The Hindu Business Line : Eicher group completes de-merger of auto biz

This was pursuant to the orders of the High Courts of Madhya Pradesh and Delhi sanctioning the composite scheme of arrangement. The said orders have been filed with respective Registrar of Companies at Gwalior, Madhya Pradesh and Delhi.

With the restructuring, the tractors, two-wheelers, engines and gears businesses of Eicher Ltd have been merged into Eicher Motors with effect from April 1, 2003. Consequently, for the year 2003-04, the gross sales of Eicher Motors have jumped to Rs 1,565 crore and the profit after tax to Rs 34 crore.

According to a statement issued by Eicher Motors, with the synergies arising from the enhanced portfolio of products, continued growth of the commercial vehicles, tractors, and motorcycle industries and its positive impact on the demand for gears and components and engines, the company is poised for improved performance in the year ahead.

Industry officials add that the restructuring would also help decrease the tax liability of Eicher Motors and provide it with larger muscle to borrow funds.

Prior to the restructuring, the Eicher group had also seen key movements at the top level. Mr Siddhartha Lal had taken over as the Chief Operating Officer of the Group (earlier CEO of Royal Enfield) and Mr R.C. Jain had been appointed as Group Vice-Chairman (earlier Chief Executive - Group Affairs).

More Stories on : Restructuring | HCV/LCV/Tractors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Human trials for Ranbaxy-MMV malaria drug soon

Phoenix Yule to offer 15-km conveyer belt systems

RK Marbles to expand capacity

Orchid Chem files 7 ANDAs

Balaji Tele to make pref allotment to Star group affiliate — To offer 25.1% stake at Rs 90

Eicher group completes de-merger of auto biz

Follow ICC rules, corporates told

Posco, BHP Billiton have big plans in Orissa — Talks held with CM for 10-m tonne steel plant, other projects

Alfa Laval to increase capacity in Pune plant

Wheels India to set up new plant in Haryana — Maruti to be primary customer

Ma Foi office in Raipur

Minda Instruments forms venture with Stoneridge

Dabur Foods targets Rs 5-cr profit; pins hopes on fruit juices

EIH to take management contract route for growth

NMDC to hike iron ore output

Essilor SRF looks to acquisitions for growth