Eicher Motors Limited (505200) Earnings Call Transcript & Summary

Good morning and welcome to the Eicher Motors Limited Investor Day 2022. A warm welcome to all of them who are watching us through our live broadcast links today. And a very warm welcome to all of you sitting here to this facility, the Royal Enfield Global headquarters in India Technical Center. I hope all of you had a good tour of the technical center this morning and were able to go through all the sections of our facility and also were able to go through the World of Royal Enfield pop-up exhibit that we had at the dinner last night. Some of you went riding this morning, and I hope that experience was great. We would love to hear more from you during our breaks, coffee, lunch, et cetera. Do let us know how you like the motorcycle. Today's session is focused on presenting a broader view of the strategic business objectives and the future vision of our company to all of you. You will hear from our leadership teams across the board, and here is a very quick view of the plan for today. We will begin with a broader view of the vision for the company going forward from Siddhartha Lal before we deep dive into the Royal Enfield journey, led by Govind. Thereafter, you will get a better understanding of how the brand and product strategy tango at Royal Enfield with Mohit Jayal and with our product leads, [ Simon, Mark and Matt ]. Thereafter, we will break for lunch, and we will have Govind come back with a strong view about the future prospects for the company and the markets that we plan to get into. Followed by Kalees, who will bring in a very sharp perspective and some serious number crunching. And not to miss, we will also have all the amazing work that we have been doing in the commercial vehicle segment with Mr. Vinod Aggarwal taking us through VECV. So you will see at the end, we have about 60 minutes for Q&A with the management. So I would request if all of you can note down and keep your questions to the end. And also another small request would be to keep all your phones on silent so that we can carry on without any disturbance through the rest of the day. So without any further delay, to set the ball rolling for today's presentation, may I invite the Managing Director and CEO of Eicher Motors, Siddhartha Lal.

Hi, everyone, and a very good morning to you. We're delighted to have all of you here and online, who were seeing there. I hope you got a good understanding of -- or a glimpse into the world of Royal Enfield by last night with all the production that we did there. And then this morning, those of you who rode our latest motorcycle, the Hunter, which we are really excited and proud of. And of course, our development facility here -- our -- the technical center -- and we've got, of course, some of you, I think some of you visited the UKTC, the technology center, is that right? In Bruntingthorpe a few years ago. How many from here were there? Okay, quite a few. So it's -- of course, this is now a newer setup. But as you've understood, we work super close together, there's not different projects, the same projects run across. And yes, I mean, I hope once you've been through this, you sort of really get a glimpse of how we operate. And over the next -- the rest of the day, we're going to tell you a lot more about what we couldn't show you on the ground. It's -- Eicher Motors Limited, Royal Enfield, in this case, has come a really long way. I think even when -- when I look at the facilities and the capabilities and the people and the -- and what all we're doing, I have to sometimes pinch myself and -- because it's a far cry from where we were just a couple of decades ago. But this is really the product of a super focused strategy and a super focused company. That's what we do. We put a huge amount of energy in less number of things. But we do have a really wide approach. And it's always -- the default for Royal Enfield is always customer centricity. When in doubt, go back to the consumer and understand. Other companies may be competition focused or only business-focused or profit motivated. But really, at Royal Enfield, we always go back to the consumer, go back to a brand, our ethos. And that's where answers always emerge from. And with all this tremendous success that we've had at Royal Enfield over the last many years, it's a good question to ask why do we need to change because I'm going to talk to you about the enormous changes that we have planned at Royal Enfield and it's -- I believe the time to change is when you're doing really well, when you're on top, when there's -- when the opportunity is there. And it's also -- it also really comes from within because last couple of years, as we've been in sort of a reflection mood perhaps a little bit in sitting at home more often than not. And it was a time of reflection and all of us were able to deeply reflect and see where Royal Enfield is going, and we love where Royal Enfield is going, no doubt. But we also believe there's a better way in doing what we're already doing. And this is something when we talk to our consumers, when we talk to our team, our people -- the people who work at Royal Enfield and all other stakeholders, yourselves, everyone, the whole idea that we need to reorient Royal Enfield has been coming in a very big way. It's come from within. It's come from a realization that we all have that we need to evolve how we do things. And therefore the -- and that was then therefore, distilled into our business planning process, which we do every year. Our business planning process is normally a lot of thought. It's not just -- it's -- in fact, the numbers are always a consequence. They're just an outcome of the plans that we have for the long term. So -- and then, of course, the numbers fall into place. There's a little bit of push and pull that happens, but that happens in every aspect of our business but -- and so we came around to this thought which we all really resonate with and it's called rebalanced labor -- rebalanced. And the rebalance is that we live in a world that needs to evolve a bit. And maybe before I get into rebalance and talk to you a bit about our purpose, let's say. And at Royal Enfield, we always believe that our purpose is in some way to bring equilibrium, harmony between man, machine and terrain, right? So that's been our guiding force for years. And the rider, the motorcycle and the terrain that we ride on. And that's driven us to be who we are, that's driven us to understand and to develop and to deliver what we have done to our consumers, to you all. But in this retrospection what we believe is that we have to widen the scope of this purpose, the man, machine and terrain, we have to widen it. The man part is not just now rider. It's rider, it's community, it's the people that we -- it's all our stakeholders. So the man part evolves to that. The machine, which is the motorcycle is the company, right? As well. And it evolves to the company level as it were. And the terrain, which is the land that we ride on is the planet that we inhabit, right? So we truly believe that we need to evolve our thinking to be so that we can bring harmony in a world which is a bit out of sync in itself, right? The earth today with all the problems, I'm talking about the larger sustainability issues, climate change, all of that. It's a world a bit out of sync. And we believe that we need to be part of that solution. And so therefore, to bring the communities that we work with, that we are part of, the -- and the earth that we all inhabit. And we should be a company that is part of the change, part of the positives that we can bring on the table rather than -- so part of the solution rather than part of the problem. So that's our starting point of a rebalanced approach. The next point of our rebalanced approach is growth focus. Companies very often sort of the default, it's different for different companies, of course. But when you don't think enough and when you don't really [ there ] enough, and in our case, for example, when you're making enormous profit margins few years ago, as you all know, that sort of tends to pull you in, right? It's sort of tends to pull you in. You got to maintain this crazy good profit margin. And we are certainly profit-focused. But with all our thinking and introspection, we really believe that we are, and we will be, and we'll reorient to becoming a truly growth-focused company. And where does that come from? It comes from a lot of places. But one of them is the opportunity that we see ahead of us. We are, of course, doing really well. We've got 85-plus percent share in the 250 cc market in India that we dominate. I was talking to some of you yesterday, even in the above 125 cc market in India, we have 1 out of 3 motorcycles sold. That was not the case many years ago. We were 1 out of 10 motorcycles sold in the above 125. So adding -- I'm taking out the base commuter bikes, and I'm saying everything else, we're 1 out of 3 motorcycles. And -- but the opportunity is that in the Indian motorcycle market, we're still 5%, 6% market share. So there's a lot of headroom because we believe that consumers will rise up, the premiumization trend is going to continue. And again, with motorcycles like the Hunter, we will attract first-time riders as well, not just upgraders from 100 cc. The -- so the opportunity in India is still enormous. The -- then, of course, there is the international markets. We've strategically embarked on going in international markets many years ago. And the journey has been super exciting. We've -- but there's been a lot of foundation work. It's been about understanding the consumer, understanding the markets and being out there, serving the markets not necessarily with the plant. That's not our life. It's more with a market company or with teams, with understanding and doing interesting things there and seeing how consumers respond to us. And we're at the start of the journey, the market in midsize, outside of India, is equal to or perhaps even larger than the market in India itself. And this is a market that we created in India, right? I mean if Royal Enfield wasn't there, it's possible that this 1 million market of midsize could have been 50,000 today, right? Because nobody was around and nobody cared about this market. Similarly, we can grow the market internationally. We're in that space now, we can -- we're confident that we can say we can actually not just take share of a 1 million market outside of India, we can actually grow that market. How? In markets like Thailand, where we were just there riding the Hunter and enjoying ourselves, suddenly, it's a very step through oriented market. There's, in fact, not that many motorcycles, okay? There's a few midsized motorcycles, there's a few smaller motorcycles. But if you have really good offer, if you have really good experience, if you have really good product, all of that, people will come like they did in India. So there's that entire global opportunity out there. They're all the adjacencies, which we're just starting to work on. I mean first, you said let's grow to a level, and then we can work on adjacencies. We've got thriving adjacent businesses, let's call them, which add a lot of value back to the brand, back to the mother brand. So our accessories, our apparel. Of course, spare parts, which is always going to be there and is interlinked. But these are adjacencies. There are lots of other adjacencies we're working on, lots of other commercial projects which are -- which -- and these are not stand-alone projects. These are things that add back a lot to the parent brand, to the motorcycling experience, the pure motorcycling experience that we're -- that is Royal Enfield. So there's that. And then, of course, further growth opportunities in EV, for example, right? So there's -- this is only the start of something new, which is going to fold out over the next few years and decades. And it's fast moving. It's going to change a lot the EV landscape. And we are doing -- we're very excited about it. We'll talk about it later, a little bit, not much. But it also allows us to do things that we couldn't do in our internal combustion engine, right? We can enter markets that we weren't able to enter in our current avatar. So a lot of growth opportunities for Royal Enfield. And there is still growth for a second. We -- but with a profitable focus. I mean that profitability is always part of our DNA. It's not going to go. But the examples of the growth orientation are things like the Hunter, right, for example, because this is a motorcycle, which was -- the planning started long ago. So it's not just suddenly -- last minute, we said okay, let's come out of the motorcycle that we'll have a wider appeal, which will be at a very interesting price point and that will grow the market. This thought process started in late 2016, maybe early 2017, when we were conceiving our J-series, we said we need to have a roadster, which will be more accessible, which will be different -- accessible, not just from a price point, but also from getting riders who are -- who maybe find the classic a bit big or too traditional look. So that's on the growth and profitability focus. Then, yes, the sustainability part. We -- I talked about that -- I sort of preempted that in the purpose part of the discussion where we really believe that we need to balance our social and commercial objectives at Royal Enfield. And that -- this is something which comes very strongly within us and from our consumers, from our employees, from everyone, from our stakeholders, our shareholders, from our investors. And we've got a lot of ideas -- not ideas. We've got a lot of traction in some areas. And of course, it feeds into the next, which is our EV bit. So again, that's another balance that we have to create at Royal Enfield. We've got a tremendous portfolio of internal combustion engines. It's of motorcycles, sorry, petrol motorcycles, it's called. We've got a -- what you're seeing now is the tip of the iceberg. There's a lot of really interesting, really fun, but also, we believe, very marketable, very interesting new segments that we're creating, and we continue to create. So we see -- we've got a really strong portfolio of midsized motorcycles, which are coming up for markets around the world. Like you've seen in the recent past, all of our motorcycles are meant for all of the markets that we serve. Of course, they play slightly different roles in different markets. But all the motorcycles even in the future are meant for all the markets that we're in. That's on the petrol bikes, we're super excited about that. But we also have been working for years now, for many years, 3, 4 years on our EV program. But as we do, a lot of our work right now has been more in understanding. It's more consumer understanding, understanding the technology, understanding how it fits into people's lives, how it -- how do you take advantage of electric mode set. We're not going to do lazy things like take a classic, stick in a battery pack and hope for the best. That's not how we operate. It's really to see how electric technology can be harnessed in the best way possible. And so we've done a lot of consumer work. You'll see some of that in the later presentations. And from that, we have now programs. Some are in early development stage, some are still in concept stage. There are some where we're just throwing things around, putting things together. So we have different concepts of EV at different stages. It's still a long way ahead. We're not going to see anything for the next 3, 4, 5 years from Royal Enfield. But when you do see something, it's going to be spectacular, and it's going to be different, and it's not going to be something which is like I said, a copy/paste or cut/patse job. It's going to be something tremendously exciting. Otherwise, we won't come out of it. So that's on the EV side and petrol bikes. Then, of course, last but certainly not the least is brand-led customer experience. And it's a customer experience part, which is now taking front stage for us. We've nearly come a full circle from 20 years ago, which is where we started the whole idea of a different customer experience. When all the other motorcycle companies were getting some big film star or cricket star to endorse their motorcycle. And everyone knew that guy wasn't riding that bike, right? I mean everyone knew that, they caught them out, but -- so it's fake, right? I mean it's quick, it's easy, you can hopefully get eyeballs, but it doesn't do anything for the brand. And so that's when we started doing real experiences, fun, riding, events, adventure. And moving into the next -- into the last 20 years, into sport, we do very ground level sport, we do Flat Track and GT Cup Racing and custom motorcycles and so many fun things and that's what has built the brand in the way that it has over the years. But now [indiscernible] with new take on it. We're -- the entire market has changed, consumers have changed, their habits have changed, how they talk to us has changed, what they put more value and what they put more weight behind has changed. And we have -- we are on the front of that change, and we're evolving tremendously to, let's say, to not just adapt to that change, but to set the standard and to -- and for consumers to rise up to what we are doing as well. So it's a bit of both. We're learning, and we are setting new ideas [indiscernible]. So there's a lot of interesting things we're doing that you're going to hear about later as well. So that's on the brand part. And where does that lead us? So all this rebalance stuff, where does that lead us to? It's in response, not just to a changing universe outside of us. That means our -- or maybe our stakeholders, our consumers, our community, all of that. It's strongly driven from within as well. We believe that we need to evolve in this fashion that we're talking about with all these different changes. We truly believe that. But what it's going to do also is evolve brand Royal Enfield with consumers, the affinity, people are looking for something different. People don't -- now and certainly more and more in the future, it's not just about good product or a good brand and you're going to buy it. What does the company stand for? What is the ethos of the company? How is the governance of the company, what is the sustainability record of the company? It's so important to consumers as well. It's so important to employees. So people who are joining Royal Enfield who're -- or who're already a part of Royal Enfield, they want to be a part of something much bigger, not just a very commercially bent organization. They want to be a part of an organization that has more meaning and that they can really put their soul behind, not just spend a few hours and go back. It's -- if you want that kind of passion from people, you've got to also show that kind of love for things beyond just commercial interest. And that makes some more engagement as well, we believe. And same with -- same for shareholders and for investors, I think that's really the future. It's beyond just hardcore commercial interest. There's a -- but the irony nearly is that all this that we're talking about and that we are embarking on, and we've embarked on also makes for a much more resilient long-term company. You have better affinity with customers. You have better affinity with employees and with other stakeholders that makes for a company that is more resilient and more new age and therefore attracting a different audience and actually increases value all around. So it's a win-win-win for all stakeholders. That's our belief. And that's how we look at this entire picture of rebalance at Royal Enfield. And -- so yes, that's by and [indiscernible] have got a long day ahead of you. We've got, Govind after me, and then we've got Mohit who's going to talk to us about brand. And then is it [ Mark? -- Matt, Mark, Simon -- Matt, Simon Mark, ] sorry, wrong order. And last but not the least -- no, no. Then Kalees and that is the sort of RE/EML portion. And then, of course, we have the dark horse business, VECV, which gets less attention from you all, but is enormously promising and Vinod Aggarwal will take us through what's going on at VECV and why we think it's so interesting and what's happening in -- and it's -- and we're really building something super special there, and the results are also out as in not the quarterly results, but as in we can see how things are progressing super -- really well. So yes, looking forward to this day, we've got a session at the end. We're going to wrap up. We've got question and answers. And yes, once again, really happy to see you all. Thank you all for coming all this way to interact with us. And I'm going to invite Govindarajan on stage. That's -- And firstly, I'm delighted to have Govindarajan as CEO. The great thing is that between Govind and me, we have super complementary skills, right? So we're sort of at that intersection point. So we -- what we're seeing -- I don't know it's -- I think we said between Govind and me, we have nearly 50 years jointly in Royal Enfield. So it's kind of -- we don't look that old, of course, but we have a lot of years at Royal Enfield together, working super closely together, and I'm delighted that Govind is CEO now and working -- both of us working again super closely together in different avatars of course. But -- so yes, Govind is going to talk to you about what's been going on at Royal Enfield all these years, and how he's looking at things from his perspective. So thank you very much, and over to you, Govind. Thanks.

