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COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
TABLE OF CONTENTS
COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
TABLE OF CONTENTS
COMPANY OVERVIEWForce Motors is a fully, vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles.
Its range includes Small Commercial Vehicles, Multi-Utility Vehicles (MUV), Light Commercial Vehicles (LCV), Sports Utility Vehicles (SUV) and Agricultural Tractors. So no matter what the need be, Force has a solution to offer.
Force provides appropriate solutions for transport – both goods as well as passenger – rugged, reliable and efficient transport solutions for every need- Rural or urban, long distance or local, over good roads or bad tracks.
Force Motors, formerly Bajaj Tempo, is an Indian manufacturer of three-wheelers, multi-utility and cross country vehicles, light commercial vehicles, tractors, buses and heavy commercial vehicles. It was originally named Firodia Tempo Ltd. and later after partial acquisition by Bajaj Auto as Bajaj Tempo Ltd.
COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
TABLE OF CONTENTS
Force Motors Ltd is an integrated automobile company, which focuses on design, development and manufacture of automotive components, aggregates and vehicles in India.
The company offers tractors, three wheelers, light commercial vehicles, multi utility and cross country vehicles, and heavy commercial vehicles.
Their subsidiaries include Man Force Trucks Pvt Ltd and Tempo Finance (West) Ltd. Force Motors Ltd was incorporated in the year 1958 with the name Baja Tempo Ltd.
The company was promoted by N K Firodia. Initially, the company started production of the HANSEAT 3-Wheelers in collaboration with Vidal & Sohn Tempo Werke Germany. Now, they manufacture Tractors, 3 Wheelers, Light Commercial Vehicles, Multi Utility Vehicles and Heavy Commercial Vehicles.
In the year 1959, the company started their manufacturing operation in a small plant at Goregaon, a suburb of Mumbai.
The company changed their name form Bajaj Tempo Ltd to Force Motors Ltd with effect from May 12, 2005. In May 2005, the company entered into an agreement with DaimlerChrysler AG for sourcing the technology for G32 Gear box.
INTRODUCTION
MILESTONES
Production of Tempo 3-wheeler; ‘Hanseat’ started at Goregaon, Mumbai.195
8The manufacture of TEMPO VIKING 4-wheeler commercial vehicle commences
19641969
The production of MATADOR diesel light commercial vehicle begins.
1982
The company, in collaboration with the then Daimler Benz, produces the Mercedes Benz OM 616 engine under license.
19871988
The Tempo Traveller - production begins at Pithampur.
The Tempo Trax, rough road vehicle is introduced.
MILESTONES……contd.
1996
Force Motors introduced a new range of 3-wheelers called MINIDOR in pick-up and auto rickshaw models.
1997
The company enters the field of agricultural tractors with Balwan.
1999
The EXCEL range of state-of-the-art Light Commercial Vehicles was introduced. These vehicles with their superb ergonomics and superior aggregates represented the latest generation of LCVs in India.
2000
Full range of production of Trax range of vehicles achieved.
2003
The company enters into an alliance with MAN Nutzfahrzeuge AG.
2005
Tempo was rechristened as FORCE MOTORS LTD.
New state-of-the-art HCV manufacturing facility was inaugurated at Pithampur.
2006
MILESTONES……contd.
2008
Force Motors launched Traveller Shaktiman, Traveller Luxury and Traveller Smooth.
2010
New Cathodic Electro-deposition paint shop inaugurated at Pithampur, Indore.
2011
Force Motors launched its first offering in the Personal Vehicles segment, the FORCE ONE.
2012
Force Motors introduces a revolutionary passenger vehicle, Traveller 26.
2013
Force Motors introduces Gurkha, the Extreme Off-Roader Vehicle.
