Eicher as an emerging market brand and pointed out that it has doubled market share in last five years since this JV in 2008, says MD & CEO Siddharth Lal.
"We aim to increase our market share in the medium-duty trucks segment to over 15 percent" Siddharth Lal MD & CEO Eicher Motors
otors Eicher Motors plans to invest Rs 700 crore in the next 12-18 months as part of their joint venture (JV) with Swedish company Volvo. MD & CEO Siddharth Lal told CNBC-TV18 that the company has invested heavily in new products, including new engines and is currently focussing on new parts distribution centre. VE Commercial Vehicles Limited (VECV) is a 50-50 joint venture between the Volvo Group and Eicher Motors Limited, which is in operation since July 2008. Recently, the company unveiled 11 new products, both trucks and buses, in "Eicher Pro" series.
Lal said Volvo is positioning Eicher as an emerging market brand and pointed out that it has doubled market share in last five years since this JV in 2008. The company has invested a total of Rs 1,800 crore at its Pithampur facility in Madhya Pradesh and plans to manufacture 100,000 trucks and buses from that unit. Eicher Motors’ market share in the medium-duty trucks segment is at 14 percent and it aims to increase to over 15 percent.
At 12:39 hrs Eicher Motors was quoting at Rs 4,987.00, down Rs 154.70, or 3.01 percent. However, in the last three months, the stock has rallied from around Rs 3,200 to nearly Rs 5,000.
Also Read: Mkt share at 12.9%; Q3 best-ever for Enfield, says Eicher Motors Below is the verbatim transcript of Siddharth Lal's interview on CNBC-TV18
Q: Tell us more about for JV with Volvo and future plans?
A: We have been in joint venture with Volvo for five years now. The basic thing in the five year has been to set the foundation. We have had manufacturing quality improvements which is absolutely world class. We have 474 excellent distribution points, plus 300 drive-in points, plus container workshops, so we have set the foundation for a trucking company to the right stage and now on top of that base we are brining out this full new series of trucks and buses, what we call as the pro-series that is because we believe that from heavy duty in particular where India was more amateurish, where the customers were used to a product and a service which was not so good - we want to take it to a stage where it is totally professional. The range of trucks and buses that you are seeing behind me are absolutely top notch and these trucks and buses along with our manufacturing, commercial and aftermarket system, when you put them together this is nothing short of a revolution for Indian trucking and this is what we believe is going to be the future of trucking in India.
Q: We have also seen new plant which is completely overhauled. Lots of new technology is being brought in and you have completely revamped product line-up now. Could you give us an idea of what kind of investments have been placed and what are the future investments, both near and distant?
A: Since the advent of the joint venture in 2008 we have made investments to the tune of Rs 1,800 crore up to now and additionally within another 12-18 months there should be another Rs 700 crore. So the total investment that we would have made over the six years from the start of the JV is going to be around Rs 2,500 crore. We have really got use out of every single rupee that we have invested. We have made sure that the investments have gone in extremely wisely. So it is a single plant location that we have got which is going to eventually make 100,000 trucks and buses out of there. That is our first starting point. It is top of the line world class plant.