1450092785 journey of vecv a presentation by vinod aggarwal ceo vecv (1)

8/19/2019 1450092785 Journey of Vecv a Presentation by Vinod Aggarwal Ceo Vecv (1)

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Eicher Motors Investor’s Meet

Journey of VECV

Vinod Aggarwal, CEO

Nov 30th , 2015 - Chennai


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C

Business E

Strategies

VECV Over


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Indian Economy

• India Nominal GDP @ ~2 TUSD (2014) is 9th largest.

• India became world's fastest growing major economy from the last quarter o

•Continued reform, re-starting of stalled projects, favorable monetary policy

to take India’s GDP to ~8% growth level in FY17.

9.5 9.6 9.3

6.7

8.6 8.9

6.7

5.1

6.9 7.3

0

2

4

6

8

10

12

GDP growth %


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Electricity33%

Roads andbridges

16%Telecommuni

cations17%

Railways11%

Watersupply,irrigation

14%

Ports3%

Airports2%

Oil and Gas,Storage4%

India Infra

• India’s investment in infrastructure is estimated to be more than double in 12t

•On ground Implementation of initiatives like smart city program, dedicated fre

•Govt. plans to increase production of coal to 1.5 billion tons by 2020 compare

12th Plan investments (2012-17)


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Road S

•Ministry of road transport and highway targeting 30 kms of road/day from

•Thrust on cement roads to improve life of roads.

•Several steps being taken to improve road construction execution such as

o NHAI to revive 34 stalled projects worth Rs.35000 crore by compens

for the BOT (Build-Operate-Transfer) projects .

o Land costs not to be included in cost of road projects thereby improv

crore will be cleared by the ministry.

Roads expenditure -Union Budget (Rs. Cr.)

National Highways

Grants to States for roads

Rural roads including grants to states

Maintenance of National highways

Total


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Automotive Mission P

•AMP 2026 aims to propel the Indian Automotive Industry to be the engine o

•“Vision 3/12/65” – By 2026, Indian Automotive industry to be among the t

and more than 40% to manufacturing sector over next ten years and create

•AMP envisages that Automotive industry will grow 3.5 -4 times in value

18,88,500 Cr. (250 – 300 BUSD) by 2026.

•Focus on safety, pollution, enhancing mobility, job creation, exports, fair and

•Automobile industry has the potential to scale up exports to 35-40% of its o


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…VECV Milestones si

2009: Inauguration of new gear component plant at DewasMay 2008: Signing of definitive agreements

Jul-Aug 2008: Commencement of JV

2010: VTI launched FH 520 - the most powerful Volvotruck on Indian road

2012: CED paint sho2011: Reliability Lab Inauguration


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…VECV Milestones sin

2014:Volvo Trucks launch of new range of products

comprising FH, FM and FMX

2013: Pro Series launch

2014:Inauguration of Eicher retail excellence center (VECV academy

2013: Start of production at Bus body plant at Bagg


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Strong Corp

• Institutionalized strong Corporate Governance at VECV

• 2 members from Volvo AB, 2 members from EML, and 2 independ

• Strong Professional Management.

• Key Decision Fora driving the cooperation projects between Volvo

Product Committee, Operations Committee.


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Philippe

Divry

Rau

Rai

Chris

Ma

Siddhartha Lal

Chairman

VE


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Vinod AggarwalCEO

Amanppreet S BhatiaSr VP HR

GillesSr VP

Aditya ShrivastavaSr VP Manufacturing

Operations

P RavEx

Sales &

Shyam Maller Sr VP Sales & Aftermarket -

LMD & Bus

VECV - Executive Man

VECV St


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VECV Str

• To be recognized a

India and the devel

• Aspirational target t

• VEPT Engine volume

• Comprehensive netw

Figures in brackets in all the graphs above are growth

VECV E


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VECV E

Pithampur

Eicher CV Manufacturing

Thane

EEC Gear plant

Pithampur (SEZ)

EEC Gearbox Facility

Baggad (MP)

Bus Body Plant

Pithampur

VEPT Plant

Dewas

EEC Gear Plant

Unit 1 & 2

St d i f C


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Strong drivers for C

• Focus on investment and execution of infrastructure pr

• Growing domestic economy with untapped rural marke

• Implementation of key reforms like GST, land acquisitio

• Strict implementation of ban on overloading

• Smart cities and focus on sustainable, efficient urban m

•NGT ban on diesel vehicles >10 years in Delhi.

• End of Life of vehicles – cash for clunkers scheme for in

• Labor reforms and improving ease of doing business.