Thank you, Siddhartha Lal. Warm welcome to everyone of you. I'm sure you all had a -- those of you rode, I'm sure you would have enjoyed the Hunter 350 just launched, our new motorcycle, which has been received so well in the market. So today morning when I was just coming, I was just reading, is there anything negative which is there, which I have to work on and start thinking about it. So I was actually spoiled by the positive reviews which are continuously coming and pouring, it's a good sign. Siddhartha spoke about the core purpose, connecting the man, machine and the terrain. At Royal Enfield, what we know is only that. We don't claim as a team to say that we understand more, we can do this, do that. We all bunch of motorcyclist. We enjoy motorcycling everyday basis given a chance. We would like to be there on the motorcycle rather than sitting in a chair and thinking because we always believe when you're on the road, on our motorcycle, we'll -- we know what it is, what is that we can give because the core philosophy of this organization has been delivering the pure motorcycling experience. What does it mean to the consumer is what he was mentioning the core purpose, connecting the man, machine and the terrain. You should talk to him, the motorcycle is part of him. When he's on the motorcycle, he enjoys the life. At a point of time, whole the digital world was taking on -- at some point of time, everyone [indiscernible] sitting in front of the monitor always, we really felt at that point of time is our motorcycle is the media, which will actually give you a different kind of an experience. That's what it is. So that's the pure motorcycling experience of Royal Enfield, which we always believe in. And that's what drives us as a team, too, but it's a long journey. It's not that the pure motorcycling experience, which we deliver to the consumer a few years. It's a long journey. It's from 1901. You can see that's the first motorcycle in 1901, which was launched, an engine which was fixed in the front side. From then on, the motorcycling culture which has been going on. In our journey -- in this entire motorcycling journey, which we're talking about, in 1932, the iconic Royal Enfield bullet was first made. That diligence is still continuing. You can see the look, it's a distinctive style. It's a oldest motorcycle and continuous production as a brand. Even today, Bullet as a brand is being manufactured by us in India. In the journey, when -- next major milestone, which has happened is in -- move to that's -- let me just see that. That's the -- so all the [ science ], all of these things are happening at in U.K. 1955, the Madras motorcycle company, which came in, and they got an order from Indian Army for about 800 numbers, and that's why they imported that contents from U.K. and they started building the motorcycle. So our association with the Indian Army has started off in 1955. Then in -- that point of time, the factory at Tiruvottiyur, which was made in operation. Even today, the factory is there. Today, it's doing a different purpose to us, but it's a place which actually gave birth for a lot of motorcycles to make. I think in 1994, that's the time, Eicher took over Royal Enfield. When we took over, first few years has gone in looking at -- because at that point of time, Royal Enfield was not doing great money, it was actually bleeding. So when Eicher took over, it took some time to do a financial reengineering. What is it we have to do that? It was actually making almost every part of the motorcycle inside. So the cost structures were not okay. There are a lot of things which were there in the whole business, which has to be fixed up. So we took some time, and we started fixing the basics and a lot of us were joined. That's what when Siddhartha was talking about. We all started coming in into the -- in the world of Royal Enfield. We started working on different products, which has to come in because only the Bullet which was there at that point of time. In 2008, the first product, which we launched is the Classic 500. Till the time, only the Bullet on the cast iron platform was there. So during that point of time, the product was okay, but it was -- all the things which are -- consumers was expecting, brakes and the gear shiftings were on opposite side. So that's the first product which we thought that we should bring in. I think [ Mark ] and all got involved during that particular point of time, we thought that let's bring out a motorcycle with all the nuances of the pure motorcycle, which has to be there. And that became a good success for us. The classic retro design, it got accepted very well. We launched this first in U.K. on the 500 cc platform because we wanted to understand whether this form of the motorcycle will be accepted by the community and where is the market for it because all along, we have been making only 350 motorcycles, which is a cast-iron based which had its own issues. So first time we came out with a unit construction in the 500 cc, which actually addressed some of the issues which are there in the cast iron engines. When we launched in U.K., it got very well accepted and everybody started looking at wow, that's the good [ sellout ] with which this motorcycle is coming, and there is a good reception, which was there. When that acceptance was there, then we started looking at -- in 2010, the Classic 350, which we launched because we felt when the 500 cc got accepted, then obviously, we look at it that we have to give with more -- the pure motorcycling experience to the consumer base. We found there is a 350 cc, which had a huge opportunity for us. So that's why we came in with the Classic 350. Classic 350 first, we launched in India. And that actually defined. It was a defining moment for Royal Enfield. It defines the entire middle weighted. So that was mentioning. At that point of time, the middleweight was not there. That particular segment was not there. It's not very huge. Once we launched Classic 350, the numbers started coming up. Slowly, the customer acceptance was very good. People started enjoying the motorcycles. Now you can see the journey from a cast iron to the 350 cc, which we launched in the domestic market, it started opening up. And actually, the base for Royal Enfield also is going up. At that point of time, we had only one plant. That's what is the Tiruvottiyur plant which I was just talking about. The demand started picking up. We were not able to do the justice to the consumers because there's a huge waiting period, which started coming in. It's a good situation to be, but we really thought that we have to quickly work. So we were not very well prepared. I mean I will touch upon how we are prepared as an organization nowadays. At that point of time, we were not very well prepared. But then we thought that we will start working on, and before the launch, we were making somewhere around 3,500 to 4,000 motorcycles a month. That's where we are. And when we started launching, we started looking at 5,000, 6,000 numbers, but the Tiruvottiyur plant was not enough to deliver. It was a very old plant, 1955, and a lot of operations which were happening. So we started looking at -- well, let's start looking -- the first intervention which we wanted to do it is make versus buy. We did a rationalization. We started looking at how do we improve the output from Tiruvottiyur, we did a lot of low-cost automations at that point of time because we're just started making money. Not that we would able to make a lot of investments in the Tiruvottiyur. And otherwise, you have to shut the plant and do it. So continuity will also get affected. So strategically, we thought that let's do some low-cost automation at Tiruvottiyur, and we started getting the numbers. So the time when the Classic 350 was launched, the next year, we hit almost about [ INR 76,000 ] per annum. That's the first jump, which came up. During that point of time, what we thought is when the demand was continuing, the market was getting expanded, more and more consumers were looking that Royal Enfield will have to come back with more motorcycles, waiting period was going up. That's when we went in for the first plant in Chennai. There's a lot of debate, which we wanted to understand. At that point of time, where do we have the plant. Why do we have the plant, what sort of a technology we have to adopt, it is easy for us to put a plant, all of you would have seen it. If you have a capital, just go buy out all the capital equipment, put it into that, put a conveyor and then do it. But as an organization, we felt, it's a great opportunity for us even at the back end, that's at the manufacturing end, on the technology end, we have to do a lot more things. So we use this as a gate criteria, we and Siddhartha used to talk about it at that point of time as how do we call the plant is ready for start of production. Is it the line readiness, we call it as a start of production. That's how everybody will be looking at. We said, no, that's not the thing which we're talking about. All the quality issues, which were there, which the consumer was saying at a point of time, hey, guys, we like you, but you guys are not able to give a good motorcycle to us. So we started really looking at even if it is delaying, even if the consumers are demanding from us that more motorcycles have to be given, let's focus more and more on how do we improve the quality level of the motorcycles, which we will deliver. We started looking at entire vendor base. We did a complete revamping of the supply chain. We started looking at all the toolings, which are there. Then we went into some country, which was giving us an outstanding tooling. We consolidated that particular place. We roped in the best class suppliers into the vendor base of Royal Enfield. And we started implementing all the technologies which are required. Today, at least, I can tell you on the first plant, which is there, we have the best in technology in the manufacturing. We are also a company as Siddhartha was mentioning, it's a very focused, right? We don't look at it. And we will always look to be very innovative. How do we bring in? Should we actually put a big plant at that point of time as one location? Or should we start looking at in a smaller format. One driving force which is coming up is because we always had a long-term approach. At that point of time also, we were very clear. We have -- next 10 years, what are all the new products which we have to work on. And if we have to do that, then it can't be one plant, one big place because when you change over something, then something has to be shut down. So we thought modularly, we will start coming in. That's how we went into phases, and then we decided to develop in that. When the back end is being set in the factory, the entire operations are being done, consumers started coming more and more into our front end, the retail outlets. At that point of time, some of you would have seen that our retail outlet was not giving that sort of an experience which we wanted because as a brand we always wanted that it has to be a premium brand. So we've started working on what sort of an experience. So that was just talking about the customer experience to the different level now. So the customer experience at the first [indiscernible] we were talking about is the retail identity. At the front end, we wanted to actually bring in. So we established a Royal Enfield brand identity which is followed across the globe as of now. With the Classic doing well and the brand identity, which we did all the stores across the globe, it has to be in the same form, look, feel, consumer gets an immersive feeling. At that point of time, we started working on other adjacencies and different platforms. So the first platform from Royal Enfield, we started working on is the Himalayan, a purpose-built motorcycle. Basically, it's a spiritual home for us. We always go to the Himalayas after all these meetings and launches and all those things. Tomorrow, if you ask me where is that you will be, probably we'll take flights to a particular place, then we'll say we'll go to Himalayas, and I mean, honestly, we are going to do that. So that's why I'm just saying. So we are all traveling. That's a spiritual home for us. Our Classic 500, people were using it in Himalayas, but that's not a purpose built for it. We really felt that those who are going there, we have to offer because that's what is pure motorcycling is all about that it has to have a connection with the motorcycle to that particular terrain of Himalaya and that's why the Himalayan as an adventure tourer came in. We launched Himalayan Tourer. When Classic is growing, the adventure tourer Himalayan is growing, the demand was also growing. And when that was growing, what we were looking at is that -- so the first plant, which we opened up, the Oragadam, it was peaking out. It was almost about 6 million. But when we are looking at how the demands are going, we are preparing at that point of time for the second plant, which has to come in. We came out with the next plant at Vallam. All put together now as an information it is, it's about 1.2 million. So the Vallam plant is the third plant, which came in. We also wanted to bring in the flexibility because as an organization there's is a premiumization going up. Our consumers are looking that every other motorcycle need to be different, so we built a lot of flexibility, which is there in this. As I mentioned when the supply chain is sorted out, by and large, the plant capacity is then almost about 1.2 million. We understood to deliver the pure motorcycling, the adjacencies and what are the new categories, which we can come in as motorcycles. At that point of time, we really felt when Adventure tourer was launched, honestly, we really felt that we require with more capabilities in the product development area for us to have -- because as we always say, we are a company, we're very ambitious. We are very focused, and we are not in a hurry. We are very aggressive for the long term. That's what we as a company. So we had a very good plan for all the motorcycles which have to come in. We really felt if you have to get into the global arena, then you have to have the best talents, which have to be there in the company. So we started looking at -- the discussion which we had between me and Siddhartha is that let's go to U.K., and that's where the motorcycling experience on the design is very high. Let's look at maybe about 10 of -- 10 or 12 guys who can actually come on board and help us out. So we went and then we started looking at some guys joining us. From there today, we have a U.K. tech center which has come live in 2017. We have almost about 120-plus. It's growing. It's always very nice. We started up in a rental place with about 757 guys. Then we said, okay, now it's very good. We get more talents. That's how I think 120-plus is only in the product development. There is product strategy, then we started recruiting guys in the motorcycle accessories business. That's how the more global talents we could able to bring it in -- at the tech center. We were doing a tech center at U.K., not enough because more work have to be done on this. So apparently, we started working on the tech center in India, where we are here now. Here at the Chennai Tech Center, the place where we are. We have almost about another 400 guys who are working in is put together on the new product developmental area, including our sourcing guys, product development, product strategy, accessories team, all together is almost about 800 guys who are working on it. When we are bringing in, these are all at 2 different locations, development centers, having challenges, which are coming in. One challenge, which we thought will be in front of us is that how do we get a cultural integration into this because we are growing. In that area, there are a lot of new guys who are coming in, how is the cultural integration which is going to be there. That was a challenge which we thought will be in front of us is a big one. That's a question. Honestly, I always felt it was so easy in this company because fundamentally, what was happening is there's only one language, which everybody understood is motorcycling. And on everyday basis, what we talk is motorcycling. We understand consumer what he wants, pure motorcycling, what does it mean? Why am I changing here? So the common language is about motorcycling as a company. So the cultural integration wasn't a major issue at all in this place. With this kind of a talents which had come in from India's growth, we have been very successful. We thought now we are ready for launching a global product. That's when we launched the 650 cc Twin platform, our Continental GT and Interceptor 650. It is a great love for both these motorcycles. We are very proud in bringing these 2 motorcycles into the motorcycling world, too. As the aspiration is going, we started looking at good products, aspiration is going, consumer acceptance was very high. We also thought that we have to reach to the consumers more and more, and how do we reach them in different formats? So we came out with what's called a Studio format, a smaller format, especially for India, which also helped us in the international because in international it is a multi-brand outlet. So we wanted to learn that particular format. So we introduced the Studio stores in India as a smaller format, which helped us to reach a larger audience. People accepted Twins, enjoyed more and more -- brand acceptance has been coming in. With the tech centers, with the backup, which was there in the manufacturing facilities, the confidence was coming up within us. We thought it's -- the next level for us is to actually look at the UC evolution, the unit construction engine, which we were having it in the Classic 350. And that's when we started working on when -- and the guys were coming in and the technology center is being set up. We started really working on our J-series engine, the super refined engine, which we wanted to launch it into the market. We launched the Meteor first. We had Thunderbird on the UCE. So we stopped Thunderbird at a particular point of time because BS-VI compliance, which is coming up and all, so we thought Meteor will be the first platform with which the J-engine can actually come in. It was a defining moment once again for us the way we did it for Classic 350 because UC was doing well for us. We wanted to actually bring in the next evolution of the engines, and that's why we evolved into the J-series. It gained good acceptance [ let alone ] in India across the globe. When we launched Twins, it is still 650 cc. Outside India, it was very well accepted. But there is always the market at an entry outside India, that's what is the 350 cc. So when we started working on J-engine, at that point of time, we were very clear, it has to be Euro V compliant, too, when we are working on BS-VI. From the day 1, the Meteor, we could able to take it across the globe, and it got accepted very well. Obviously, then we have to keep looking at how the J-engine can come onto the rest of the motorcycles. In 2021, we launched the All-New Classic 350, which you all know. It was a spectacular success once again in [indiscernible] the timeless design and improving the right performance. Now you can see the evolution of the company, which has taken place. Till up to 2013 when we were doing it, from then on, till up to 2018, we had a great growth. Everything was going good. Numbers were growing month-on-month. All those things are very nice. During that time, our [indiscernible] growth was almost about 30%, 32%. Good situation to be and that's how every organization looks at. '19 is the BS-VI transition that came in, cost level goes up. 2021, you all know unprecedented issues, which came up, COVID, supply chain got disrupted heavily. Semiconductor supply situation started coming in as a major problem. The COVID lockdown which also came in. So -- that's when Siddhartha was mentioning that we are entering into a different zone in the whole world. When we are entering into the 2022, we did enough time to reflect within ourselves. As an organization from here where do we go. The confidence had come fundamentally because we had enough people, the technology is set, technology centers are set. The manufacturing facilities are set. New products, which have to come in pipeline are all done up. And before we get on to the next decade of our journey, we started looking at -- as I mentioned, the one fundamental question we always ask whoever comes inside the company is do you know motorcycle riding. Anyone who gets employed into Royal Enfield, the first question is, he has to be a motorcycle rider. If he is not, please go ride, come back because that's how the language because we know only one language is motorcycling. It's also important when you have a very aggressive plan for a long term because we -- our journey in the international market is just starting. If that has to happen to be a global premium brand, then all the leadership position guys have to be pure motorcyclists, who understand motorcycling, who has very high capabilities to take on the future, which Royal Enfield wanted to do with. So first, we started focusing on the management team. I mean that's where the decisions are taken. That's where the language is spoken, that's where the business models are actually done up. So we brought in the best talents across as Sid mentioned, me and Siddhartha have been 50-plus years, not in the age, [indiscernible] put together. And we know only this motorcycle, we know only this motorcycling is a culture. We brought in Mohit. Mohit is not new to us, who's going to talk to you guys now. 2003, actually Mohit got associated with us as an agency person who led us into reflecting the brand. At a point of time, he worked very closely with Siddhartha. He has been supporting us from outside. We really thought that here is a guy who understands a brand, who gets it when -- at a particular point of time, you have to take the brand to the next level globally. Who else can do that? So we reached out to Mohit and said, "Hey, Mohit, it's not enough that you are giving only advice, come and shoulder the entire activity of taking the brand to the next level." That's why Mohit came in. And [ Mark ] what -- I think he got associated with us when the Classic was done. We used to have a lot of debate. During -- that point of time, even [ Mark ] was a consultant. You can see, we took the advice of his. So at some point of time, we thought that, "Guys, advice is enough, come over." So they also were very interested, then came in, and [ Mark ] also joined with us as our ID and product strategy. All of these guys came in, joined with us, started growing with us. [ Simon ] came in, [ Polo ] came in. Now with [indiscernible], the new addition, which is there supported by Sudhakar, Rajeev and Kalees. This management team today, it gives a lot of strength when you stand up and then say, yes, we can achieve the growth opportunity which is there. We can achieve the position of we are going to be the global premium brand, and it is possible for us, and this gives a lot of strength. When the whole team is in place, who was -- actually the guys who are leading, obviously, the brand is at a particular level to take it to the next level, then there is a lot more to be done on the positioning and on the brand level. And on the products because there are a lot of products which we are working on, which you will learn more now from the presentations from my colleagues. Before the next session, probably what I will do now is -- with the current situation of all these back-ends which we have already started out, what is that we are looking at from a brand positioning across the globe. Now I'll invite Mohit to come over and then walk us through that brand level. Thank you.