TABLE OF CONTENTS
COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
BOARD OF DIRECTORS
MANAGEMENT TEAM
Shareholder’s Name
National Westminster Bank PLC as Trustee of the Jupiter India Fund
Total Shares Held
Jupiter South Asia Invst. Co. Ltd.- A/c Jupiter South Asia Invst. Co. Ltd - South Asia Access Fund
172,477
Vanaja Sundar Iyer 163,545
2.78
1.31
1.24
Total Share Held (in %age)
366,022
Forc
e M
otor
s P
rom
oter
and
Pro
mot
er
Gro
up
52%
25%
23%
National Westminster Bank PLC as Trustee of the Jupiter India FundJupiter South Asia Invst. Co. Ltd.- A/c Jupiter South Asia Invst. Co. Ltd - South Asia Ac-cess FundVanaja Sundar Iyer
TABLE OF CONTENTS
COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
PRODUCTSPersonal Vehicles
Agricultural Vehicles
Commercial Vehicles
COMPANY LOCATION
The company has two plants:-
The company has established several sales departments for distribution and sale of the Company's products
Akurdi, Pune, Maharashtra
Pithampur, District Dhar, Madhya Pradesh
STRENGTHS
OPPORTUNITIESWAEKNESSES
WEAKNESSES•Force Motors wants to set up more units to expand LCV range •They had a target of selling 4,000 units but they have reached only 50 per cent of that due to more competitors.•Low market share.
•Well known brand with good reputation•Strong engineering capability •Global presence•Safest Drive in class
•Opportunities in India and China•Launch of new models Hybrid vehicles •Increasing demand for dual fuel vehicles
•Sluggish light vehicle production in developed markets•Economic slowdown in the US and Eurozone
SWOT ANALYSIS
SWOT ANALYSIS
Global Footprints
Force Motors is a highly flexible, vertically integrated automotive company that can cater to all types of markets, including niche markets, by providing customized 'country specific' modifications.Force Motors has a formidable product range in all segments, be it small commercial vehicles, light commercial vehicles, multi utility vehicles and agricultural vehicles.Over the last five decades it has partnered with leading global automotive names like Daimler, ZF, Ricardo, Bosch and MAN. Through these associations it has developed necessary expertise in-house for design, development and manufacture of automobiles, sub-systems, components and aggregates.The company exports its complete range of world class products to various countries in Middle East, Asia, Latin America and Africa.
Company Core Values
•We, at Force Motors, endeavour to focus on each of our customer’s requirements and deliver accordingly. Our customers are at the core of each of our ideal and they inspire us to experiment and innovate at every step.
•Our R&D Center is equipped with most advanced CAD center and computer engineering environment. The centre, with its well equipped computer engineering environment, gives us ample opportunities to develop novel product designs for our most modern vehicles. Thanks to our customers due to whom Force Motors has reached this stage of success.
Design Inspirations
•The new range of our products has been fully engineered and developed in-house by our experts at the Force Motors’ R & D centre which is considered to be among the most advanced in the country.
•The engines designed by Force Motors are fully checked for emission and fuel efficiency. An elaborate and state of art tool room with the latest high-precision and versatile machines for manufacturing is created solely for proficient engineering
Engineering Expertise
Contd….
•Force Motors has always been a highly flexible, vertically integrated automotive company that extended its range beyond the boundaries through country specific models.
•Over the last five decades we have partnered with leading global automotive companies to develop necessary expertise in-house for design, development and manufacture of automobiles, sub-systems, components and aggregates. Due to this, our vehicles have reached the niche markets of Middle East, Asia, Latin America and Africa.
Diversified Presence
•We focus on the utility of our products and evolve with the times to deliver the unsurpassed.
•We have a formidable product range in all segments - from small commercial vehicles, multi utility vehicles and light commercial vehicles to agricultural tractors.
•We showcase some innovative and exclusive products appropriately custom designed for the discerning Indian as well as the international market.
Evolving Utility
Contd….
•We are committed to cultivating a performance-driven culture that rewards results. Our core team has developed great expertise in design, development and manufacturing of automobiles with the help of our global partners.
•As a fully vertically integrated and complete automobile company, we focus on high quality, utility and technology through superior product design, production engineering, hi-tech manufacturing and innovative marketing.
Performance Driven
•We believe that delivering value through all channels drives growth. Force Motors encourages innovation and motivates the 500 odd expert design engineers to create path-breaking automotive designs.
•At Force Motors, every vehicle is run though durability test lab, engine test lab and driveline test setups before it hits the road. Apart from test labs Force Motor’s has in house torture track (Pave Track) for complete vehicle durability testing.
COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
TABLE OF CONTENTS
Automobiles Industries in INDIA
•15 manufacturers of passenger cars and multi-utility vehicles, • 9 manufacturers of commercial vehicles, • 16 manufacturers two/ three wheelers, • 14 manufacturers tractors, • 5 manufacturers of engines.
