Eicher Motors advances on US Acquisition

Eicher Motors has paid a total consideration of $ 3.5 million to acquire 100% equity from the shareholders of Hoff and Associates. Hoff & Associates had reported a consolidated turnover of $ 5.2 million for the year ended 31 December 2006.

Eicher Motors recently forayed into heavy commercial vehicles (HCVs) about three years back. Demand in this segment has increased due to a Supreme Court ban on overloading of trucks.

Eicher Motors also launched tipper, Terra 16, which was well received by the market. The company claims that the product is extremely suitable for mining, construction and other off-road applications. Eicher Motors has the best CNG technology in the world.

Besides commercial vehicles, Eicher Motors is also into auto components and engineering services. The auto components business mainly manufactures gears. In July 2006, Eicher Motors acquired a Detroit-based engineering services provider, Design Intent Engineering, for $2.5 million. The acquired firm brings expertise in surface design engineering, and design software for Eicher Motors.

Eicher Motors for the quarter ended December 2006 reported 26.50% rise in net sales to Rs 493.82 crore and a net profit of Rs 17.79 crore.

Reliance Mutual Fund has acquired 7% stake in Eicher motors.