Eicher Motors : Integrated Annual Report 2020-21

Integrated Annual Report

2020-21

Eicher Motors Limited

World's Oldest Motorcycle Manufacturer in Continuous Production

1901	1904	1910	1914	1916	1921
The Royal Eneld	Belt Drive 2.25 hp Motor Bicycle	Model 145 Lightweight VŽTwin	2.75 hp Works Racer	2.25hp Model 200	Model 201 2.25hp 2ŽStroke

1922	1924	1925	1926	1927	1928
Model 201 225cc	Model 201A Ladies Model 225cc	Model 352 2.75 hp Sports	Model 180 V-twin with Sidecar	Model 351 OHV Sports 346cc	976cc Model 182 Sports V-twin

1929	1930	1932	1933	1935	1936
Model 350 Side-Valve	Model JL 500cc	500cc Bullet	Model Z Cycar 150cc	LO Bullet 500cc	Special Competition Model 500cc

1938	1939	1941	1942	1947	1948
Model T 150cc OHV	Model G 350cc Bullet	WWII WD/CO 350cc	WWII Model WD/RE Flying Flea	Model G 350cc	500cc Twin

1950	1952	1952	1954	1955	1956
G2 350cc Trials Bullet	Model RE2 125cc 2-stroke	350cc Indian Army Bullet	Meteor 700cc	500cc Bullet Scrambles	Super Meteor 700cc

1959	1960	1962	1964	1970	1985
Constellation 700cc Twin Carb	Crusader Sports 250cc	Super Meteor Air"ow 700cc	Continental GT 250cc	Interceptor 750cc Series II	Bullet 350cc Standard

1990	1999	2000	2001	2002	2002
350cc Bullet Superstar UK	Taurus Diesel	535cc Lightning	Bullet 500cc Military Export	Bullet 350/ 500cc Export	Bullet Electra 350cc

2008	2012	2013	2016	2018	2020
Classic 500cc	Thunderbird 500cc UCE	Continental GT 535cc	Himalayan 410cc	Interceptor 650cc	Meteor 350cc

c o n t

Corporate

Review

Pg. 01

Eicher Motors Limited	02
About the Report	04
About Eicher Motors Limited	08
Financial Position - Consolidated	10
Operational Highlights - Consolidated	11
Message to the Shareholders	12
Pure Motorcycling with Royal Enfield	18
The Oldest Motorcycle	20
Quarterly Highlights	22
Financial Position - Standalone	24
Operational Highlights - Standalone	25
Riding Through the Pandemic	26
Manufacturing: Prioritising Safety and
Sustaining Operations	28
Launch of the All-New Easy Cruiser -
The Meteor 350	31
The Meteor 350 Impresses One and All	34
Cruising Through Awards and Accolades	35
The Meteor 350: Ready to Cruise into
International Markets	36
Refreshing the Portfolio	37
Enhancing Accessibility, Seizing
Opportunities	39
Digital Innovation: Enhancing
Consumer Experience	41
Gaining Traction on Digital	43
Redefining the Retail and
Service Experience	45
Enhancing Pure Motorcycling Ecosystem	47
Riding on New Circuits and
Uncharted Terrains	50
Fostering the Spirit of Creativity and
Customisation Among Motorcyclists	54

Management

Review

Pg. 58

Management Discussion & Analysis	58

integrated report

Pg. 80

Our Approach to Value Creation	80
Stakeholder Engagement	84
Materiality	86
Sustainability@EML	88
Financial Capital
Economic Performance	90
Manufactured Capital
Manufacturing Excellence	94
Intellectual Capital
Innovation Management	101
Human Capital
Employee Well-being	113
Social and Relationship Capital
Creating Shared Value	124
Natural Capital
Greener Business Operations	147

Our priority at Eicher Motors has been to ensure the safety and wellbeing of employees, partners and stakeholders.

Read more

Pg. 12

e n t s

Royal Enfield, a key brand of Eicher Motors Limited (EML) believes in and defines the pure motorcycling way of life. For over 120 years, Royal Enfield has carried forward this legacy of pure motorcycling and helped its customers create memories and experiences.

Read more

Pg. 80

Statutory

Reports

Pg. 162

Business Responsibility Report	162
Directors' Report	169
Corporate Governance Report	189

Financial

Statements

Pg. 212

Standalone Financial Statements	212
Consolidated Financial Statements	288

Review of

Subsidiary

Pg. 364

Performance Highlights	364
Business Highlights and Future Prospects	366
Notice	372

Forward-looking statement

Certain statements used in this Report regarding the Company's business operations, industry, objectives, business strategy, management plans and expectations may be forward-looking statements. These statements can be identified by usage of words 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 may be incorrect or imprecise and hence may be incapable of being realised. These statements 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 or otherwise.

Helping you navigate through the report

Reference to other pages within the report

Link to website

Further online reading

GRI Index	385

02

corporate Review

Eicher Motors Limited (EML) has been at the forefront of redefining personal and commercial mobility across the world. The Company continued to do so even in a challenging FY 2020-21, remaining FOCUSSED and ensuring the interests of

all stakeholders while continuously broadening horizons.

EML's ethos reflects the undying spirit of its iconic motorcycle brand, Royal Enfield, which has been a symbol of resilience, purposeful longevity, and authenticity through its 120-year journey. Today, a leading global player in the middleweight motorcycle segment (250cc - 750cc), Royal Enfield has a community of over 10 million riding enthusiasts globally. Preserver of the legacy of building simple, timeless, and accessible motorcycles since 1901, Royal Enfield blends technology with traditional craftsmanship alongside curating experiences that introduce riders to the world of pure motorcycling.

EML also has a joint venture with Sweden's AB Volvo, named VE Commercial Vehicles Limited (VECV), which is driving commercial vehicle modernisation in India and other developing countries with its engineering prowess and technological know-how.

EICHER MOTORS LIMITED

03

Consolidated financial highlights

Revenue from Operations

(Rs. Crores)

Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA) before share of profit of Joint Ventures (%)

Operating Margin (EBIT) before share of profit of Joint Ventures

(%)

Share of profit of Joint Venture - VECV (Rs. Crores)

Total Comprehensive income including share of profits of Joint Venture (Rs. Crores)

2020-21	8,720
2019-20	9,154
4.7%

2020-21	20.4
2019-20	23.8

2020-21	15.3
2019-20	19.7

2020-21	31
2019-20	32
1.8%

2020-21	1,381
2019-20	1,839
24.9%

Period of comparison

1.4.2020-31.03.2021

1.4.2019-31.03.2020

ANNUAL REPORT 2020-21