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CONTENTS

SCENARIO OF INDIAN AUTOMOBILE

CHAPTER NO. TITLE

1. TVS MOTORS2. SHANTHI MOTORS3. OBJECTIVES4. METHODOLOGY5. ANALYSIS AND INTERPRETATION6. LIMITATIONS7. FINDINGS & CONCLUSIONS8. SUGGESTIONS & RECOMMENDATION9. APPENDICES10. BIBLIOGRAPHY


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SCENARIO OF INDIAN AUTOMOBILE

During early 60s & 70s, automobiles came largely in twos. In

scooters, you had a Lambretta or a Vespa. In motorcycles, you had a

Bullet or a Java. In cars, you had to choose between an Ambassador and

a Fiat. In trucks, it was either an Ashok Leyland or a Tata. In tractors, it

was between a Swaraj and a Mahindra.

This situation reflected the India of yester years. Economicreforms and deregulation have transformed that scene. Automobile

industry has written a new inspirational tale. It is a tale of exciting

multiplicity, unparalleled growth and amusing consumer experience

all within a few years. India has already become one of the fastest

growing automobile markets in the world. This is a tribute to leaders

and managers in the industry and, equally to policy planners. Theautomobile industry has the opportunity to go beyond this remarkable

achievement. It is standing on the doorsteps of a quantum leap.

The Indian automobile industry is going through a technological

change where each firm is engaged in changing its processes and

technologies to maintain the competitive advantage and provide

customers with the optimized products and services. Starting from the

two wheelers, trucks, and tractors to the multi utility vehicles,

commercial vehicles and the luxury vehicles, the Indian automobile

industry has achieved splendid achievement in the recent years.

The opportunity is staring in your face. It comes only once. If you

miss it, you will not get it again


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On the canvas of the Indian economy, auto industry maintains a

high-flying place. Due to its deep frontward and rearward linkages with

several key segments of the economy, automobile industry has a strongmultiplier effect and is capable of being the driver of economic growth.

A sound transportation system plays an essential role in the countrys

rapid economic and industrial development. The well-developed Indian

automotive industry skillfully fulfils this catalytic role by producing a

wide variety of vehicles: passenger cars, light, medium and heavy

commercial vehicles, multi-utility vehicles such as jeeps, scooters,motorcycles, mopeds, three wheelers, tractors etc.

The automotive sector is one of the core industries of the Indian

economy, whose prospect is reflective of the economic resilience of the

country. Continuous economic liberalization over the years by the

government of India has resulted in making India as one of the primebusiness destination for many global automotive players. The

automotive sector in India is growing at around 18 per cent per annum.

The auto industry is just a multiplier, a driver for employment, for

investment, for technology The Indian automotive industry started its

new journey from 1991 with delicensing of the sector and subsequent

opening up for 100 per cent FDI through automatic route. Since then

almost all the global majors have set up their facilities in India taking the

production of vehicle from 2 million in 1991 to 9.7 million in 2006

(nearly 7 per cent of global automobiles production and 2.4 per cent of

four wheeler production).

The cumulative annual growth rate of production of the

automotive industry from the year 2000-2001 to 2005-2006 was 17 per


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cent. The cumulative annual growth rate of exports during the period

2000-01 to 2005-06 was 32.92 per cent. The production of the

automotive industry is expected to achieve a growth rate of over 20 percent in 2006-07 and about 15 per cent in 2007-08. The export during

the same period is expected to grow over 20 per cent.

The automobile sector has been contributing its share to the

shining economic performance of India in the recent years. With the

Indian middle class earning higher per capita income, more people areready to own private vehicles including cars and two-wheelers. Product

movements and manned services have boosted in the sales of medium

and sized commercial vehicles for passenger and goods transport.

Side by side with fresh vehicle sales growth, the automotive

components sector has witnessed big growth. The domestic autocomponents consumption has crossed rupees 9000 crore and an export

of one half size of this figure.

Eye-Catching FDI Destination INDIA!

India is on the peak of the Foreign Direct Investment wave. FDI

flows into India trebled from $6 billion in 2004-05 to $19 billion in

2006-07 and are expected to quadruple to $25 billion in 2007-08. By AT

Kearney's FDI Confidence Index 2006, India is the second most

attractive FDI destination after China, pushing the US to the third

position. It is commonly believed that soon India will catch up with

China. This may also happen as China attempts to cool the economy and

its protectionism measures that are eclipsing the Middle Kingdom's

attractiveness. With rising wages and high land prices in the eastern


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regions, China may be losing its edge as a low-cost manufacturing hub.

India seems to be the natural choice.

India is up-and-coming a significant manufacturer, especially of

electrical and electronic equipment, automobiles and auto-parts. During

2000-2005 of the total FDI inflow, electrical and electronic (including

computer software) and automobile accounted for 13.7 per cent and 8.4

per cent respectively.

In services sectors, the lead players are the US, Singapore and theUK. During 2000-2005, the total investment from these three countries

accounted for about 40 per cent of the FDI in the services sector. In

automobiles, the key player is Japan. During 2000-2005, Japan

accounted for about 41 per cent of the total FDI in automobile,

surpassing all its competitors by a big margin. India's vast domestic

market and the large pool of technically skilled manpower were themagnetism for the foreign investors. Hitherto, known for knowledge-

based industries, India is emerging a powerhouse of conventional

manufacturing too. The manufacturing sector in the Index for Industrial

Production has grown at an annual rate of over 9 per cent over the last

three years. Korean auto-makers think India is a better destination than

China. Though China provides a bigger market for automobiles, Indiaoffers a potential for higher growth. Clearly, manufacturing and service-

led growth and the increasing consumerisation makes India one of the

most important destinations for FDI.

Automotive Mission Plan 2016

The bumper-to-bumper traffic of global automobile biggies on the

passage to India has finally made government sit up and take notice. In a


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bid to drive greater investments into the sector, ministry of heavy

industries has decided to put together a 10-year mission plan to make

India a global hub for automotive industry.

The ten year mission plan will also set the roadmap for budgetary

fiscal incentives The Government of India is drawing up an Automotive

Mission Plan 2016 that aims to make India a global automotive hub. The

idea is to draw an innovative plan of action with full participation of the

stakeholders and to implement it in mission mode to meet the

challenges coming in the way of growth of industry. Through this

Automotive Mission Plan, Government also wants to provide a level

playing field to the players in the sector and to lay a predictable future

direction of growth to enable the manufacturers in making a more

informed investment decision.

Major players in the automobile sector are: Tata Mahindra Ashok Leyland Bajaj Hero Honda

Daimler Chrysler Suzuki Ford Fiat Hyundai General Motors

Volvo Yamaha


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Foreign Companies in the Indian auto-sector

Until the mid-1990s, automobile industry in India consisted of just

a handful of local companies with small capacities and obsoletetechnologies. Nevertheless, after the sector was thrown open to foreign

direct investment in 1996, some of the global majors moved in and, by

2002, Hyundai, Honda, Toyota, General Motors, Ford and Mitsubishi set

up their manufacturing bases.

Over the past four to five years, the country has seen the launch of

several domestic and foreign models of passenger cars, multi-utility

vehicles (MUVs), commercial vehicles and two-wheelers and a robust

growth in the production of all kinds of vehicles. Moreover, owing to its

low-cost, high-quality manufacturing, India has also emerged as a

significant outsourcing hub for auto components and auto engineering

design, rivaling Thailand. German auto-maker Volkswagen AG, too, is

looking to enter India.

India is expected to be the small car hub for Japanese major

Toyota. The car, a hot hatch like the Swift or Getz is likely to be exported

to markets like Brazil and other Asian countries. This global car is

crucial for Toyota, which is looking to improve its sales in the BRIC

(Brazil, Russia, India, China) markets.

Two multi-national car majors Suzuki Motor Corporation of

Japan and Hyundai Motor Company of Korea have indicated that their

manufacturing facilities will be used as a global source for small cars.

The spurt in in-house product development skills and the uniquely high

concentration of small cars will influence the country's ability to becomea sourcing hub for sub-compact cars.


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A heartening feature of the changing automobile scene in India

over the past five years is the newfound success and confidence of

domestic manufacturers. They are no longer afraid of competition fromthe international auto majors.

For instance, today, Tata Motor's Indigo leads the popular

customer category, while its Indica is neck-to-neck with Hyundai's

Santro in the race for the top-slot in the B category. Meanwhile M&M's

Scorpio has beaten back the challenge from Toyota's Qualis to lead the

SUV segment. Similarly, a few Indian winners have emerged in the

motorbike market the 150 and 180 cc Pulsar from Bajaj and 110 cc

Victor from the TVS stable. The 93 cc Bike from Bajaj and 110 cc

Freedom bike from LML have also emerged as winners.