CV Industry on recove


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CV Industry on recove


CV Industry on recovery


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CV Industry on recovery


VECV


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VECV

(5366MSEK)

(6884

MSEK)

Figures in brackets are growth

Revenue( Rs. Cr)

Figures in brackets are EBIDTA margin)

VECV


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VECV

(5366MSEK)

(6884

MSEK)

Cumulative Capex Rs. Cr

• Almost entire capex expenditure met from internal cas

• Consistent dividend distribution since inception of VEC

• VECV continues to be a debt free company despite Cap

VECV


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VECV

(3502

MSEK)

(5366MSEK)

(6884

MSEK)

26.7%

30.5% 30.5% 31.4% 30.4%32.6% 3

20.0%

25.0%

30.0%

35.0%

2009 2010 2011 2012 2013 2014 Y

O

LMD truck market share

1.9%

2.5%

3.4%

4.2%

4.9%

4.2% 4

1.0%

2.0%

3.0%

4.0%

5.0%

2009 2010 2011 2012 2013 2014 Y

O

HD Truck market share

*The HD market share includes both Eicher and Volvo Trucks

VECV Exports focus


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Presence in 25 Countries of South Asia, Middle East and Africa aide

41000 plus overseas population

Market specific products based on new generation products plann

deeper penetration

VECV Exports…..focus

0

2000

4000

6000

Exports

Figures in bracFigures in brackets are growth

Eicher LMD Trucks: s


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Eicher LMD Trucks: sEicher Pro 1000 series (5-15 Ton GVW)

• Best in class vehicle life time profitability an

badshah’.

• Modern world-class spacious cabin

• Designed to provide best in class driving co

• CED painted cabin with high gloss life

• Rugged aggregates - high reliability and hig

• Optimized maintenance cost.

Eicher HD Trucks: toP 6000 i


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Eicher HD Trucks: toPro 6000 series

• VEDX Engines (5 and 8 liter

adopted for Euro-3 and Eur

• EMS 3.0 - Volvo Group’s En

performance.

• Fuel coaching system – imp

human-machine interface.

• Advanced on-board diagno

• Next-Generation cabin to p

the driver.

• Cruise control providing fat

Volvo Trucks


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Volvo TrucksMarket leader in Pre

Pushing the limits on

FMX 10X4 (66 Ton dump

Le• Among technologically most advanced range in

India.

• Fuel-efficient and high torque 13-litre engines

ranging from 400 to 520 hp.

• Intelligent I-Shift automated gearbox optimized for

tough and rugged mining operating conditions.

• Volvo’s unique Dynafleet telematics system for

better fuel consumption and real time tracking of

vehicles.

• The new Volvo FH 520, with load carrying capacity

of (GCW) of 200T.

Eicher Buses


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• Best in class f

• In-house bus

superior buil

• Superior aest

• Bus body cod

compliant sc

features

• Parabolic sus

Eicher Buses

Pro Series HD truck


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Pro Series HD truck

P S i t k


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Pro Series trucks – cu

VECV Trucks and BEi h T k & B N t k


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VECV Trucks and BEicher Trucks & Buses Network

• Dealer network 272 nos.

including 10 COCO outlets

• Additional 40+ site support

facilities• 23 distributors, 156 Eicher

Genuine Parts Shoppe and

>2500 multi-brand parts

retailers.

After-market….del iveri


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After market….del iveriEGP Shoppe

Under commissioning

VE Parts Distribution Center

Pithampur, Madhya Pradesh

World Class Ma


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•Most productive plant to produce upto 66,000 trucks

scalable to 100,000 trucks.

•Cab weld shop with robotic welding and integrated testing

facilities.

•CED paint shop - best in class e-Rodip German technology

with robotic painting.

•Highly flexible vehicle assembly lines with right blend of

technology to control critical parameters.

•State-of-the-art bus plant spread over 46 acre set up under

VECV's overriding vision of driving modernization of the

Indian CV market.

•Complex and critical sub-assemblies by robots, ensuring

cabin without leakage and even fit and finish.

World Class Ma

Sound Eng


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Sound EngModern test facilities

Cabin (5 Poster) test rig Engine development center Virtual reality lab

Rear axle test rig Chassis twist test rig Vehicle electrical testing

VE P


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VE P

Eicher Non- Automot


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c e o uto ot

• Engines and

• Sales of ove

• Widely repu

• Pan India pr

• Established

• Presence in

• Started expo

Other VECV


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Compon ents an

Eicher Engg Components (EEC)

• Strategic supplier of drive line components

to Eicher Trucks and Buses, Royal Enfield,

Volvo Group and other large OEMs.

• Production facilities at: Thane, Dewas and

SEZ, Pithampur

To S


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• Strongest business model and balance sheet in Indian Commercial V

low operating capital/ working capital

integrated manufacturing operations at Pithampur for Trucks

• Light and medium duty trucks and buses are performing excellent w

• Long term approach in HD to nurture the PRO series and shift the m

(huge potential for growth in HD trucks).

• With state-of-the-art latest technology products, good potential to gr

• Infrastructure, processes and systems capable of taking on future gro

• Future ready with access to Volvo Group world class global technolo

• Strong alignment between partners on way ahead

focused management team with one goal - modernize Indian


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Th

1450092785 journey of vecv a presentation by vinod aggarwal ceo vecv (1)

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