Po­laris Finds In­dia Ter­rain Rough, Reviews Eicher JV

In new plan, Eicher Po­laris has drawn up a strat­egy to break even by 2020 Re­viv­ing Project Mul­tix

The Economic Times - - Brands: Creating Desire - Ke­tan.Thakkar @times­group.com

Mum­bai: US based all-ter­rain ve­hi­cle spe­cial­ist Po­laris, which en­tered into a joint ven­ture with Eicher Mo­tors for a per­sonal ve­hi­cle Mul­tix, is tak­ing a relook at its In­dia strat­egy with the ven­ture fail­ing to take off as planned.

Pankaj Dubey, who cur­rently heads the Po­laris all-ter­rain ve­hi­cle busi­ness and In­dian mo­tor­cy­cles brand, has been given the ad­di­tional re­spon­si­bil­ity to lead the joint ven­ture and put it back on track. Mul­tix, a multi-util­ity ve­hi­cle, is a unique of­fer­ing from the Eicher Po­laris JV aimed at small traders and farm­ers who can use this ve­hi­cle for both per­sonal and busi­ness pur­poses. “The board mem­bers at both Eicher and Po­laris are sur­prised at the busi­ness re­sults from the JV so far. The con­cept holds a great po­ten­tial — while the busi­ness has not got off to the start ex­pected, we have re-looked at our in­ter­nal ex­pec­ta­tions,” Dubey, CEO of Eicher Po­laris, told ET.

Mul­tix, lacked vis­i­bil­ity and since the con­cept was new, it needed to be mar­keted ag­gres­sively, said peo­ple in the know.

Amongst the series of mea­sures planned to re­vive the ini­tia­tive, Eicher Po­laris has up­graded the prod­uct by pack­ing more power with the BS IV of­fer­ing. For big­ger vis­i­bil­ity, the com­pany will be more than dou­bling the net­work to 150 within just six months. It is also ex­plor­ing the pos­si­bil­ity of as­sem­bling its ATV at the JV’s Jaipur fa­cil­ity for a quicker breakeven. The com­pany has a man­u­fac­tur­ing fa­cil­ity at Jaipur in Ra­jasthan with an an­nual ca­pac­ity of 60,000 units and has so far in­vested ₹ 350 crore.

It has re-en­gaged con­sul­tant Fran­cis Xavier Kanoi In­sti­tute to iden­tify ar­eas where the strat­egy didn’t work out as planned, and has ap­pointed third party mar­ket­ing ex­perts to en­gage with prospec­tive buy­ers on ground zero, start­ing with Kar­nataka, and even­tu­ally ex­pand to other states.

Un­der the new gameplan, Eicher Po­laris has set a clear breakeven plan for the ven­ture by 2020, which is at least18-24 months later than the ear­lier plan.

For Po­laris, the ATV busi­ness is al­ready grow­ing and the com­pany has started get­ting more trac­tion from the army. With the com­pany pitch­ing for sev­eral hun­dred ve­hi­cle or­ders from the army, and with the In­dian base tak­ing re­spon­si­bil­ity of sur­round­ing coun­tries, the pos­si­bil­ity of lo­cal as­sem­bly has been con­sid­ered. On the In­dian mo­tor­cy­cle front, the com­pany is likely to scout for a land for the fac­tory later in the year and is likely to start as­sem­bling mo­tor­cy­cles a few years from now.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.