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INTRODUCTION
COMPANY PROFILE
VE Commercial Vehicles Limited (VECV) is a 50-50 joint venture between the Volvo Group (Volvo) and Eicher Motors Limited (EML). It is a partnership that brings together Global leadership in technology, quality, safety & environmental care along with the deep knowledge and understanding of the Indian commercial vehicle(CV) market. The VE commercial Vehicles Ltd. (VECV) owes its inception to the compelling intent of driving modernization in commercial transportation,in india and other developing markets.
Eicher strengths-
• Leadership in LD/MD segments
• Specialist skills and experience in developing low cost,better performance products
• Wide dealer of network
• After sales infrastructure for LD/MD
• Cost effective operations
Volvo strengths-
• Global expertise
• Leadership on product technology
• Well-defined process and controls
• Brand image and customer relationships
HISTORY
EICHER
Eicher Motors Limited (EML) is the flagship company of the Eicher Group, which was a catalyst in the green revolution in India with the production of India’s first agricultural tractor in 1959. EML is now a leading player in the Indian automotive space. It owns the iconic Royal Enfield motorcycle business, which leads the premium motorcycle segment in India. The oldest motorcycle company in continuous production world-wide, Royal Enfield has witnessed a huge surge in demand in the recent past, and is charting its course to be the leading player in the mid-size motorcycle segment globally. EML’s joint venture with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel-efficient trucks and buses; and is leading the path in driving modernization in commercial transportation in India and other developing markets. EML’s 50:50 strategic joint venture with US based Polaris Industries Inc., Eicher Polaris Private Ltd. is in start-up phase, and is currently designing and developing, and will soon manufacture and sell a full new range of personal vehicles. In 2014, Eicher Motors recorded its highest ever total income of INR 8738 crores (USD 1.4 billion) and is listed on the Bombay and National Stock Exchanges.
VOLVO
Volvo Buses has been in India for 10 years and has the richest experience when it comes to high-performing bus applications. This, coupled with its state-of-the-art factory and overall profile of being a complete transport solutions provider, gives it a unique ability to be in the best position to understand the needs of the Indian market and configure products accordingly.
Volvo’s plant at Hosakote, Bangalore is one-of-its-kind facility which has incorporated the best practices from the Volvo Bus Corporation plants in Mexico, Poland and Finland. With over seven decades of experience, Volvo Buses have globally developed the principles of bus building. This includes:
- Methods and Processes for bus body building
- Training of people on specialized skills
- Production management that incorporates Visual Management, 5 S Processes, Safety and Ergonomic Work Environment
- Material handling practices
The success story of Volvo Buses in India would not have been possible without the support of customers over the last 10 years. From the latest global concepts to class-defining technologies – at each stage we took the initiative to incorporate technology that enhanced the quality of life for scores of passengers in India keeping in mind their expectations of comfort, safety and luxury.
Today, the Volvo intercity coaches traverse all major routes in India. In the city bus segment, Volvo buses operate across 12 cities in India. Volvo Buses in India also exports to South Africa, Bangladesh and Sri Lanka. At present, there are about 5,000 Volvo buses operating in the SAARC region, both in the city and inter-city segments.
The company recently unveiled its New Range of Buses. With this Volvo has become the only bus manufacturer in India with the largest range of high-performing buses comprising 10 models and variants. Customers now have the Power of Choice in high-performing buses like never before.
TIE UP
VE COMMERCIAL VEHICLES
VE Commercial Vehicles Limited is a joint venture between the Volvo Group (Volvo) and Eicher Motors Limited (EML). It is a partnership that brings together Global leadership in technology, quality, safety and environmental care, along with the deep knowledge and understanding of the Indian Commercial Vehicle (CV) market. VE Commercial Vehicles Limited. (VECV) owes its inception to the compelling intent of driving modernization in commercial transportation, in India and other developing markets.
BUSINESS AREA
Operational since July 2008, VE Commercial Vehicles Ltd. (VECV) comprises of five business verticals – Eicher Trucks and Buses, Volvo Trucks India, Eicher Engineering Components and VE Powertrain. VECV includes the complete range of Eicher's commercial vehicles, components and engineering design businesses as well as the sales and distribution of Volvo trucks. Each of its 'business units is already well established and backed by a sizable customer base.
EICHER TRUCKS AND BUSES
ETB, completed 29 years of operations in India in the month of June. Eicher Trucks and Buses (ETB) is present in the L/MD segment with a strong presence in the 5T-49T truck segment and 15-65 seater buses. Eicher unveiled its entire new range of future generation trucks and buses at an impressive product reveal function in Pithampur on December 2, 2013. The all new product range has been named the “Eicher Pro’’ series. Adopting the most professional and holistic approach to modernise the Indian trucking industry, the new brand philosophy is to “Go Pro”. Eicher’s new Pro series trucks and buses promise to deliver best-in-class fuel efficiency, higher loading capacity, superior uptime and overall vehicle life time profitability.
