Eicher Motors (EML) today announced that the board of directors of Eicher Polaris Private (EPPL / Company), EML's equal joint venture (JV) with US-based Polaris Industries Inc., at a meeting held on March 9, 2018, passed a resolution to close the operations of EPPL 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.

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.

The company is grateful to the Government of Rajasthan for their support and encouragement in this journey.

As of December 31, 2017, EML had invested Rs 2.89 billion 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 918.3 million; 50% of which was consolidated with the Profit After Tax of EML.

Shares of the company gained Rs 270.75, or 0.97%, to trade at  Rs 28,145.75.  The total volume of shares traded  was  108 at the BSE (10.17 a.m., Monday).