Eicher Motors added 0.64% to Rs 2565.85 after the company's subsidiary VE Commercial Vehicles (VECV) commenced commercial production at its new truck manufacturing unit at Bagroda, Bhopal.
VECV is a joint venture between the Volvo Group and Eicher Motors. In operation since August 2008, the company includes the complete range of Eicher branded trucks and buses, Volvo Buses, exclusive distribution of Volvo Trucks in India, engine manufacturing and exports for Volvo Group, non-automotive engines and Eicher component business.
"This is the 8th manufacturing facility of VECV in the state of Madhya Pradesh and has been set up with Industry 4.0 standards, Eicher Motors said in a statement. In its first phase, the plant will have the capacity for manufacture of 40,000 trucks.
Vinod Aggarwal, MD & CEO, VECV said, "It's a very proud moment for us today when we commence commercial operations at our new plant. This is a testament to our commitment to the State of Madhya Pradesh with eight plants in the State now. We are extremely happy of the industry friendly policies, as well as the very peaceful industrial atmosphere of the state."
Apart from meeting the domestic demand, this facility will also be used for catering to new export markets thus contributing to the vision of Atmanirbhar Bharat as well as Make in India initiatives by our commitment to Make in Madhya Pradesh, he added.
Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles (VECV) which operates in India's commercial vehicle space.
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The company's consolidated net profit dropped 40% to Rs 343.34 crore on 2.7% decrease in net sales to Rs 2,111.98 crore in Q2 September 2020 over Q2 September 2019.
On a year-to-date (YTD) basis, the stock has gained 13.72% while the benchmark S&P BSE Sensex rose 9.35% during the same period.
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