Eicher Motors (EML) on Monday announced that the board of directors of Eicher Polaris Private Limited (EPPL) passed a resolution to close the operations of EPPL with immediate effect due to poor response to its product.
Eicher Motors (EML) on Monday announced that the board of directors of Eicher Polaris Private Limited (EPPL), EML’s equal joint venture with the US-based Polaris Industries Inc, at its meeting held on March 9, passed a resolution to close the operations of EPPL with immediate effect due to poor response to its product. EPPL was incorporated in October 2012. In June 2015, the company launched Multix, India’s first personal utility vehicle, purpose-built for the independent businessman. As of December 31, 2017, EML had invested Rs 289.50 crore in EPPL. The sums invested so far, together with additional investments, as required to close down the operations, shall be written down in accordance with the applicable regulations. During the year ended March 31, 2017, EPPL’s net loss amounted to Rs 91.83 crore, 50% of which was consolidated with the profit after tax of EML, said a press release in Chennai. Given its unique positioning and differentiated product features, Multix initially generated significant interest from customers. However, despite being in the saddle for almost three years, the initial interest could not be sustained and the subsequent sales performance was significantly slower than the company’s expectations. Despite several initiatives, the company’s performance could not be revived. 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. In the coming days, the company will engage with all its stakeholders including customers, suppliers, employees and channel partners to implement the closure. The company will continue to provide spares and service support for the fleet of Multix vehicles on the road.