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VE Commercial Vehicles: Eicher & Volvo merge 3 units
Posted on 06 Jun 20124,029 Views0 Comments
Profit centres of Eicher Trucks and Buses, Volvo Trucks and the Powertrain unit merged as per organisation restructuring.
In a bid to deal more effectively with competition, India's third-largest commercial vehicle player VE Commercial Vehicles, an equal joint venture between the Volvo Group and Eicher Motors, has restructured the organisation by merging three different profit centres - Eicher Trucks and Buses, Volvo Trucks and the Powertrain unit.
Vinod Aggarwal, CEO, VE Commercial Vehicles, told ET, "The objective is to convert the entity into a high performing business organisation. In the last three and half years, we doubled our top line working with the earlier setup, but the new structure makes us ready for the next level of growth. This makes us more agile and responsive to the market and the customer."
However, Eicher Engineering Components and Eicher Engineering Solutions will continue to run as separate verticals as part of the joint venture company.
As part of the new structure, the company has created functional heads at the level of senior vice presidents for sales & marketing, manufacturing operations, bus body and application manufacturing, technology and product management instead of these functions being managed by different individuals under the three businesses earlier.
Abdul Majeed, leader, automotive practice, Pricewaterhouse, says organisation restructuring becomes imperative in a highly competitive environment, but the key also lies in not losing sight of customers and their needs.
"For sure, an organisational restructuring can help in delivering better output and it also makes you nimble, but the automotive industry is all about products and adequate dealer network. As long as your products are relevant to the market by offering value and are available across the country, one should succeed," said Majeed.
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