Hello. Right, oops. Okay. That was good. Quite [indiscernible] Morning, everyone. I can tell you that, firstly, awesome to be here with all of you. And life is much easier being an adviser from outside than being within I can tell you. I was -- I didn't have a gray hair, so I joined, it is just 7 months. So firstly, just thanks for being here. And as I promised last night, my 8 or 9 dining companions, you can now read your Instafeed and read events because everything we talked about last time, I'm going to repeat again. For the rest of you, you can read your Insta too, don't mind. There'll be a couple of films which are fun. So let's see about that. Last night's conversation -- now positioning -- there's going to be a few kind of brand buzzwords in here. I mean I -- don't worry about that, I'll kind of break that down for you. But last night, very enjoyable dinner conversation that I had at my table. Let me do just realize that I've got to explain one thing to this gathering in particular. There is brand and marketing, we had a debate about brand and marketing. If somebody [indiscernible] get to my Gulab Jamuns or whatever there was for dessert because I got kind of sort of [indiscernible] with the gang. But as Royal Enfield marketing is something which we see as a science. It is a machine, it has an army, it has very skilled people in the team. We're recruiting more and more skilled people into that, and that we feel very good about. But brand and the practice of brand is an art. And what I just want to add, if I may, I'll just talk very quickly about my journey from 2003, when I was first and I've worked with Govind and Sid and the whole -- lot of the gang here before, it's home for me. I pretty much come full circle. But when I stopped working with Royal Enfield for a while, I actually went on a journey where I saw the practice of brand as an art. And I really want all of you for those who aren't familiar with it, to understand the value of that because that's what makes a brand float above its competition, above external shocks, above everything. So I -- in my last corporate avatar, I was lucky enough to have bosses. Two of them, one was the one -- the person who helped created Nike with Phil Knight, gentleman, called Dan Wieden, he wrote, just do it. He didn't think it was a good line. The other gentleman called, John Jay, works with [indiscernible] right now is the Chief Creative Officer of Uniqlo. So I studied Uniqlo and Nike in depth. I then was fortunate enough [indiscernible] with Royal Enfield to work with the startup team [indiscernible] and we went from minus one launch to now market leadership. On the full experience, worked with things like Make in India, work with -- very closely with ventures from Lightspeed ventures, who you may know, worked with Ritesh at OYO, Harsha at Swiggy, been there, done that with all that. And I kept getting more and more convinced and then I came home to Royal Enfield. And with me and with the team that I work with here, including my fellow management team, we are very convinced that the way we practice brand as part of a small select group of brands around the world that do it. And with the scale, with the quality we have now, we feel that we should just keep building on that. So marketing is a bed of what we do. It is the conversion into sales, but brand is the art and the magic. So I'm going to tell you about that a little bit except for the people who switched to Instafeed, in which case please follow me @mdjayal. So this pretty much is focus, right? It's actually a wrap-up who said this recently on Insta, and I was quite impressed, and it's about office, which is what we do, which is pure motorcycling and what the world wants from us and intersection of that is also a positioning. What we do, we will always do, it's our DNA. It's built into the stuff that my colleagues -- everything we build, everything we believe in, that can't change. But how we transmit it, where we connect with people. That's what I want to talk to all of you about today, and that's kind of exciting. As I said, there's a whole bunch of people here, my colleagues. Brand actually belongs to everyone, the discipline because it's [indiscernible] culture from HR, it's tech, it's of course, the way we develop our products, the quality of those products. But what becomes very interesting is, as I said, how it connects up with this. That's enough of the sort of brand theory. We have a positioning already. We have a core, which is very, very strong. So when we ask what makes us strong and valuable today, pure motorcycling is what makes us strong and valuable today, and it's already a very rich thing. So I'll quickly break that down for you. I'll show you a film because that's what we brand guys do. [Presentation]

It's already a very rich brand. It's a very rich positioning actually, pure motorcycling. And there's so much we can get of it. If I was to break it down for you, there are 3 pillars, many, many more to summarize. There's community, there's culture, there's craft and [indiscernible] I don't know there aren't many brands at all actually that can boost this kind of composition. So to kind of -- I just kind of run you through some of it. [indiscernible] everything we are is because of our community. I think they're pretty much -- we kind of -- when you hear [ Mark, Simon and Matt ] talk, et cetera, we channel. I mean our processes are built around feeding in and then improving on their visions and then building for them. It's a pretty special thing. But then we -- in other brand meetings and other brands [indiscernible] it's a dream to have on-ground engagement of the kind we have and the riders community we have. The data is absolutely sort of massive, and it's very, very rich. I think there's a meme somewhere that shows that when the first man mission lands on Mars and they sit and they sort of start planting the flag, Royal Enfield ride will go past. It will be like all right, okay, they were already here. Our social media, now my digital team [indiscernible] experts, they told me not to talk inaccurately about social media, but our community is very strong, it's organic, it's quite incredible. And I just show off a little bit about the size of this. Very interesting. We've got -- last night, I've misquoted one of the numbers, both hover around 30%-ish, but our share of voice and our share of search in our segment is around 32% and 28%, respectively. Our share of market is 5%. And all of you, I know out there will note that the gap between that and that is desirability and aspiration. I think the technical analyst term for it is so [indiscernible] I learned all the terms. Globally -- the global influence we see, there was -- and this is before -- just before I actually formally came on board, these global influencers out there have started -- yesterday at our table, there was talk of -- is all this translating into global status and global profile. The big YouTube kind of motorcycle influencers and voices are all -- now there is this guy, FortNine. I don't know if any of you follow him, but I was shocked to see that one day he had this episode of where he said, guess who makes the cleanest engines in the world. And he said, you're never going to guess. So I watch the thing right until the end and guess who's on top, it was us. Lately, there are many examples, I'm just slicing bits to show you. This [indiscernible] who usually keeps on having [indiscernible] and has done for about a year, just 2 weeks ago. So we should maybe send him a cake or something I don't know but just 2 weeks ago, he said, actually, you know what, Royal Enfield, they're just making great bikes now, and he's [indiscernible] as well. So there's just this momentum building just from our motorcycles themselves, and we feel that the brand has to follow. So we've got a lot of good stuff happening, a lot of goodwill, a lot of just strong web traffic. Interesting statistic are digital gangs mentioned just the other day, 26 visits a second on our site, which is 3,000 visits -- okay, that's a lot of visits. Yes, yes, I know. I know. Here we go. I memorized the numbers to impress all of you, but is gone. When Hunter launched, the fact before we got paid media before we got pushed out, and it's just -- forgive me for bragging because we've just come from the launch all of us and we're amped, our engagement figures just went woosh. On Google, we were trending. If you go to I think, Instagram, our website visits just shot up. It is quite incredible. So that's the graph. And my web team -- when I tried to understand this, they said, just remember to tell people when it's going up like that, it's good. That's going up as well. On Insta, we've got like a baseline of 1 million. Hunter teaser broke, just a teaser, just a little bit of film, [indiscernible] million. We can see we're quite pleased with ourselves. So I'm just going to rush through a little bit of this, so I can get to the pivotal bit. We're also a big, big culture builder. So you've got the community powering us, then we've got our involvement in culture. And I'm just going to show you a couple of examples. There's so much to our culture. But even the campaigns we produce, the ads we make, all of that for us is product. We can't make it as hot sell. We can't make it as marketing propositions. It's not who we are. It should be enjoyed. So I'll show you a couple of recent -- just films, just to give you a flavor of what I mean and break those down for you. As I said, just one example of how we are involved in culture. With the pure motorcycling video, you saw that we are actually deeply involved in motorcycling culture. This is the Scram launch film. [Presentation]

What you'll see when we're creating communications now and when we're doing any aspect of when the brand contacts our customer base is we are not -- we deal in feelings, not features, you won't see propositions. All those things sit just below. The first contact is all about edge, energy. I mean the music we select, it's always custom-made for us. The apparel -- the -- just the mood of it, energy, edge, et cetera. This is all the stuff that we feed into it because as I said earlier, for us, all our brand work is our product, too. And a company like us, we used to be a cult brand, now we're a culture brand, and these are the rules that we have to play with. And those are the ones that give us market -- kind of thought leadership, more than market leadership. Show you another film quickly, and this is the Hunter launch film and then we'll talk about some other points. What's interesting about the Hunter film is, again, the music, [ agencies ] we work with -- we work with [indiscernible]. But the genesis of this is from young people who worked at London Fashion Week, et cetera. So we are working very much for the cutting edge of kind of creative talent from around the world to frame these. [Presentation]

I'll show you what that does for us. What it does is that pop culture connect us, [indiscernible] that we feel is our responsibility as a brand. That kind of comes in very strongly. Just very top line, just the kinds of comments that come in on YouTube, it's quite -- that's exactly why we do this work, which is people are talking about the music, they're talking about being this is us. And no, my kids didn't write these comments, like they've written the ones on Instagram. So this was a surprise to me as well. We're also a very craft-based -- I mean, craft is I think at the heart from the [ pin stride ] to all the stuff that happens in our tech centers, which is why I think uniquely apart from perhaps 1 or 2 of the sneaker brands or street fashion brands around the world, we are the perfect canvas for people to interact. And this you'll find when you talk to the teams, to the leadership teams, et cetera, you'll find everybody is passionate about how we can open this up for people. Again, it's an invaluable thing to have as a brand. And we have it across custom, and I won't dwell on it today. We don't have the time, but you know that we have a massive -- you saw the display yesterday, the tip of the iceberg. We have a massive culture of customization, and we're going to go further and further towards making that possible. So it's just getting stronger. We have proper -- we have companies like Harris Performance within our fold. These are -- for those of you who are motorcyclists, this is race royalty, like for anybody who knows motorcycling deeply will know that these people produce the highest possible level of motorcycling craft. It's within us. We have sport, which is open to kind of people to amateur. We have that amazing Build Train Race program out in the U.S. We have the Continental GT up here. We are very much a brand that is open to bring people in at all these levels. So all this stuff, this is where we today. Tomorrow, what do we do and what do we need to do? And this is where it becomes interesting. Now there's been a shift. And here, I just get a little academic for a second. And the drivers of desirability have changed. And a lot of the stuff that say go in talking about so far, the rebalance and that the rest of the game will also echo is us evolving so that our DNA keeps on matching and appealing to people. That really is the same brand. And all the brainy people like yourselves are out there attracting changes and saying that now companies have to stand for something. They just can't be out there to slick market. I mean as good old days when I was a younger doing advertising, just make some kind of glitzy looking ads and off you go, sales graphs go up and generally, champagne all around. It's not like that anymore, rightly so. It's got to be much more meaningful, much more rooted to what your company's purpose actually is. It is a more enlightened time in that sense. The business fashion is a very, very sort of thought-leading retail thinking forum. They've been pushing for a long time saying you have to help people and guide transformations. It's true. It's no longer just -- this was an article in '98, which was a pivotal article by these 2 [ BCG ] people, and they talked about how people are going to go up the chain, where, first, you have to stage great experiences, that we all know, you'll be surprised, and you can see how few brands actually practice that, but they said it's transformations that people want you to enable. We've always been about that. We've always been about motorcycling culture of the industry. We've been about our community, not consumers, which is to put them in a box. We've been about being a challenger, not conventional. And always been about helping people transform. So it's been who we are. There's a bunch of brands out there and we belong with them. So I would urge you not to think of us, door to do with other motorcycling or those sorts of brands. We put ourselves in a set -- perhaps a little -- perhaps we think -- perhaps a little too ambitiously about that, but we think we really belong not just in that set of brands that people use as transformation. But we think that there are belief systems, lifestyle movements, there are things like -- they are just some examples, skate culture, cycling, mixed martial arts, surf culture. These are systems where what you wear, what you eat, your mindset, it's all influence. That's what culture is. And we believe that we are one of those systems. And certainly, everything we do works towards that. So in response to this changing context where people are looking to be better versions of themselves and looking to ally with brands, which can make that happen, we are responding and we're building stronger connections, stronger capabilities, and we believe that is our rebalance and that is what will take us forward. Stronger connections by that, there are 3 places where we think our DNA intersects with what people want to do. Self-expression, self exploration and self and society. This is just a quick summary of where we think we can really connect with people. By self-expression, what we mean is the art and craft surrounds motorcycling, our version of motorcycling. It could be accessorization, apparel, amateur sport or just expressing your identity through the design of motorcycle you choose. We are strongly there for people to do that. Custom shows you what it is. It's just who we are. By self-exploration, by just bringing the barriers down to actual exploration and discovery. We've got things like the Scram. We've got all our motorcycles really enable that. We feel that we will always be there. Our entire rides, network system and kind of just expertise, we will always be making that available to people so they can use that. Social self. We have a massive social mission. Sid touched on it earlier. We have a product philosophy coming, which will enable that. So anyone who really wants to, in a fun way and in a more dynamic way as part of a very strong global community, contribute back to the communities that people are exploring with the brand to do it. And this is all the philosophical stuff. I just want to quickly also cover what we're doing. What we've started doing already to make this happen. So there are 3 practical things. Suddenly going from a little bit philosophical to what's actually going on right now to show you how we're thinking. We have 3 things we're doing right now. One is the new brand lab in London, which is -- the office opened on the 1st of September, the people already in place. This is designed for us to move into a forward operating base from an India-centric brand operation to a global one. What it does is, at one level, of course, for some of you who asked yesterday, it puts us closer to all our global businesses in the Western side of the world, so they can get closer support. But more importantly, it allows us to tap into the world's top creative of talents. We have some of the best agencies and design companies in the world already on our roster. We plan to channel all that and spread it back out. So that's running, in fact. Then we have this matrix thing because we don't have a visual yet to show you about it. But this customer experience is becoming a very heavy science. It's across exploring science. It will involve all leadership and their respective teams. But 2 levels. One is all the touch points of customer experience. And I think Sid touched on that in the beginning as well, as we've expanded, the touch points have increased and multiplied. We want to make sure everything works seamlessly as the customer passes through that customer experience kind of thing. So redesigning, upgrading, elevating that. And then all the data we capture with the massive presence we have online, that stuff. And then if you want to ask detailed questions ask Sudhakar because I'm not going to -- I'll get -- you'll lose me a customer data platform, but essentially, what it means is that all the data we harvest, we bring it in and we don't just use it to sell. We use it to make the customers transition through our system, absolutely flawless. We're building that out, investing heavily in it. And when it's done, I think it's safe to say it's going to be pretty much a category-leading, class-saving kind of stuff. It's pretty cool. So customer experience is a big push for us. It's begun. And then there's a thing called the Motorverse, which is us reaching out to the best the most exciting events, explorers, some of our ADV [ gang ] here. We've been in meetings with people. I can't talk about them, but people who we only see in the movies, not celebs, but people who genuinely have put their lives into [indiscernible] who love our brand. We're surprised because we walk into meetings and they're like, [ Royal Enfield ], good to meet your guys, I'm like oh, cool. Okay. It's always good to know. We're making that very much part of our brand. So not classical advertising, but work through the actual people, support them, give them a platform. There's our own gang in [ South Pole ], one of them is a crew here who meant to go, but they didn't, but it's people amongst us. These are all hard core riders and motorcyclists and we want all the people who never thought of riding a motorcycle even. We want to infect them with that same kind of passion that we have. And the reason we want to do it is not just because we want to sell motorcycles, though we do. We just feel that our version of motorcycling will help just -- it's like all those belief systems I talked about like surf, skates, mixed martial arts, transforms your life. It gives you something that just mood elevates you, mindfulness, all the good stuff. So stronger connections, stronger capabilities and a stronger positioning. That is what is coming. A lot of it is underway. It's been underway for this whole year. What it will also do is that in the companies that I talked about, the Nikes and Uniqlo, et cetera, what they also do as a byproduct is they create a mindset, a collective organizational culture. It's not about the way 1 or 2 people think it's just everybody. It's like, again, since we showed a matrix slide, it's like that [ Agent Smith Duden ], the matrix, you can drop one Agent Smith and there are 5 more. It's the same thing. Everybody just becomes very skilled at a certain approach to making the brand part of culture. This is our mission for all of you, for all our community. We're going to just make -- we're going to make sure that while we keep our DNA intact, we keep moving with social economic changes. I think the social of it is important. Economics is economics, but for true brand greatness and value, all the brands that I name checked, it is also the social context in which you connect and the purpose you serve for them. It's not just brands. Trust me. You look at the thought leaders in every category, that's the playbook. We've been going according to that playbook for decades. We just now are turning into more of a -- more of a mission. So that's really it. What we are doing is we -- look, what I'll end by saying is a couple of things that the community transform. Our community transformed us into a premium global brand. We want to make sure we are here to return the favor. We're going to make sure we will be a vehicle for their transformations. That's what the data tells us, that they want to be different versions of themselves. We would be here for them like they were here for us. That's one. And on a more fun note, where a harmonious kind of brand it talked about balancing and stuff. And we're kind of peace-loving sort of how many kind of liking people. But -- we are in a battle for the hearts and minds of people, not just against our motorcycling rivals, that's cool. We love them, no problem. But we are actually fighting for a share of heart against many different things that people could do at that time. And in that battle, to quote a famous combat sports star, we are not here to just take part. We are here to take over. So it should be fun and we hope you will all kind of enjoy the right with us. Thank you. Now I'm going to bring on, [ Matt, Mark and Simon ].

See if we can match that. So again, we start this is -- it's a real pleasure to be here with everybody again. This is my first visit back to India in nearly 3 years. Before COVID, I was here maybe every 8 weeks. So it's lovely to be back with you all in person. So back in 2016, we launched the Himalayan and that was an all new ground-up motorcycle. And since then, we've had an unprecedented of newer launches. In 2018, came the Thunderbird X, which was a more sporty version of the popular Thunderbird. Then in 2018, we did the Pegasus Limited edition that celebrated Royal Enfield [indiscernible] record, followed by the launch of a hugely successful Twins transformation for the business, the Interceptor 650 and then the Continental GT 650. Then in 2019, we launched the Trials Bullet Replica to honor Johnny Brittain and his trials competition success in 1950s in many ways, the kind of genesis of the brand's global position almost. In 2020, we introduced some BS V updates along with cart wheel rim versions and single-channel versions of our classic and bullet models. And in 2020, we also took a huge step and launched the first of our J1 platform models, the Meteor 350 cruiser. That was followed by the iconic classic in 2021, the 350. And then in the same year, we created the limited addition, 120th anniversary Twins to celebrate 120 years of continuous unbroken [ mass ] production. And at the start of 2022, we launched the Scram the 411 the video you just saw there. And finally, just this week past, we launched the Hunter 350, which some of you I had the great pleasure of riding with this morning. And hopefully, you all think was a fantastic bike. So with each of these launches, we've seen a huge amount of [ press a claim ]. We've seen -- we've won awards around the world, as you can see. And these have had [ press a claim ] and consumer support everywhere we've gone, illustrating just how much we've grown internationally as a brand. This isn't just an India story anymore. This really is an international story. And we've got a huge amount of momentum behind the brand and behind the products. And with those model launches, it's not just going to stop there. We've got a lot more coming over the coming months and years. Our approach is a platform-based approach. So we look at starting or developing a platform and then maximizing the most of that platform. To get the most of that investment, we look at a new platform and you can see here some of the things we're looking to do to maximize that investment across the platforms, giving our consumers a greater amount of choice and a model mix, which gives real breadth and depth to our product family. Now the best development process can't compensate for the wrong strategic assumptions. You've got to be making product strategy decisions or product attribute decisions that are at the core of your corporate strategy. You've got to make decisions about the products that you're going to make that reflects what you are as a brand. And that is about focusing on the consumer. So really, we talk about jobs and jobs described the things that our customers are trying to get done in their work or in their life. So a customer job could be the task they're trying to solve, the problems they're trying to solve, the things they're trying to do on a daily basis. Their emotional things. They're social things. And we start by trying to understand what those jobs are for the customer. We sit down with the customer and we talk to them. We try to understand what it is that they're looking for in the product and what makes their lives uncomfortable? What doesn't work for them? And we believe that our success comes from connecting in the consumer comes from understanding on a really deep and intuitive basis what they want. So I'm going to invite [ Matt ] up on stage, and he's going to talk through some of the steps, some of the processes we've gone through to understand more about what the consumer thinks and wants and feels and loves. So over to you, Matt.

