Share Price Of Eicher Motors over the years:

Share Price of Eicher Motors

30000

25587.5
25000

19180.6
20000
Price in Rs

15908.2
15000

10000

5961.5
5000 1344.3 2562.2
1993.35
651.35
217.45
0
2009 2010 2011 2012 2013 2014 2015 2016 2017

In the above graph share price of Eicher Motors is shown year wise from 2009 to 2017 price
is shown as per end of financial year i.e 31st march of every year and from above graph we
can say that there has been continuous rise in price from year 2009 to 2017, as on 31st march
2017 the price was Rs 25587.5. The current share price of Eicher motors is Rs 30620.00.
Revenue of Eicher Motors:

Year Revenue in Rs (Cr)

1996 239.20
1997 288.92
1998 236.51
1999 238.92
2000 310.95
2001 445.09
2002 530.93
2003 698.36
2004 1,564.75
2005 2,211.58
2006 1,858.45
2007 2,223.26
2008 2,202.39
2009 378.01
2010 442.67
2011 666.45
2012 1043.75
2013 1695.39
2014 3014.71
2015 4621.88
2016-17 7077.62

The above table shows how revenue of Eicher motors have grown over the years. The
revenue is highest in the year 2017 i.e 7077.62 cr.
Pricing Strategy of Eicher Motors:

Royal Enfield has the distinction of being an iconic company as it is one of the oldest in the
field of two-wheelers. It belongs to the luxury segment and has become a status symbol to
motorcycle lovers. Royal Enfield has targeted bike adventurers and youth’s belonging to a
middle-aged group as its target customers that believe in quality over pricing at any given
time. It has adopted a premium pricing policy for its high-quality products. The company
offers a powerful and stylish product with an established and high-profile brand name and
hence its target customers do not hesitate in making a purchase irrespective of high prices.

Eicher Motors Ltd offers a wide variety of products and therefore the pricing strategy is
generally different for each category. Eicher Motors company follows premium pricing
policy for its Royal Enfield brand. The Royal Enfield bikes are targeted to urban population
and are priced high due to the style and the comfort that the bike offers. Some of the
competitors of these brand are Bajaj, Honda etc but due to the robustness and style factor in
Royal Enfield the company charges a premium price.

In the commercial vehicle space, the competitors of Eicher motors are Tata motors, Ashok
Leyland etc. They follow a competitive pricing strategy to gain more market share and
generally a truck would cost around 12 to 15 lakhs. The Volvo are priced slightly higher due
to comfort and style the product offers. About the personalized vehicle by Eicher Motors, the
company charges premium pricing policy because of the benefits that the product offers both
in home and business use.
Eicher Management Philosophy :

Break-through emerging market business model :

 An evolved business model with 50+ years of experience in automotive space in India
 In-depth customer insights & market understanding
 Best-in-class capital optimization :
 Frugal engineering practices
 Extensive knowledge of suppliers
 Operational excellence Global quality standards
 Low cost supply chain & distribution – value chain

Established Corporate Governance :

 Fully empowered management teams

 Annual 3 year rolling business plan
 Strategic quarterly board meetings – full review with management
 Strategic quarterly reviews &regular monthly operations review
 Product board, Quality board, Customer satisfaction board, Soft product board
(aftermarket) held every quarter along with other statutory meetings

Strong Values:

 Corporate conduct rooted in highest standards of ethics, integrity & transparency

 Highly professional work ethic based on mutual respect
 Very strong HR & IR culture and brand
 Long-term orientation
 Long history of institutionalized CSR & community activities Break-through
emerging market business model Established Corporate Governances
 Critical Success factors of Eicher Motors:

Innovation: Eicher motors constantly made innovation in Royal Enfield motorcycle they
came up with different models under 3 sub brands Thunderbird, Classic and bullet but it is
bullet that stands out. The Bullet 350 has been longest running motorcycle in continuous
production. There is a sense of aura around the royal Enfield brand. Its motorcycles are very
heavy and tough to drive and remain exclusive to the very few 'men' that can wield them.

Proper Utilization of working capital : The policies of Eicher motors and Tractors to
achieve its working capital objectives are efficient and timely production and effective
management of inventory. The overall budget method is used for determining working capital
requirement. The basis for determination is production and sales. The budget is prepared on
annual basis with half yearly budget period and are subsequently reviewed. The authorization
of working capital is done at the divisional level based on division’s requirement. The
methods used to control and review working capital is information system which includes
reports, statements, feedback and review.

Joint ventures: The volvo group and Eicher motors joined hands with a convergent vision of
'Driving modernization in commercial transportation in India and developing world. The
objective of this joint venture VE- commercial ltd is to raise the standard of commercial
transportation industry and to take it to new professional level. Eicher is poised to transform
the industry by imbibing international quality standards, modernizing its manufacturing setup
and adopting world-class processes in the sales and service support. Volvo Group's
technology has been adapted to suit the needs of developing markets and to provide relevant
modernization. The future-ready technology will ensure that Eicher drives the revolution of
the trucking industry. US based all terrain vehicle specialist Polaris, entered in to joint
venture with Eicher motors for a personal vehicle Multix, a multi-utility vehicle, is a unique
offering from the Eicher Polaris JV aimed at small traders and farmers who can use this
vehicle for both personal and business purposes.

Variety of products : Eicher motors have variety of products like Royal Enfield
Motorcycles, Eicher Volvo Trucks buses and after joint of Eicher Polaris new product multix
was launched, from family to business, Multix purpose-built to take care of your ever-
evolving needs and it doesn't stop here With its X-Port TM feature, Multix can generate
electricity, unprecedented flexibility and utility to the businessman’s life. It’s the first of its
kind. It’s a game changer. It’s the new 3-in-1. So variety of products helped Eicher to capture
market share and to increase revenue.

Royal Enfield: Eicher Motors is successful mainly due to its flagship brand Royal Enfield
Motor cycle. Unlike any other major bike brand in India, there's a certain something that the
Royal Enfield carries with it. Some refer to it as the aura of Royal Enfield. Some, the Royal
Enfield mania.While others refer to it as the Royal Enfield culture. The success of Royal
Enfield is attributed to a brilliant marketing strategy by the group coupled with the heritage
and cult following of the brand.

Man behind Success of Royal Enfield: The main reason behind success of Eicher motor is
Siddhartha Lal .He was 30 years old when he just taken over as COO of Eicher group. The
group had a diverse spread of about 15 businesses including tractors, trucks, motorcycles,
components, footwear and garments, but none was a market leader. He undertook an intense
portfolio analysis and took a hard call. He decided to divest 13 businesses and put all money
and focus behind Royal Enfield and trucks, two businesses where he believed the group had a
genuine shot at leadership. He sold 13 out of the 15 businesses, the big one being tractors to
TAFE. He removed the clutter and focussed on two promising businesses.