Tvs Motor Company Limited

TVS MOTOR COMPANY LIMITED
PROFILE
Board of Directors
VENU SRINIVASAN - Chairman & Managing Director
H. LAKSHMANAN
T. KANNAN
C. R. DUA
K. S. BAJPAI
R. RAMAKRISHNAN
PRINCE ASIRVATHAM
Audit Committee
T. KANNAN - Chairman
C.R. DUA
R. RAMAKRISHNAN
PRINCE ASIRVATHAM
Investors’ Grievance Committee
T. KANNAN - Chairman
VENU SRINIVASAN
R. RAMAKRISHNAN
President & CEO
K.N. RADHAKRISHNAN
Executive Vice President - Finance

S.G. MURALI
Secretary
K.S. SRINIVASAN
TVS Motor Company:
(BSE: 532343, NSE: TVSMOTOR) is the third largest two-wheeler

manufacturer in India and is among the world's top ten.] It is the flagship
company of the parent TVS Group employing over 40,000 people with
an estimated 15 million customers.[3] It manufactures
motorcycles, scooters, mopeds and auto rickshaws. It is India's only two-
wheeler company to have won the Deming Prize awarded for
commitment to quality control, received in 2002.
History
The Legacy of TV Sundaram Iyengar
TVS Motor traces its origins back to the entrepreneurial spirit of Trichur
Venkagaruswamy Sundaram Iyengar who gave up lucrative careers in theIndian
Railways and in banking to set up his own business. He began
with Madurai's first bus service in 1912 and founded T.V.Sundaram Iyengar and
Sons Limited, a company that consolidated its presence in the transportation
business with a large fleet of trucks and buses under the name of Southern
Roadways Limited.[4] When he died in 1955 his sons took the company ahead
with several forays in the automobile sector, including finance, insurance,
manufacture of two-wheelers, tyres and components. The group has managed to
run 33 companies that account for a combined turnover of nearly $3 billion.
The Early Years:
Sundaram Clayton, then the flagship company, was founded in 1962 in
collaboration with Clayton Dewandre Holdings, United Kingdom. It
manufactured brakes, exhausts, compressors and various other automotive parts.
The company set up a plant at Hosur in 1978 to manufacture mopeds as part of
a new division. A technical collaboration with the Japanese auto giant resulted
in the joint-venture Ind Suzuki Limited in 1982 between Sundaram Clayton Ltd
and Suzuki Motor Corporation. Commercial production of motorcycles began in
1984.
The TVS Suzuki Relationship:

TVS and Suzuki shared a 19 year long relationship that was aimed at
technology transfer to enable design and manufacture of two-wheelers
specifically for the Indian market. Rechristened TVS-Suzuki, the company
brought out several models such as the Suzuki Samurai, Suzuki Shogun and
Suzuki Fiero. Differences in opinion on how to run the join venture eventually
led to the partners going their separate ways in 2001 with the company being
renamed TVS Motor, relinquishing rights to use the Suzuki name. There was
also a 30 month moratorium period during which Suzuki promised not to enter
the Indian market with competing two-wheelers.[6] The company also got over a
period of labour unrest that required Chairman Venu Srinivasan to take tough
measures to resurrect a company that was in a state of turmoil. He would go on
to invest in new technology, nurture in-house design, and implement Toyota-
style quality programs.
Rise to Present Prominence

