Eicher Goodearth Forms Think-Tank

Eicher Goodearth, the holding company of the Eicher group, has formed a 'group supervisory board' to work out the company's long-term strategies. The group will advise, among other things, on diversification and divestments.

In another move, group company Eicher Motors has decided to delist the company's shares from the bourses at Ahmedabad, Delhi, Bangalore, Calcutta and Madras due to small trading volumes for the past few years.

The Eicher Motors stocks will, however, remain listed on the Bombay Stock Exchange (BSE) and the regional stock exchange, Madhya Pradesh.

According to the corporate review of 1998-99, the group supervisory board comprising distinguished individuals would assume macro responsibilities regarding long term strategies including diversification and divestments, ensuring ethical and legal practices and review group performance.

 

The newly-formed group will include eminent personalities like Vikram Lal, former group chairman, Eicher, S M Datta, former chairman, Hindustan Lever and N C Singhal, vice-chairman and managing director, SCICI. The experience and expertise of the members of the group supervisory board is expected to reinforce the group's strategies to make it globally competitive. Soon after the formation of the group supervisory board, Vikram Lal resigned from the board of all group companies. He will however, continue to assist, guide and encourage the group through the supervisory board. Vikram Lal has been replaced by S K Bhargava, group chairman and CEO of the group.

Despite the domestic auto industry and the commercial vehicle segment registering respective negative export growth rates of 5 per cent and 10 per cent during 1997-98, Eicher registered a 103 per cent growth in terms of the numbers of vehicles exported.

During the year, vehicles and spare parts amounting to Rs 41.2 crore were exported through a group company, Eicher International Ltd. Eicher International has also set up regional offices at Johannesburg in South Africa and Dubai in UAE, which would enable opening up of new markets in north Africa and the middle east.

In the current fiscal, the company proposes to expand into west Africa, both in terms of activating new markets and the setting up of a regional office.