VOLVO TRUCKS INDIA
Volvo Trucks in India is synonymous with the mining and the construction industries. Volvo Trucks in India is the first truck manufacturer to introduce the European design, high performance trucks with the latest technologies.
EICHER ENGINEERING COMPONENTS
EEC is the automotive component division of VECV. EEC came into existence in 1992 and has become an established player in its segment of manufacturing Power-train components (Differential Gears, Transmission Gears & Shafts) and Gear Boxes.
EICHER ENGINEERING SOLUTIONS
EES a unit of VECV, is engaged in providing design and engineering services to its customers worldwide. EES was created in 1997 as a “Center of Excellence” for providing engineering and design support for captive requirements.
VE POWERTRAIN
Commemorating successful completion of five years of partnership between Volvo Group and Eicher Motors in, VE Commercial Vehicles Limited announced start of commercial production at the technologically most advanced engine manufacturing plant in India in July 2013. The plant has been set up at Pithampur, Madhya Pradesh, India with an initial capacity of 25,000 units per annum in Phase 1 at an investment of Rs 375 crores. The capacity will increase step by step to 100,000 units per annum as per the market requirements with an additional investment of around Rs 125 crores.
The engine facility will be a global hub for meeting the medium-duty automotive engine requirements of Volvo Group globally for five- and eight-litre engines. The Euro 6-compliant diesel base engines will be supplied to Volvo Group plant in Venissieux, France where these engines will be assembled for the Volvo Group Euro 6 requirements. The same platform will be adapted to Euro 3 and 4 engine (BS3/BS4) technologies to meet the VECV requirements and other Volvo Group requirements for this type of engines in Asia.
VISION AND MISSION
VISION
To be recognised as the industry leader driving modernization in commercial transportation in India and the developing world.
MISSION
VECV aims to continuously improve transportation efficiency in India and developing markets, thereby reducing logistics costs for goods and people – leading to higher enablement of specialisation in manufacturing, agriculture and services, thereby increasing the nation's economic activity and productivity.
• We choose to do this in a sustainable manner by having the safest, most durable and efficient products in the market;
• We care for our customers holistically by offering not just trucks and buses, but also the best service and soft products to enable him to be most profitable;
• We work with the driver community to enhance their productivity and overall working environment;
• We ensure a level of quality and innovation that will continue to set standards in the commercial transportation industry;
They work with professionalism, passion and the greatest respect for all individuals.
RESPECT
"In an enabling environment that recognizes, embraces and celebrates differences, at VECV respect to all our stakeholders is a central belief that makes us deliver on our promises and hold ourselves accountable to all commitments."
FAIR AND ETHICAL
"To build and sustain our reputation for the long term at VECV". We strive to conduct our business with integrity, treat everyone fairly and be reasonable and ethical in all our dealings.
EXCELLENCE
"Reflecting our power and heritage of delivering supreme quality and achieving ambitious goals at VECV". We constantly challenge ourselves to innovate for the future and strive uncompromisingly to develop new standards for meeting and exceeding customer expectations.
CUSTOMER CENTRIC
"The customers point of view is central to our organizational process, and with a proactive focus on his/her changing needs, coupled with consistently excellent service, at VECV we aim to create a mutually beneficial long term relationship with our customers."
PASSION
"At VECV we revel in our work and strongly believe in making a difference to our customers by walking the extra mile. This passion inspires us to demonstrate constant enthusiasm and unlimited drive to deliver beyond our stakeholders expectations"
CORPORATE SOCIAL RESPONSIBILTY (CSR)
The Company continues to support social causes and has, like in the
previous years, made contributions for promotion of education in
certain backward areas during the year. The Company has constituted
a Corporate Social Responsibility Committee and has framed a
Corporate Social Responsibility Policy and identified Healthcare,
Children’s education, Road safety and Environmental sustainability
as some of the key areas. The Company will continue to support social projects that are consistent with the policy.
FINANCIAL HIGHLIGHTS AT A GLANCE
FINANCIAL RESULTS
Our Company achieved an all-time high top-line growth during
the financial year 2014 with total revenue from operations (net)
at Rs. 3031.22 crores. The profit before depreciation and interest
amounted to Rs. 733.56 crores, which is 24.2% of the total revenue.
After accounting for interest and dividend income of Rs. 116.30
crores, interest expense of Rs. 1.67 crores and depreciation of Rs.
50.16 crores, profit before tax amounts to Rs. 798.03 crores. Profit
after tax amounts to Rs. 558.92 crores after income tax provision of
Rs. 239.11 crores.
BUSINESS PERFORMANCE
Our Company’s Royal Enfield unit continues to grow strongly. It sold 3,02,592 motorcycles in the year 2014, 69.9% growth over 2013
sales volume of 1,78,121 motorcycles. Of 3,02,592 motorcycles sold
in 2014, 6,221 were exported, a growth of 46.2% over 2013 volume of 4,256 motorcycles.