IBFS PROJECT

EICHER MOTORS
ISSUE TYPE : DEBT
AKUL GUPTA 2K19/BBA/07
CHIRAG KASAT 2K19/BBA/25
ABOUT THE COMPANY
Eicher Motors Limited is an Indian multinational automotive company that
manufactures motorcycles and commercial vehicles, headquartered in New
Delhi. Eicher is the parent company of Royal Enfield, a manufacturer of
DIRECTORS
middleweight motorcycles.
NAME  DESIGNATION
Registered Company Name EICHER MOTORS LIMITED
S Sandilya  Chairman- Non-
RoC RoC Delhi Executive and
Independent Director
Registered address 3rd Floor, Select City walk, A-
3, District Centre,
Siddhartha Lal  Managing Director
Saket, New Delhi-110017

Website www.eichermotors.com Vinod K. Dasari  Whole Time Director

and CEO - Royal
Corporate Identification L34102DL1982PLC129877 Enfield
Number (CIN) 
Inder Mohan Singh  Independent Director 
Registration number 129877
PAN NUMBER AAACE3882D Manvi Sinha  Independent Director

GST NUMBER 36AAACE3882D1ZT

BUSINESS
• Eicher Motors Limited, which is one of the oldest companies in the automobile sector
is the listed parent of Royal Enfield, the global leader in middleweight motorcycles.
• Royal Enfield operates in India, and over 60 countries around the world with modern
development facilities in Leicestershire, UK etc.
• In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo - Volvo
Eicher Commercial Vehicles Limited (VECV)
• VECV joint venture between Eicher motors and Volvo Group.
• Products & Services
1. Royal Enfield motorcycle
2. Commercial Vehicles 
• There are more than 20 workspaces around India which includes head offices,
corporate offices, factories etc.
ITERNATIONAL

BUSINESS
There was a slight decline in
the export of royal Enfield
bikes in the international
market as compared to the
other FYs.
 INDUSTRY OVERVIEW
• In 2020-21, the two-wheeler industry sales
volume was 15.1 million units, a decline of
13% from 17.4 million units in 2019- 20

• Increase in total sales of Eicher trucks & buses

in the overall industry. 

2019-2020

Decline of 13% in sales

2020-2021
INDUSTRY
OVERVIEW
Major competitors of Eicher motors in the
Auto industry
Ashok Leyland, Mahindra, Bharat Benz,
Tata Motors, Maruti Suzuki, Bajaj auto

Marketing plans:
• Signing famous actors & influencers as brand ambassadors.
• Taken up several community initiatives
• Promotion through various social media handles.
SHAREHOLDING PATTERN
 EXPANSION IN THE FIELD OF ELECTRONIC
•VEHICELS
Eicher Motors is planning to launch new Electronic
Vehicles.
• We are planning to raise INR 8000 Cr. for the

•
company, through Debt.
Researched – Tata Motors invested INR. 10,000 Cr.
Mahindra invested INR. 3,000 Cr.
WHY DO
Maruti Suzuki invested INR. 5,000 Cr.
WE NEED
We are raising INR. 4000 Cr. From Non Convertible
Debentures and INR. 4000 Cr. From optionally FINANCE?
Convertible Debentures
Why Debt?
• Eicher Motors have zero long term Debt
• Less expensive
• More Control
 SOURCES OF FUNDS
Type Of Security Optionally Convertible Debentures Type Of Security Non-Convertible Debentures

Size of Issue INR 40,00,00,00,000 Size of Issue INR 40,00,00,00,000

Face Value INR 20,000 Face Value INR 20,000

2,00,000 Debentures of issue price

Pricing and Interest Rs. 20,000 each 2,00,000 Debentures of issue
Coupon Rate: 3 % p.a. Pricing and Interest price Rs. 20,000 each
Coupon Rate: 6.5% p.a.
Conversion Ratio at
1:5
Maturity
Duration of Funds 5 years
Duration of Funds 5 years

Frequency of Interest Frequency of Interest

Annual Annual
Payment Payment

Credit Rating ICRA AAA Stable Credit Rating ICRA AAA Stable
BREAK UP
OF FUNDS
CAPITAL STRUCTURE TEXT HERE

Amount in Cr.
PARTICULARS PRE-ISSUE MARCH 2021 POST ISSUE MARCH 2022
Debt:    
Short Term Debt 0 0
Long Term Debt 0 8,000
     
Total Debt 0 8,000
     
Shareholders Fund:    
Share Capital 27 27
Reserves and Surplus 11,410 11,410
     
Total Shareholders Fund 11,437 11,437
     
Long Term Debt/Shareholders Fund 0 1.42
PAST FINANCIALS

SHAREHOLDERS FUNDS(Cr.)
PAST FINANCIALS

IMOPORTANT RATIOS

NAME FY 17 FY 18 FY 19 FY 20 FY 21

Current Ratio (X) 0.92 1.15 2.22 3.4 3.6

Long Term Debt/Equity (X) 0.02 0.02 0.01 0 0

PBDIT Margin (%) 34.57 35.56 35.24 31.05 25.97

Return on Assets (%) 28.15 21.97 21.67 17.99 10.53

Quick Ratio (X) 0.7 0.98 1.91 3.13 3.29

Asset Turnover Ratio (%) 127.03 114.91 103.34 85.8 68.27

 Future Projections
Amount in Cr. FY21-22 FY22-23 FY23-24 FY24-25

Sales 9801 9466 11259.6 13533.8

Other Income 483 450 568.8 674.8

Total Income 10284 9916 11828.4 14208.6

Total Expenditure 8745 8698 8836 8843

EBIT 1539 1218 2992.4 5365.6

Interest 390 391 392 393

Tax 367.68 264.64 832.128 1591.232

Net Profit 781.32 562.36 1768.272 3381.368

• Intrest of Debt Raised are adjusted in the given projections.

• Expenditure of EV plant are adjusted in the given projections.
• Assumed Sales and Other Income will Increase by 20% in FY23-24. *Sale will start from year FY23-24
• Assumed Sales and Other Income will increase by 40% in FY24-25.
• Investors will receive interest
annually on NCDs worth of INR
4000 Cr., 2,00,000 Debentures of
issue price INR 20,000 each at
6.5% pa. OFFER TO
• The investors can exit by convert INVESTORS
the optionally convertible, i.e. 4000
Cr. worth 2,00,000 Debentures of
issue price INR 20,000 each at 3%
pa. into equity shares at the time
of maturity.
THANK YOU