Eicher Motors buys BMC's Dewas gear unit

New Delhi, November 1, 2006: Afoot on expansion plans, Eicher Engineering components (EEC), the automotive component division of Eicher Motors Limited (EML) has acquired the Dewas-based (Madhya Pradesh) transmission gear unit of the British Motors Car Company Ltd., (BMC).

Sharing information, Siddhartha Lal, MD & CEO of Eicher Motors Ltd., said "Our Engineering components business has a portfolio of products ranging from differential and transmission gears to gear boxes". Commenting on Eicher Motors association with BMC, Siddhartha added, "Due to its excellent track record of developing and supplying transmission gears for medium and heavy commercial vehicles, BMC has been an established supplier to our CV division since 2004."

The newly acquired Dewas gear unit has strengthened EEC's manufacturing muscle by enriching EEC's portfolio of other 2 units namely Gurgoan and Thane. Eicher Motors Limited entered into a business purchase agreement with BMC on October 20th, 2006 and formally completed the transaction on November 1, 2006.

About Eicher Engineering Components (EEC)

Eicher Engineering Components (EEC) is engaged in manufacturing of Transmission & Differential Gears as well as Gearbox assemblies. Its Gurgaon unit is focused on servicing Global clients in their outsourcing needs from India whilst the QS-9000 certified Thane unit is in the process of acquiring TS-16949 certification. EEC has registered a healthy growth of 41% in the first half of this year aided by over 200% growth in export sales.

About BMC's Dewas gear unit

The British Motor Car Company Ltd., was established in 1934. Its gear business unit at Dewas became operational on 1ST April 1993. TS 16949 certified since July 2004, Dewas has a manufacturing capacity of 5,00,000 gears per annum.