Eicher Motors will focus on its motorcycle business through Royal Enfield and will not look to enter new verticals in the wake of failure of its off-road vehicles joint venture with US-based Polaris, a top company official said.
The company, which currently has a 50:50 joint venture with Volvo for trucks and buses (VECV), had recently announced shutting of another JV -- Eicher Polaris Pvt Ltd (EPPL), which produced and sold personal utility vehicle Multix - in March this year.
"We are aboslutely 100 per cent focussed on motorcycles, nothing else...Other than motorcycles we don't have any intention to get into any other vertical," Eicher Motors Managing Director and CEO Siddhartha Lal said in a concall.
When asked after the EPPL experience, if the company would consider getting into four-wheeler segment again, he said, "Abosolutely (we are) not open to anything...Of course VECV is the only other part of our business, which is doing very well. We are in the process of winding up EEPL operations".
On Royal Enfeld's plans for expansion in global markets, he said, the company is in the process of establishing wholly-owned subsidiaries in Thailand and Indonesia and may go for contract manufacturing there at a later stage.
For the current fiscal, Royal Enfield has earmarked a capex Rs 800 crore. The investment would go towards various activities, including setting up of second phase of the company's third plant at Vallam Vadagal near Chennai, completion of construction of the Technology Centre in Chennai this year and development of new products.
The planned production capacity for the current fiscal is 9.5 lakh units, the CEO said.
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