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TOPIC: TVS MOTOR

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Rajan chaurasia
BBA(HONS) MBA
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SUMMARY OF THE TVS MOTOR
TV Sundaram Iyengar and Sons Limited (TVSs)
is the holding company for the TVS Group of
companies engaged in the manufacturing of almost
all kinds of automotive components, two wheelers
and a few other industrial products. They are also
into the financial services sector. The turnover of the
entire group was close to $2 billion in 2003. The TVS
Motor Company was founded by T. V. Sundram Iyengar in
1911.

It is the only automotive manufacturer in India to

get the prestigious Deming Prize. One of its subsidiaries
Sundaram Clayton was the first company in India to
receive the Deming Prize. This was quickly followed
by Sundaram Brake Linings also getting the Deming
Prize. This prize is "given to organizations or
divisions of organizations that have achieved
distinctive performance improvement through the
application of TQM in a designated year."Sundaram
Clayton went on to be awarded the Japan Quality
Medal. The TVS group of companies is mainly
situated in Padi, Tamil Nadu, in the outskirts of
Chennai (formerly Madras). TVS Motors: In 1980
TVS 50, India's first two-seater moped rolled out of
the factory at Hosur in Tamil Nadu, Southern India.
A byword for reliability, the TVS 50 had proved itself
promising and successful in every test and paved a
way for many successes for TVS Suzuki. Likewise the
TVS champ and super Champ gave a reliable and
sturdy two wheeler to public, who wanted looks
fused with economy. These two wheelers together
redefined the category of mopeds in India. TVS later
left its collaboration with Suzuki and started to
manufacture its own vehicles.
TVS Motors Company is currently the third largest
two wheeler company in India with sales of 107,117
units (as of June 2007). The company exported
9,133 units of two wheelers in June 2007. Known
traditionally for their conservative attitude, TVS
made modest but reliable bikes. Hero honda and
Bajaj forayed into the power biking segment with the
CBZ and Pulsar respectively. TVS along with Suzuki,
had earlier been the leading bike maker with the
Shaolins, Shoguns etc. But they were left biting dirt
by Bajaj's Pulsar. Soon TVS launched its fiero series
of bikes. TVS Group Companies: Sundaram Brake
Linings Sundaram Fastners Southern Roadways
Sundaram Finance Sundharams Private Limited
PLANNING OF THE COMPANY

TVS Motors plans Rs 500-crore manufacturing facility in

Mysore.
TVS Motors is planning to set up a new Rs 500-crore
manufacturing facility in Mysore, Karnataka, to manufacture three-
wheelers and quadri-cycles (based on three-wheeler technology).

This plant is expected to roll out new products from January 2005
and will contribute significantly to TVS profitability. Its entry into
the three-wheeler segment will support the volume growth as the
segment offers a Rs 1,700-crore growth opportunity. Besides this,
the company also has plans to tap export markets.

Also, TVS plans to introduce a host of new products in the coming

months in the two-wheeler segment where it is a dominant player.
Its new product is the Centra, a 100cc motorcycle to be launched in
the top-end of the entry-level segment.

TVS Motor has established itself as a strong player in all the three
segments of two wheelers — motorcycles, scooters and mopeds —
where it has an overall market share of 22 per cent.

In the last three years, after the exit of Suzuki, the company has
successfully transformed itself from a two-stroke to a four-stroke
motorcycle manufacturer. The company has spent aggressively on
building a national brand.
TVS has successfully launched a string of successful products
including the Victor, Scooty Pep, and the Fiero F2 in the last two
years since the exit of Suzuki. In fact, the Victor — its motorcycle
offering in the premium segment with many firsts attached to it
like vibration dumper and adjustable shock absorbers — has
become the second-largest selling product in its category within
two years of launch.

It has transformed itself from a two-stroke to a four-stroke

manufacturer over the last three years. The company is planning a
spate of other new product introductions too, wherein lead-time
will be reduced considerably.

Growth in the executive segment has been triggered by the success

of the Victor, which has become the second-largest selling product
at around 48,000 units a month — in the segment since its launch
in August 2001. Currently, 50 per cent of the segment''s monthly
sales are still driven by a single product — Hero Honda''s Splendor
(an eight-year-old model).

"We believe that with the unique features that the Victor offers, the
company can scale up significantly over the next 18 months," say
analysts at Enam Securities.

In the premium segment, TVS has re-launched the Fiero as Fiero

F2 with higher power, enhanced styling and better features. Initial
response has been quite encouraging as the company sold about
7,000 plus units in August 2003, the analysts said.

"We expect TVS to improve its market share in this segment from
10.2 per cent to 11.2 per cent by FY05," an Enam analyst report
said. Exports will be a major thrust area for growth over the next
few years with TVS targeting 15 per cent of its total sales volumes
from exports over the next five years. Neighboring Asian countries
(China and Indonesia), Latin America, European nations and other
developing countries are target export markets.
TVS Motor plans to launch new bike
NEW DELHI, SEPT. 2. TVS Motor Company will
launch a 100cc entry level motorcycle TVS Star by
the end of this month and invest Rs. 200 crores for
product development this fiscal. The company is also
planning to set up a manufacturing subsidiary in one
of the South Asian countries. "TVS Star is ready for
the launch. The motorcycle will hit the roads by
month-end. We are also going to pump in Rs. 200
crores for new products," TVS Motor Chairman, Venu
Srinivasan, said.

