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Volvo Eicher Joint Venture

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Volvo Eicher Joint Venture

  1. 1.  Eicher Motors Limited (EML) incorporated in 1982, is an Indian automaker company based in Gurgaon, India and a leading player of the Indian automobile industry.  The Eicher Group has diversified business interests in design and development, manufacturing, and local and international marketing of trucks, buses, motorcycles, automotive gears, and components  Eicher has invested in the potential growth areas of management consultancy services, customized engineering, and maps and travel guides
  2. 2.  The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines  Provides complete solutions for financing and service  Employs about 115,000 people, has production facilities in 19 countries and sells its products in more than 190 markets.
  3. 3.  Joint Venture came up in June 2008 - VE COMMERICAL VEHICLES  50:50 Joint Venture  Eicher will transfer its commercial vehicles, components and engineering design services business to the new joint venture  Volvo will brought advanced manufacturing technology and set up new processes for improving after sales services
  4. 4.  Volvo would invest $350 million of which $275 million as cash and $75 million as value for its truck dealer and service network — for a 45.6% stake in the JV, while the rest will be held by EML.  It included complete range of Eicher-branded trucks and buses, VE Powertrain, Eicher's components and engineering design services businesses as well as the sales and distribution business of Volvo trucks within India.
  5. 5. REASONS FOR JOINT VENTURE • MASS MARKET PRODUCT • FRUGAL ENGINEERING • EXPERIENCE OF WORKING IN EMERGING MARKET • GLOBAL DISTRIBUTION • ADVANCED TECHNOLOGY • FINANCIAL MUSCLE
  6. 6.  Helped EML expand its presence overseas and sell commercial vehicles in global markets Gave Volvo access to EML’s vast network of over 150 dealers across the country   VECV expands its presences in medium & heavy duty truck  VECV have a compelling product proposition in medium and heavy duty truck market
  7. 7.  VECV invested 700 crore in the business and it has lined up another 1,000 crore for the next few years, which will go into R&D, engine manufacturing facility, bus body building plant and new paint shop  It has 11% share in the overall truck market with 31% share in the light duty and medium duty segment of 5-12 tonne.  Launched the Pro Series, a new range of trucks and buses developed specifically for India and other selected growth markets. The Pro Series includes 11 new products (trucks and buses) and covers the entire 5 to 49 ton gross vehicle weight (GVW) range, setting a new standard among customers with high demands on profitability, flexibility and driver effectiveness.  VECV target 15% share in Indian heavy duty truck market.
  8. 8. VECV WILL GIVE STRONG COMPETITIONTO: DAIMLER TATA MOTORS BHARAT BENZ PRIMA & ULTRA TRUCK ASHOK LEYLANDS U TRUCK
  9. 9. Volvo has invested more into the joint venture over time as compared to Eicher Volvo may want more control and a bigger say in decisionmaking and it may not value Eicher's contribution to the same extent as before
  10. 10. THANKYOU

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