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TOPIC: TVS MOTOR

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Rajan chaurasia

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

It is the only automotive manufacturer in India to get the prestigious Deming Prize. One of its subsidiaries Sundaram Clayton was the first company in India to receive the Deming Prize. This was quickly followed by Sundaram Brake Linings also getting the Deming Prize. This prize is "given to organizations or divisions of organizations that have achieved distinctive performance improvement through the application of TQM in a designated year."Sundaram Clayton went on to be awarded the Japan Quality Medal. The TVS group of companies is mainly situated in Padi, Tamil Nadu, in the outskirts of Chennai (formerly Madras). TVS Motors: In 1980 TVS 50, India's first two-seater moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. A byword for reliability, the TVS 50 had proved itself promising and successful in every test and paved a way for many successes for TVS Suzuki. Likewise the TVS

champ and super Champ gave a reliable and sturdy two wheeler to public, who wanted looks fused with economy. These two wheelers together redefined the category of mopeds in India. TVS later left its collaboration with Suzuki and started to manufacture its own vehicles.

TVS Motors Company is currently the third largest two wheeler company in India with sales of 107,117 units (as of June 2007). The company exported 9,133 units of two wheelers in June 2007. Known traditionally for their conservative attitude, TVS made modest but reliable bikes. Hero honda and Bajaj forayed into the power biking segment with the CBZ and Pulsar respectively. TVS along with Suzuki, had earlier been the leading bike maker with the Shaolins, Shoguns etc. But they were left biting dirt by Bajaj's Pulsar. Soon TVS launched its fiero series of bikes. TVS Group Companies: Sundaram Brake Linings Sundaram Fastners Southern Roadways Sundaram Finance Sundharams Private Limited

PLANNING OF THE COMPANY

TVS Motors plans Rs 500-crore manufacturing facility in Mysore.

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

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

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

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

In the last three years, after the exit of Suzuki, the company has successfully transformed itself from a two-stroke to a four-stroke motorcycle manufacturer. The company has spent aggressively on building a national brand.

TVS has successfully launched a string of successful products including the Victor, Scooty Pep, and the Fiero F2 in the last two

years since the exit of Suzuki. In fact, the Victor — its motorcycle offering in the premium segment with many firsts attached to it like vibration dumper and adjustable shock absorbers — has become the second-largest selling product in its category within two years of launch.

It has transformed itself from a two-stroke to a four-stroke manufacturer over the last three years. The company is planning a spate of other new product introductions too, wherein lead-time will be reduced considerably.

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

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

In the premium segment, TVS has re-launched the Fiero as Fiero F2 with higher power, enhanced styling and better features. Initial response has been quite encouraging as the company sold about 7,000 plus units in August 2003, the analysts said.

"We expect TVS to improve its market share in this segment from 10.2 per cent to 11.2 per cent by FY05," an Enam analyst report said. Exports will be a major thrust area for growth over the next few years with TVS targeting 15 per cent of its total sales volumes from exports over the next five years. Neighboring Asian countries (China and Indonesia), Latin America, European nations and other developing countries are target export markets.

TVS Motor plans to launch new bike

NEW DELHI, SEPT. 2. TVS Motor Company will launch a 100cc entry level motorcycle TVS Star by the end of this month and invest Rs. 200 crores for product development this fiscal. The company is also planning to set up a manufacturing subsidiary in one of the South Asian countries. "TVS Star is ready for the launch. The motorcycle will hit the roads by month-end. We are also going to pump in Rs. 200 crores for new products," TVS Motor Chairman, Venu Srinivasan, said.

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

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

The company also aims to sell 1.4 million two wheelers this year. At present, the company has a production capacity of 110,000-120,000 units and it targets to sell 80,000 motorcycles by October. The company had launched TVS Scooty Pep and 125cc Victor motorcycle recently.

TVS Motor net halves, plans news models for growth

MUMBAI, Jan 25 (Reuters) - TVS Motor Co Ltd. (TVSM.BO: Quote, Profile, Research), India's No.3 motorcycle maker, reported its October-December net profit almost halved, missing analyst forecasts, hit by lack of cheap loans, bike models and cut throat competition.

The company said in a statement its higher-margin motorcycle volumes fell by a fifth to 176,158 units in the third quarter, dragging down net profit to 58.3 million rupees and sales by 6.5 percent to 8.75 billion rupees.

Analysts polled by Reuters estimated a net profit of 82 million rupees on sales of 8.8 billion rupees.

"The motorcycle sales continue to be affected due to stringent norms followed by retail financiers, restricted availability and high rates of interest," the company said in a statement.

The central bank, in a bid to moderate inflation, raised interest rate five times between June 2006 and March 2007 to a five-year high of 7.75 percent, crippling two-wheeler sales in the largest-two-wheeler market after China.

Almost three fourths of two-wheelers in the country are bought with loans.

TVS said its vehicles sales fell 6.5 percent, the steepest compared to larger rivals Hero Honda Motors (HROH.BO: Quote, Profile, Research) and

Bajaj Auto Ltd (BJAT.BO: Quote, Profile, Research), to 339,956 units.

TVS was also unable to raise prices despite higher input cost as competitors offered discounts to lure customers, analysts said.