Evidently, Indian players have learnt from past mistakes and

developed the skills to build cheaper automobiles using `appropriate'technologies. TVS, for instance, paid an overseas source $100,000 to

fine-tune home-grown engines rather than $1.5 million to import the

entire engine. Similarly, M&M adapted available systems and off-the-

shelf components from global suppliers to keep costs down and go for

aggressive pricing. True, Indian players are still lacking in scale of

operation. While economies of scale no doubt play an important role inthe auto sector, a few Indian manufacturers relied on innovation rather

than scale of operation for competitive advantage. For instance,

Sundram Fasteners was able to achieve the feat of directly supplying

radiator caps to General Motors purely on the strength of innovation in

product quality. The domestic tooling industry bagged the order for the

Toyota Kirloskar transmission plant in the face of stiff competition from


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multinational corporations. The cost of the entire job turned out to be

only a fraction of the original estimate.

As the automobile industry has matured over the past decade, the

auto components industry has also grown at a rapid pace and is fast

achieving global competitiveness both in terms of cost and quality.

In fact, industry observers believe that while the automobile

market will grow at a measured pace, the components industry is poised

for a take-off. For it is among the handful of industries where India has a

distinct competitive advantage. International automobile majors, such

as Hyundai, Ford, Toyota and GM, which set up their bases in India in the

1990s, persuaded some of their overseas component suppliers to set up

manufacturing facilities in India.

Consequently, the value of cumulative output of the autocomponents industry rose rapidly to Rs 30,640 crore at end-2003-04

from just Rs 11,475 crore in 1996-97. Foreign companies such as Delphi,

which followed General Motors in 1995, and Visteon, that followed Ford

Motors in 1998, soon realised the substantial cost advantage of

manufacturing components in India.

Finding the cost lower by about 30 per cent, they began exploring

the possibility of exporting back these low-cost, high-quality

components to their global factories and, thus, reducing their overall

costs. Not surprisingly, the industry's exports registered a more than

four-fold jump to Rs 4,800 crore in 2003-04 from just Rs 1,033 crore in

1996-97.


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Automobile majors such as Maruti Udyog, Toyota, Hyundai have

now finalised their plans to invest in some of the critical auto

components. According to the Automotive Component ManufacturersAssociation of India (ACMA) officials, auto component manufacturers

are expected to invest about Rs 10,000 crore over the next five years at

the rate of Rs 2,000 crore per annum.

According to analysts, the auto component industry could emerge

as the next success story after software, pharmaceuticals, BPO andtextiles. The size of the global auto component industry is estimated at

$1 trillion and is set to grow further. Against this backdrop, McKinsey's

latest report has estimated that the sector has the potential of increasing

its exports to $25 billion by 2015 from $1.1 billion in 2004.

Threat to the Dream!

Indias expedition to become a global auto manufacturing hub

could be seriously challenged by its inability to uphold its low-cost

production base. A survey conducted by the research, KMPMG firm

reveals that the Indian auto component manufacturers are increasingly

becoming skeptical about sustaining the low-cost base as overheads

including labour costs and complex tax regime are constantly rising.

The survey said many executives believe that Indias cost

advantage is grinding down fast as labour costs are constantly

increasing and retaining employees is becoming more and more

difficult. Increased presence of global automotive companies in the

country was cited as one of the reasons for the high erosion rate.


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Indian auto businesses will only flourish if they boost investments in

automation. In the longer term, cost advantage will only be retained if

Indian capital can be used to develop low-cost automation inmanufacturing. This is the way to preserve our low cost.

Global auto majors are also cynical about Indias low cost

manufacturing base. India taxation remains a big disadvantage. This is

not about tax rates it is just about unnecessary complexity. But some

companies also believe there is scope for reducing the cost of doingbusiness.

In spite of this there are opportunities to exploit lower costs right

across the board. Its true that labour costs are definitely increasing but

they are still five per cent of the total operational costs. The labour costs

can be further reduced if companies are successful in bringing downother costs like reducing power costs. Low-cost base can never last long.

The company said Indian industry has till now relied on very labour

intensive model but it would have to switch to a more capital intensive

model now.


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ABOUT TVS COMPANY

TVS Motor Company is one of the premiere automobile companies

in India. The word TVS stands for TV Sundaram Iyengar and Sons

Limited which is the holding company for the TVS Group of companies.

The firm is engaged in the manufacturing of almost all kinds of

automotive components, two wheelers and a few other industrial

products. The company was founded by TV Sundaram Iyengar in 1911.

The company is headquartered in Chennai and its manufacturing and

R&D units are located at Mysore and Hosur, near Bangalore, and Baddi

in Himachal Pradesh. TVS Motor Company is the first two-wheeler

manufacturer in the world to be honored with Deming Prize for Total

Quality Management.

TVS Motor Company Limited is the third largest two-wheeler

manufacturer in India and globally among the top ten. It is the flagship

company of TVS Group, a USD 2.2 billion conglomeration of companies. At

present, the group is comprised of more than 30 companies and employs

more 40,000 people worldwide. Its dealer and service network is widely

spread in India.

TVS has enjoyed a steady growth since its inception. It has

continuously expanded and diversified, and brought in new verticals within

its fold. Today it boasts a strong presence in the manufacturing of two-

wheelers, auto components and computer peripherals. The company is also

involved in the distribution of heavy commercial vehicles, cars, finance and

insurance. With such a portfolio, the company contributes a lot to Indian

economy.


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The company launched the first of its two-wheeler product in 1980. It

was a 50cc moped, which was successful because of its capability to carry

two people. It collaborated with Suzuki Motor Corporation of Japan, for themanufacture of 100 cc motorcycles under the brand name of Ind-Suzuki

Motorcycles. Subsequently, the company changed its name to TVS Suzuki

Ltd. However, the collaboration with Suzuki was only for motorcycles. The

collaboration with Suzuki ended in 2001 and thereafter, the name was

changed to TVS Motor Company. The company has set up an overseas

manufacturing unit in Indonesia.

Quick Facts

Founder T V Sundaram Iyengar

Country India

Year of

Establishment

August 1980 (TVS Group in 1911)

Industry Manufacturing of two-wheelers and auto

components

Business Group TVS Group

Listings & its codes NSE

TVS - Suzuki Ltd: TVSSUZUKI

TVS Motor Company Limited: TVSMOTORTVS Motor Company Limited: TVS-SUZUKI

BSE

TVS Motor Company Ltd.: 532343

Head Office TVS Motor Company

Jayalakshmi Estates V Floor

8, Haddows Road, Chennai - 600006


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Tel.: +(91)-(44)-28272233

Fax: +(91)-(44)-28257121

Factory Post Box No. 4Harita, Hosur - 635 109

Tel.: +(91)-(4344)-276780

Fax: +(91)-(4344)-276878

Post Box No.1

Byathahalli Village, Kadakola PostMysore - 571 311

Tel.: +(91)-(821)-2596561

Fax: +(91)-(821)-2596550/ 2596553

TVS Motor Company is the third largest two-wheeler

manufacturer in India and one among the top ten in the world, withannual turnover of more than USD 1 billion in 2008-2009, and is the

flagship company of the USD 4 billion TVS Group.

A Bike for Anyone

TVS Motor currently manufactures a wide range of two-wheelers

from mopeds to racing inspired motorcycles.

Motorcycles (Apache RTR, Flame DS 125, Flame, Jive, StaR City, Sports)

Variomatic Scooters (Wego, Scooty Streak, Scooty Pep+, Scooty Teenz)

Mopeds (TVS XL Super, TVS XL Heavy Duty)


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Penchant for Quality

The company has 4 plants - located at Hosur and Mysore in South

India, in Himachal Pradesh, North India and one at Indonesia. The

company has a production capacity of 2.5 million units a year.

Innovation at the helm

TVS Motor's strength lies in design and development of new

products - the latest launch of 7 products on the same day seen as a first

in automotive history. We at TVS deliver total customer satisfaction by

anticipating customer need and presenting quality vehicles at the right

time and at the right price. The customer and his ever changing need is

our continuous source of inspiration.


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COMPANYS HISTORY

Company Effective April 21, 2009.TVS Motor Company Ltd.: History

1982

The company was incorporated as Indian Motorcycle Pvt. Ltd. on15th July. Its name was changed to Indo Suzuki Motorcycles Pvt.

Ltd. and it was converted into a public limited company on 12th

January, 1984. It was promoted by Mr. N. Krishnan incollaboration with Suzuki Motor Co. Ltd. Japan; Sundaram-

Clayton, Ltd., a member of the Company to the extent of Rs 70

lakhs.

The company entered into a technical know-how and assistanceagreement with Suzuki Motor Co. Ltd., of Japan on 22nd

September. As per the terms of the Colloboration, Suzuki agreed to

furnish complete technical information and know-how, trade

secrets and other data.