Thank you, Mark. Welcome. So how do we get to that core need? And if it was as simple as I'm just going to talk to a consumer. I think everyone would do it, right? That's an easy job. But there's a lot more to it. It's about having empathy for that customer. Now I'll go into how we achieve that empathy, but it's about listening and going beyond the motorcycle. We know that they're riders, we can identify with that, but we want to understand what excites them individually. What are the challenges that they have, what role does the bike play in their lives? So the young woman here, she -- the scooter for her represents freedom and self-expression. She personally wants to step up to a motorcycle. But the reason is not because she loves motorcycling, but because it shows her inter confidence to the world, and that's what's important to her. So empathy is achieved first by shedding our own preconceptions. We start fresh. We listen directly to what they're telling us. And an example here, the gentleman we're seeking to understand what brought him to Royal Enfield. And can we translate that into a new segment, into a new model. So instead of talking for them, I'll let you listen to what he has to say. [Presentation]

So for him, it's that emotional connection with the motorcycle itself. And that comes through the UI, UX, it comes through that engine [ pump ], right? And so we want to understand what's the next step for him? So Royal Enfield, as you've heard, we're a global brand. We are beyond just the models that we sell. We go well beyond that. So what we seek to look at is not just within India itself, but globally. So here's an example of us going outside of India and talking to a customer in Indonesia. This customer, this rider is an outgoing personality. She's looking for a bike that accentuates her life that allows her to think differently. And I'll play a little video for you. And if you notice that she has confidence. She's going to approach the very confident, riding very quickly. And my favorite, if you think [ Simon ], you've noticed down in the bottom corner, she decided to jump the curve, so that she can get in front of traffic. She had places to go, she was busy. She was looking outside of the box. And then what she look for in a motorcycle in a community that is primarily dominated by [ step through ]. She was looking for something that is different, that allows her to think differently. So here's another rider from Indonesia. This gentleman is a Classic owner. So we want to understand what does the Royal Enfield rider think about a zero emissions future. So we're going to stop and let you hear about what his thoughts are and a little bit of his riding experience. [Presentation]

Relaying that, because I think the audio is a little bit. So these videos are taken by us as working videos. These are the videos that we create as we're doing the research. And actually, the guys in the bike, that's us. Just following the customer. It might worth just recounting what he was saying. So I'm not sure the audio was clearer.

Yes. So for him, the challenge for a zero emissions future is can it do the work that he needs, it's to get up the hill, it's that torque. And even if you pay close attention to the way that he's riding, he has a very specific ride style that he likes to be able to move his way through traffic. When he sees an opportunity, he likes to accelerate and close the gap. So his concern for a zero-emissions future is, can it do the work that I needed to do? Will it have that acceleration to get me up the hill? And what you saw in the video was the hill on the way to his workshop. So he had his office in the city and then he had his house and his workshop in the hill where we hadn't -- we didn't go into the detail here, but he had a lovely selection of custom bikes that he was working on. Each one in a different state of repair as well as a team that was working on some custom furniture in the shop.

And I think that personal interactions going and meeting those customers face-to-face, personally understanding from that builds the richness of the research that we get.

So we have this deep understanding at a very individual level with customers. So what is that next step? So after we've gained that understanding, we want to investigate product directions. So essential to this phase is that we have to put the riders in a significant educated decision. So what that means is that we create marketing materials, concept marketing materials, concept experiences. It could be images, it could be messages, it could be sounds or even in some cases, concept motorcycles. So that puts that customer in the right mental state that he can make a decision and say, this is what is important to me. But we go beyond just that. We want to deeply understand why are you saying that? What is the underlying emotion behind? What is appealing you? What we're trying to really get to is that desirability. So while we may interact with nearly 100 riders for each one of those riders that we interact with at an event, we understand their experience individually from the beginning to the end. We don't look at the aggregate. We don't look at the entire community. We look at each individual rider. So we're going to stop, and I'm going to let you listen to a rider. So what she's doing here is she's experiencing what it means to pull a battery out of a motorcycle. So just give you a reference point. [Presentation]

So by her facial expressions, you may think that maybe an EV is not in our future. There's too big of a gap there. But the most important part of owning a two-wheeler is the ride experience, and that's its core. So the same rider, she's out on the test track. And you can see interface, there's definitely excitement and joy. So rather than asking her, is she willing to buy a product? We're seeking to find is that experience desirable? So as mentioned before, it's not about the end result, the finances, it isn't. But the key here is that if we can create that desirable experience, the purchase is going to be a byproduct. The leading indicator for us is that desirable experience. So that obsession goes beyond just the full vehicle, it's every little piece. We study how does the smallest change impact that rider's relationship between them and the motorcycle? So all these inputs and touch points make their way into our [ refined ] concept that we then test internally. So here's the team is going out and what they're looking to do is optimize the experience of technology, but in a Royal Enfield way. So we've created a system, a tablet that you can see that allows them to change the layout, change the functionality, change the information that they see on the fly. But in the end, what we want to do is we want to create technology that augments their experience rather than completely redefine it.

It's not quite so clear here, but what you got there is a set of information on that display. There's a map. There's turn by turn, but actually rendered maps. And what we're doing here is experimenting with what happens if you change the size of it, how big does that need to be eligible to be able to see easily where you're going? What happens if we change the layout and we split it top and bottom or left to right?

Yes. And what information is we're displaying different information, how does that impact the experience, good and bad. But it's not just about the technology. For us, it's about the riders interaction with the technology. So more than what was there, we were focusing on the team's reaction to it. So I'm going to play the video here and talk over a bit. But here's one of our engineers. He's approaching a roundabout. And you noticed he will briefly look down just to make sure that he knows which way is going. And as a preface, he has no idea. We put them in the middle of the city and we sent them out and navigate. So he's approaching the turn. He's spending most of his time scanning for traffic. Even here at [ Oren ], he looks down just briefly to spot his turn, he takes his turn. And then just as it straightens out, you'll notice he looks down for just under a second. So he's confirming himself, yes, that was the right turn, and I check where I'm going next. So the technology is an overwhelming experience, the riding is still 99% of experience. We're focusing on that 1% and how can we make that 1% allowed to augment the experience? Because I guarantee that you wouldn't have been able to follow that route without the technology that day. The next step for us is we needed to find the product. We've done a lot of work understanding the consumer, understanding the rider, understanding the experience. So next, we gather a cross-functional team from all across the organization. It's made up of team members from marketing, from sales, from engineering. And these team members are going to be the ones that will take that product forward and begin to develop it. So just a little slide here. So what we're doing is we're putting the team in the customer shoes. All that information that we've gathered, we've created an experience that allows them to see what were the riders are doing with the product. So when we talk about customer experience. I'm sure all of us have forgotten to turn on the fuel before you've gotten on the bike, right? And so create all of the entire experience from fueling the bike to riding the bike to running errands. And this experience is not just at one level, it's across the entire organization from the very top to the very bottom. So next, Mark is going to tell a little bit about how that final stage of definition comes together.

Thanks, Matt. So we start by ranking those jobs that I talked about before. The pains and gains are essential to understand -- the order of those are essential to designing the value propositions that address the things that our riders really care about. So to help us with this, we build character prototype bikes and they help us further define those attributes that are key to meeting those consumer needs. We then score them, those benchmarks and benchmark products against those attributes and target where we want to be. So we create this document. This is just a very small snippet of a document that we call the [indiscernible], and we use that as a road map for the project. The search for the value propositions come together to meet the riders jobs, the pains and gains. It's a continuous back and forth between the design concept and the teams at testing it and the teams are working to develop the concept. So this document allows us to prioritize those attributes and communicate that across the wider team. I think we made our first motorcycles the way back in 1901. And we've never stopped making motorcycles. As [ Maria ] already touched on cycles for us at a way of life. And we also believe that bikes falls for good, and the people who ride our bike share that obsession. And we really are obsessed, as a company, we get it, our people [ rise ]. These images are a collection of images I asked my colleagues to send me images of rides we've been on and they really show that this is from across the business, every level, every vertical, it's really in the blood, it's intuitive. And every one of our bikes is a [ distillation ] of our desire to ride and is about delivering experiences that spark that emotion and that loyalty that comes with it. So this short video, I'm going to show you next, was made a few years ago as we were launching the Twins. We will look a little bit older now. I've definitely got some more gray. And there are some friends in there that have departed us. But I think it's just as relevant today as it was back then. So this is getting it. [Presentation]

Our focus is absolutely on uncompromised authentic design. And we do obsess over each and every detail on the motorcycle. And our objective is to make Royal Enfield and the world of motorcycling as accessible as possible. I think I talked about this last night over dinner with a few people. Making it as accessible as possible without ever compromising the quality or style of our products. And we don't just believe in quality of motorcycles. We believe in the quality of life, everyone and everything. And our goal now is to improve the quality of life with every mile ridden. And with that in mind, we're determined to create a better and more sustainable future for our people, planet and the communities, through the power of 2 wheels. And so with that in mind, we're looking into the future, and I'm going to give you a very brief sneak peek into what that future might look like. [Presentation]

So [ again ], we really know our history. We know our roots. We know where we're coming from. And we have a crystal clear vision for the future. We know where we're going and how we're going to get there. And that future won't be the same as what's gone before, but the essence of what makes the Royal Enfield, Royal Enfield is going to remain true to the brand. It's going to be in [ bike ] in everything we make. So talk a little bit more about how we go about executing that and how we take that from a vision to a product. I'm going to hand you over to Simon, who's our Chief Program Management. So welcome Simon on stage.

All right. Hello, everybody. I must confess to being a little apprehensive I realized that my presentation doesn't have any videos. It doesn't have anything like the nice beautiful pictures. So the team here have done their best to make it look good. There's only so much polish you can apply. So some charts and things at me, I'm afraid. So yes. We've talked a couple of times in different ways about the fantastic bikes we put out the last few years, the reception they've had, how good bikes are. I want to dwell a little bit on the sort of quality levels we've achieved and how we've done them. So yes, do [ dull ] chart. When we launch a bike, we set ourselves some targets. We have a quality metric called [ FF3 ] It's the number of issues seen up per 100 bikes in the first 2 months of ownership, but it's a quality. So basically, the smaller number, the better. The numbers themselves are quite commercially sensitive, so I've taken them off, but this is real data. So we started doing this with the Twins and the target we set ourselves is better than our current production. So if we look at the Twins, you have the target, let's call it X, that was our target for [ FF3 ] and we beat it. Of course, we did. So a couple of years later, we've been working on quality. So now we set ourselves a target of [ 0.5x ]. So double the quality shows another way of saying of the Twins. Now if you remember, the Twins were rightly perceived as being really good. There were a step change in quality for us. That was good. We set ourselves a target to double that 2 years later. As you can see, we achieved it with a bit more headroom. One year later, we set ourselves a more aggressive target for the Classic. And clearly, it seems we could have been more aggressive. We beat it quite significantly. So the story of this slide, there is not so much that, yes, we're meeting the targets we set ourselves. It's the story of those targets themselves. It's the progression we're making. So even though the Twins were, as I say, rightly seen as a real step forward for us in terms of quality, even, well, 3 years, 4 years later, we're a world away from where we were. We've made really significant progress. So how have we done that? I'm not going to go into a lot of detail about it, but we do have a real, I call it, a zero-tolerance quality process called [ SRK ]. So why is that happening? Okay. Maybe I'll move over here. So the [ SRK ] process basically means everything gets double inspected from early stages and we catch things early. So that's great. Of course, we're developing our supplier base. We're working with our existing suppliers. We're taking on finding new high-quality suppliers all the time, especially as new technology comes in, it becomes increasingly important. But the bit I want to talk about is design quality, which is where I think we've made huge strides. So basically, if you don't design the part right, so it's got the right strength [ fatigue ] life, material, finish. It doesn't matter what you do in terms of inspection or process development. There's not designed right in the first place. You won't get a reliable bike. And what we've made big strides on is the fundamental design quality of the bikes. We've done things like we've established really thorough design standards. So any lessons learned gets recorded in those design standards, so we don't have to learn them twice. We've worked a lot on our test standards. So you've seen some of the test facilities, the equipment, which is, of course, important, but it's what you do with them. It's the cycles you put them through the number of hours, the acceleration of the vibration, et cetera. And that's what we've been doing a lower work to make sure the tests are really catching out all of the things that might happen in the field. Yes. But really, the fundamental thing on design quality, having a really capable engineering team to apply these standards, to do the test. So this is really the centerpiece of the new [ NPI ] process. We started on the project thinking we were going to come out with a little folded piece of paper that everyone would have. And we realized that actually it's much better to stay in the digital world. So this, you can see this as an enlarged piece of what's quite a large document. This is a map or a plan that goes all the way through the development process for all of the functions. So the functions are stacked vertically here, project management, digital design, et cetera, et cetera. And then as we go through the process, these are the top-level activities. So anyone can look at project plan and say, okay, my team should be doing this. And equally important, they can see on that team should be doing this. So everyone knows what everybody is doing. Now these aren't top level, you need detailed plans under that, but this is a really, really powerful tool. Each of these activities is linked to a little explanation of what are the aims of this activity, what are the deliverables, what's the responsibility metrics? Each of these dates is linked to the gate approval document, which gives you all of the deliverables. So it's a really powerful to invest. This is what the team use. So we're very confident that with this process, we've got a really top class development process now. We're going to keep on working on it. We've found a few issues since we started it. We will continue to find them. We'll continue to learn. So where do we go from here? I've given you a clue there. Keep on learning, keep on improving and keep on developing world-class award-winning motorcycles. Thank you.

Thank you, Simon. Wow. So that was a lot about the brand, the culture of motorcycling and the motorcycles that we make. 2 well key elements that define Royal Enfield. Now we break for lunch. And after lunch, you will hear about the other also very important elements that define us, which is the business, the market, the opportunities that we have, both across the motorcycle business as well as the commercial vehicle segment and from Kalees. So lunch is on the ground floor at the cafeteria and we meet back here in the room at around 1:40, and we start at 1:45. [Break]

With a session on business, on markets and on opportunities for Royal Enfield and I'll invite the person who will talk us through that in just a second. Before that, a lot of you did ride our motorcycles in the morning, and many perhaps chose not to. In case you've had a change of mind and you would like to try the bikes in the evening, please do make sure that you're reaching out to one of our team members and registering your interest. We'll try and see how we can get a little bit of riding going in the evening as well. So please allow me to invite CEO of Royal Enfield, B. Govindarajan.