The company is looking at overcoming the slowdownin motorcycle segment through a slew of

launches and tie-ups with finance companies, it said.   

It has launched a 125 cc motorcycle and an entry level 110 cc bike in the quarter. It plans a three-wheeler, electric scooters and heavy bikes to return to growth.

"With new launches in the two and three-wheeler segments, the company forecasts a positive growth in the fourth quarter," it said

TVS shares ended 2.4 percent up at 44.65 rupees in a Mumbai market that closed 6.6 percent up. (Reporting by Narayanan Somasundaram; Editing by Prem Udayabhanu)

LEADING OF THE COMPANY

TVS Motor Company Ltd.

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

In 1980, TVS produced the TVS 50, India's first two-seater moped that redefined the realm of personal transportation. In 1982, the company entered into a technical collaboration with Suzuki Motor Corporation of Japan which helped the fledgling joint venture gain from the expertise of a global two-wheeler giant like Suzuki.

In 1997, TVS-Suzuki became the first company to launch a 100-cc motorcycle in the Indian market. In 2000, the TVS group and Suzuki Motor Corporation parted ways from their joint venture with the former buying out the 25.97 per cent stake of the Japanese company for Rs 9 crore.

TVS Motor Company is the first two-wheeler manufacturer in the world to be honoured The Deming Prize for Total Quality Management

CONTROLLING TVSMotor Company Ltd has informed BSE regarding a Press Release dated June 04, 2008 titled "TVS Motor Company Strengthens Presence in the East"

Press Release: "In order to strengthen the presence of TVS Motor Company (TVSM) in the east, TVSM, the third largest two wheeler manufacturing Company in India, today announced that it has entered into a MOU with Mahabharat Motors Manufacturing Company Pvt. Ltd, Kolkata Mahabharat Motors will assemble the agreed products as contract manufacturer. The products to be manufactured will be agreed in due course. TVS Motor Company will introduce their world-class quality control standards and assembly procedures. TVS Motor Company has also agreed to provide technical support for the factory construction including master planning, factory layout etc. The proposed complex will have manufacturing and other support facilities and will be located in Uluberia (50 kms from Kolkata), Howrah District, West Bengal. TVS Motor Company currently has three world-class manufacturing facilities in India viz., Tamilnadu, Karnataka and Himachal Pradesh. The proposed contract manufacturing arrangement will lead to vastly improved service levels to the market besides reduction in logistics cost. This step reiterates TVSM's belief in the growth potential of the eastern region of the country

ORGANING

Leo Burnett Kreasindo, Indonesia, announce the launch of a new campaign for PT TVS Motor Company Indonesia and their Neo and Apache brands, featuring a first time endorsement from the long beloved national rock star and people’s hero, Iwan Fals. To differentiate the TVS brands from heavy competition from abroad, Leo Burnett focuses on the analogy that just as Iwan Fals has always listened to the Indonesian people for inspiration, so does

PT TVS Motor Company Indonesia; creating motorbikes especially designed to fulfill their aspirations and needs.

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

In a market largely dominated by Japanese for the past 30 years, TVS’s challenge is to establish PT TVS Motor Company Indonesia as high quality two wheelers manufacturer in Indonesia. In 2000 the market was flooded with local brands, but poor post-sales service and availability of spare parts, created distrust for local bikes. Since then, other local brands have been offering better servicing, but a shadow of skepticism remains.

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

Said K.Vijayakumar, Sales and Marketing Director, PT TVS Motor Company Indonesia: “TVS motor, with its obsession for

understanding consumer needs and a philosophy of Trust, Value and Service, would like to become a trusted brand in Indonesia.”

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

CONTROLLING

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DaviD Bull rrp: 19.99 Mercedes in Motorsport Pioneers to perfection by Alan Henry ... story of Mercedes-Benzs involvement in motorsport, from 1894 when the Daimler V2 engine ... won the worlds first motor race, through the early years of last ... and 1950s. leaves no stone unturned Motorsport News one of the better constructor ... well-known British magazines such as Motor, Motor Sport and The Autocar vividly ... Stirling Moss became Great Britains Mr Motor Racing in the 1950s and his name has ... , Sir Stirling Moss is today one of motorsports best-loved elder statesmen. This ... . The author, a world authority on motorsport and the motor industry, has known Moss ... Behind the wheel with the worlds top motoring journalist by Paul Fr re Paul Fr re is ... most highly respected and widely known motoring journalist in the world today. He is ...

DaviD Bull rrp: 19.99 Mercedes in Motorsport Pioneers to perfection by Alan Henry ... story of Mercedes-Benzs involvement in motorsport, from 1894 when the Daimler V2 engine ... won the worlds first motor race, through the early years of last ... and 1950s. leaves no stone unturned Motorsport News one of the better constructor ... well-known British magazines such as Motor, Motor Sport and The Autocar vividly ... Stirling Moss became Great Britains Mr Motor Racing in the 1950s and his name has ... , Sir Stirling Moss is today one of motorsports best-loved elder statesmen. This ... . The author, a world authority on motorsport and the motor industry, has known Moss ... Behind the wheel with the worlds top motoring journalist by

Paul Fr re Paul Fr re is ... most highly respected and widely known motoring journalist in the world today. .

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