Eicher Motors Ltd (EML) announced today that the board of directors of Eicher Polaris Private Ltd (EPPL) have passed a resolution to close the operations of EPPL with immediate effect. EPPL was an equal joint-venture (JV) between EML and US-based Polaris Industries Inc, This resolution was passed by the board at a meeting held on 9 March, 2018, the company noted.
In the coming days, EPPL will engage with all its stakeholders, including customers, suppliers, employees and channel partners, to implement the closure, said EMP. However, the company noted that EPPL will continue to provide spares and service support for the fleet of Multix vehicles on the road. As of 31 December, 2017, EML had invested Rs 289.50 crore in EPPL, and during the year ended 31 March, 2017, EPPL’s net loss amounted to Rs 91.83 crore. EML said that 50 % of this loss was consolidated with the Profit After Tax of EML.
EPPL was incorporated in October, 2012. In June 2015, it launched Multix, which was India’s first personal utility vehicle, purpose-built for the independent businessman. Given its unique positioning and differentiated product features, Multix initially generated significant interest from customers, but could not be sustained. The subsequent sales performance was significantly slower than the company’s expectations, and despite several initiatives, its performance could not be revived, said EML. Hence, the board of EPPL has concluded that in the present circumstances, it is in the best interest of all stakeholders to close the operations of the company.