The new motorcycle will be manufactured at the

company's Hosur (Tamil Nadu) plant. The company
will also firm up its plan to establish a manufacturing
subsidiary in either Thailand, Indonesia or Vietnam.
"We will take a proposal of setting up the subsidiary
to the board soon," he said.

With the launch of the new motorcycle the company

aims to have 33 per cent market share in the entry
level motorcycle segment. The company is launching
TVS Star after phasing out its two-stroke entry level
Max range of motorcycles.

The company also aims to sell 1.4 million two

wheelers this year. At present, the company has a
production capacity of 110,000-120,000 units and it
targets to sell 80,000 motorcycles by October. The
company had launched TVS Scooty Pep and 125cc
Victor motorcycle recently.

TVS Motor net halves, plans news models for

growth

MUMBAI, Jan 25 (Reuters) - TVS Motor Co Ltd.

(TVSM.BO: Quote, Profile, Research), India's No.3
motorcycle maker, reported its October-December
net profit almost halved, missing analyst forecasts,
hit by lack of cheap loans, bike models and cut
throat competition.
The company said in a statement its higher-margin
motorcycle volumes fell by a fifth to 176,158 units in
the third quarter, dragging down net profit to 58.3
million rupees and sales by 6.5 percent to 8.75
billion rupees.
Analysts polled by Reuters estimated a net profit of
82 million rupees on sales of 8.8 billion rupees.
"The motorcycle sales continue to be affected due to
stringent norms followed by retail financiers,
restricted availability and high rates of interest," the
company said in a statement.
The central bank, in a bid to moderate inflation,
raised interest rate five times between June 2006
and March 2007 to a five-year high of 7.75 percent,
crippling two-wheeler sales in the largest-two-
wheeler market after China.
Almost three fourths of two-wheelers in the country
are bought with loans.
TVS said its vehicles sales fell 6.5 percent, the
steepest compared to larger rivals Hero Honda
Motors (HROH.BO: Quote, Profile, Research) and
Bajaj Auto Ltd (BJAT.BO: Quote, Profile, Research),
to 339,956 units.
TVS was also unable to raise prices despite higher
input cost as competitors offered discounts to lure
customers, analysts said.
The company is looking at overcoming the
slowdownin motorcycle segment through a slew of
launches and tie-ups with finance companies, it
said.

It has launched a 125 cc motorcycle and an entry

level 110 cc bike in the quarter. It plans a three-
wheeler, electric scooters and heavy bikes to return
to growth.
"With new launches in the two and three-wheeler
segments, the company forecasts a positive growth
in the fourth quarter," it said
TVS shares ended 2.4 percent up at 44.65 rupees in
a Mumbai market that closed 6.6 percent up.
(Reporting by Narayanan Somasundaram; Editing by
Prem Udayabhanu)
LEADING OF THE COMPANY

TVS Motor Company Ltd.

TVS Motor Company Ltd. is the flagship company of the

TVS Group established in 1911 by T. V. Sundaram Iyengar.
TVS Motor Company is the third largest two-wheeler
manufacturer in India.

In 1980, TVS produced the TVS 50, India's first two-seater

moped that redefined the realm of personal transportation. In
1982, the company entered into a technical collaboration
with Suzuki Motor Corporation of Japan which helped the
fledgling joint venture gain from the expertise of a global two-
wheeler giant like Suzuki.

In 1997, TVS-Suzuki became the first company to launch a

100-cc motorcycle in the Indian market. In 2000, the TVS
group and Suzuki Motor Corporation parted ways from their
joint venture with the former buying out the 25.97 per cent
stake of the Japanese company for Rs 9 crore.

TVS Motor Company is the first two-wheeler manufacturer in

the world to be honoured The Deming Prize for Total Quality
Management
 CONTROLLING
TVSMotor Company Ltd has informed BSE regarding
a Press Release dated June 04, 2008 titled "TVS
Motor Company Strengthens Presence in the East"
Press Release: "In order to strengthen the presence
of TVS Motor Company (TVSM) in the east, TVSM, the
third largest two wheeler manufacturing Company in
India, today announced that it has entered into a
MOU with Mahabharat Motors Manufacturing
Company Pvt. Ltd, Kolkata Mahabharat Motors will
assemble the agreed products as contract
manufacturer. The products to be manufactured will
be agreed in due course. TVS Motor Company will
introduce their world-class quality control standards
and assembly procedures. TVS Motor Company has
also agreed to provide technical support for the
factory construction including master planning,
factory layout etc. The proposed complex will have
manufacturing and other support facilities and will be
located in Uluberia (50 kms from Kolkata), Howrah
District, West Bengal. TVS Motor Company currently
has three world-class manufacturing facilities in India
viz., Tamilnadu, Karnataka and Himachal Pradesh.
The proposed contract manufacturing arrangement
will lead to vastly improved service levels to the
market besides reduction in logistics cost. This step
reiterates TVSM's belief in the growth potential of the
eastern region of the country
 ORGANING
Leo Burnett Kreasindo, Indonesia, announce the launch of a new
campaign for PT TVS Motor Company Indonesia and their Neo
and Apache brands, featuring a first time endorsement from the
long beloved national rock star and people’s hero, Iwan Fals. To
differentiate the TVS brands from heavy competition from abroad,
Leo Burnett focuses on the analogy that just as Iwan Fals has
always listened to the Indonesian people for inspiration, so does
PT TVS Motor Company Indonesia; creating motorbikes
especially designed to fulfill their aspirations and needs.