Thank you. Good afternoon. Hopefully, I'll do justice to keep all you guys awake. Just to recap, what is that we have discussed so far in the morning, bunch of motorcyclist who all came and spoke a lot to you people. [ Surat ] came and then set the context and he said, what's the rebalance, why are we doing it at this stage when everything is going good? Came in, I spoke about what's our revolution, what is that we are doing, what is that -- it's actually kicking us to do more and more in the motorcycling world. What are the successes? What is it we have created at the back end, front end? Why did we do that? What's the culture which we were trying to build in? What's the motorcycling culture which we started off in 1901, how we are carrying it? Where are we landing with the Motorverse, which Mohit was talking in length with a lot of videos and animations. And what's our strength in the product development area, which we have created over a period of time from one product, from their disliew of products, which we are coming out with. Even though we are coming out with a lot of products which we are talking about, as an organization, we always look at less is more. Focus is what we know. Do something which is very different in the market. Let's not do something which is there in the market. So we also have to do it, it's not in our DNA. What we understand is motorcycle, we all come together to create the motorcycles, which are very, very fun, [indiscernible]. It connects the man, machine and terrain, which we are talking about. We also redefined the new product introduction process because there are a lot of disruptions which are taking place. That's what some small [indiscernible], which even Mark all show you what I've been doing for the future. In the lunch also, somebody was asking what's happening for the newer technology? What's the kind of a work which you are doing. So that was mentioning, we are seriously into it. We have committed ourselves. We are moving forward in that. With all the background work which has been done and the ambition of becoming a global premium brand what we landed, man. You can see where we are in the world. We started off in U.K. 1901, 1955 and in India. Now slowly, we are looking at all the countries. Our focus in North America at a point of time, it was a distributor market. We were actually sending motorcycles from here, and he was actually controlling the market. We thought that the consumers are actually looking at Royal Enfield to come in and start developing the market, that's where we also said that, okay, let's go there, have our own team who will actually work with the country and then start developing so we have our subsidiaries. So similarly, we have a Canada, one subsidiary. Brazil, we have a subsidiary. So as of now, Royal Enfield has come with about 5 subsidiaries. Subsidiaries are not done because we have to have a market company or something like that. To be a global brand, to understand the nuances of that particular country, it's very important for us to go and live the life of the consumer. So we normally say that go, let's have our own team, we go, let's all go there. Ride motorcycles along with the consumers there. What is it exactly he wants? What is it we can do as an organization as an authentic company which comes back and then says, people [ know the ] motorcycle let the community come around. That's how we look at the whole thing. That's how the subsidiaries, we said that, okay, that's a route. We will go develop the market, let's build the community. We have CKD plants, 3 plants, Argentina, Colombia and in Thailand, Brazil is in [ cooking ]. Why are we doing CKD? There's a lot of financial things, which is anyway required. More than that, going near to the consumer is very important. So that's why we also thought that, okay, CKD also will be a route apart from the financial things. It helps us to bring in the flexibility to the consumer. We started off at a particular time. The journey is your consumer can actually configure and then see if you have a configurator on the website, any of you have not seen, please see that, it actually helps the people to visualize, connect and he can change things and then figure it out how his motorcycle will look like? That's when we felt -- if somebody is there and sitting in Brazil or in Thailand, if he wants that sort of a motorcycle to do it from India and send it, then he has to wait for the nice motorcycle which has to reach, that's where we thought that maybe let's use the [ scary ] route to bring in even that option which we wanted to give it to the consumers. We have 2 tech centers, one here. We spoke enough about that. I think now someone, if I'm right, we have almost about 7 different countries, people who are coming together and then working roughly. We have 3 manufacturing plants, one -- all in India, everything is getting manufactured here and to the CKD plants also, it is getting in fact, from here. So that's the footprint. Royal Enfield now, as a global company, just slowly reaching in. There are markets which we have to reach. We will address it one by one. As of now, our motorcycles, which are being manufactured in Chennai is being exported and used by almost 65 countries across the globe. Just to touch on, what's the opportunities which we see country by country? That's India. At some point of time, we came with our dealer format, then we also discussed about the studio format, which is there. So we wanted to go near to the consumer. We started looking at the clusters. Our way of approaching had been that, let's identify the cluster, where the guys were actually enjoying the motorcycle, where do we go and then be near to them. It can be a larger format everywhere. Economics won't work out. That's why we went in for the smaller formats. As of now, we have almost about 2,100 retail outlets. That's the most, by far, in the globe, a premium field, which one will enjoy at our stores. There's a lot of discussions. It's -- what does it mean for Royal Enfield in India? Are they going to expand further retail outlets? Or what's the thought process? Wherever there is a cluster, as I mentioned, and not to cluster, which comes consumers are there. When there is a development which takes place at that point of time, when we see an opportunity, we will start looking at that. So it's not going to be just add more and more stores. It's going to be all about optimizing the whole thing. Start looking at counter productivity. Those are all the focus points for India in time to come. What's an addressable market? This is a peak, which you all -- I'm sure would have seen the number. The universe, if you actually look at it, the 2-wheeler is about [ 21 million ]. The motorcycle is about [ 13.5 million ]. More than 125 cc, it is about [ 3.2 million ]. Morning, Mohit was showing you a graph. Hopefully, you'll remember post-lunch is about an aspiration, 48.2%. And he said, where is the market share. He showed it below and then it is the market share. So between an aspiration to actually acquiring the motorcycles is a huge gap. Whenever in Royal Enfield, we talk about motorcycles, for us, once again, the percentage is only a derivative because our focus always has been how do we build a community in that area? How do we actually develop the market? We used to joke between me and Siddhartha 2009/'10, we used to talk about what would be the total number for Royal Enfield in another about 3, 4 years we said maybe about 100,000. So as he was mentioning in the morning, this is one such more than 125 CC is a market which is created by us in India, We feel -- with this sort of potential which is there and what you heard from all my colleagues in the morning, all the motorcyclists, who are actually showing that there are lovely motorcycles, which are coming up. We see there's a huge potential, which is untapped and Royal Enfield has a good space to occupy that. We're just doing a bit more in a lot of discussions there when the new product is coming in, what does it mean as a country? I'm just talking about mainly India as of now. You can see in 2021 and about 2031. It's only projections which we are just bringing in, age group, if you can look at it is actually it's [ 2059 ], it's actually going up to 58.8%. It does mean the addressable market for us in this demographic is almost about 67%. So that's when we actually started looking at well, Royal Enfield is addressing all these guys. Even today, there is a Classic, which is it is appealing to one set of guys. Our average age of consumers also have come down. Today, if I have to tell you the average age, it's somewhere around 27, 28. That's the average age. It's further coming down more and more because that's where the motorcycling enjoyment is coming more and more. And more and more guys are actually looking at what's kind of a motorcycle, which Royal Enfield is coming around? That's when we started looking at where are our consumers, where from they're actually looking us? So that's the web inquiry. You can see how the web inquiries which are going up. Online inquiries, what does -- it's coming more and more. Typically, in the funnel management, we start looking at consumers who are switching us in that, how much which is coming in web, telephone and also on to the walk-in. Walk-in inquiries were coming down, but the web inquiries are going up. Now as an organization, we have understood what is that inquiry which is coming up and how do we actually convert? And that's what is the focus which is there in this -- inside the organization. We are online inquiries, web inquiries are actually surpassed even pre-COVID level. So the interest, which Mohit was sharing in the morning, how consumers are looking at when we launched, which I'll also just shared is a nice slide. When we launched Meteor, how does social media actually become very vital in talking about that? That's when we actually launched a product Hunter 350. Maybe I'll touch up on Hunter 350 when we were launching it. This is a product we want -- I think we touched on. We started thinking about this product in 2016, 2017 time window. At that point of time, we were looking at how the market will move and what sort of a product which we have to come out with. There are a lot of consumers who have expressed the love for the brand Royal Enfield. But they were looking at a product which is a bit more accessible, it's easy for them to handle. It's easy to maneuver and that's the way we thought probably one more motorcycle, which can cater to that on the refined J-Series engine. That's where this Hunter, which we launched. And there you go, that's where the social media, which Mohit was also sharing. It's it went on viral. And that's about the domestic. So with all the work which has been happening in Royal Enfield, and an addressable market which is there with the products which are there in the pipeline and the back end, which are very fixed. In India, it's now once again in the market to open up, we are well prepared to address to the entire market, which is there in India, more than 125 CC. That's where our focus is. We spoke about the international market. Sid articulated, where are we in the international market as of now? In the international market, we have just started off. Our journey starts starting. What we started off in India almost in 2010, '11, that's what we are actually starting in the international market as of now. What's the size of the market which we are talking about? it's almost about [ $1 million ]. So it's almost what the motorcycles, which are being sold in India in the domestic market. That's the addressable size, which is also there outside the market. So that's the potential which is there. Where are we in the whole [ $1 million ] addressable market? We had ForEx growth, fantastic growth very happy. But you can see the addressable market size to where we are. You can actually relate to and then see what's the kind of a potential, which is there for Royal Enfield in international market. When I was presenting the India market, I was just telling you about our reach, our retail outlets. We have almost about 2,140 retail outlets, which we came into India, and we wanted to grow whenever the market grows and wherever the cluster grows. Whereas in the international market, as of now, we have only about 840. Few years back, we were less than 100 numbers. We slowly started looking at that it should go up. And most of these are multi-brand outlets. We also have the exclusive formats, which is there. So our approach in the international market, once again, just to recap, we never wanted to go into the market because there is a market size just go there, boom, so start sending motorcycles and let's see how it is going. That's not the approach we wanted to take. We always thought let's go to the market, have one store in that particular country and send a few motorcycles there. Let people enjoy our motorcycles. Let them sit on the saddle, enjoy the motorcycle. Let the community start looking at, well, there's a good motorcycle from Royal Enfield, we would like to have. So we have decided, as an organization, even though there is an opportunity that we could have gone a bit more faster. We always thought as an organization, in the international market, we should have a long-term play, the way we wanted to do it in India and then we gained the success. That's the success which we wanted to create in the international markets. That strategy of one outlet in a particular city, let's look at community build and all those things has helped. We started, as I mentioned, we had our own subsidiaries. We started farming it fundamentally because we found the market is very good. Acceptance of our motorcycles has started really becoming very nice. And that's where we thought that let's put our guys in that place. We started having our own team in most of the markets now. And most of the markets, we are all now double-digit numbers, our guys in every market. They are riding with the consumer. They are understanding what's happening, they're understanding the terrain, we travel, they're trying to understand what exactly the product which has to be there. That doesn't mean we will come out with country-specific products. But the nuances on the culture which are required, that has to be understood by us when we actually plan for the future new products which are there. As I mentioned, we've also gone in for the CKD because we have to be near to the consumer. That's why we went into this. The point which I wanted to tell in this area is the addressable market is about [ $1 million ] in all these markets, which are there, which I will just touch upon the country-wise also. Our retail outlets, the multi-brand overs including is about 840. There is a room for it. We will grow, as I mentioned, it is not that -- what's the target, how much numbers you will likely increase. That's not the way we work because as I mentioned, we wanted to actually build the community. It should be a pull brand. We are not a push brand. So people should enjoy having that motorcycle more and more that it should come into that country. What is required? We are learning that, we have learned, and that's why we are slowly progressing in all those markets. So the huge potential for Royal Enfield for future. So it's just starting. The story is going to start. Let me just touch upon some of the key markets which are there. That's in Americas. As I mentioned, Americas, it was a dealer-controlled market, distributor-led market. Just to clarify, there are distributors with whom we sign up. They actually do it in term to the consumers and some areas which we operate directly and appoint dealers. Americas was like that. We really found that that's a good country. There's a huge potential for us. We said that, okay, we will have our own subsidiary. We went there and the growth has been outstanding for us. You can see we have almost touched 8.5% in the midsize and it is growing. There are a lot of learnings. When you go into the ground, it actually gives us a lot of learning. When the adventure to category was coming up and we went to Americas, even our own team, few guys who were there, I said we are not very clear, but let's try. So we said, okay, let's send some motorcycles to them, and let us see how the market receives. When we sent about first 15, 20 motorcycles for the people to sit on the saddle and use it and all, then suddenly they came back and then say, well, we need another about 100 numbers. That's where we said, okay, let's move on to the next stage. So the purpose of having a team, our own company is all about committing yourself for a long term. And we see in Americas, there is a good growth potential which is there. There's a lot of on-ground activities which is taking place. We have already had about 262 stores, multi-brand outlets with our own store, on there in Milwaukee. We do a lot of community level activity, something like Build Train Race, all women who's actually doing that. We have CKD facilities in Argentina, Colombia. And even Argentina and Colombia when we were looking at the CKD operations, the pull had been very high even from the market because they started telling us we need flexibility more. We need Himalayan, then Classic. We need all the motorcycles at a faster pace. So don't send us as a CBU and CKD will be a better route and that's how we went into this. So we are committed in that market, and we see a huge potential, which is there even in this area. Coming to Europe. We can see in Europe, we have achieved almost about 9.5% in the midsize. The best thing in Europe, which I have to tell you is -- you can see here the rider club in Europe. We started off saying that club, which will come up. So let's see how the community build which comes around. We had almost about 10,000-plus members who signed up to this within maybe about a month, 2 months' time window. That's the love, which has actually started coming into this. And we made almost a wholesale of 30,000 numbers, revenue is good. and our growth is almost about 193% in those. And EMEA have not brought in its additional numbers, which are there in this geography. Then APAC market. In the APAC market, in the midsized market share is about 8% versus about 7.3% in the last year, 10,000 numbers, which we have actually wholesaled is about a 41% growth once again. There's about 147 stores as of now. We opened a Thailand CKD operations, which is fully up and running now. There is a lot of [ community -- less ] activities, customer activities, promotional activities, on-ground activities which are taking place. This time, when we are all there for launch of our motorcycles Hunter 350. When we were riding in the night, it was very happy for us to say about 2 years back when we went there and then trying to understand what's the market, how it has to be. We started seeing a lot of our motorcycles on the road, which is actually zipping and going around, we said Oh that's nice. It does mean that this country started accepting our motorcycles. And that's what we were looking at, how do we build the full factor which is required for the brand. So what's that? We are all looking at, well, there is business, there's such all happening, but primarily what we were all looking at that bringing more people into the motorcycling world. That's what we know. That's what we understand. That's what we wanted to do it continuously. We're doing all this around the motorcycle and all. I think Sid touched about what are the ecosystems development, which are taking place. We started looking at spare parts availability, which is an important factor. Everybody sees that, that's a small part. Why is it so important? It's so important because -- guy wants 1 washer, and that has to be available at a corner of one particular country. If that washer, which is about $0.10, it is not available, that's the highest dissatisfaction a customer can get. We, as a company, thought, "That's what we are. We will not allow the consumer who owns our motorcycle will always have a feel, oh man, I don't have a washer." As a result, I'm not on the saddle of the motorcycle. That's the worst thing which can happen. And we, as an organization, we can't think of it. We don't understand because I have a motorcycle when I -- that's not really when I want, then I'm missing something in life. That's the culture which we wanted to bring in. So it's a huge focus. We wanted to bring in spare parts. We started stocking spare parts everywhere so that our consumers are not having any issues with the frictionless experience, which we can give it to them. And generally motorcycle accessories, a part of the pure motorcycling culture, we wanted to give all the ecosystem which has to get built around the motorcycle. So genuine motorcycle accessories, it has been growing. Everyone always started looking at, "I have something to add on to the motorcycle." Here, as the community started asking us more and more is that we need more guys. These are the number of SKUs which are required for me to customize. It also helps us in another one way of customizing the motorcycles because our motorcycles are very easy to customize. Anyone who wants to change something, add something, he can do it. Our configurator helps. So that's how we can look at this business is growing. And today, we have about 250 SKUs. We are into apparels. Once again, we started out with the motorcycling riding gears, boots, those sorts of things. It's also a business which is growing. More than a business, what is important is what's an experience which you give it to them through that. If a consumer wants your boot, you're riding jacket, he has to go take his motorcycles, go for a long journey, then he has to have a bags. What are all the things which are required for him in the motorcycling world, which we have to give it. Apart on that, to the consumers, what we are looking at is frictionless and you should have a peace of mind when he actually gets into the Royal Enfield world, and he should enjoy the motorcycling. We have roadside assistance. We have an extended warranties. We have all support, which is required for him, we have call centers. All the supports which are -- maybe these are all one thing everybody does. But what we look at is, how do we touch him at every interaction. That's what we understand. When the whole discussion on the pure motorcycle which is taking place, there are some disruptions or the new way of doing business which are emerging. Not that all the projects will see the end of within the light. It's not that it's also necessary. But as an organization, as I mentioned, we always look at a few years ahead and start looking at what is that we have to do. And what are the steps we'll do. We are very focused. So we don't go -- just and then enter into it. We always do piloting, go full depth, understand what it is, how do we tweak it, how can it be different. And that's what we are looking at. Some of the things which we are talking about, the pre-owned motorcycles, we are working on a marketplace for this. On the wonderlist, there's a lot of activities which are happening. We have Garage Café. I don't know, how many, if you have visited there in Goa. That's another own Experience Centre, which we are looking at different kind of a model for our brand building. Factory Fit Customs, not that I'm committing, but I'm just telling, but at Tiruvottiyur -- as I mentioned Tiruvottiyur plant, which is an old plant, which has plating/painting capacities which are there. So we're also looking at what are the other Factory Fit Customs, which we can bring into the customer world. And some of you are asking, we are also working on direct-to-consumer. D2C is the discussion which is happening now. When we talked about [ 2001 -- 2,140 ] there are retail outlets here in India and about 840 outlets. It's there. That's what it is today as a business. What's it in the future? Future can be direct-to-consumers. And what does it mean? We want to understand. Is it going to come in at a faster pace, is it something that we have to adopt it immediately? But we want to understand. It's not that we are going to disrupt it and then go into that area. That's not what we are talking about and that's not what we are committing. But what we are looking at is that we should know, we should have the toolkit with us. We should be prepared for it, so that, when it is required, when the consumer is asking us, "Guys, now I want my motorcycle directly delivered to me." And that's why we wanted to have an interaction. We, as an organization, have to be prepared. And that's what we are working on. All these things are in the pilots. We are working on, tweaking, which we will see at a business level, and we'll see at what point of time it is required. And that's when we will bring it to light. We started the -- when I was talking about the operations, which are taking place in Tiruvottiyur and then in Oragadam and Vallam almost 10 years now. All the areas, when we are picking up technology, we were looking at the relevant technology which has to be sustainable and all. Now you can see, all our plants are water positive. We don't draw water. We actually charge more into this. We -- every plant, the 25% of the entire land which we took in setting up of a plant, 25% of this is actually kept for green coverage. That's what we thought, greener operations which has to come in. We also moved into renewable energy, some of our plants, as we have a direct willing of solar power panel setup, which we did. We have almost about 14 megawatts in 1 plant, another 14 megawatts which we are working on. So we wanted to actually bring in the renewable energy as the energy source for us more and more. We have the Miyawaki forest, which we developed. And we're also do the digitalization in a big way. Digitalization can be looked at in different types. One look at it as an efficiency. Other one looks at it from a sustainable way. We look at some of the digitalization activities is that whatever the paper use which we are doing, it may be a minor thing, but it translates to tree filling. That's what it does. We started looking at, "No, that shouldn't be the case. Start working back." So the greener operations wherever it is required. That's what is the key focus more and more, which probably Kalees will talk about it. So that's the -- overall, the new phase, which we are entering in the Royal Enfield. Now I'm going to call Kalees to come over and talk about the financials of Eicher. Over to you, Kalees. Thank you very much.

