Manhar Kapoor General Counsel & Company Secretary
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July 17, 2020 Online intimation/submission The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Security Code: 505200 Symbol: EICHERMOT Dear Sir/Madam, Ref: Regulations 30 and 34 of SEBI (LODR) Regulations, 2015 Subject: Annual Report for the Financial Year 2019-20 and Notice of the 38th Annual General Meeting Pursuant to Regulations 30 and 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached Annual Report for the Financial Year 2019-20 of Eicher Motors Limited (“the Company”) along with Notice of the 38th Annual General Meeting of the Company scheduled to be held on Monday, August 10, 2020 at 1.00 P.M. Indian Standard Time, through Video Conferencing (VC)/ Other Audio Visual Means (OAVM). The said notice forms part of the Annual Report of the Company for the Financial Year 2019-20 ended March 31, 2020 and which are being sent to the shareholders through electronic mode on their registered e-mail ids and are also available on the website of the Company at www.eichermotors.com. This is for your information and records. Thanking you, For Eicher Motors Limited Manhar Kapoor General Counsel & Company Secretary Encl: a.a. Eicher Motors Limited Registered Office Corporate Office: CIN: L34102DL1982PLC129877 #96, Sector – 32 3rd Floor – Select Citywalk Gurugram – 122001 A – 3, District Centre, Saket Haryana, India New Delhi – 110 017, India Tel +91 124 4415600 Email: [email protected] Annual Report 2019-20 Eicher Motors Limited KEEP RIDING PURE Astrophotography at the Royal Enfield Astral Ride where passion of photography met motorcycling spirit CONTENTS Eicher Motors Limited Corporate Review 01 Management Review 40 (EML) is setting a new Eicher Motors Limited 04 Management Discussion & Analysis 42 Financial Position – Consolidated 06 precedence for the Operational Highlights – Consolidated 07 way people and goods Message to the Shareholders 08 Statutory Reports 57 move. Its iconic Royal Pure Motorcycling with Royal Enfield 12 The Oldest Motorcycle 14 Business Responsibility Report 58 Enfield brand is the Brand in Continuous Production Directors’ Report 66 preserver of the legacy Quarterly Highlights 16 Corporate Governance Report 92 Financial Position – Standalone 18 of building simple, Operational Highlights – Standalone 19 timeless and accessible 650 Twins - Gaining Global 20 Financial Statements 113 Recognition and Momentum motorcycles since 1901. Expanding International Footprint 24 Standalone Financial Statements 114 With an uncomplicated Deepening Presence Across India 27 Consolidated Financial Statements 187 Motorcycle Stories 28 design philosophy Reimagining Rides for Distinctive 30 Experiences that offers purposeful Review of Subsidiary 261 Royal Enfield Community 32 longevity, Royal Enfield Perfect Canvas for Customization 34 Performance Highlights 262 motorcycles represent Manufacturing Excellence 36 Business Highlights and 264 Driving Global Aspirations Future Prospects an uncompromised Making a Positive Difference 38 in the Communities Notice 270 blend of technology Forward-looking statement Shows you where you can find related Certain statements used in this Report regarding the Company’s business operations, information in the report industry, objectives, business strategy, management plans and expectations may be forward- looking statements. These statements can be identified by usage of ordsw such as 'believes', 'estimates', 'anticipates', 'expects', 'intends', 'may', 'will', 'plans', 'outlook' and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements are necessarily dependent on assumptions, data or methods that Shows you where you can find may be incorrect or imprecise and hence may be incapable of being realized. These statements more information at www.eichermotors.com are not intended to be a guarantee of future results, but constitute our current expectations based on reasonable assumptions. The Company’s actual results could materially differ from those projected in any forward-looking statements due to various events, risks, uncertainties and other factors. The Company does not assume any obligation nor intend to update or revise any forward-looking statements, whether as a result of new information, future events To view the report online or to download, visit or otherwise. www.eichermotors.com/annual-reports CONSOLIDATED FINANCIAL HIGHLIGHTS* with traditional craftsmanship. Period of comparison Besides evocative motorcycles, 1.4.2019-31.3.2020 Royal Enfield provides a range of 1.4.2018-31.3.2019 differentiated experiences that Revenue from Operations (Rs. Crores) introduces riders to the world of pure motorcycling. 