All shares taken up by promoters etc. 1984 The company received a letter of intent for the manufacture of

20,000 spark ignition operated out board motors and 30,000

internal combustion spark ignition engines upto 500cc per

annum.

59,40,000 shares issued at par in 1984. 7,00,000 shares allotted toSundaram Clayton, Ltd. Chennai, 70,000 shares allotted to Anusha

Investments (P) Ltd. Chennai, 20,00,000 shares allotted to Suzuki

Motor Co., Ltd., Japan; 2,20,000 shares allotted to employees and

business associates and 29,70,000 shares offered to the public.

1985


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A new company "Lakshmi Auto Components Pvt Ltd." wasincorporated for the manufacture of critical engines and

transmission parts. 1986 The company acquired the assets of the moped division from

Sundaram Clayton Ltd. The cost of acquisition was met partly by

rights issue of equity shares. The company subscribed to

39,20,000 equity shares of Rs.10 each of Lakshmi Auto

Components Pvt Ltd, whereupon it became a subsidiary of the

company. The name of the company was changed from Indo Suzuki

Motorcycles Ltd. to TVS Suzuki Ltd with effect from 18th August.

154,00,000 Rights Equity shares issued at par in prop. 2:1. 1988 The company obtained a letter of intent for expanding the capacity

to 4,00,000 Nos. two wheelers. 1989

The working was adversely affected due to labour unrest whichresulted in a lock-out from 28th February 1990. The lock out was

lifted in the second week of June 1990. 1990

The company launched a 34cc miniped to take advantage of theMotor Vehicle Act that exempts such vehicles from the payment of

road tax. The Company worked for only 10 months due to lock-

out. 1991

The technical aid agreement entered into with Suzuki Motor Co.,Japan which expired in August 1991 was extended for three more

years with the approval of the Government of India.


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1992

The Company launched two new models of motor cycles viz.`Sumurai' and `Shogun'.

1993

The Company launched a new model of moped viz. `TVS Scooty'.

1995

The Company was studying the feasibility of opening a secondplant at a different location to meet the growth in demand for two

wheelers in the near future. It also proposed to introduce

upgraded version of mopeds. In addition, during the year, the

Company undertook to develop new models of motorcycles.

1996 The company is taking steps to meet the increase in demand for

its products and improve the market share.

A statement relating to the subsidiary, M/s Lakshmi AutoComponents Limited, Chennai, and a copy of its annual accounts

for the year ended 31st March, 1996 are attached to the Balance

Sheet pursuant to section 212 of the Companies Act, 1956.

As per the requirements of section 217(1)(e) of the CompaniesAct, 1956 read with the Companies (Disclosure of Particulars in

the Report of Board of Directors) Rules, 1988, the information

regarding conservation of energy, technology absorption and

foreign exchange earnings and outgo are given in annexure I to

this report.


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1997

TVS-Suzuki plans to set up an auto ancillary estate through jointventure with some of its existing components suppliers. Theproposed project is to come up at a new 57 - acre site near TVS-

Suzuki's existing plant at Hosur.

Leading two-wheeler manufacturer in the country, TVS Suzuki,will soon set up a new 2.5 lakh capacity scooter plant in Mysore.

TVS-Suzuki (TSL) - a joint venture between the TVS group andSuzuki Motor Corporation, Japan - was the first company to launcha 100-cc motorcycle in the Indian market.

Credit Analysis & Research Ltd (Care) has assigned the creditrating of CARE AA+ (double A plus) to the proposed non-

convertible debenture issue of Rs.100 crore by TVS-Suzuki Ltd

(TSL).

TVS Suzuki is a joint venture between Saundaram Clayton Ltd. ofthe TVS group and Suzuki Motor Corporation, Japan.

The company proposes to introduce kick start facility. TVS Suzuki Ltd (TSL), the second largest two-wheeler

manufacturer in the country, will be restructuring its entire

vendor-base in the next five years with the objective of creating

robust vendors to meet its future expansion plans.

TVS Suzuki Limited is officially launching its new moped model,the XL Super.

The Rs. 100 crores non-convertible debentures of TVS-SuzukiLimited rating of AA + (high safety with higher standing) has been

retained by CARE.


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1998

TVS Suzuki Ltd, one of the leading two-wheeler manufacturers inthe country, has crossed the Rs.1,000-crore turnover mark in1997-98.

TVS will be the first company in the country to introduce the 4stroke scooter in the Indian market.

TVS' new-generation state-of-the-art four-stroke scooter Spectra,of which we gave you an exclusive preview last month, was

launched in spectacular fashion at the TVS Millennium Show onOctober 1 in New Delhi.

TVS Suzuki Ltd on October 1 launched its new generation 4-strokescooter `TVS Spectra' in Delhi.

1999

TVS Suzuki is all set to launch a scaled-down version of Spectra --the recently launched four-stroke scooter.

The company is set to launch Spectra on a nation-wide basis inApril.

Suzuki has indicated to the TVS group that if it did not agree to theJapanese company's acquiring a majority stake, it should allow

Suzuki to set up a 100 per cent subsidiary.

2000

The Company, pioneers of Indo-Japanese motorcycles in thecountry, has launched its latest offering, Suzuki Fiero, in the

Kerala market.


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The Tamil Nadu based TVS-Suzuki has launched the 150 CC four-stroke powerhouse Suzuki Fiero in Tamil Nadu, close on the heels

of its launch in Rajasthan, Karnataka and Kerala. Two-Wheeler major, TVS-Suzuki Limited is set to create a special

cell to tap the institutional segment.

The Company proposes to relaunch its four-stroke scooter,Spectra, in July.

Two-wheeler major TVS Suzuki is all set to cross the magic onemillion mark durisng the current fiscal with 12 new models linedup over the next 18 months.

Motocycle giant, TVS Suzuki, has forged an alliance with BrandDotcom to leverage the latter's online expertise brand building on

the Net.

TVS-Suzuki Ltd on August 30th, formally launched itsindigenously developed 4-stroke motorcycle, TVS Victor, here. Theprice has been fixed at Rs 41,187, (ex-showroom, Chennai).

The TVS group and Suzuki Motor Corporation September 27parted ways from their 15-year-old joint venture with the former

buying out the 25.97 per cent stake of the Japanese company for

Rs 9 crore.

2002

TVS Motor Company Ltd has informed that the Board declared aninterim dividend of Rs 9.00 per share on 2,31,00,070 equity shares

of Rs 10/- each fully paid up, aggregating to Rs 231.00 million.


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2003

TVS Motor Company has recorded a market share of 35% frommotor cycles division

K.S.Bajpai has been appointed as an Additional Director on theBoard.

TVS, Bajaj Auto and Yamaha have grabbed the market share fromthe country's largest motor cycle maker Hero Honda.

The TVS victor sales has crossed 4 lakh unit mark in less than 18months of its launch.

TVS Motor has recorded a 31% growth in its sales. C V R Panikar has been appointed as Additional Director on the

Board of TVS Motor Company Ltd.

TVS Motor Company has reintroduced Fiero, inorder to competewith Bajaj Pulsar.

TVS Motor Company Ltd has introduced its own racing bikeswhich Team TVS will test on the tracks in Asian Circuit.

TVS Motor launched 4 new mobikes including a new brand 100-ccmobike called the Centra.

TVS Motor Chairman and MD Venu Srinivasan has been selected inBusiness Week's Stars of Asia which covers the top 25 achievers in

the continent.

TVS Motor Company adds two new models in two-wheelersegment.

TVS Motor ties up with State Bank of India for scooter andMotorcycle financing.

Launches Fiero F2 and Scooty Pep models


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Board of approves the merger of engine components division of itssubsidiary, Lakshmi Auto Components (LAC) with TVS Motors

effective from April 2, 2003

2004

TVS Motor, on Jan 5 launched Centra, a 100 cc four-stroke motorcycle, with variable timing intelligent (VTI) engines, claiming to

give more mileage to consumers. The Centra has bundled price,

style, power along with fuel efficiency making it a fill-once-a-month bike, and it's priced at Rs.36,990. nearly Rs 100 crore

investment had gone into the launch of 'Centra', including R&D,

plant and machinery.

TVS Motor Company Unveil TVS Centra With ' VT-i Engines',, a 100CC 4 stroke motorcycle

TVS Motor Company launched its new bike - TVS Centra - here onFebruary 9, 2004, for the first time in the State. It is a 100-cc four-

stroke motorcycle targeted at the popular segment and a Fill-it-

once-a-month bike, competitively priced at Rs. 36,990. The vehicle

has been launched in January in the metros and other cities and so

far 8,000 vehicles had been sold in the country.