Thanks, Govin. Good afternoon, everyone. After all those exciting and attractive presentation that you went through in the day, I'm here to bore you with a few numbers and graphs. Let's see how it goes. Here, we'll talk about our profitability journey and what are we doing to improve it and how are we going about it. Before getting into it, we also wanted to touch upon how are we addressing accessibility. In the morning, Mohit talked about where is the brand aspiration. Today our top of the mind recall is at about 48%, which is 22 percentage more than the nearest competitor. Classic continues to be attractive, and it is the #1 brand in the greater than 125 cc in terms of the volume that it delivers. And we all heard during the day and you guys also had a firsthand experience of driving a Hunter as to what it is delivering. Now while these are the fundamentals on which the consumer is coming into a store to buy, we also wanted to look at what can we do to lower the barriers for accessibility. There are behaviors that you're seeing. People are looking at, can I buy now and pay later, can I look at options around EMI and how do we need to go about it. And that's when we came about revisiting our entire financing model or retail finance largely into 2 buckets. We talked about some of the pilots that we want to carry out on usership, go and touched upon it. We saw what is a wonderlist program can do to us in terms of rentals. Subscriptions could be a big thing in future. But these are pilots. Today, our addressable business is in ownership. There are initiatives that we have started, whereby we used to work with the 3 leading banks of the country. Now that has been moved to almost all players available, let it be a bank, NBFC or a digital-first technology company is available to fund with us. Not only that, we went into the depth to understand probably a consumer in Kashmir wants to have a relationship with Bank of Jammu and Kashmir, a customer in Raebareli may want to have a Cooperative Bank to fund them. So we went into that extent to have any kind of local requirements or banking partnership required, got tied up through that. The second step was also seeing how do we customize this entire thing. Some customers would feel that I need a higher tenor, somebody will feel I need a lower down payment, somebody would feel that I need a lower EMI, et cetera, or a bullet option or a balloon option in terms of payments. So brought in a host of products where, today, the customer can choose. He has a choice of banking partner. He has a choice of customizable loan product that is available. Thereby, it helps them to lower the entire barrier and make it much more accessible. Today, we have partnerships whereby even 100% financing is available. And we have extended our tenors, which used to be on an average for 3 years. Now it is going up to 5 years, and there are categories where we have also started working upon a 6-year loan tenor also. The next step of -- after here, we have got, there are 3 financials move to almost all leading banking partners available. What do we want to do is how do we make this really frictionless experience for the customer? So as of first of its kind, we launched a digital finance marketplace. It has been onboarded with 4 bankers to date. Over the period of time, we'll be adding many more into this. What it does to the consumer, you come into the store, you finalize your model. Your journey of financing can be at any part of your buying, it could be at the beginning, it could be during or at the end of the day. And you will be able to customize a product that you want. And it is paperless, plus it happens in a GP. So that's what we are able to achieve through DFM. We also believe, over a period of time, we want to move away from banks and start offering solutions to the customer. It's not that you need to come into a showroom and find a bank A or a bank B holding on to you. Can I as a customer, understand first, what do I need, and then select on that, and I have a host of people offering that service to me. So that's what digital finance is going to do for us. Hunter, we also -- we all talked about during the day how much attractive it is, what is the product profile all about, what's the customer profile and how accessible is it in the price point term. We also worked on the financing side, and we got a EMI as low as INR 1,999, which can be lagged up at a down payment of INR 4,999. All these things are great. What does it mean in terms of an outcome? We started with our financing penetration at about 45%. Today, we have already moved it up to 55%. And in July, we are touching 60%. We think the journey has just commenced on this accessibility that we would work through financing. We have a huge potential to take it to the next level. Moving on. During the course of the day, we talked about what is pure motorcycling and what is it doing to the business. We also tried to share with you how are we leveraging the pure motorcycling ecosystem in terms of our financial numbers. So overall, our India business was largely all about it, say, 5 years back. Today, we have 1/3 of our business coming from outside India, roughly about 17% coming from international and about 15% coming from non-motorcycle. And even within international, you see a good amount of diversification between regions. Europe and Americas is at about 41, 35 and the rest constituted by APAC. What has it done to us? We did hit our historic highest revenue in FY '22. There has been challenges on volume, but we did hit about INR 10,298 crores of revenue and our PAT was at INR 611 crores. As we move forward, we will talk about what are the levers that we applied on revenue, on cost and capital to bring in efficiency to the organization. So starting with -- Mohit was talking about a price ladder. He was talking about how do brands create experiences can have a pricing chart added in, or how do brands which drive transformations can drive pricing. And for us, Royal Enfield, it fits perfectly well into that. On the entire ecosystem of power of pure motorcycling allows us to command a pricing power also. You see this chart out here, there has been challenges in the ecosystem. There has been a huge amount of regulatory pressure. We saw things coming in, in terms of BS-IV to BS-VI, there has been an ABS requirement, commodity inflation, fitted roof, et cetera. But we had to take addition to ensure that our fundamental business model is protected. And that's why we had to go on a pricing action of about 23 percentage still -- from FY '20 onwards, which helped us to significantly improve our margin journey. The second thing that also aided, we talked about how are we doing category expansion beyond 350 cc. We talked about what Adventure as a category is doing, how Scram is a great product is creating adjacencies for us and what is Twins doing to us. Our share of business from products which are more than 350 cc, which used to be about 5% has now doubled, which is also helping us to improve the ASP. As an outcome, if you could see it, our domestic business ASP, which was around, say, 100,000 roughly 3 years back, we're at about 134,000 at this point of time. So that's something on revenue that we did on India business. Moving on in terms of international. We did hit our highest revenue of INR 1,732 crores last year. And as you could see in the journey of India, here also, we do work on a pricing ladder, which helped us to take our ASPs up to 233,000. Now when we talk about pricing in both India and international, it's not that we just right away apply a pure pricing power and see how the ASP goes up. There is a significant science behind it. We start with a relative price index as to where is my source of growth that is going to come from, who's my eyeball competition that I'm looking at. And if I put this together, where does my relative price index stand. If our comparison is to a brand a relative price index is to, after all the changes that we saw in the external environment, it should be around the zone of 2. And we can't come down to 1.7, which will fundamentally weaken the business model. So that's how we went about the pricing exercise. We did that in India. We did that in international markets also, which helped us to move our overall metrics on ASP. Apart from that, Govin touched upon where are we having our CKD plants. As you would know, CKD helps us pretty much on the tax side of it. Roughly about 25 to 30 percentage of our tax cost gets eliminated at the moment you have a CKD plan. We started the journey with Argentina, Colombia and recently in Thailand. We would look at in future also where are those countries where opportunity exists, which can hold on a CKD and will aid in volume growth and profitability growth. Moving on to summarize the entire revenue cycle. Last but not the least is on the non-motorcycle piece. We hit our highest revenue in terms of our non-motorcycle business. What used to be about a 9% share of business on non-motorcycle has moved up to 15% at this point of time, led by apparel, as one category where our lifestyle apparel growth has been about 5x in the last 3 years. Accessories, our penetration today is almost at 85% to 90% and the average bill value has almost doubled. What used to be about, say, INR 2,500 has now moved close to INR 5,000. And spare parts business, our service market share has improved significantly from about 39% to 53%. As an outcome, our spare part business also continued to go up. Amidst all these non-motorcycle categories, it's also important, how do you tightly manage your working capital. So there's a lot of work that goes behind to ensure that the working capital is managed well at the dealer point, at the distributor point also. A lot of automation has been done in the spare parts business side as to how do we have an auto replenishment system to manage the inventory. So that's on revenue. In terms of what we did, just to summarize, in India, we looked at India/International, we looked at the pricing opportunity. We looked at the model mix that will help us to lever leverage the overall ASP; and then we looked at CKD as a profit driver; and non-motorcycle, typically, a category like a spare part or accessory, is significantly accretive to the margin model. Moving on. It's not all about pricing because I think end of the day, pricing is not going to solve everything, and we need to continuously work on what are the levers for us to reduce cost. So there is a very, very structured program that runs in the organization. It has got a very significant amount of governance and cadence behind it. How do we run our value engineering? But prior to that, just to give you a little bit of past background. We all know commodity inflation is at 40% cumulative. And that's what we all call it as a super commodity cycle at this point of time. And therefore, we need to take into action not only pricing, what our pricing action that we did, wouldn't have been sufficient for us to cover the margin model if we have not taken value engineering. So there are levers that we look at both on technical levers and on the commercial levers. And on an ongoing basis, we see what do we need to do to improve the margin. Couple of examples, how do we evaluate a tie-up -- an imported tie-up versus an indigenous partner and how do you go about it? Can I rejig my entire tools and jigs on the plant? And can I reduce the fasteners available on it? But beyond all these things, the important thing that I would like to call out is the entire PGM journey, the Precious Group of Metals. Our Precious Group of Metals consumption used to be roughly about 2 percentage of our material cost pre-BS-VI. Subsequent to BS-VI, this has shot up to as high as 12 to 13 percentage. And that's when a cross-functional team came in. We did work out an optimal model where we can between platinum, palladium and rhodium, manage the mix, and we were able to bring down the cost significantly. Today, the PGM cost to our BOM is about 3 percentage. So almost 75 percentage reduction has been brought in PGM, which helped us to reduce our cost. So as we touched upon earlier, this is an ongoing exercise that we do in the organization. It forms part of our business planning cycle, a strong cadence governed by the cross functional team and driven by management to ensure that we are efficient in terms of our cost management. What does it all do? You could see our gross profit per bike, combination of the revenue levers that we talked about and the cost levers that we talked about, has moved from about INR 53,000 per bike to about INR 73,000 and moving towards INR 80,000 as of Q1. What's the last thing that's left on the cost side is the fixed cost? So here, I don't think so we have any significant flag that is there for us to look at or reduce it. We do think we are optimally placed out here. It's about how do you leverage the fixed cost and get the operating leverage cycle to kick in. Some of the highlights that I want to talk about is Simon talked about a very cool thing on what is a virtual reality and augmented reality, due to us indirectly tells us reduce the travel expense also, right? So COVID taught us what's the new way of working and how do we need to go about it. So that's, in a way, helped us to optimize some of the spends that we do normally. Mohit talked about the investment that we do on a digital side and Govin was referring how the online inquiry is significantly going up. It's also important as to how do we curate this. There is an opportunity for us to just pray and pray. The second is how do we look at the targeted consumer addressing, which will help us to bring down the cost of online lease. So that has come down significantly. There is an example that Govin highlighted just recently on what would we do in terms of our power cost. So sustainability, guys, does not only give you a green certification. It reduces cost also. We started with Oragadam as a pilot. We implemented this in full scale in Vallam later. Result is about 20 percentage reduction in terms of our power costs. We will be looking at now implementing this across onboard. So summarizing all this, what does this mean? A combination of revenue plus the material cost side of it and the fixed costs, we see our EBITDA journey going up. We have hit about INR 36,000 per bike. Q1 was about INR 45,000. And we think we are poised to start leveraging or start the journey of operating leverage as we move forward. Moving on, just to -- we talked about the P&L side of it. What is the fun if we talk about the P&L and don't test the balance sheet as a finance guy? So our CapEx has been pretty steady. It's been a INR 600 crore CapEx is what we have been spending over the last 3 years on an average. And a large part of this is spent towards our new product development and plant operational maintenance CapEx. There is money that we spent on our brand retail identity and some of our international markets also, but lion's share goes into that. So also, I wanted to reassure you that for there is no significant capacity expansion that is there. It's largely to do with new product development. This is the most important thing, where you would see 80% of our EBITDA gets converted into cash. So on an average, in spite of the challenges that we had on the external environment, volumes being a challenge, a robust financial model that we could fix in terms of the actions that we could take helped us to generate about INR 1,600 crores of cash every year on the back of a negative working capital cycle that we run. So our dealer business in India is largely a cash-and-carry model. We hold very minimal inventory, and we operate with credit terms our -- with our vendor helps us to manage a negative working capital. Now over a period of time, all this has led to a treasury of about INR 8,500 crores as of FY '22. So what have we done with this in terms of our treasury? Our dividend payout ratios have gone up significantly. It used to be about, say, 16%, 17% in the past. We have doubled it up. It's gone up to say, 35 percentage dividend payout ratio at this point of time. There are options that we continuously evaluate from a capital allocation perspective as to what do we need to do with our funds, how do we get more returns out of it. Our EPS journey has also been steady after the tumultuousness that we see during the pandemic period. We are getting back to an EPS run rate of about INR 22 per quarter as we closed Q1. So that's in terms of what have we done so far in terms of our entire financial levers being fully utilized. Moving on, Sid talked about rebalance and he also touched upon how do we need to look at profit versus profitability. We call us as a 121-year-old start-up, and no startup is going to be satisfied if there is no growth into it, right? So when you want to aspire to be an organization that is of high growth, it is pretty important to ensure that you don't get obsessed with profitability. It's important to balance that with profit. There are markets outside India which has got huge potential for us to deliver growth. We also see what is India holding as per store. We talked about Hunter. And there is a base business model that is clearly established. We saw our Q1 numbers at about, say, 25% EBITDA. On that base business, if we have to get in a product like Hunter, where the incremental capital employed is almost nothing and my return on capital employed is going to be significantly higher, it's important for us to start looking at absolute profits than profitability. We do think this is a very holistic approach. End of the day, shareholder value creation is going to happen when the EPS expands, and the free cash flow of the company moves up. So that's a shift in our strategy where we wanted to state that we would be, going forward, balancing profit and profitability. It's not one versus the other. There are facets of business where you need to focus on profitability. There are facetrs of business you will be focusing on profits. As a combination, if the EPS is going to grow and if our cash flow journey is going to continue, we do believe that will be a value accretive journey for all our stakeholders. So again, from the morning, we talked about our ESG vision. We talked about what are we doing about sustainability and how do -- Mohit talked about it, Govin talked about it, Sid started on the rebalance side of it. We took an external stab at it as to we have done so much about it internally as to -- as an ESG vision, we have been embedding that and taking it forward as to what should it look like and how should we go about it. We also -- when we started the journey, our Dow Jones Index score was about 29 and we were at the 50th percentile in terms of our DJSI score. Govin talked a lot about some of the activities that we did at the plant level, maybe I'll touch upon a couple of things. The emission norms score reduced by almost 22 percentage when we change the oil change frequency for our customers. We could also ensure that it's almost a 0 lost time injury at our plants and 0 fatal accidents at our plant. Our overall customer satisfaction at the point of delivery due to a lot of initiatives that were taken on quality under the front end has almost meant our score is near 100%. What it all meant when we represented back to DJSI what we have been doing internally, what are the policies, some of them that we have addressed to make us score move up. We moved up from 29 to 61 and our percentile moved up from 50 to 76. And that made -- we are one of the very few companies globally to get not only certified, but listed on the prestigious DJSI Index. We have started working on even other indices like what does an MSCI offer to us. And in terms of Sustainalytics, we are on the right side. As you could see, we are moving into the journey. We already rated A and our risk is pretty low in terms of what Sustainalytics has called out on the sustainability agenda that we are following in. So to summarize all these things into 1 slide and if you have to talk about it, eventually, we need to grow. But as an organization, we need to also grow responsibly. Responsible growth means it needs to be an inclusive growth. There is stakeholders at one end, there are customers, there are dealers, there are consumers. And our journey is to ensure that how do we build on a growth that is responsible. At the same point of time, we do believe our assets are already in place, and we will be in a position to sweat our assets more. We will also be able to improve our productivity, let it be at the front end or at the back end over a period of time, considering the new product opportunity that we have on the table. And this will see a very good throughput across the value chain. Moving on, we also think, from a return's perspective, we talked about what value engineering does for us. Our costs are pretty well optimized. The revenue levers continue to be with us. When we combine this, we do think the EPS journey and the cash flow compounding can happen from here. And end of the day, it is how do we look at an inclusive value creation for all the stakeholders, ensuring that as it's not only a growth that is going to be driven by financial parameters, but how do we balance that with the nonfinancial parameters, and therefore, deliver a sustainable and responsible growth. Thank you. And with that, I'll hand it over to Vinod to talk about the VECV journey.