2019-20 9,154 2018-19 9,797 EML also has a joint venture 6.6% with Sweden’s AB Volvo, Earnings Before Interest, Tax, Depreciation VE Commercial Vehicles & Amortization (EBITDA) before share of Limited (VECV), which is profit of Joint Ventures (%) driving commercial vehicle 2019-20 23.8 modernization in India and 2018-19 29.6 other developing countries with its superior engineering Operating Margin (EBIT) before share of profit of Joint Ventures (%) capabilities and advanced technology know-how. 2019-20 19.7 2018-19 26.6 Share of profit of Joint Venture - VECV (Rs. Crores) 32 2019-20 2018-19 258 Total Comprehensive income including share of profits of Joint Venture (Rs. Crores) 2019-20 1,839 2018-19 2,214 17.0% * Excluding discontinued operation of Eicher Polaris Private Limited. 02 CORPORATE REVIEW TO ENCOURAGE, ENABLE AND KICKSTART THE ACTIVE, LIFELONG PURSUIT OF EXPLORATION WE BELIEVE THAT PURE MOTORCYCLING UNLOCKS THIS PURSUIT, THAt’s WHY - WE KEEP RIDING PURE EICHER MOTORS LIMITED 03 RIDE RIDE RIDE INVITE PEOPLE TO THE WORLD OF PURE MORE PURE MOTORCYCLING INSPIRE OWNERS ALLY WITH RIDERS TO INCREASE THEIR FOR WHOM PURE PArticiPATION IN THIS MOTORCYCLING BECOMES WONDERFUL PURSUIT LIFE’S PURSUIT ANNUAL REPORT 2019-20 04 CORPORATE REVIEW EICHER MOTORS LIMITED Eicher Motors Limited (EML), listed an experiential brand. Royal EML’s joint venture VE Commercial on the National Stock Exchange Enfield with its motorcycle that Vehicles (VECV) with Sweden’s (NSE) and the Bombay Stock combines modern-day elements AB Volvo, is one of India’s Exchange (BSE), is the owner of with the brand’s heritage, garners leading manufacturer of trucks, the iconic Royal Enfield brand. immense enthusiasm amongst buses, engines and engineering A global leader in the mid-sized global motorcyclists. It has components. With a wide range of motorcycle segment, Royal modern product development new-generation trucks and buses, Enfield is the oldest motorcycle centres at Leicestershire, UK and VECV is driving modernization brand in continuous production Chennai, India where an expert in commercial transportation in since 1901. With its distinctive technical team conceptualizes India and the developing world. range of simple yet engaging next-generation motorcycles. The Eicher Trucks and Buses and accessible motorcycles, This is supported by its three range includes 4.9 to 55 tonne exhilarating community riding state-of-the-art manufacturing trucks and 12 to 62 seater buses. events and an ecosystem that facilities around Chennai where VE Power Train (VEPT) is a global introduces customers to the these machines are handcrafted hub for medium duty engines for world of pure motorcycling, to perfection. the Volvo Group and has been Royal Enfield has evolved into engaged in supply of base engines for Euro VI requirements of the Volvo Group since 2013. BUSINESS SEGMENTS Motorcycles Royal Enfield Portfolio Royal Enfield World’s oldest motorcycle brand in Motorcycles – Classic, Bullet, continuous production Himalayan, Interceptor INT 650 Performance FY 2019-20 and Continental GT 650 Focussed on mid-sized motorcycles 697,582 (250 cc - 750 cc) Apparel – Protective riding apparel, urban casual wear and commercial vehicles sold Products sold in India and 60+ riding accessories countries globally through exclusive stores and dealers Motorcycle accessories Protective 96% seats, bodywork, controls, wheels, Market share in India’s mid-size luggage and engine (250 cc-750 cc) motorcycles segment JOINT VENTURE Commercial Vehicles (CV) VE Commercial Vehicles (VECV) Portfolio VE Commercial Vehicles Driving modernization in commercial Eicher branded Light & Medium (VECV) transportation industry in India and duty trucks (4.9-15 tonnes), Heavy the developing world duty trucks (16-55 tonnes) and Performance FY 2019-20 Trucks and buses known for best-in- buses (12 – 62 seats) 48,721 class fuel-efficiency, superior uptime Volvo Trucks and modern industry-first features for Engineering components and commercial vehicles sold driving productivity and profitability aggregates Leadership position in Light and Manufacturing of medium- 29.5% Medium vehicle segment duty base engines for Euro VI Market share in India’s light & CV industry’s first state-of-the-art requirements of the Volvo Group medium duty (3.5 to 15 tonnes) Uptime Centre CV segment EICHER MOTORS LIMITED 05 ROYAL ENFIELD 3 3 Geographic Manufacturing facilities at Fully-owned subsidiaries – Thiruvottiyur, Oragadam and Vallam Royal Enfield North America (USA) Vadagal near Chennai, India Royal Enfield Brazil Footprint Royal Enfield Thailand 2 921 Technology Centres Stores in