Over the years TVS Motor has grown to be the largest in the group, both in
terms of size and turnover, with four state of the art[8] manufacturing plants in
Hosur, Mysore and Nalagarh in India andKarawang in Indonesia. TVS Motor is
credited with many innovations in the Indian automobile industry, notable
among them being the introduction of India's first two-seater moped, the TVS
50cc. The company became the leader in its category of sub 100 cc mopeds,
having sold 7 million units. It also introduced the TVS Scooty, which is India's
second largest brand in the scooterette segment.[9]The TVS Jive launched in
November 2009 became India's first clutch-free motorbike aimed at a stress-free
rider experience[10] while the unisex scooter Wego is targeted at urban couples,
featuring body-balance technology for easier handling.
TVS Motor won the Deming Application Prize in 2002, becoming the first and
only Indian two-wheeler company to win the award given to companies that do
outstanding work in the field of Quality Management. It is considered to be one
of the world's most prestigious quality awards.[12] The same year, the work done
for the TVS Victor motorcycle won TVS Motor the National Award for
successful commercialization of indigenous technology from the Technology
Development Board, Ministry of Science & Technology, Government of India.
[13]
In 2004, TVS Scooty Pep won the 'Outstanding Design Excellence Award'
from BusinessWorld magazine and the National Institute of
[14]
Design, Ahmedabad. The effective implementation of Total Productivity
Maintenance practices won TVS Motor the TPM Excellence Award given by
the Japan Institute of Plant Maintenance in 2008.
TVS Motor has won several management awards, notable among them being
the Emerging Corporate Giant in the Private Sector awarded by The Economic
Times and the Harvard Business School Association of India. Business
Today magazine awarded TVS Motor the Best Managed Company and the Most
Investor Friendly Company awards. Its advertising practices won it the Good
Advertising award by Auto India Best Brand Awards 2009. [15] Company
Chairman Venu Srinivasan is a recipient of several awards for corporate
excellence such as the Star of Asia Award by Bloomberg BusinessWeek[7] and
the JRD Tata Corporate Leadership Award.[16] The University of Warwick,
United Kingdom gave him an honorary Doctorate of Science degree[17] while the
Government of India honoured him with the Padma Shri, one of India's highest
civilian distinctions.[18]
Innovative implementation of Information Technology has won TVS Motor the
Ace Award for Most Innovative NetWeaver Implementation in 2007 awarded
by technology major SAP AG[19] and the Team Tech 2007 Award of Excellence
for Integrated use of Computer-aided engineering Technologies.[20] TVS was
ranked 54th in The Brand Trust Report published by Trust Research Advisory.
The board has recommended the proposed issue of bonus equity shares to be
considered and approved by the shareholders by passing appropriate resolutions
through Postal Ballot process in accordance with the rules governing Postal
Ballot and in order to complete the issue of bonus equity shares within two
months as required under SEBI (Issue of Capital and Disclosure Requirements)
Regulation, 2009. Therefore, a separate notice is being sent to the shareholders
seeking their consents through Postal Ballot for increasing the authorized share
capital of the Company in terms of Sections, 16, 94 and other applicable
provisions of the Companies Act, 1956 and for capitalization of an equivalent
amount standing to The credit of the general reserve account in order to
accommodate The proposed issue of bonus equity shares.
6. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In 2009-10, the two wheeler industry saw remarkable growth after two
consecutive years of low growth and sales crossed 10 mn units. Early recovery
of the economy from the financial crisis and resurgence in domestic demand
aided by fiscal stimulus resulted in exceptional growth rates of 33% and 40% in
third and fourth quarters of 2009-10 respectively, resulting in an annual growth
rate of 24% for the year. The Company recorded an overall growth of 13.1% in
two wheeler sales. This was driven by an impressive 19.4% growth in scooter
segment and 30.3% growth in the moped segment. Motorcycle sales declined
marginally by 1% mainly due to lower exports owing to the global financial
crisis. Domestic motorcycle sales, however, grew by 6%. New launches of
TVS JIVE and TVS wego gave the Company an impressive entry into the
unaddressed markets of executive segment of motorcycle and higher cc scooter
segment respectively. Both products are expected to pave the way for a higher
market share for the Company in the coming years. Launch of Apache RTR180
has reinforced the Company’s position in the premium segment of the
motorcycle market. During the year, the Company also
launched a four stroke three wheeler with superior features. Sales of spare parts
grew by 34%. The Company achieved annual two wheeler sales of 1.52 mn, a
growth of 13.1% from 1.34 mn units sold in the previous year.
The turnover increased from Rs.3,741 Cr to Rs.4,485 Cr. The profit before tax
(PBT) of Rs.76.17 Cr for the year was higher by144% than the previous year's
PBT of Rs 31.10 Cr. The profit after tax (PAT) of Rs.88.01 Cr for the year was
higher by 183% than the previous year's PAT of Rs.31.08 Cr
INDUSTRY STRUCTURE AND DEVELOPMENTS
The two wheeler industry experienced an impressive growth of 24% during