TVS Motor Company and Union Bank of India (UBI) haveannounced the launch of `Union Miles Scheme,' an exclusive two-

wheeler finance scheme

TVS Motor Company (TVS) launches new 125cc, 4-stroke VictorGLX motorcycle in Chennai on May 02, 2004

TVS Vice President resigns TVS Motors forges alliance with Andhra Bank Canara Bank, TVS Motor rolls out TVS Canmobile


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TVS picks up Asian Network for Quality award TVS unveils new version of 'Victor GX'

2007

TVS Motor Company introduced its entry-level 4-strokemotorcycle - TVS Star - in the Kerala market

TVS rolls out Star bike in Andhra Pradesh TVS Motor Company launches TVS Centra VT-i, a variant of its

four-stroke 100cc model TVS Centra on May 6 TVS Motor rolls out two motorcycle variants named Victor EDGE,

StaR City and Scooty Pep plus

2008

TVS Motor appoints new President TVS launches Apache in Vizag TVS Motor Company launched a new version of 125 cc Victor GLX

with an electric start option

2009

TVS Motor Co, has rolled out seven new vehicles, including its firstthree-wheeler and a new 125 cc bike, aimed at gaining lost share

in a highly competitive market.

2011

TVS Motor Company launched Scooty Streak, which is its latestscooterette targeted at girls of 16 to 20 age group.

TVS Motor Company Limited has appointed Mr Prince Asirvathamas an additional and independent director of the board of

directors


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TVS GROUP

TVS Group is one of India'soldest business groups. It is a giant

conglomerate with presence in diverse fields like automotivecomponent manufacturing, automotive dealerships and electronics.

Today, there are over thirty companies in the TVS Group, employing

more than 40,000 people worldwide and with a turnover in excess of

USD 2.2 billion.

TVS Group originated as a transport company in 1911. TVSundaram Iyengar and Sons Limited is the parent and holding company

of the TVS Group. TV Sundram Iyengar and Sons Limited has the

following three divisions:

TVS and Sons: TVS and Sons is the largest automobile distribution

company in India. It distributes Heavy Duty Commercial Vehicles, Jeepsand Cars. TVS and Sons represents premier automotive companies like

Ashok Leyland, Mahindra and Mahindra Ltd., and Honda. The company

is also one of the leading logistics solution providers and has set up

state-of-the-art warehouses all over the country. TVS and Sons has also

diversified into distributing a range of Garage equipments.

Sundaram Motors: Sundaram Motors distributes Heavy Duty

Commercial Vehicles, Cars, and auto spare parts for several leading

manufacturers. The company is also the dealer for Ashok Leyland,

Honda, Fiat, Ford and Mercedes Benz.


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Madras Auto Service: Madras Auto Service distributes automotive

spare parts for all leading manufacturers.

Other major companies of TVS Group are:

TVS - Motor Company Limited: TVS Motor Company Limited is one of

the largest two-wheeler manufacturers in India. It manufactures

Motorcycles, Mopeds, Scooterettes and Scooters.

TVS Electronics Limited: TVS Electronics was incorporated in 1986 in

collaboration with Citizen Watch Co. of Japan. The company

manufactures a complete range of computer peripherals.

Axles India Limited: Axles India was promoted by Sundaram Finance,

Wheels India and Eaton Corporation for the manufacture of axles formedium and heavy duty commercial vehicles in India.

Brakes India Limited: Brakes India is a joint venture between TV

Sundram Iyengar and Sons Ltd. and Lucas Industries Plc., UK. The

company manufactures braking equipment for automotive and non-

automotive applications.

Sundaram Polymers Division: Sundaram Polymers Division

manufactures Engineering Plastic compounds for various applications.

Harita Finance Limited: Harita Finance Ltd is a finance company under

the TVS Group. It deals in retail finance, hire purchase, leasing and bill

discounting.


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Harita Finance Limited: Harita Finance Ltd is a finance company under

the TVS Group. It deals in retail finance, hire purchase, leasing and bill

discounting.

India Motor Parts and Accessories Limited: It is engaged in the

distribution of automobile spare parts.

India Nippon Electricals Limited: It is a joint venture between Lucas

Indian Service and Kokusan Denki Co Ltd., Japan. The companymanufactures Electronic Ignition Systems for two wheelers and portable

gensets.

IRIZAR TVS (P) Ltd: IRIZAR TVS (P) Ltd. is a joint venture between

Sundaram Industries Ltd, Ashok Leyland Ltd and IRIZAR S. Coop of

Spain. The company builds bus bodies for export and domestic market.

Lakshmi Auto Components Limited: The company is a subsidiary of

TVS-Suzuki. It manufactures gears, crankshafts and connecting rods for

TVS-Suzuki motorbikes and mopeds.

Lucas Indian Service: Lucas Indian Service is a wholly owned

subsidiary of Lucas-TVS Ltd., engaged in the sales and service of auto-

electricals and fuel injection equipment.

Lucas - TVS Limited: Lucas-TVS, a joint venture between Lucas Varity

group, UK and TVS Group, is a leading manufacturer of auto electrical

products and diesel fuel injection equipment in India.


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Sundaram Brake Linings Limited: Sundaram Brake Linings is the

leading manufacturer of brake linings in India.

Sundaram-Clayton Limited: Sundaram - Clayton Ltd manufactures

complete range of air brake actuation system - compressors, actuators,

valves, brake chambers, spring brakes, slack adjusters, couplings, hoses,

switches and vacuum boosters for light/medium and heavy commercial

vehicles and trailers. Foundry Division manufactures aluminum, gravity

and pressure die-castings.

COMPANY PROFILE

TVS Motor Company (TVS-M) one of the largest two wheeler

manufacturers in India, started manufacturing in 1979. TVS-M currently

manufactures a range of two wheelers namely motorcycles, scooters,

scooterettes and mopeds in its plants located at Hosur (in Tamilnadu)and at Mysore (in Karnataka). Our subsidiary M/s Lakshmi Auto

Components Ltd (LAC), the Engine component division has been merged

with TVS-M, so the annual report of 2003-04 comprises of both. Our

market share is around 22 %. TVS-M is also the market leader in the

moped segment enjoying a share of 69 %. The combined capacity as of

march 04 is more than 1.6 million vehicles and the annual turn over wasRs. 28,560 million (2003-04). TVS-M also exports its bikes as SKDs and

CKDs to African and South Americ


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Products

Motorcycles

TVS AX 100 TVS Fiero TVS Samurai TVS Shaolin TVS Shogun TVS Apache (150 cc,13.7 Ps @8500rpm) TVS Apache RTR 160 TVS Apache RTR 160 EFI (Electronic Fuel Injection) TVS Apache RTR 180 (17.3ps) TVS Centra TVS Fiero TVS Fiero F2 TVS Fiero FX TVS Flame TVS Flame (125 cc,ccvti technology) TVS MAX 100 TVS MAX R 100 TVS Star TVS Star City TVS Star Sport TVS Supra TVS Victor (110 cc) TVS Victor EDGE (125 cc) TVS Victor GLX (125 cc)
http://en.wikipedia.org/wiki/TVS_Apachehttp://en.wikipedia.org/wiki/TVS_Flamehttp://en.wikipedia.org/wiki/TVS_Flamehttp://en.wikipedia.org/wiki/TVS_Apache


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Scooterettes

TVS Scooty KS (60 cc) (2nd Largest used Scooter in India) TVS Scooty ES (60 cc) TVS Scooty Pep (90 cc) (3rd largest used scooter in India) TVS Scooty Pep + (90 cc) TVS Teenz (60 cc) TVS Streak (90 cc)

Stepthru

TVS NEO 110

Mopeds

TVS 50 (The most used moped in India and its subcontinent, has

been manufactured 11,26,325 (its variants and derivates included)

times (August 2005) and still going on in service.

TVS XL (60 cc) TVS Eco TVS Champ (50 cc) TVS Super Champ (60 cc) TVS Sport (70 cc) TVS XL Super (70 cc) TVS XL Super Heavy Duty (70 cc)

TVS Apache

TVS Apache is an exciting offer from TVS. A powerful blend of

contemporary design and engineering, TVS Apache is superbly styled with

fantastic finish. The mighty machine has sleek finish with lines that flow

smoothly and seamlessly.
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TVS Centra

TVS Centra is an efficient bike in the popular 100 cc segment in India.

Thanks to the VTI (Variable Timing Intelligent) engine technology, it is one

of the most fuel efficient bikes in India. Coming with a slew of innovative

technologies and superb design, the bike promises style, mileage and riding

comfort.

TVS Fiero F2

TVS Fiero FX 2 is a dynamic looking body with lots of power packedfeatures. The all-new twin pod instrument cluster comprises the speedometer

and trip tachometer. Triple rated 5-step shock absorber at the rear and

hydraulically damped front suspension imparts stability and comfort.

TVS Scooty Pep+

TVS Scooty Pep+ is an addition on TVS Scooty Pep. The two-wheelerhas been successful all over the market due to its sleek dual tone body with

complementary colored mirrors, appealing body lining and 5 different types

of metallic colors.

