Escorts Limited

General Overview-
From the early 1960s to 2005, Escorts were one of the leading motorcycle producers. Escorts motorcycle
division used to produce motorcycles under the brand name Rajdoot. They started making Yamaha
motorcycles in India. 
Escorts used to produce many trendy motorcycles in the early 19’s. Rajdoot 350 and Yamaha RX 100
were the two of them. 
In the late 1990s, Escorts decided to quit their motorcycle business because they wanted to concentrate
more on tractors and other machinery, so they sold their motorcycle manufacturing unit of Faridabad to
Yamaha.

Shareholding Pattern-

Management Information-

SWOT ANALYSIS

Strength
A Strong Brand: Escorts Ltd. has had its presence for more than 70+ years in the field of mass
manufacturing machinery and the production of Motorbikes and Tractors.
Cost Structure: Being a brand that produces every sort of big machinery, Escorts maintained their price
customer friendly which many times made people choose this brand.
Financial Position: Escorts has a strong financial position and being a public company, it helps them to
raise funds that support them to diversify their business in more sectors.
Skilled Labor Force: Throughout years passing by, Escorts heavily invested in training their employees,
which resulted in several talented employees

Weakness
Market Research: Escorts still rely on the data which are years old. Through the going time, customers
have evolved and they are shifting to new designs and advanced motors. This was the reason why their
Yamaha lineup of motorbikes didn’t make a long run in customers’ minds.
Less Creative in Advertising: Escorts haven’t yet put that tremendous amount of effort into advertising
its products as done by its competitor Eicher in the field of tractors. Because of this lack of digital
presence, they may lose many opportunities to attract customers. 

Opportunities
Market Capacity: India is an under-developed country, through time the construction and
transportation will be at a peak in India and this is a great opportunity for Escorts to come forward and
introduce advanced machinery and tractors.
Internet: The number of people who use the Internet is growing rapidly all over the world. Escorts has a
great opportunity to expand its business by making an e-commerce presence and to make customers
familiar with their products.
Introducing New Units: Electric vehicles are in the trend nowadays for the manufacturers. Escorts has
the opportunity to introduce its new unit in the field of EV’s and to give tough competition to its
rivalries.

Threat
Highly Competitive Market: The competition in the industry is increasing by the passing days which is
forcing industries to drop their prices. If they don’t adjust to the price changes then they may lose some
of their market shares.
New Entrants: A bunch of new players have introduced themselves in the market and are gaining
market share of existing companies and are stealing their customers.
Political Uncertainty: Political instability in the country is a hindrance to business. It can cause an
organization with more extra costs and their performance in the market will suffer.

Competitors:
JBM Groups, L.G. Balakrishnan & bros Ltd., Eicher, Mahindra, Ashok Leyland