Said Iwan Fals: “I said ‘yes’ to PT TVS Motor Company Indonesia

because TVS and I share common values of honesty and
integrity. I am impressed with TVS’s long-term commitment to
Indonesia, which is demonstrated through their manufacturing
plant in Karawang & developing Indonesia as a hub for Asean.
This is what made me ‘fall in love’ with them; it is also
harmonious with my beliefs which I have been presenting for the
past 30 years.”

In a market largely dominated by Japanese for the past 30 years,

TVS’s challenge is to establish PT TVS Motor Company Indonesia
as high quality two wheelers manufacturer in Indonesia. In 2000
the market was flooded with local brands, but poor post-sales
service and availability of spare parts, created distrust for local
bikes. Since then, other local brands have been offering better
servicing, but a shadow of skepticism remains.

PT TVS Motor Company Indonesia want to reach a predominantly

male group of working class motorcycle riders. For this group of
people, purchasing a bike is an important decision. They want to
optimize value for money, and get the acknowledgement from their
family or friends that they are making a smart decision. Trust in
the brand, and high quality, are crucial concerns, as are the
availability of spare parts and reliable post-purchase service. Since
they started their operations in Indonesia in 2007, PT TVS Motor
Company Indonesia has focused their attention on understanding
the people’s needs and wants, and taking them into account during
product creation and network development and communication
development.

Said K.Vijayakumar, Sales and Marketing Director, PT TVS

Motor Company Indonesia: “TVS motor, with its obsession for
understanding consumer needs and a philosophy of Trust, Value
and Service, would like to become a trusted brand in Indonesia.”

“The whole essence of TVS is that the bikes are inspired by their
riders. Iwan Fals is the perfect icon to express this message. He is
renowned for his sense of integrity and uncompromising
dedication to the Indonesian people” added Monika Rudijono,
Client Services Director, Leo Burnett Kreasindo, Indonesia.

CONTROLLING

DaviD Bull rrp: 19.99 Mercedes in Motorsport Pioneers to

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known British magazines such as Motor, Motor Sport and
The Autocar vividly ... Stirling Moss became Great Britains
Mr Motor Racing in the 1950s and his name has ... , Sir
Stirling Moss is today one of motorsports best-loved elder
statesmen. This ... . The author, a world authority on
motorsport and the motor industry, has known Moss ...
Behind the wheel with the worlds top motoring journalist by
Paul Fr re Paul Fr re is ... most highly respected and widely
known motoring journalist in the world today.

DaviD Bull rrp: 19.99 Mercedes in Motorsport Pioneers to

perfection by Alan Henry ... story of Mercedes-Benzs
involvement in motorsport, from 1894 when the Daimler V2
engine ... won the worlds first motor race, through the early
years of last ... and 1950s. leaves no stone unturned
Motorsport News one of the better constructor ... well-
known British magazines such as Motor, Motor Sport and
The Autocar vividly ... Stirling Moss became Great Britains
Mr Motor Racing in the 1950s and his name has ... , Sir
Stirling Moss is today one of motorsports best-loved elder
statesmen. This ... . The author, a world authority on
motorsport and the motor industry, has known Moss ...
Behind the wheel with the worlds top motoring journalist by
Paul Fr re Paul Fr re is ... most highly respected and widely
known motoring journalist in the world today. He is ...

DaviD Bull rrp: 19.99 Mercedes in Motorsport Pioneers to

perfection by Alan Henry ... story of Mercedes-Benzs
involvement in motorsport, from 1894 when the Daimler V2
engine ... won the worlds first motor race, through the early
years of last ... and 1950s. leaves no stone unturned
Motorsport News one of the better constructor ... well-
known British magazines such as Motor, Motor Sport and
The Autocar vividly ... Stirling Moss became Great Britains
Mr Motor Racing in the 1950s and his name has ... , Sir
Stirling Moss is today one of motorsports best-loved elder
statesmen. This ... . The author, a world authority on
motorsport and the motor industry, has known Moss ...
Behind the wheel with the worlds top motoring journalist by
Paul Fr re Paul Fr re is ... most highly respected and widely
known motoring journalist in the world today. .
 BIGLIOGHAPHY

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