TVS Star

The TVS Star is TVS' entry-level bike that challenges the dominance

of the Bajaj CT 100 in the economy-segment. TVS has launched different

kinds of motorcycles which are marketed with all customized specifications.

TVS Super XL

TVS Super XL has been incorporated with all features a two-wheeler

needs to sell itself. The vehicle has been designed with rural vehicles in


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mind. With proper safety, speed and easy-to-ride features, it has been able to

taste success in its target market.

TVS Victor

TVS Victor is an impressively styled powerful motorcycle. The bike is

available in new graphics and alloy wheels, which accentuate its sporty style.

The fuel tank has rounded lines with an aircraft styled fuel filler lid.

ENERGY CONSERVATION POLICY

Energy policy energy

TVS Motor Company is committed to

Energy conservation through

Optimization of usage & loud, continuous

Auditing and climinating wastages .

We are also committed to energy saving

By using alternative methods, efficiency

Improvement using non-conventional

Resources minimizing waste generation

& encouraging recycling .

We shall comply with the energy

Legislation and regulation and build

Awareness among all employees for

Total involvement in energy conservation

Drive


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Milestones of TVS Motor

1980 India's first 2 seater 50cc Moped TVS 50, launched in

Aug.1984 First Indian Company to introduce 100cc Indo-Japanese

motorcycles in Sept.

1994 Launched first indigenous Scooterette (sub-100 cc

variomatic scooters), TVS Scooty in June.

1996 Introduced first catalytic converter enabled

motorcycle, the 110cc Shogun in Dec.

1997 Launched India's first 5-speed motorcycle, the Shaolin

in Oct.

2000 Launched TVS Fiero, India's first 150 cc, 4 stroke

motorcycle in April.

2001 Launched TVS Victor, 4-stroke 110 cc motorcycle, in

August, India's first fully indigenously designed and

manufactured motorcycle.

2004 Launched TVS Centra in January, a world-class 4-stroke

100 cc motorcycle with the revolutionary VT-i Engines

for best-in-classmileage.

Launched TVS Star in Sept, a 100 cc motorcycle which is

ideal for rough terrain.
http://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/tvs-motor.html


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AWARDS

Star of Asia Award to Mr. Venu Srinivasan, CMD TVS MotorCompany by Business Week International.

He was also honoured with Doctorate in Science by University ofWarwick, United Kingdom.

Mr Venu Srinivasan was conferred with the prestigious JRD TataCorporate Leadership Award for the year 2004.

Engineering

The Deming Prize

TVS Motor Company is the only two-wheeler company in theworld to be awarded the world's most prestigious and coveted

recognition in Total Quality Management

Technology Award 2002 from Ministry of Science,Government of India for the successful commercialization of

indigenous technology for TVS Victor Asian Network for Quality Award

2004 - TVS Scooty Pep won the prestigious 'Outstanding Design

Excellence Award' from Business World and National Institute of Design


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Progressive Manufacturer 100 Award

TVS wins coveted 2009 Progressive Manufacturer 100 Award for

end-to-end automation of the entire business process of its lubricantbrand, TVS TRU4

TPM Excellence Award 2008

First category by Japan Institute of Plant Maintenance (JiPm)

Management

Emerging Corporate Giant in the Private Sector awarded by TheEconomic Times and the Harvard Business School Association of India.

Best Managed Company award from Business Today, one ofIndia's leading business magazines.

Most Investor friendly company by Business Today, one of India's

leading business

The 'Good Advertising' award by Auto India Best Brand Awards

2009.

SAP ACE AWARD 2007

The company won the SAP ACE 2007 Award for Customer

Excellence in the Most Innovative Netweaver Category.


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TEAM TECH 2007 Award -

TVS Motor Company bags TEAM TECH 2007 Award of Excellence

for Integrated use of Computer Aided Engineering TechnologiesTVSwins coveted 2009 Progressive Manufacturer 100 Award

TVS motor company awarded the total productive

maintenance (TPM) excellence award

TVS Motor wins TPM Excellence Award by Japan Institute of Plant

Maintenance

New Delhi: The Japan Institute of Plant Maintenance (JIPM) has

awarded the coveted Total Productive Maintenance (TPM) Excellence

Award to TVS Motor Company in the first category. The company won

the award for its exemplary implementation of TPM processes in its

Plant II in Hosur and its Mysore plant. The TPM Excellence Award is themost prestigious award presented to organizations, which have attained

excellence in equipment performance. Mr. M. Muthuraj, Senior Vice

President (Operations) received the award on behalf of the company at

a ceremony held in Yokohama, Japan on Wednesday.

The award was conferred in acknowledgment of the performance

and proficiency of TVS Motor Companys state-of-the-art manufacturing


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facilities and TPM process implementation in its Hosur and Mysore

plants. The TPM Excellence Award indicates that the company has been

consistent in terms of significant business results and performanceindicators on Quality, Cost, Delivery, Productivity, Morale and Safety.

The journey towards excellence is endless and team TVS is

always committed to attaining higher level targets. It is the combined

effort and hard work of all the team members, which has resulted in us

being awarded the TPM Excellence award. Such recognitions definitelyboosts the morale, determination and zeal of the team and induces a

spirit to achieve even better operational excellence and business

results, said Mr Venu Srinivasan, Chairman, TVS Motor Company.

This is the second time that TVS Motor Company has bagged this

esteemed award. In 2004 the Engine Component Division at Hosur hadreceived the distinguished honor in recognition for excellence in

application of TPM methodology.

By implementing TPM processes in its plants, TVS Motor Company

has achieved significant results in quality and cost effective

manufacturing. Zero accident has been achieved in both plants and

productivity has improved by 35%.

This award reflects our ultimate goal to constantly endeavor to

maintain high levels of efficiency resulting in superior products which

meets the aspirations of rapidly maturing customers Mr. Srinivasan

added.


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TVS Motor Company Limited, the flagship company of the USD 2.7

billion TVS Group, is the third largest two-wheeler manufacturer in

India and among the top ten in the world, with an annual turnover ofover USD 740 million. The company is the only two-wheeler

manufacturer in the world to be honoured with the hallmark of Japanese

Quality The Deming Prize for Total Quality Management.

TVS Motors wins two IT awards

HOSUR: TVS Motor Company Limited has won two IT Awards, the

SAP ACE 2008 Awards for customer excellence and the 2008 Symantec

South Asia Visionary Award.

While the company won the SAP ACE Award for digitization of

new product development process in SAP by implementing PLM

(Product Lift Management), the Symantec South Asia Visionary Award

was conferred for the way the company secured and managed system

and information, a company press statement said here on Friday.

The SAP ACE Award recognizes achievement of business

excellence through implementation of SAP projects.

Approximately 150 organisations participated across India for this

award. The award is given to different categories of Industries

leveraging SAP to achieve business excellence, the release said.

It is indeed an honour for TVS Motor Company to win the SAP ACE

Award for the second consecutive year. PLM helped us to assimilate

customer experience and connect it to drawing board and also will help

us in systematic introduction of new product by mee ting quality, costs

and delivery targets. The Symantec Award was also a prestigious


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achievement for us. TVS Motor Company was chosen out of 25

participants in South Asia for this award'' said, Mr T G Dhandapani,

Corporate Chief Information Officer, TVS M otor Company, who receivedthe awards on behalf of the company. - PT

Research and Development

The Companys R&D team has a strong technical talent pool and

modern computer aided laboratory, capable of developing new and

innovative styles and designs. It also has state-of-art facilities for enginetesting, NVH measurements and life testing.

At present, more than 450 engineers are working on the

development of new products and in other advanced areas of

technology. The Company works with leading technological research

laboratory and institutions.

The Companys R&D is cognizant of 2010 emission norms and is

focused on ensuring complete compliance in all its products. The

Company is also working on development of fuel-efficient technologies

and alternate fuel technologies to take care of emerging needs of the

consumers and environment.

The Company has applied for over 200 patents and its R&D team

has published 44 technical papers in national and international

conferences.

In addition to the requirements of domestic markets, the R&D

team has developed products for ASEAN markets. The team has also


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developed three wheelers. TVS Racing Group, which is an integral part

of the R&D ,participated in the major two-wheeler racing events in the

country and won nearly 90% of the events. Information technology ERPsystem is used to integrate all the business processes across the

Company.

The Company has also integrated its dealers and suppliers into its

IT systems. During the year 2007-08, the Company has implemented

Product Lifecycle Management system to digitize the new product ofnew products into the market. It integrates different processes within

the Company and enables electronic collaboration with product

development vendors.

The Company has also introduced Business Intelligence tool to

get quick access to information through dashboards for effectivedecision-making.

COMPANY PERFORMANCE

New Product Launches and Initiatives During the year 2007-08,

the Company launched various newproducts and variants.

