmore 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,

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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 andsuspension, 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 butalso 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.

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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-housemanufactured gears and outsourced parts

Outsourced Products

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

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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 thelongest production run of any motorcycle having remained continuously in

production since 1932. The Bullet marque is the oldest in our family and the namesas 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 alongwith the headlamp casing adorning the tiger eyes pilot lamps signify the visualappeal. Packed with modern features now and still much in demand thismotorcycle is definitely here to stay.

The classic

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

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

The thunderbird

Is a cruiser style motorcycle first introduced in the year 2002 with an AVL leanburn engine and five-speed gearbox. It was designed exclusively for the Indianmarket and revolutionised how highway riding and leisure motorcycle shaped itselfin the country. The AVL Engine was later replaced by the Unit Constructionengine and in 2012 with the advent of the Thunderbird 500 this family matured upto become the flagship of the stable and redefine how Royal Enfield addresses theneeds of the enthusiasts and riders.

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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 testingfacilities

State of the art CED Paint Shop under commissioning

Extensive Supplier base with Strategic Ancillaries located around Indore

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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.

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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 ExecutiveDirector 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.

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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.

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JOB OPPORTUNITIES IN EML

Senior Manager Base EngineExpectations 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 ManagerExpectations 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.

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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 Skills4. Team spirit

5. Urge to take initiatives

6. Knowledge sharing.

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CAPITAL STRUCTURE

Capital Structure (Eicher Motors)

Period Instrument AuthorizedCapital

Issued Capital - P A I D U P -

From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital

2011 2012 Equity Share 30 27 27000983 10 27

2011 2011 Equity Share 30 26.99 26992583 10 26.99

2010 2010 Equity Share 30 26.94 26937783 10 26.94

2009 2009 Equity Share 30 12.66 12660119 10 12.66

2008 2008 Equity Share 30 28.09 28093950 10 28.09

2007 2008 Equity Share 30 28.09 28093950 10 28.09

2006 2007 Equity Share 30 28.09 28093950 10 28.09

2005 2006 Equity Share 30 28.09 28093950 10 28.09

2004 2005 Equity Share 30 28.09 28093950 10 28.09

2003 2004 Equity Share 30 20 19999200 10 20

2002 2003 Equity Share 30 20 19999200 10 20

2001 2002 Equity Share 30 20 19999200 10 20

2000 2001 Equity Share 30 20 19999200 10 20

1999 2000 Equity Share 30 20 19999200 10 20

1998 1999 Equity Share 30 20 19999200 10 20

1995 1998 Equity Share 30 20 19999200 10 20

1994 1995 Equity Share 30 20 19998700 10 201993 1994 Equity Share 30 20 19998700 10 20

1992 1993 Equity Share 20 10 10000000 10 10

1991 1992 Equity Share 20 10 10000000 10 10

1990 1991 Equity Share 14.5 10 10000000 10 10

1989 1990 Equity Share 14.5 10 10000000 10 10

1988 1989 Equity Share 14.5 10 10000000 10 10

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FINANCIAL ANALYSIS:

Key Financial Ratios of Eicher Motors

Dec '12 Dec '11 Dec '10 Dec '09

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00

Dividend Per Share 20.00 16.00 11.00 7.00

Operating Profit Per Share (Rs) 53.86 29.75 16.63 21.83

Net Operating Profit Per Share (Rs) 388.60 248.10 164.07 298.97

Free Reserves Per Share (Rs) -- 189.46 158.91 295.53

Bonus in Equity Capital -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 13.86 11.98 10.13 7.30

Profit Before Interest And Tax Margin(%) 11.71 9.36 7.09 4.29

Gross Profit Margin(%) 12.22 10.04 7.69 4.63

Cash Profit Margin(%) 14.78 15.29 14.27 11.71

Adjusted Cash Margin(%) 14.78 15.29 14.27 11.71

Net Profit Margin(%) 13.21 17.33 15.73 9.19

Adjusted Net Profit Margin(%) 13.21 17.33 15.73 9.19

Return On Capital Employed(%) 26.81 20.85 15.05 11.43

Return On Net Worth(%) 23.01 23.06 16.51 9.66

Adjusted Return on Net Worth(%) 23.01 17.93 12.61 9.71

Return on Assets Excluding Revaluations 232.97 200.07 169.53 306.85

Return on Assets Including Revaluations 232.97 200.07 169.53 306.85

Return on Long Term Funds(%) 27.67 21.37 15.52 12.10

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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 competitionfrom 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 goodssegment.

With Eicher Motors Ltd. planning to increase presence in the heavy goods

segment, it is likely to face intense competition.

Peer Comparison:

Peer comparison TATA motors Ashok Leyland Eicher motors

Net Sales (` Mn) 454,301.4 102,282.2 39,586.1

PBDIT (` Mn) 48,536.4 10,992.0 3,845.0

PBDITM % 10.7 10.7 9.7

Net Profit (` Mn) 18,355.2 5,557.3 2,314.1

NPM % 4.0 5.4 5.8

ROCE% 16.2 14.3 21.0

RONW% 15 11.5 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.

http://economictimes.indiatimes.com/Eicher%20Motors%20Ltd./stocks/companyid-12961.cmshttp://economictimes.indiatimes.com/Eicher%20Motors%20Ltd./stocks/companyid-12961.cms

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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 commandsmarket 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 addedfeatures, 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.

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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.