Key drivers for the growth of Indian Auto industry
Finance Availability
Improved Infrastructure
Rising Family Income
Favorable duty structure
Poor public transport system
Low car penetration
Exchange of Cars
Changing lifestyle
Key Growth Drivers
• 3rd
• India’s share in global auto exports may also triple by 2016
1st
• The Passenger Vehicle market of India will even cross Japan by selling about 5 million Vehicles by 2017-18.
2nd
•The Indian auto exports will be upto $5.62 billion in the year ending March 2011 and the same will grow to $17.64 billion in 2015-16.
Future technological demands
PEER COMPARISONName Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
Tata Motors 401.25 1,36,251.67 36,294.74 -4,738.95 34,943.56
Eicher Motors 16,771.15 45,520.90 3,031.22 558.92 1,233.66
Ashok Leyland 96.05 27,334.65 13,562.18 334.81 7,710.02
Tata Motors (D) 296 9,498.00 -- -- -
SML Isuzu 1,293.00 1,871.18 1,105.55 36.94 325.19
Force Motors 3,289.00 4,333.67 2,363.72 101.36 1,327.61
Tata Motors
Eicher Motors
Ashok Leyland
Tata Motors
(D)
SML Isuzu
Force Motors
-20000
0
20000
40000
60000
80000
100000
120000
140000
Last PriceMarket Cap.Sales TurnoverNet ProfitTotal Assets
PEER COMPARISON
COMPANY OVERVIEW
INTRODUCTION
MANAGEMENT PERSONNEL
COMPANY ANALYSIS
INDUSTRY ANALYSIS
FUTURE PROSPECTS
TABLE OF CONTENTS
ParticularsMar '15 Mar '14 Mar '13 Mar '12 Mar '11
Net Sales/Income from operations 2,337.27 1,997.89 1,922.20 2,003.35 1,480.45
Other Operating Income 26.45 23.74 50.52 81.65 92.91
Total Income From Operations 2,363.72 2,021.63 1,972.72 2,085.01 1,573.36
EPS 76.93 58.97 10.84 625.62 44.49
P/L Before Exceptional Items & Tax 124.94 62.63 19.13 50.59 82.13
P/L After Tax from Ordinary Activities 103.62 77.94 14.7 824.33 58.62
Financial Highlights
Mar '15
Mar '14
Mar '13
Mar '12
Mar '11
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
Net Sales/Income from operations
Other Operating Income
Total Income From Operations
EPS
P/L Before Exceptional Items & Tax
P/L After Tax from Ordinary Activities
Particulars Mar '15 Mar '14
Share Capital 13.18 13.18
Networth 1,316.88 1,226.02
Debt 10.73 20.38
Liabilities 1,327.61 1,246.40
Assets 1,327.61 1,246.39
Share Capital Networth Debt Liabilities Assets0
200
400
600
800
1000
1200
1400
Mar '15Mar '14
Balance Sheet
5 Year Profit & Loss - Consolidated
Particulars Mar '15 Mar '14 Mar '13 Mar '12 Mar '11Net Sales
2,363.72 2,021.63 1,972.72 2,085.00 1,564.79
Earning Per Share 76.93 58.97 10.84 625.62 44.49
Depreciation81.28 84.84 70.16 60.36 44.82
Profit before tax124.95 62.64 19.13 1,011.29 81.96
Tax expenses23.58 -15.07 4.85 186.97 23.35
Profit after tax101.36 77.69 14.28 824.33 58.62
Net Sales Earning Per Share Depreciation Profit before tax Tax expenses Profit after tax
-500.00
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
Mar '15Mar '14Mar '13Mar '12Mar '11
QUARTERLY PERFORMANCE
Particulars Sep '15 Jun '15 Mar '15 Dec '14 Sep '14
Net Sales/Income from operations 755.98 634.09 694.55 511.92 592.37
EPS 32.24 27.14 35.13 7.58 19.50
EBITA 80.84 69.13 77.41 26.82 53.11
Net Profit/(Loss 42.48 35.76 46.28 9.99 25.69
Sep '15 Jun '15 Mar '15 Dec '14 Sep '14 0
100
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Net Sales/Income from operations EPS EBITA Net Profit/(Loss