TVS Flame

This is the hottest riding experience sporting many first time

features (in the executive segment) like the embedded trafficators,

Instant Mileage Indicator, Delta Edge exhaust andglove box. Flame

sports are volutionary 3 Valve CCVTi engine which delivers best in class

mileage without compromise on power. With this launch, the Company

will actively compete in the executive segment.


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Apache RTR

This 160cc Apache launched in the growing premium segment,

was declared Performance Bike of the year 2008 by Auto BusinessStandard Motoring , NDTV and Overdrive. It also bagged the NDTV Car &

Bike Award for Best Design of the year.

StaR Sport

The new StaR Sport with superior style, refreshing graphics,

pleasing colours and contemporary design became an instant hit. Moreimportantly , this bike delivers the best mileage in its class.

StaR City 110 cc

An upgrade of the existing and highlysuccessful StaR City, this

newmotorcycle packs a more powerfulpunch with increased power and

higherfuel efficiency with VTi technology.

Scooty TeenZ Electric

This new entrant in the TVS Scooty family is an electric eco-

friendly scooter. This will address the growing demand for electric

scooters in India. Scooty TeenZ Electric has been launched in Gujarat

and Maharashtra. During the year 2008-09, this product will be made

available across the country.

TVS Tru4 Oil

TVS Tru4 oil has been indigenously developed by the Company in

association with BPCL. This is specifically designed for smooth clutch

operations, smoother gearshift and enhanced engine protection

providing an ultra smooth biking experience for the customer. This


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product has been certified by JASO (Japanese Automotive Standards

Organisation ) for MA2 with API 20W40 grade.

Motorcycles

In this category, the Company faced a steep decline of 33%

during2007-08. The Company's motorcycle portfolio was largely

dependent on StaR brand of motorcycles and the impact of non

availability of retail finance was severe. Launch of TVS Flame was

delayed due to litigation on usage of twin spark plug. While the legal

process is still going on, in order to avoid business disruption , the

Company has launched TVS Flame with a single spark plug without

compromising on any of the performance parameters . With the

complete product range now available, the Company hopes to reverse

the decline and grow during 2008-09.

Un geared scooters Scooty Pep+ continues to be the market leader

in sub 100ccmarket. Emergence of electric scooters segment has

affected TVS Scooty sales marginally. The newly launched TeenZ

Electricwill address this issue. This product is also rated the best

amongst the competing brands by Overdrive Magazine (June2008

issue). The Company will also be launching a new variant of Scooty and

a big scooter during the year 2008-09 to expand its customer base.

Mopeds

Mopeds grew by 19% and increased its market share to 95%

from 89% in the previous year. Focused efforts on non-south states

have helped to achieve this growth.


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International Business In 2007-08, export business saw steep

growth of 32% as compared to 28% in the previous year. During this

period, 5 more countries were included, taking the total countries towhich the Company exports to 53.

Three Wheeler Operations

The three wheeler industry has grown at a compounded average

growth rate (CAGR) of 12% over the last 5 years to reach 5 lakh units in

2007-08. Passenger segment accounts for 73% and balance being goods

carriers. In addition to domestic demand, exports offer an attractive

opportunity. The Company launched its three wheeler, TVS King in two

variants . two stroke petrol and two stroke LPG in March 2008. The

product comes with many first time features in the industry and delivers

higher comfort and convenience, better fuel efficiency and more

importantly superior style to give pride of ownership to the drivers. The

product has received encouraging response from the market. TVS King

has been launched in selected towns and will be gradually extended to

allover India by December 2008.

TVS MOTOR COMPANY LIMITED

The Company plans to introduce four stroke version in Petrol, LPG

and CNG fuels for domestic and export markets during 2008-09.

OPPORTUNITIES AND THREATS

Growth in two wheeler demand would come mainly from rising

population in relevant age and income groups and increasing use of

personal transport.


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The StaR brand stands to gain from this, but the current retail finance

situation may hinder its growth in the current year.

Apache RTR is gaining popularity with the younger male

population. To retain this segment of customers, who are very conscious

about style and performance, frequent refreshes and upgrades are

required.

The executive segment accounts for over 50% of the motorcycle

category. The recently launched TVS Flame has been well received bydiscerning customers.

The Company has a strong presence in the sub 100cc ungeared

scooter segment. However, the Company has no presence in the large

scooter format which accounts for 70% of the total ungeared scooters.

The Company plans to launch a new product during the year to

target these customers. Emergence of electric scooters, especially in the

context of rising fuel prices provides a new avenue of growth.

OPERATIONS REVIEW

Quality

The Company has significantly improved the quality performance

of all its products through a systematic task force approach. The fact

that the Company came out with Industry first five year extended

warranty program on StaR brand is a testimony to its manufacturing

quality.


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TQM

The Company continues to benefit from 100% participation of

employees in TQM activities. The employees have completed more than

1,200 projects through QC Circles and Cross Functional Teams. The

average number of suggestions implemented per employee was 69

during 2007-08.

Cost Management

The Company continues its rigorous focus on costs through aneffective deployment system. Value engineering and aggressive global

sourcing projects are being pursued to reduce material costs and also to

partially neutralize input material cost increase.

TPM is practiced in all the plants to ensure significant

improvement in productivity and reduction in manufacturing cost.

During 2007-08, the Hosur and Mysore plants were awarded the

TPM excellence certificate by the Japanese Institute of Plant

Management (JIPM).

Research and Development

The Companys R&D team has a strong technical talent pool and

modern computer aided laboratory, capable of developing new and

innovative styles and designs. It also has state-of-art facilities for engine

testing, NVH measurements and life testing. At present, more than 450

engineers are working on the development of new products and in other

advanced areas of technology. The Company works with leading

technological research laboratory and institutions. The Company fs R&D


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is cognizant of 2010 emission norms and is focused on ensuring complete

compliance in all its products. The Company is also working on

development of fuel-efficient technologies and alternate fueltechnologies to take care of emerging needs of the consumers and

environment. The Company has applied for over 200 patents and its

R&D team has published 44 technical papers in national and

international conferences. In addition to the requirements of domestic

markets, the R&D team has developed products for ASEAN markets.

The teamhas also developed three wheelers.

During the year 2007-08, the Company has implemented Product

Lifecycle Management system to digitize the new product development

process. This solution will help in faster introduction of new products

into the market.

Supply Chain Management

During the year, the Company streamlined its global sourcing

operations apart from strengthening its domestic supply base. Supplier

cluster programmes enabled transfer of best practices from the

Company to the suppliers and also among the suppliers. The domestic

dealership network was further strengthened with addition of 48

dealers in 2007-08. The Company now has 604 exclusive dealers and

over 2,500 authorised sub dealers and service centres. The customer

loyalty programme . Smiles forever - has been upgraded and revamped.

The current customer base of the CRM programme is over 4.3 lakh

members PT TVS Motor Company Indonesia PT TVS Motor Company

Indonesia, a subsidiary of the Company, has established a manufacturing


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facility at Karawang (near Jakarta), Indonesia with an annual capacity of

3,00,000 units. The new product exclusively developed for the

Indonesian market was launched during 2007-08 in select markets. Theresponse from the customers has been extremely satisfactory. Apache

RTR launched during 2007-08 has also caught the fancy of Indonesian

customers. The Company has established a network of 25 dealers as on

31st March 2008 and plans to add another 125 during 2008-09.

HUMAN RESOURCE DEVELOPMENT

The Company focuses on attracting the best talent through

strategic recruitment from reputed Engineering Colleges and Business

Schools across the country. Managers are developed through structured

foundation programs in association with reputed institutions. The

Company sponsors managers to overseas and inland universities for

developing their capabilities to handle new technologies and

management practices. They are also deputed to international

conferences and seminars to gain global exposure. Leadership

development programs have been institutionalized as part of career

development for senior executives. Career development workshops help

identifying the high potential talents. This is reinforced with robust

development plans supported by reward and recognition system. The

Company has developed a blueprint for creating Centers of Excellence in

the key business processes. These Centers of Excellence build

competencies required for the present and the future to provide

competitive advantage. The Company continues to maintain its record

on industrial relations with not a single day of work being lost because


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of labour unrest. As on 31st March 2008, the Company had 4,284

employees on its rolls.

ENVIRONMENT, HEALTH & SAFETY

An integrated EHS Management System is instituted both at Hosur

and Mysore units. Both the sites have been certified under ISO 14001 for

Environment Management System and under OHSAS 18001 for

Occupational Health Safety Management System. The Company

continues to excel in key environmental performance areas, achieving a35% reduction in fresh water consumption, 45% per unit reduction in

landfill waste disposal and 33% reduction in paint sludge generation. In

line with the World Environment Day . 2008 theme g Kick the Habit -

Towards Low Carbon Economy h, the Company is making a conscious

effort to reduce its Carbon Foot print. Accordingly, it has taken various

energy conservation measures like the use of waste heat from central

power plants, use of energy efficient motors, use of CFL lighting systems,

use of natural lights, special V Belts in machine drives etc. The eventual

goal is to become a Carbon Neutral Manufacturing Company.

