End of the road for Multix and Eicher Polaris Pvt Ltd

In short, it means that it is that it is the end of the road for EPPL and the Multix vehicle. The Multix was launched barely three years ago. At a meeting held on March 9, 2018 the board of directors of EPPL passed a resolution to close the operations of the company with immediate effect.

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. Given its unique positioning and differentiated product features, Multix initially generated significant interest from customers. However, 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, the press release said.

In the coming days, the company will engage with all its valued 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.

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.