Very good afternoon. I'm sure you've had an excellent day with very, very immersive understanding of Royal Enfield, especially the qualitative areas which normally are not presented in this type of conferences. So I was quite impressed with the presentation on the brand or on the product development process or how the consumer behavior is understood into the -- all the processes. I think it was extremely good. So I'm sure you had a good day. And after that, of course, my job is to take you through the VECV journey, which is our joint venture, which is also an important investment of Eicher Motors. And my job is to give you the overview. It will not be as detailed as we have seen for Royal Enfield. But of course, let me see what I can do in these 45 minutes. Starting with the market situation. If you look at this graph, the industry position. If you look at, we were at the peak in '18, '19 at 557,000. And then in financial year '21, we were down to 234,000. So it was massive drop from the peak of 557,000 to 234,000. And of course, last year, we could reach the pre-COVID levels, pre-COVID levels of 19,000, 23,000, 34,000 and last year was 343,000. Looking at the growth that is happening in the last 4 months and the current market situation. It looks like that we will be somewhere between peak and the '19,'20 pre-COVID. So we should be -- our estimate is around 435,000, it can be anybody's guess. However, within this 435,000, if you look at some of the segments, for example, light and medium duty, 5 to 16 tonne. That looks like that we will be already reaching the peak of '18, '19. And of course, the schools were worst impacted, and the bus segments was the worst impacted due to COVID. And with the school, they have started buying buses. So we are expecting good bus season as well because bus market had dropped to rock bottom. It had come down from a peak of 65,000, 70,000 to around 11,000 in 2021. And then last year also was around 18,000. So therefore, bus market were the worst impacted. However, this year, we are expecting bus market also to make good recovery. And heavy-duty trucks, which is the largest segment of the market, which was around 295,000 in the year '18, '19. Last year, it was 163,000. We are expecting that this year, again, it will be still far away from the earlier peak, but it may still reach around 220,000, 225,000. So therefore, all put together, I think we are in good shape. The industry is on the recovery path. We had 3 barriers. It's a cyclical industry. The industry is going to recover. Next 3 years are going to be good for the CV industry. That's what my take is. And of course, it is also based on a lot of factors, like, for example, there is a lot of pent-up replacement demand because replacements have not happened in the last 3 years. There are a lot of investments happening in the infrastructure in this sector. And economy is on the growth path. All of us know that this year also, we will have GDP growth of 7% plus. So based on all these factors, I think we are in good shape. We should see good recovery happening in the CV industry. Coming to our story, VECV. I think during the last 14 years, we have been able to create a very strong foundation for the joint venture. And this foundation has been created based on the trust that we have been able to create. And of course, if you have to create trust, then the fundamental thing is we have to always think of win-wins for both the partners. We have to always have a lot of mutual respect. We have to have deep listening to each other. So based on all these processes, I think the trust that has been created is of a very high aura. And as a result of that, the foundation for the joint venture is very, very strong and it is going from strength to strength. And if you divide this entire 14 years into 3 buckets, the first period of 2008 to 2013, it was the period when we started our first synergistic projects, which included the -- we set up the medium duty engine plant, which became the global manufacturing hub for the entire Volvo Group for their all-automotive needs for medium duty trucks for all the engines we are supplying from India. And apart from that, we did a lot of improvements in the processes, for example, in the manufacturing processes, in quality or in new product development. We adopted a lot of world-class processes during this period. The second bucket, of course, we've spent a lot of time in incorporating Volvo Group technology into our products. So it was an entire product line were new, we took over Pro 8000, which is the high end mid-premium product, which Volvo had designed especially for Asia, it well called Asia truck. So we took over that product [indiscernible]. And apart from that, we also decided that we should move from -- we should transform ourselves from an industrial company to a customer-faced or a commercial company. So that's why we're very, very, you can say, conscious decision, which the entire management took that we have to always now think for the customers. And last 4 years, we have made significant progress in making ourselves a customer-facing or customer-oriented company. And that was, of course, the second bucket. And now, of course, going forward, we have to make ourselves future-ready, which includes that we have to have all the [ up to date ] technologies like, for example, electric trucks or we have to have alternate fuels, or we have to continue to transform ourselves more and more. We have huge potential in heavy duty trucks. We have to become more and more strong. And we have to sustain our strength in the light and medium duty. There is huge potential in West market. So basically now is the time when we have to unleash the entire potential. And fundamental, I think if you look at this slide, we are now 1 of the top 3 commercial vehicle manufacturer in India. And we have a very solid, very strong product line, which is technologically advanced, a lot of Volvo Group technology into these products, and the range is very wide. Like for example, we have right form in the trucks, right from 4.9 tonne to 55 tonne, so there is entire full range for all the applications. Similarly, if you look at the buses, we have the entire range from 12-seater versus to 69-seater. We have the basic products, we have the value products, we have the mid-premium products, and we have the high-end products with Volvo Bus. Similarly, in Volvo trucks, we have very, very high end, high-end truck range. And so therefore, the fundamental -- the products, we have everything. You can see right from 4.9 tonne until 55 tonne, we have everything with us. Apart from that, we are into the other businesses also. Like, we are supplying engines to Volvo Group. We are in the engines business. We are in the components business, which is also going from strength to strength. We are also supplying gears to Royal Enfield, and we are supplying gears to Volvo Group. We are supplying gears to a lot of other OEM companies like Caterpillar or John Deere or a lot of other international customers. So therefore, that is another important business which is there in VC. Now I'll give you some brief about the various verticals which we have. As I was mentioning, heavy duty trucks is the biggest segment of the CV industry, and this has been also the most difficult market because it is represented by a strong duopoly. And duopoly is also working on a very clear strategy, that they have to make sure that the new players don't break the duopoly. So that is why it is -- to that extent, it is becoming more and more difficult. But if you look at our growth, we were at just 1.3% market share when we started a joint venture. Now we have reached bit by bit 7.4%. But of course, we will also be believing that we are -- we have not made very fast progress. We had been talking of that in the past. But we have had tremendous learnings, tremendous learnings we have got in this entire heavy duty truck market. And now we have understood very clearly that why customers are not moving fast from like if they have to change brand, why they are not doing it. Very clearly, there are very strong loyal customer base of the strong duopoly. And if they have to change, they have to be very clear in their mind that if the truck breaks down on the road or if there is any need of part, will that be available or not. I think they have to be absolutely sure. For example, if a customer is having a fleet of 5,000 trucks, then he has to be very sure if he has to induct new brand that when he gets into a new brand, he will not -- his truck will not be stranded on the market. Sorry, can I just have a water. So this is extremely important for the customer to be sure that if he is changing the brand, will he get delivered. So therefore, I think we have -- this transformation which we are doing from the industrial company to the customer-oriented company or the commercial company. I think that is going to help us. We have now understood that what is to be done to become big in the heavy-duty trucks. So apart from these strong products, because that really hygiene, the products have to be good, and we are very clear now that our products are good. We have the best of the technology. We have the best of the fuel efficiency. We have the best of the performance. And now we have to become best in the after sales, best in parts availability, best in service setup, best in infrastructure. So that is where our focus is. And we are very certain that it's a matter of time when we are able to create that confidence in the customer mind, we should be able to become slowly, slowly, we should improve our reputation in the heavy-duty trucks. As far as light- and medium duty trucks are concerned, which is 5 to 16 tonne, we are already a very strong player. And our fundamental need is that we have to maintain our strength, we have to sustain our strength in this market. And we have to bit by bit we should improve our market share, even though, we have remained more or less plus/minus something in 30% range. And of course, currently, we are at 27.7%. But we are certain that we should be able to at least maintain 30%. And then again, there again, we have a very strong product range. We have the both mass market as well as the value segment, Pro 2000 and Pro 3000 Series. And we have a very strong fuel efficiency. We are known as Mileage ka Badshah, and we are continuing to be known like that. And the product range is again very strong. We have the product at every 500-kilogram of the cargo body. So we have the widest product range. Therefore, this market, we are very confident that we should continue to sustain ourselves, and we should become more and more strong. Now if you look at buses. This is another area of a very strong potential for us. If you look at the market share positioning there, we were at just around 11% in 2008, 2009. And now we are at 28%. And if you go back to just 3 years, we were just at 20%, 21%. So this is an area where, again, we can increase our position very strongly. And this is again based on a very strong product range. We have 2 in-house bus body plants, and we have a plant in Baggad and with the Eicher Buses. And Volvo Bus is part of us, where we have the plant in Hoskote in Bangalore. And we have the -- again, base products, value products, premium products and we are leaders in the school segment. And we are becoming more and more strong in the other segments as well. And we have, again, have a good potential in the HD buses, where already we are now at around 10% market share. So we should middle the -- our position in the LMD trucks as well as HD trucks as far as the buses are concerned. International business is again a very strong segment for us. We are now present in 38 countries. And we have -- you will see here in the graph that in '18, '19, we were at a volume of 10,000 units. And last year, we were at 8,000. And currently, of course, there has been some difficulties in the international market, especially in the South Asia markets of Bangladesh and Nepal, where they are having the foreign exchange crisis. So therefore, there are a lot of restrictions in opening of the LCs. But at the same time, we have diversified into various other countries. Like, for example, today, 1/3 of our export sales come from Africa, Southeast Asia, Middle East. We have been able to grab these markets. These markets need very good quality products because these markets have a lot of Japanese products. And now our products are -- we are in a position to compete with the Japanese products. And our buses are very successful in Middle East. It was very difficult to crack the Middle East market for buses because you need good fit and finish unit, air condition buses and you need high speed there. Similarly in Southeast Asia, you need -- you have to compete with Japanese trucks. South Africa also is a well to market, we have to compete with Japanese trucks. So our trucks are now competing with all the Hino or Isuzu or Mitsubishi. So we are able to now make good inroads into these markets. So there is huge potential for the international business as well going forward. And we are also going to enter Latin American markets. We are already introduced products in Dominican Republic or Ecuador. So there is going to be a good potential. And we are also now going to introduce left hand drive products in more and more countries. So therefore, this is another area which is going to bring good business to VECV in the future. Now Volvo Trucks, we have the exclusive distribution rights for Volvo Trucks in India. And this is a very strong business. This is the only truck which can go deep into the mining segment, gold mines. So gold mines you need very robust, very stringent trucks. And with the 8x4 trucks which we have, FMX 460, we have almost 100% market share of the gold mining segment. And these trucks can operate 24/7. You will be surprised that these trucks operates in a year, I think we have around 8,400 hours in a year, these trucks operate for more than 8,000 hours. So they almost keep on working 24/7. And now we are entering into more and more segments. Like, for example, we have just delivered some trucks to delivery. They are now having around 300 of our haulage trucks. And they are able to drive these truck 25,000 kilometers in a month. It means they are driving almost 1,000 kilometers every day. And they have the experience that for 200,000 kilometers, there is no aftersales call. So they can drive without any aftersales need. So that is the type of performance of these trucks. And once you have success with 1 customer, you can get into more such customers. Similarly, in the construction segment also, which is again another growth area. There, we have introduced with some pilot customers, for example, G R Infra. So G R Infra is now having around 200 of our construction trucks. They're having an excellent experience. So based on these pilot successes, I think the potential for Volvo Trucks is not only in the coal mining, but in the other growth areas is also very high. Then Volvo Bus is now integrated into VECV. As you are aware, we integrated this business into VECV in November 2020. And right now, this business volumes are quite low because in intercity segment or the high-end, the - still the market is down because after COVID, this market still has not opened up. But we are expecting that now this market will open up. You would have seen in the papers, we have recently introduced a very high-end sleeper coach, which is an intercity coach with 40 berths, which is absolutely the state-of-the-art products. It will define new standards in luxury, comfort, safety and, of course, both Volvo and Eicher put together. In the bus market, there is huge potential because we are having a lot of technology exchange. We are having a lot of cross-pollination. So we have now dwelt -- Eicher also intercity coach with the Eicher brand in the Hoskote plant of Volvo buses. So therefore, this Volvo Bus integration into VECV has been a very, very good for VC. I think when I mentioned that we are transforming ourselves into the commercial organization. One of the important area is the service network. As you can see here in the graph, we were at 379 touchpoints. And now we are at 688 last year. We are adding almost 2-plus touchpoints every week. And not only adding these numbers, the quality of infrastructure or the entire -- this agility of this infrastructure is of a very, very high order. All these network clients, they are all digitally connected with our uptime center. Like, for example, we have now complete knowledge that when a truck enters the -- our workshop and when it comes out and how much time it was there in the workshop. And why it was there, how much time it should have taken for the repair for which it had to come and how much time we took. And we are measuring this very, very clearly that -- what is the total time it has taken and what is the response time it has given to the customers. So this is an area which is a very, very, you can say, continuous improvement area for us. Then if you look at the technology and manufacturing. This is, again, we have created a lot of synergies with the Volvo Group. We have a seamless technology exchange with Volvo Group. We have end-to-end cost-competitive capability in Engine & Driveline, Cab, Vehicle and Modular architecture. And we are now the center of excellence for the engine development. Like, the medium duty engines that we are developing -- medium duty engines that we are supplying to Volvo Group, we have got the entire development for that engine for their worldwide requirements. The product development also is done in India. So this has added a lot of capabilities to us. Similarly, we have done seamless transition to BS-VI. We are already ready for BS-VI next step, which is going to come from 1-4-2023. And then, of course, then Euro VII is coming in Europe. And based on that, India also will be required to introduce BS-VI trucks. So that also, whenever it comes, I think we will be the first ones to introduce that. Similarly, if you look at the industrial capacity for us, we have now 90,000 capacity in Pithampur. And we have added Bhopal plant, where we have another 40,000 capacity there. We have industrial gearbox for exports plant in Pithampur. We are partnering plant in Pithampur with 75,000 engines capacity, which can scale up to 100,000. We have the Volvo Bus plant in Bangalore. And similarly, we have the bus plant in Baggad, which is near Pithampur. And we have a very strong capability in our components division in Dewas. And as you know, we also had a plant in Thane. That plant has been shifted to Dewas now, so that entire real estate asset, the land that is available in Thane that is available as a real estate asset, which is, again, a very, very valuable piece of land, almost 6 acres of land in heart of Thane and which is on the main road. So this year, we have shifted the entire operations to Dewas. This Bhopal plant, we have set up during this COVID year 2020. And the message is basically we have not compromised on any initiative even during the COVID. And this is absolutely set up based on Industry 4.0 processes. If you get an opportunity, you should visit this plant, it is absolutely state-of-the-art with all IoT and all the Industry 4.0, and supply chain is of a totally different order. Like, for example, we don't have any store inside the plant. Everything is just in timed supply from an external warehouse. So it's absolutely, I would say, very high productivity plant. And the assembly line is a pillarless 590-meter shop, which is, again, it's a very first of its kind. As I mentioned, this components business, this is again becoming very strong. We were just at INR 127 crores in 2009 and now we are at INR 1,223 crores. So it has 10x growth in the last 10 years. And again, there is huge potential. We have almost 1/3 of the business is coming from our export customers. And then we have the non-automotive engines like gensets or the industrial engines. This is again a very high business potential for us. This is just at the nascent stage currently, but this business also can grow up very, very large. And like these are the some of the figures of non-automotive engines. So what I'm trying to say this see another very high business potential, which is there in VECV. I think we have created a tremendous edge in the digitalization platform. Today, whatever trucks we are selling, they are 100% connected. And we are also giving the customers fully connected truck. We are giving them with a live connection for 2 years because what we experienced that when we were just giving them the hardware, they were not taking the subscription for the telematics. So then we decided that we'll give them the free subscription for 2 years. And this is absolutely creating different type of experience because customer is able to understand the value. He is able to understand various cuts and the app that we have introduced, My Eicher App, it is there on the smartphones of most of the customers. We are adding more and more customers on to that. They are able to see a lot of things. For example, they are able to see the driver behavior, that when the driver did the harsh acceleration, when he did the breaking, when the accident happens what was his behavior. So they are able to analyze that why accidents are happening. And they are able to see route by route, driver by driver, fuel efficiency. They are able to see what is the last time repairs, when was it done and what was the repair and whether it is coming back for repeat repair. So they are able to see various cuts. These are all possible because of the connected trucks. We have started giving based on that predictive maintenance services to customers. For example, we have an uptime control center. When the truck is running on the highways, our control center keeps on receiving continuous data on a real-time basis from these trucks. And if there is any anticipated problem, for example, engine is overheating or engine is likely to get seized. That number just pops up in our uptime center, and our people call up the driver that -- truck is having so and so problem. Depending on the seriousness, we are able to advise him that either he should stop immediately, or he should take it to the next workshop, or we send our service van to that place. So these are the type of things which are being first in the industry, and it is going to create tremendous confidence. And this is what we need for our heavy-duty truck customers if they have to get the confidence that if their trucks go around or break down, they will be able to get repaired. And once they get that confidence, then it will not be difficult for us to increase our market share in the heavy-duty trucks. And this is future electric vehicles. We are absolutely ready. And we are already supplying 40 buses to Chandigarh. And this is a new model, which government has decided business model, where, of course, as OEMs, we have to run these buses for 12 years. And for that purpose, we have formed a subsidiary company, VE Electric -- Electro-Mobility Limited and the entire business of running these buses will be done in this subsidiary company. And we have got another order of 150 buses from Surat. And of course, future, we are also going to introduce these electric trucks. We are already working on 5 tonne trucks or working on 55 tonne truck. These 5 tonne trucks can be very good for intracity applications or civic applications. So therefore, all the alternate fuels, all the electric technology buses. I'm sure whenever the numbers come, we will be there to take the full advantage of that. Just to give you a little bit of the -- our numbers. If you look at this top left-hand graph, it's the sales numbers. We were at the peak in '18, '19 at 73,000 volumes. Last year, we were at 57,000 units. And as we have seen in the market, market is growing now. So in line with the market, we should continue to get good growth. And if you look at the top line, we were earlier -- our peak was in '18, '19 at INR 11,290 crores. Last year, even though the volume was 57,000 as against 73,000. But top line already, we were at the new peak. Last year, we had a turnover of INR 12,350 crores, as against INR 11,000 crores at [ 750,000 ] volume. Because the BS-VI prices have gone up or the inflation-related changes or the mix-related changes, we are selling more HD trucks. So therefore, the potential to grow in the top line is even more when we grow the numbers. And on the operating profit side, you would have seen, we have -- last 14 years, we have experienced 3 recessions. First, it happened in 2009, then of course, in '13, '14 and then, of course, during this period of 2021. But the good thing is that all along this period, even though our profits came down, but we never incurred losses, even though the -- if you look at the competition, there was losses in the entire CV industry. But as far as we are concerned, in spite of very low volumes, we were able to maintain our financial position and we were consistently profitable throughout. And of course, we operate our net negative working capital and we have around INR 1,500 crores as our -- for EV balance, we have the net cash on our balance sheet of INR 1,500 crores, and we are debt free. So fundamentally, as I mentioned, the transformation journey, this is very important for us. And for that, we also do regular customer satisfaction service. And dealer satisfaction survey, of course, is done by Federation of Auto Dealers Association. And we are very proud to know that last year, in the dealer satisfaction survey, we came as #1 in the entire industry. We were #1 in the dealer satisfaction survey. And in the customer satisfaction survey, also in the light and medium duty trucks, we were #1. And in heavy duty trucks, we were #2. So it was very satisfying. And this is, of course, the result of whatever work we have done in last 4 years. And -- but this is just the beginning. I think -- this is where we have to continue to work more. We have to continue to increase the lead between the immediate second person. And that is what is going to help us in -- get our potential of volume of the market shares. So basically, fundamentally, if you look at -- we have everything with us now. We have the products, we have the processes, we have the technology. We have good infrastructure. We have good mindset. We are improving on the transformation journey. We are continuing to become more and more customer oriented. So when we have everything, product range is so wide. So then we have to think very big, and we have to do very detailed planning, go granular. And we have to make continuous improvements. And this is what our theme is, think with more granular and play the infinite game. And this is the team on which the entire VECV team is working on. And with that team, I'm sure we are going to have tremendous growth as far as the future is concerned. And we are also, on the technology side, electric technology, alternative fuels, we are absolutely future ready. And I think that was my last slide.