COMMUNITY DEVELOPMENT AND SOCIAL RESPONSIBILITY

Srinivasan Services Trust (SST) is a trust co-sponsored by TVSMotor Company with the vision of building self-reliant rura

communities. SST extended its coverage to 363 villages, serving a

population of 3.71 lakhs. Some of the significant achievements are

Regular income of over Rs.4,000/- per month for 14,446 families. No

case of Infant and maternal mortality in the project areas.


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Morbidity caused by poor sanitation & hygiene reduced from

37% to 13%. 100% enrolment of children in Balwadis and Schools.

1,12,000 hectares of degraded forest land reforested. 5,830 hectareswere covered under Watershed Program.

CAUTIONARY STATEMENT

Statements in the management discussion and analysis report

describing the companys objectives, projections, estimates and

expectations may be gforward looking statements h within the meaning

of applicable securities laws and regulations. Actual results could differ

materially from those expressed or implied. Important factors that could

make a difference to the Companys operations include, among others,

economic conditions affecting demand supply and price conditions in

the domestic and overseas markets in which the Company operates,

changes in the Government regulations, tax laws and other statutes and

incidental factors.

INTERNAL CONTROL AND THEIR ADEQUACY

The Company has a proper and adequate Internal control system

to ensure that all the assets of the Company are safeguarded and

protected against any loss and that all the transactions are properly

authorised, recorded and reported.


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Specialization

TVS Apache RTR 180: The new member of the TVS Apache stable

TVS, the maker of the popular Apache RTR brand, released TVS

Apache RTR 180cc bike last month, the new member of the Apache

family. The Apache bikes are racing bikes. If you are looking for a bike

which is stylish and powerful at the same time, then this is the bike for

you. The Apache RTR 180 comes with superb aerodynamic design. TVS

mainly made changes in the engine which made the major difference in

the performance of this bike. The new Apache RTR 180 will compete

with Bajaj Pulsar 180cc and Bajaj Pulsar 200cc bikes, Yamaha FZ-S bike.

TVS is also planning to launch another motorcycle in India by the end of

this year and it would start exporting its Apache RTR 160 FI to North

America at the same time.
http://www.southasiablog.com/2009/07/tvs-apache-rtr-180-new-member-of-tvs.htmlhttp://www.southasiablog.com/2009/07/tvs-apache-rtr-180-new-member-of-tvs.htmlhttp://www.tvsapache.com/


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The various objective of apache rtr 180 are :

Split bull horn rails:

The split bull horn rails not only adds up to the motor cycles stylequotient but also helps the pillion rider to get a good grip thus ensuring

safety. The split bull horn design is the result of input gathered from

thousands of palm types and grab holdings.

Style and graphics:

The stylish graphics of TVS Apache RTR 180 makes it a stand outfrom the crowd. The racing stripes, luminous rims, aerodynamic

airscoops and race crouch mirrors makes it lean mean racing machine.

Aerodynamic airscoops:

The aerodynamic airscoops makes sure that cool air flows

towards the engine unit to cool it down.

Engine fairing:

The engine fairing adds up to the aero dynamic design of the TVS

Apache RTR 180. It also protects RTR engine from harsh road

conditions.

Lightweight stylish alloys:

The lighth weight alloys does not add up too much weight at the

same time they can withstand the toughest surface.

Forged brake lever:

The forged brake lever and gear lever set of the Apache RTR 180

gives it a distinctive look.


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Removable rear fender:

The Apache RTR 180 comes with a replaceable mud flap

Engine:

The Rev happy oversquare engine truly upholds the ingenuity of

TVS engineers. This engine won the TVS Apache RTR 160 the

performance bike of the year award from BS Motoring and Overdrive &

NDTV car and bike awards.

Roto petal disc:

The Apache RTR 160 was the first Indian bike to come with the

Roto Petal disc with a diameter of 270 mm. It helps in sharp braking and

the large size of the disc ensures quick heat dispersion. The Apache RTR

180 comes with roto petal disc on both front and rear wheels.

Digital speedo console:

The backlit digital speedo console gives out necessary information

about the motor cycle such as, two trip logs, max speed and so on.

LED Tail lamp:

The stylish LED (Light Emitting Diode) tail lamp consumes less

energy and shines more brightly and ensures high visibility at any

weather condition.

Head Lamp:

The head lamp and park lights are integrated into the cowl. It

provides good visibility.


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Poly shock absorbers:

The poly shock makes the TVS RTR 180 a tough motorcycle that

can run on any terrain. Be it a smooth road, or rough road filled withpotholes. The poly shock absorber takes the rebound from a shock and

dissipates it as heat energy.

Clip on handle bars:

The clip on handle bar of the TVS RTR 180 is designed based on

racing insights. The handle bar consists of two units- the two differenthandle bars and base unit. The handle bars are joined with the base unit

in such a way that it gives the rider a racing posture. The clip on handle

bar is also adjustable according to the riders height.

Wide tubeless tyres:

The wide tubeless tyres of TVS RTR 180 ensure high stability forthe rider on all types of roads.

Stylish exhaust:

The roar says it all for TVS RTR 180. Designed with great care, the

exhaust not only releases the gas produced from internal combustion

but also adds up to the overall style icon of the bike.

Foot pegs:

The rear set foot pegs is fitted in such a way that is gives the

rider a sporty stance while riding the bike. The foot pegs of TVS Apache

RTR 180 are lightweight and contribute to the power to weight ratio.


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Price:

TVS Apache RTR 180 will cost Rs.64,000 (ex-showroom).

TVS Apache RTR 180 specification

Dimensions, weight and color:

Length: 2085.00 mm

Width: 730.00 mm

Height: 1100.00 mm

Kerb weight: 137 kg.

Maximum payload: 130 kg.

Colors: White, gray, yellow and black.

Other specifications:

Ground clearance: 180 mm

Saddle height: 790 mm

Chassis type: Double cradle sychrostiff.

Fuel tank capacity: 16 ltrs

Reserve fuel tank capcity: 2.5 ltrs.

Battery: 12v. 9.0 AH

Headlamp: 12V 35/35W Halogen HS1, Clear lens with MFR.
http://autos.maxabout.com/twid0000322/tvs-apache-rtr-180-menace.aspx


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Taillamp: 0.5 W LED twin-triangle with prism on

Wheel Type: Six spoke magnesium alloy wheels.

Wheelbase: 1326.00 mmFront rim size: 1.85 X 17

Rear rim size: 2.15X17

Front wheel size: 90/90 x 17

Rear wheel size: 110/80 x 17 mm

Front suspension: Telescopic Forks (105 mm strokes)

Rear suspension: Mono tube inverted gas filled shocksFront brake type: 270 mm petal disc.

Rear brake type: 200 mm petal disc.

Brake fluid: Dot 3.

Engine:

Engine type: Single cylinder, air cooled, four stroke.Displacement: 177.4 cc.

Max Power: 17.3bhp @ 8500rpm

Max Torque: 1.58kgm @ 6500rpm

Maximum speed: 124 kmph.

Bore: 62.5 mm.

Stroke: 57.8 mm.

Compression ratio: 9.5:1

Carburettor: Mikuni BS-29.

Valve train: Two valves, overhead cam.

Valves per cylinder: Two valves.

Power to weight ratio: 124.08 bhp/tonne.

Starting: Electronic and kick start.


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ABOUT SHANTHI TVS

SHANTHI TVS is a proprietary concern started on 19 th December

1997 by Mr. Dhamodar V Shanbhag a resident of shirali . Having a good

reputation and hailing from reputed business family. It located BH Rd,

Shimoga which is very best place for such type of unit.

Working hour of SHANTHI TVS is between 10.00 am to 6.30pm

and helpline breakdown service is available for 24hrs within city limit.

For the convenience of the customer and smooth running of the concern,

the unit has been divided into various section.

Spare part devison

Work section

Sales department

SHANTHI TVS also made the automated workshop in 05 January

2005. Generally all kinds of repairs and services like Reconditioning

,lathwork ,firefighting etc are carried out in automated workshop for the

smooth working of workshop. Under the workshop in charge there are

two skilled mechanics and two mechanics cum electricians and under

each of them there are two helpers.

The mechanic in the workshop are talented and have efficient and

have attend various training camp organized by TVS COMPANY .


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The various machines and tools installed in workshop are

Hydraulic ramp

Pneumatic tools Tools board Special tools Engine jig Air compressor Air inflator

Bench vice Impact driver General tools Verneir Timing light Battery charger

Battery tester Hydro meter Soldering iron Spark plug cleaning machine Air gauge Water wash machine Multi meter Compression gauge Mileage tester Rpm meter

This installation of tools and machinery of automated workshop

are very sophisticated. Everyday there are 15 to 20 vehicle for servicing

purpose in the workshop of SHANTHI TVS .


