The Telegraph
Since 1st March, 1999
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Eicher unit targets global auto majors for engineering service

New Delhi, Nov. 2: Commercial vehicles and tractor maker Eicher Group’s engineering unit, Eicher Engineering Services (EES), plans to supply CAD/CAM services and engineering analysis for global automobile majors and component suppliers.

Anupam Asthana, chief of the EES unit, said the firm is trying to tap automobile manufacturers along with Tier-I and Tier-II auto component suppliers for product design and development, engineering analysis and software services.

“We have appointed a person in the United States who will look after the firm’s sales and marketing,” he said.

The Rs 1,300-crore New Delhi-based Eicher group also manufactures motorcycles, diesel engines, automotive gears and components and offers management consultancy services.

Among the services the engineering unit will offer are development of engine for heavy transport vehicle, gearbox, tractor driveline using top-down design and generation of variants.

Sources said Eicher has re-grouped the unit’s engineering divisions under EES, which it expects to be the main revenue earner within the next five years.

“Since the tractor market has been on the decline for the past four years and overall group profitability is negative, the firm is focusing on EES to be the main profit earner,” he said.

During the past financial year to March 2003, Eicher Ltd, part of the Eicher group, had registered a net loss of Rs.14.5 crore against Rs 17.2 crore in the previous year.

However, the firm is not willing to invest, and so it would be difficult to achieve an estimated revenue of Rs 250-300 crore within the next five years, he said.

However, Asthana refused to comment on the unit’s profitability and revenue earnings. “The results would be reflected in another four-five months down the line. It’s in the incubation stage and too early to predict,” he said.

Eicher Motors Ltd, which manufactures commercial vehicles, has registered a rise in sales to 6,232 units during the first half (April-September) of the current financial year.

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