Thank you, Vinod. That was really super, and you were able to bring in 45 minutes the flavor of what's going on at VECV. And I think for a lot of the investors here or previous who are investors in Eicher Motors, let's say, around 15 years ago, a lot of -- not a lot. I think mostly people bought the Eicher Motors share because of VECV or pre-VECV because of the truck business. Now we spend most of the day on the motorcycle business, a little exclamation point at the end of the truck business. But you may be surprised. You got -- last time, you got a kicker of Royal Enfield, which has sort of gone on and on. I think the dark horse I think here is VECV because there's a hell of a lot going on. It's again, a super focused company. It's run the JV with a very strong governance thinking process, focus. As Vinod said, we have an outstanding organization, product range, commercial orientation. What we are doing in uptime in VECV is revolutionary. It hasn't happened in India before. It hasn't happened in truck segment before. The work that we talked about on the uptime center, this is absolutely state-of-the-art top-notch stuff that -- with telematics, with predictive maintenance, guys called, drivers called, "Stop your truck now before something happens." It's really next level. And that's what -- that kind of thought leadership and that kind of -- it's not just thought leadership and the execution as well is what's going to bring VECV to a totally different level. And as Vinod said, it's -- while we continue to maintain and grow our position in light, medium duty in buses, and we're spreading into international markets. The big one out there is heavy duty, and we've got just an absolutely fabulous product range. And now thrown in with that, the uptime center and the My Eicher App and all of that, it's really ready to go. So it's super interesting. Thank you, Vinod. And -- I've forgotten what I have to say about [indiscernible] But back to Royal Enfield and just wrapping up for the day, then we can have some questions, of course. We've talked about -- apparently, I didn't know that we were chatting at the plant, and we said, okay, Royal Enfield talks about a lot of things more than other companies because you're talking about your -- maybe some fluffy stuff about brand and research and customer experience and -- all that design and all that stuff. It's true. That's what we are. And that's the starting point of the company for so much that we do. Sometime, somewhere, maybe some of you feel that's perhaps not an aggressive approach. Royal Enfield isn't an aggressive company. And we're certainly not short-term aggressive. We are a pull brand. We're not going to go out and push motorcycles and push discounts and do silly things according to us, at least, sorry, and try and get some numbers. That's not our vibe at all. So we are aggressive in the long-term. We are super aggressive in the long-term. Our ambitions are huge. It doesn't mean we're going to do silly things in the short-term because we don't want to. We want to make sure that we progress in the manner that we should be. We're setting stuff for the future, and the short-term is the outcome of that. And of course, there's still stuff to be done in the short-term. There are so many things to be done and we need to continue to do them. But that's the orientation of a company, just to let you know how we think. Again, just trying to summarize the day for a second. We're all super enthused and committed to a rebalanced idea. It's very powerful, we believe, in terms of what we're trying to accomplish, super growth-oriented. That's what we believe. We've got opportunities, like I said, in India, in international markets, in EV, in adjacencies and huge opportunities, and we're setting ourselves up for growth in all these fronts. Then of course, we've got -- and the motorcycles, we've got amazing product pipeline. We've got ideas and thoughts and -- but actual motorcycles coming out in the next many years. And plans and, let's say, designs and we are already on the progress with our EV setup, our EV motorcycles. And a whole brand, you need to reimagine Royal Enfield brand in a global context for different consumers, for different habits and make it super iconic, right, like Mohit talked to you about. And again, back to then the aspiration or the -- our sustainability aspiration also, which is really important because we believe that, that is another area that binds everything that we're doing. And not just for our customers, not just for our own team, where it's super important. But for all our stakeholders, it makes a more resilient, more long term, more interesting business to be a part of, and that's at the core. Having an interesting business, which all of us want to work in, which all of us want to be a part of, that's what we want to do. We always want to be a brand that draws people in rather than push this stuff out, right? And that's what we're continuing to create at Royal Enfield. So that's it for me. Thank you very much. And yes, now it's -- we're going to have some questions from all of you. Is that right? Break. Wonderful. We get a break, get some coffee and then some questions. Thank you very much. [Break]

[indiscernible] presentation and all of you have been through a lot. I'm sure there are quite a few questions. So we have about 45 to 60 minutes for Q&A. We have all presenters here in front of you. Obviously, I would request all of you to perhaps raise a hand. There are some of us in -- some of us in blue T-shirts. These gentlemen have mics. I would request you to please stand, also identify yourself to the panel here and go ahead and ask your question on. Also one small request, we are a lot of us in the room, so it would be great if you can keep your questions to one, to begin with, and we can come back for a follow-up at the end if we still have time. Great. So I think I saw him raised his hand first. So...

This is Kumar Rakesh from BNP Paribas. First of all, thanks a lot for putting this together. It has been a really great experience to get [indiscernible] of the brand, product and the entire company. My question was 2-part essentially. So you have tried to talk about EV as well as possible. So if you could give some sense on how do you see the oil Royal Enfield brand in the EV era. So that's first. And within that, so your plan appears to be like we'll start launching product possibly 4, 5 years from now. But what's the plan B in case there is any regulation which comes in and which pushes you to launch it early, how would you respond to that?

Who's answering that? Me?

I think the question is about EV and brand if I understand correctly.

So the first question is always supposed to be soft ball. And then you can answer tricky ones later. So...

I think perhaps to start with the point of EV and brand. I think -- for us, we've talked a lot about what motorcycling means to us. And I think irrespective of the propulsion, some of the things that make Royal Enfield the brand that it is, will continue with EVs. It won't change. The joy is still there. That still exists. So I don't have any concern going forward in terms of will our brand transition, I think that will work. Clearly, there are challenges around developing new products in that space. There's challenges around the technology and the development of it and there are challenges that we're working with now, we're working on. You've got some little, tiny glimpses. And of course, we're not going to give you any more information on products that we're working on. But we are -- it certainly is part of our plan going forward. We're at the beginning of that journey to some extent. But yes, I think as a brand, the things that bring us together, the things that excite us and [ turn us on ], they're going to be the same, whether we're talking EV or internal combustion engine.

Just to add to that, it's clear that there is a lot of EV in the future of automobiles, motorcycles, all of that. In motorcycles, specifically, the way we see it is that largely, it's going to start at the lower levels and then go up, not like cars where it starts high and comes down because -- there's an issue of battery size, cost, weight. And if you have a big bike, you need big batteries, which is very heavy also and very expensive. And the -- it's not tenable today from a value proposition. But it's going to be easier starting with smaller motorcycles or scooters or whatever and then going up. Of course, you may still have some very expensive motorcycles, which won't sell much, but they'll be there, it's flagship and all of that. So that's just the trend that we're seeing. It allows us, it allows people to do things differently and to actually approach this entire segment very differently. I think -- so the way we are approaching it is we do have various ideas, products, developments, mule bikes, [indiscernible] and I don't think we got across Mark did a little bit, but I don't think we got across entirely how excited we are about EV as well. It's a huge source of excitement. All of us have been going on consumer rights, also our own company rights and of other bikes or scooters of all sorts of news that we've created of bits and bobs from different bikes. And it's a blast to ride, especially light, small city ones. Now there's -- so there's -- it's a very interesting technology if you use it for what it's good at. So we have stuff under development. It's probably going to be 3, 4, 5 years in the making for us before you see anything on the road because we will take our time and do something fabulous. And not just on the motorcycle, but on the entire ecosystem. Like I think you also mentioned the joker in the pack somewhat is regulation because the cost curve, we can see where the sort of cost curve is. It may go back by a year, it may come forward by a year, but we know approximately whether curves will cross of ICE and EV and for different sizes and classes of product. But the joker in the pack is certainly regulation. So we do have thoughts and ideas, but it's not like we can come up with a product tomorrow if there's regulation comes in. But we do have some thoughts and ideas on fall back, but it's not very immediate. It will still take us time to do anything of this sort. But yes, we are wary of that. We'll keep an eye out on that to see how regulation is evolving as well.

Till the mic reaches there, I'll continue that discussion. You said 3 to 5 years, but if you were to look at the other side, how many customers of yours when you go for a ride? Are you actually expecting electric motorcycle, which can also be used on long-distance driving? Because the use case for your motorcycle to a great extent is customers once in a while do go for the long rides. They want to take it to places. So are the customers really asking for it? Is it just a proactive bid from you guys to kind of address that technology or prepare yourself for that for the future?

So look, customers are not opposed to the idea of that, but they're going to -- when they look at the price of a long-distance bike and the weight, they're going to be like, oh, no, no, no, not now, right? So this is not the time for a long-distance motorcycle. On electric, it will happen. But I think it's going to take a lot more time than a 3-year horizon. Is that right? I mean, that's what we're looking at.

Absolutely. I think the opportunity in EV is to bring new customers into the fold, is to look at new ways that we can bring on [indiscernible]. And I think they'll coexist alongside some of our internal combustion engines for a while going forward. So it will be about [ courses for courses ] and maybe there'll be different business models where you own a share in a bike. There's all sorts of different things that we can think about, about how we address that question. But that energy density question, the size of a liter of petrol how much energy you get in that versus the amount of energy you get in the battery is one that is definitely a chemical problem at the moment. It's -- there's nowhere around that. That is a problem to address.

Customers are not asking at this stage.

[indiscernible] currently, consumers are looking at that an EV has to be adopted faster. Are they asking us, when are you guys coming? What's the plan and all. It hasn't come to that level. As an organization, anyway, we are connected to the community. The community has not started looking at that [indiscernible] that. That's not the state we are now.

My first question is regarding if we look around 3 to 4 years back when we had launched the Interceptor Twins, we've spoken about growing the addressable market by way of upgrading the customers, classic customer upgrading to Interceptor Twins. And that's the way you were trying to grow the market -- addressable market for the midsize in the domestic segment. Now if you look at it, maybe we've seen a whole lot of price increases that we've seen in 35%, 40% plus in the last 3 to 4 years. Is there a rethink amongst the management that now maybe to grow the addressable market, you really have to play on the price point, maybe the customer segment, the demand is not as inelastic to the price as we had thought earlier? Since now we are going more towards the Hunter and the price point, the addressable market is more towards the price-sensitive segment. Is that a thought process now?

There's a lot of questions, which are added into that. Let me see one by one. In Continental GT and Interceptor, which we launched, I mean that's the space which we said it's available. We had only the 500 cc, the maximum one which we had. So consumers within our portfolio, they're looking for an upgrade. And both the motorcycles in India is selling well, the numbers which we were expecting. And also that product was to address the global audience, and that's why we reached into the global market. Even there, the numbers which we were looking at has been good. In terms of pricing, which you are talking about, yes, because of the commodity cycle, and as Kalees was mentioning, it's the right pricing with the related price index, which we wanted to bring in, we always brought in. That's not the way we look at where is the market. We always look at it, price point as 1 tenant which we will always look at. What we look at is where is that consumer is actually looking for an experience and what are the adjacencies which we can create. And that's how we come out with any of the products.

And I think just to add to that, the Hunter is part of a long-term strategy. We started that. We were thinking about that product when we started the J1 engine platform. If you were -- in the slides there, you could see there were other platforms with other models coming. We were very careful not to show you exactly what, but there was images there to give hints that there are other models coming in. And we've got a model mix, a balanced model mix. So that Hunter doesn't show a trend towards a lower-priced vehicle. That was always part of the strategy, and we have strategies, we have plans for models that balance that model mix above and below where the Hunter sits at the moment. So it's -- that's not an indication that we're now reacting to a market condition that's been in the plan for a much longer time period that we wanted products to come in below the bottom of the J platform or the entry level of our J platform. And again, also with the Twins platform, there are more things planned there as well.

And the Twin started our next journey into upgrading our own customers or giving an opportunity or option, which is very different from what we currently have. And there's a lot more product which is going to come out in the near future, which is again for further upgrading, right? So there's this was -- the last couple of years was more about upgrading our core UCE platform, which was an enormous, let's say, organizational change management job. I mean it's 90% of our motorcycles were on that platform. So to try and to change that over COVID times, lockdown, with supplier issues, with all sorts of issues. So the focus over the last 2 years was to get the J-series in. And now that that's done, the -- all the other exciting stuff is going to come in the near future.

So I had a sort of a similar question, but before that, thanks for the Investor Day and the detailed presentations. I mean, it's great every time you sort of try and tell us how you think differently about the business. And so that's always very insightful, I think, for all of us. So just on that, right, a bit of a counterfactual sort of a question in the sense like when we've upgraded the [ Royal ] Classic to the new Classic and there was a lot of feeling that there could be a lot of replacement demand and people potentially upgrading and in terms of the data also like you're showing that, I mean your new Classic is probably 5x better in terms of quality than the pre old Classic. But still -- and at the same time, I mean, like from Mohit's presentation, like your interaction levels, the customer search, share, et cetera, is all very high. So trying to understand like where is the disconnect, right? Like why is the -- I mean, like -- on a longer-term basis, I understand your market share as a percentage of the overall motorcycle market has not gone down. But -- so -- but still the absolute volumes we have come down. So just trying to understand, is this -- I mean, where is the disconnect other than, say, socioeconomic factors?

Is there a disconnect at this stage? Let me try, maybe Kalees can add. Let's look at the market at this particular point of time. More than 125 cc, our market share as of now is almost about 36%. That's has been an all-time high. Even in the motorcycle, if you have to [ take a boat ] in the overall, we are almost about 5.7, 5.8 percentages. Let's look at the market itself. That's what I was just talking about the overall market -- let's talk about first the domestic. Our international is a growth story. So that's not anything which is getting disturbed. That's going on. In the domestic market, the overall market hasn't come into the 2018 level. For all of us, when we talk about the domestic number, we always get the reference of '18, '19. And we said that's the reference and whether that numbers had come back. That's where we also had per month basis higher number. What's more important, which we have to look at is how is the interest level for the brand? How is the interest level for the sub-brands, which are there in Royal Enfield? Actually look at all our products, which has been launched. It's not that during launch, the interest level is very high and subsequently it is fading off. That's not the case. Every sub-brand level, the interest level, the search of that particular product has been always high, inquiries are very high. Our inquiries are increasing month-on-month. We know in the current scenario when the market is picking up, slowly the numbers will come up. In between what has happened in 2 years, we lost, all of us. We lost because of the COVID situation. What's lost is lost. I think slightly the market is also opening up now with all of our activities which are done. Now we know what are the products, how is it doing? What sort of a bit more work, which we have to do it in all those products? I think we are ready when the market opens up, obviously, the numbers are going to come. What we have to worry as a company is if the interest level is coming down, then something which we had to think of. That's not the situation. In fact, we are in a better situation to say that our interest levels are going up. That's why you are seeing in social media, the inquiries are more and more.

Sorry, just to add on to that, right? So international growth story and the [indiscernible]. So how are you [indiscernible] differently in terms of [indiscernible]?

The India market? Hunter? That's one example, right? I mean this is -- it's made for full new category of -- I mean, or totally different customers. The way we are judging the success of Hunter is not how many units we will sell, not at all. It's how many new customers we bring in to the fold. So that's how we are increasing. And it's -- if you ride the bike, you understand it's a totally different animal altogether. It's not like a Classic. It's not like a Meteor. It appeals to a different audience. And in fact, the other test -- the reverse test we do is that with Classic guy when he looks at that, what will he think? He think no, I don't want the Hunter. So that's how we are progressing. And this is just one more step, right? One more step towards getting newer customers in our fold. As Govind said, our -- ensure the market is down, ensure our domestic numbers per month are not as high as they used to be. But our addressable market, which is above 125cc, we don't think we are yet in -- we can't address 100cc total basic motorcycle. Addressable market where we are just going right up. I mean, we become #1, I believe, I think that in above 125cc, we were #3 or 4, not very long ago. So 1 in 3 motorcycles above 125cc, and we're not playing in 125cc to 250cc, but we're just giving you that number just to see what's happening. So there is interest, there is market growth. And when the market comes back, hopefully, we will continue to maintain and grow this market share.

And just let me quickly add to that. There's some -- some of the stuff that I talked about, the customer experience sort of jacking all that up and making sure we get to a higher level. What we're doing is we -- and this whole thing that you've heard from the others about 121-year-old start-up mentality. I think a lot of it is we are sitting and looking at stuff, we do and stuff we do well. And we're saying, well, it's -- even though it's perfectly good, we're saying, who's the best in the world at it? How can we be better than them? At dinner, again, with my dinner companions, we were talking about the excellence from Amazon, customer experience, other people, like best players in practice. So we're overhauling all that, investing time, managing money in that. So we're not standing still. Even things that are working perfectly okay, we're raising them. So hopefully, that should help as well.

This is Hitesh Goel from CLSA. Thanks for the presentation that were quite insightful. My question is, again, just harping on this point on Hunter, right? So say, for example, for 2 years, Classic volumes don't decrease before the customer can observe that kind of price increase which has happened in the last 3 years, right? And Hunter starts to deliver on volume. So the company will -- is the company looking at more aggressive price points to get the more customers into the brand because if I look at 150,000-plus segment, except for [ RE ], there is no other brands who has volume in that segment. So it's a price point issue in the Indian market. We have no doubt that brand is very solid and [ RE ] is a good product, but it's a price point issue. And we are seeing that. I'm a little worried that is management thinking on Plan B.

We held this conference so that you could see the Hunter and [indiscernible] and what we're doing with the Hunter, we...

More aggressive launches will be there if you're going for volumes again now.

I mean, obviously, hold your horses since Hunter is just out of the market. It's got -- I mean -- I believe it's at a really good value proposition. In Indian customer, you're right, there's a rupee value also, but it's much more value-driven customer, right? What am I getting for that amount? And with Hunter, they're getting a hell a lot. So just really, that's one -- I wouldn't say experiment. It's a proper product from us. But it's also -- we've lost price points because we had a price point of 1.5 lakhs a while ago. And with BS-VI, with ABS, with chip price, that price this cost, that cost all going up, you sort of kept going up. So this is our answer to that. And we will see the results, whether they're positive or not in the next few months and see how that evolves. And then we'll also learn from that, right, and see whether that was a good move, what it does to our other products. So I mean we are a learning company, right? And we can -- but this is a -- I think it's a big bold step from Royal Enfield towards making motorcycles more accessible, not just from price point but from other factors as well from maneuverability all of that.

This is [ Sidharth ] from Nomura. I have a question on the export opportunities. So like you highlighted the global addressable market of 1 million units. How do you categorize that in terms of CCR price point-wise? Following that, how will be the growth there in the last 4, 5 years? And lastly, you showed that you already have reached by about 7%, 8% market share in some of the key regions. So there, how do you think about growth from here in terms of market share in aspiration or you are largely there. So some thoughts there?

Okay, I'll come from there again. Do we have an aspiration of market share? That is not the way we actually look at it. What we normally look at is how do we create the community in that place where we are. Our international market, the story has just begun. Why are we saying that? You would have seen the number of retail points, which are there as of now, it's about 840 in all the countries where we are present together. The addressable market is huge. So we have to reach to the consumer. We have to build the community. That's why we have put our team in that places. And that's what we are looking at. We are not a company we will actually be looking at go fast, get that market. That's not the way we do that. So we are a long-term aggressive company. That's what Siddhartha was also clarifying that. So we'll go steady in those markets. All our new products which are coming in, as I was just explaining, it's all now global standards. It's Euro V compliant, and it actually opens up a new set of consumers for us. Earlier it wasn't the case. So the first product, which we launched is only the Interceptor and Continental GT 650 because that's what is the only product, which is complying to all the national standards. Now all our products are global standards. It's just entering into the market. And we are going step-by-step in all these markets. We are reaching to the consumers. We are building the community. So this is a huge headway for us in the international market.

Satyam here from Credit Suisse. So I have a question on -- as we look ahead from here, within the confines of the brand, Royal Enfield that we have, right, we have pushed the boundaries of that confines quite well and develop multiple form factors, multiple models, nameplates now. But still, there's some limitation to how much you can extend that, and which is why we can't get into certain segments and not we want to also probably rightly. But given that our operating cash flow generation has been [indiscernible] only improve from here. CapEx has been very steady. So FCF has been quite good. So how do you see yourself using that? Do you, for instance, maybe go and acquire a new brand and incomplete -- and help -- use that to kind of get into completely new segments or form factors? Or do you see just dividend payout, shareholder payout is starting to increase from here? How do you use the improving FCF from here?