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For the convenience of the satisfaction of cutomers , separate

waiting room has been constructed with various facilities like news

paper , journals , magazines , TV etc .

The unit has separate spare parts counter , where in all spare and

equipment are genuine and indirectly supplied by the TVS COMPANY.

The unit has spare parts of all ranges bike of TVS.

SHANTHI TVS

Deals with following TVS Company Motor Cycle

TVS Apache (150 cc, 13.7 Ps @8500rpm)

TVS Apache RTR 160

TVS Apache RTR 160 EFI (Electronic Fuel Injection)

TVS Apache RTR 180 (17.3ps)

TVS Centra

TVS Fiero F2TVS Scooty Pep (90 cc) (3rd largest used scooter in India)

TVS Star

TVS Star City

TVS Star Sport

TVS Victor (110 cc)

TVS Victor EDGE (125 cc)TVS Flame (125 cc,ccvti technology)

TVS Scooty
http://en.wikipedia.org/wiki/TVS_Apachehttp://en.wikipedia.org/wiki/TVS_Apache


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INVESTMENTS OF SHANTHI TVS

The following were the investments made by Mr.Dhamodar V.

Shanbagh the proprietor of SHANTHI TVS for establishment of this

motorcycle giant in Shimoga:

Particulars Amount (in Rs.)

Land Purchased 15,00,000

Vehicles(Initial Investment) 5,00,000

Spare Parts(Initial Investment) 2,00,000

Furniture & Fittings 1,50,000

Automated Workshop 2,00,000

TOTAL 25,50,000

ORGANISTIONAL BEHAVIOUR

In firm size , it is humanly impossible for an individual to do

justice to the multitudes and the complex demand of the managing and

operating of the business .since management essentially implies taking

work from other as per the plan . there authority to the work done from

the later as per specific directives . All the management function of

planning , organizing , directing and controlling cannot be perform by an

officer at the top.

In short authority has to deligated as the responsibility diversified

in order achieve optimum results.


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ORGANISTIONAL STRUCTURE

The pattern of network of relationship between the variousposition is in a firm as well as between the person who hold those

position referred to as organizational chart.

As it has been mentioned earlier that it is a sole proprietary

concern, followed by one manager, one workshop in charge, one

supervisor, one spare part in charge, one receptionist.

Under the workshop in charge there are two skilled mechanics

and two mechanics cum electricians and under each of them there are

two helpers.

The top down chart of the SHANTHI TVS, the major function at

the top which subordinates function is successive lower position.


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SERVICES OFFERED BY SHOWROOM

SHANTHI TVS provide quality services to their customers to keep

long lasting customers relationship. The services offered by the

showroom are:

Sales Repairs

Servicing Maintenance of vehicles

The unit undertakes all kinds of sales, repairs, servicing and

maintenance of all TVS motorcycles. As a sub-dealer SHANTHI TVS

provides 2 years warranty after sales services to all TVS motorcycles on

certain terms & conditions. It offers FIVE free services for new vehicles,regular services after free services and general checkups. Everyday

there are at least 15-20 vehicles for servicing.

The free services are offered on all TVS motorcycles on the

following basis:

Free Services Eligibility

First Service 500-750 kms or 1month from the

date of purchase

Second Service 2500 -3000kms or 3 month from

the date of purchase

Third Service 5500-6000kms or 6 month from



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Fourth Service 7000-7500 kms or 9 month from


Fifth Service 11500-12000kms or 12 monthfrom the date of purchase

COMPETITORS

As the business grows the competition also increases. So the firm

to be successful must prove greater customer value and satisfaction

than its competitors. So the firm should carry out continuous innovative

marketing strategy to hold the market. The main competitors of

SHANTHI TVS are:

Hero Honda Motors (Hero Honda). OM Ganesh Auto (Yamaha-Escorts). Amar Sales & Services (Kinetic Engg Ltd.). Supmer motors ( Bajaj)

SALES PROMOTION

Sales promotion tool are used by most firm including

manufacturers, distrubuters, retailers and trade association. They are

targeted towards final buyers. It is a short term incentives to encourage


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purchase or sale of a product, where advertising offers reason to buy a

product , sales promotion offers reason to buy now .

Promotion plays an important role in the total performance mix.

Mahamaya Motors undertakes various promotional activities. Such as:

Exchange offers by arranging exchange melas

Monsoon Mela Mega service camp

Finance facilities Test drive Free service camps Keeping customer data base Calling for free service to the customers Follow-up customers complaint

Diwali Dhamaka offers Free gifts with bikes (mobiles, electronic items).

OBJECTIVES

The main objective of the study is finding the popularity of TVS co in

Shimoga and also the titled itself indicates the Consumer behaviour

towards TVS Apache in Shimoga and to see why the customer preferring

TVS Apache at the alternatives of Hero HondasCBZ Xtreme and Bajajs

Pulsar .


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The main sub objectives of the study are outlined below:

To study the market share of TVS motors

To study the customers biking preference To study the customers want and demand To make necessary suggestion on the basis of study conducted

CUSTOMER SATISFACTION:

Satisfaction is a persons feelings of pleasure or disappointment

resulting from comparing a products perceived performance (oroutcome) in relation to his or her expectations. Whether the buyer is

satisfied after purchase depends on the offers performance in relation

to the buyers expectations. If the performance falls short of the

expectations, the customer is dissatisfied. If the performance matches

the expectations, the customer is satisfied. If the performance exceeds

expectations the customer is highly satisfied or delighted.

A company would be wise to measure customer satisfaction

regularly because one key to customer retention is customer

satisfaction. A highly satisfied customer generally stays loyal longer,

buys more as the company introduces new products and upgrades

existing products, talks favorably about the company and its products,pays less attention to competing brands and is less sensitive to price,

offers product or service ideas to the company, and costs less to serve

than new customers because transactions are routine.

When customers rate their satisfaction with an element of the

companys performance - say, delivery. It could mean early delivery, on-time delivery, order completeness, and so on. The company must also


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realize that two customers can report being highly satisfied for

different reasons. One may be easily satisfied most of the time and the

other might be hard to please but was pleased on this occasion.

A number of methods exist to measure customer satisfaction.

Periodic surveys can track customer satisfaction directly. Respondents

can also be asked additional questions to measure repurchase intention

and the likelihood or willingness to recommend the company and brand

to others. Companies that do achieve high customer satisfaction ratingsmake sure their target market knows it. For customer centered

companies, customer satisfaction is both a goal and a marketing tool.

Although the customer-centered firm seeks to create high customer

satisfaction, that is not its ultimate goal. If the company increases

customer satisfaction by lowering its price or increasing its services, the

result may be lower profits. The company might be able to increase itsprofitability by means other than increased satisfaction (for example, by

improving manufacturing processes or investing more on R&D). Also,

the company has many stakeholders, including employees, dealers,

suppliers and stock holders. Spending more to increase customer

satisfaction might divert funds from increasing the satisfaction of other

partners. Ultimately, the company must operate on the philosophy

that it is trying to deliver a high level of customer satisfaction subject to

delivering acceptable levels of satisfaction to the other stakeholders,

given its total resources.


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Survey research:

Survey research is the systematic gathering of information from

respondents for the purpose of understanding and/or predicting some

aspects of the behavior of the population of interest. It is the most

common method of collecting primary data for marketing decisions.

Survey can provide data on attitudes, feelings, beliefs, past and intended

behavior, knowledge, ownership, personal characteristics and other

descriptive items. Survey research is concerned with administration of

questionnaires (interviewing). The survey research must be concerned

with sampling, questionnaire design, questionnaire administration and

data analysis. The administration of questionnaire to an individual or

group of individuals is called an interview.

A questionnaire is simply a formalized set of questions for elicitinginformation. As such, its function is measurement and it represents the

most common form of measurement in marketing research.


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METHADOLOGY

The report has been prepared as per the information obtained

from two sources. They are:

Primary data Secondary data

Primary data:

The primary data included the information collected from the

Proprietor, manager and employees of Shanthi TVS.

Structured questionnaire Personal interview with customers

Secondary data:

Secondary data includes

Data from various magazines esp. bike magazines.

Internet

Brochures

Books

Newspapers etc


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Definition of Population:

The population was defined as Bajaj motorcycles owners of 18

years of age and older (element) at showroom and market (unit) inShimoga (extent) during the month of December 07-March 10 (time).

Sampling Plan:

Data collected has been analyzed and interpreted by using simple

percentage method and finally the data is presented in graphs and

charts.

Sampling Frame :

Customers visit

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34 Tvs Apache in Shimoga

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