2009-10. Smaller towns (<1mn population), which accounted for 75% of the
industry, grew by 29% in spite of restricted availability of retail finance to end
customers.
Domestic motorcycle sales grew by 30%. Exports declined by 1% in the first

half of the year, but witnessed a dramatic turnaround in the second half growing
at 34% leading to annual growth of 16%. In the motorcycle category, economy
segment grew by 6% mainly led by export demand. Aided by new launches,
executive and premium segments grew by 30% and 38% respectively.
However, the category share of motorcycles marginally declined from 81% in

2008-09 to 80% in 2010
Economy Executive Premium
YOY:38%
YOY:30%
YOY:6%
Motorcycles category Segment wise growth Ungeared scooters maintained its

momentum with a growth of 24%. Introduction of new products and renewed
focus on market expansion by industry players enabled this growth. The
category share remained constant at 14%. In contrast to the low growth of 2% in
2008-09, mopeds grew by 28% in 2009-10. The category share increased from
5% in 2008-09 to 6% in 2009-10.
BUSINESS OUTLOOK AND OVERVIEW
The growth momentum of the economy is expected to strengthen further.

Coupled with the Government focus on infrastructure improvement, this will
bolster the economies of smaller towns
(<1mn population) and rural areas. This translates to significantly enhanced

disposable incomes across segments. Thus higher Consequently motorcycle
segment is expected to grow by 14%, ungeared scooter segment by 24% and
mopeds by 10%.
BUSINESS HISTORY
In partial fulfillment of the

Requirement for the award of the degree
MASTER OF BUSINESS ADMINISTRATION
Submitted by:
TEAM NO: 10
NAME& REG NO:
1. SUJANA (300)
2. K.C.KANNAN (301)
3. KANNA (302)
4. V.KANNAN (303)
5. KARTHIEESAN (304)
6. KARTHICK (305)
SECTION G, II-SEMESTER
MBA- 1 YEAR
HUMAN RESOURCE MANAGEMENT
DO’S & DON’TS IN AN INTERVIEW
Submitted by:
TEAM NO: 10
NAME& REG NO:
1. SUJANA (300)
2. K.C.KANNAN (301)
3. KANNA (302)
4. V.KANNAN (303)
5. KARTHIEESAN (304)
6. KARTHICK (305)
SECTION G, II-SEMESTER
MBA- 1 YEAR

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TVS MOTOR COMPANY LIMITED

VENU SRINIVASAN - Chairman & Managing Director

Investors’ Grievance Committee

President & CEO

Executive Vice President - Finance

TVS Motor Company:

(BSE: 532343, NSE: TVSMOTOR) is the third largest two-wheeler

The TVS Suzuki Relationship:

Rise to Present Prominence

6. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The two wheeler industry experienced an impressive growth of 24% during

Domestic motorcycle sales grew by 30%. Exports declined by 1% in the first

However, the category share of motorcycles marginally declined from 81% in

Economy Executive Premium

Motorcycles category Segment wise growth Ungeared scooters maintained its

The growth momentum of the economy is expected to strengthen further.

(<1mn population) and rural areas. This translates to significantly enhanced

In partial fulfillment of the

MASTER OF BUSINESS ADMINISTRATION

NAME& REG NO:

DO’S & DON’TS IN AN INTERVIEW

NAME& REG NO:

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