a brief study at the change made at Royal Enfield

1. A brief study at the Change made at
Royal Enfield
Presented By :
Jyotirmoy Pegu

2. Registered Address –3rd Floor - Select Citywalk ,
A-3, District Centre , Saket
New Delhi ,Delhi 110017
History – Founded in 1948 when Goodearth company was established for the distribution of
imported tractors. Incorporated in 1982 when a collaboration with Mitsubishi for the
manufacture of Light motor vehicles was signed in Tokyo and was named as Eicher Motor
Limited .
•Incorporated on 14th October, and the certificate of commencement of business was
obtained on 28th March, 1983.
•Promoted in the joint sector by Eicher Goodearth Ltd., Mitsubishi Corporation, Japan,
Mitsubishi Motors Corporation, Japan and Madhya Pradesh Audyogik Vikas Nigam Ltd.
Market Capitalisation - 62,708.85 crores .
Shareholders Pattern (Mar 2016) :-
•Promoter – 54.87%
•FII – 0.00%
•DII – 32.04%
•Others – 13.09%

3. CEO & MD of Royal Enfield – Siddhartha Lal
•Qualification – PG degree in Mechanical Engineering and Master of Science in
Automotive Engineering .
•Background – The Doon School , St Stephen’s College , Cranfield University ,
University of Leeds
Siddhartha Lal is an Indian Entrepreneur and businessmen
•Chief Executive Officer & Managing Director of Eicher Goodearth
Limited
•Chairman & MD of VE commercial Vehicles
Siddhartha Lal is credited with the turnaround and revival of the legendary
Indian motorcycle “Royal Enfield Bullet” (manufactured by Royal Enfield ).

4.  Siddhartha Lal – 26years - took over as CEO of
Royal Enfield in 2000.
 IF
you had spent Rs 55,000 to buy a Royal Enfield
motorcycle in 2001 - an old, rugged bike
 But if
you had invested the same Rs 55,000 in shares
(at Rs 17.50 per share) of Eicher Motors, your
investment will be worth Rs 4.75 crore now.

5.  15 businesses Tractors, trucks, motorcycles,
components, footwear and garments, but none was a
market leader
 divest 13 businesses and put all money and focus behind
Royal Enfield and trucks, two businesses where
Siddhartha believed the group had a genuine shot at
Leadership
 Siddhartha did the mathematics, projections and all he
needed was to get the motorcycle business to the next
level (in terms of sales)
 an authority on British bikes of the post-World War era
as a historian, a follower and a hands-on rider

6.  2005 - selling only about 25,000 bikes every year
 2010 - selling 50,000 bikes
 Launch of The Enfield Classic - caught the fancy
of customers
 Sales shot up six times in half a decade from
50,000 units in CY10 to 300,000 in CY14
 Crossed the target of 4,50,000 units in CY15

7.  over Rs 15,419.52 crore in revenues
 Net profit of Rs 1,451.94 crore
 Royal Enfield brings in about 80% of these
profits.
 Eicher Motors' stock prices - Rs 224 in 2006 to
Rs 15,612 in 2016

8. 497.4 474.85 525.38
701.74
1451.94
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Dec-11 Dec-12 Dec-13 Dec-14 Dec-16
PAT

9.  Mediocre in 15 businesses OR market leader
in 1-2 businesses?
 Deep knowledge about the industry,
Passionate, knowledge about bikes and most
importantly the belief that Royal Enfield can
be more than just a bike company – A Cult