Sales promotion is one level or type of marketing aimed either at the

consumer or at the distribution channel (in the form of sales-incentives). It is

used to introduce new product, clear out inventories, attract traffic, and to lift
sales temporarily. It is more closely associated with the marketing of products
than of services. The American Marketing Association (AMA), in its Webbased "Dictionary of Marketing Terms," defines sales promotion as "media
and nonmedia marketing pressure applied for a predetermined, limited period
of time in order to stimulate trial, increase consumer demand, or improve
product availability." Business pundits and academic students of business
have developed almost fancifully sophisticated views of sales promotion. In
down-to-earth terms it is a way of lifting sales temporarily by appealing to
economic motives and impulse-buying behavior. The chief tools of sales
promotion are discounts ("sales"), distribution of samples and coupons, the
holding of sweepstakes and contests, special store displays, and offering
premiums and rebates. All of these techniques require some kind of
communication. Thus sales promotion and advertising are difficult to
distinguish.
The need for promotion arises from the intensity of competition. Sellers must
somehow attract customers' attention. In the open markets of old (and farmers
markets of today), sellers did and do this by shouting, joking with customers,
and sometimes by holding up a squealing piglet for everyone to see. Priya
Raghubir and his coauthors, writing in California Management Review,
identify "three faces" of consumer promotions: these are information,
economic incentive, and emotional appeal. Information may take the form of
advertising the availability of something, incentives are offered in the form of
discounts, and emotional appeals are made by displays and, of course, by the
low price itself.
Precisely because sales promotions must provide incentiveswhether to the
distribution channel, the company's own sales people, or to the consumer
they cost money by definition and must produce additional volume to pay for
the expenditures. A grand sale that clears out the inventory but, with added
advertising costs factored in, reduces margin too isa failure. Sales
promotions therefore must be carefully calibrated to achieve the purpose.

Holding promotions too frequently will habituate customers to buy only when
promotions are in effect. Avoiding promotions altogether will let competitors
draw customers away. Alas, business never fails but to challenge the
participant'.

GROWTH OF SALES PROMOTION

Craig Endicott and Kenneth Wylie, writing for Advertising Age in the
magazine's 62nd annual Agency Report, indicate a continued shift of
revenues in advertising from traditional to new forms of media. They label the
new forms as "marketing services" and comment as follows: "Marketing
servicesidentified as all forms of interactive, sales promotion and direct
marketing in this reportgrew 11.3% to $7.66 billion in revenue in the U.S. [in
2005]; traditional advertising and its media component advanced to $12.02
billion, a 5.1% advance that was slightly stronger than last year." The growth
of sales promotion, a significant portion of total marketing services
expenditures, is no doubt in part due to the proliferation of media channels by
cable, the availability of the Internet to channel direct marketing messages,
and simply the fact that advertising has become so ubiquitous it has become
less effective: people tune (or mute) it out.

CONSUMER PROMOTIONS
Consumer sales promotions are steered toward the ultimate product users
typically individual shoppers in the local marketbut the same techniques can
be used to promote products sold by one business to another, such as
computer systems, cleaning supplies, and machinery. In contrast, trade sales
promotions target resellerswholesalers and retailerswho carry the
marketer's product. Following are some of the key techniques used in
consumer-oriented sales promotions.
Price Deals
A consumer price deal saves the buyer money when a product is purchased.
The main types of price deals include discounts, bonus pack deals, refunds or
rebates, and coupons. Price deals are usually intended to encourage trial use

of a new product or line extension, to recruit new buyers for a mature product,
or to convince existing customers to increase their purchases, accelerate their
use, or purchase multiple units. Price deals work most effectively when price
is the consumer's foremost criterion or when brand loyalty is low.
Buyers may learn about price discounts either at the point of sale or through
advertising. At the point of sale, price reductions may be posted on the
package, on signs near the product, or in storefront windows. Many types of
advertisements can be used to notify consumers of upcoming discounts,
including fliers and newspaper and television ads. Price discounts are
especially common in the food industry, where local supermarkets run weekly
specials. Price discounts may be initiated by the manufacturer, the retailer, or
the distributor. For instance, a manufacturer may "pre-price" a product and
then convince the retailer to participate in this short-term discount through
extra incentives. For price reduction strategies to be effective, they must have
the support of all distributors in the channel. Existing customers perceive
discounts as rewards and often respond by buying in larger quantities. Price
discounts alone, however, usually do not induce first-time buyers.
Another type of price deal is the bonus pack or banded pack. When a bonus
pack is offered, an extra amount of the product is free when a standard size of
the product is bought at the regular price. This technique is routinely used in
the marketing of cleaning products, food, and health and beauty aids to
introduce a new or larger size. A bonus pack rewards present users but may
have little appeal to users of competitive brands. A banded pack offer is when
two or more units of a product are sold at a reduction of the regular single-unit
price. Sometimes the products are physically banded together, such as in
toothbrush and toothpaste offers.
A refund or rebate promotion is an offer by a marketer to return a certain
amount of money when the product is purchased alone or in combination with
other products. Refunds aim to increase the quantity or frequency of
purchase, to encourage customers to "load up" on the product. This strategy
dampens competition by temporarily taking consumers out of the market,
stimulates the purchase of postponable goods such as major appliances, and

creates on-shelf excitement by encouraging special displays. Refunds and

rebates are generally viewed as a reward for purchase, and they appear to
build brand loyalty rather than diminish it.
Coupons are legal certificates offered by manufacturers and retailers. They
grant specified savings on selected products when presented for redemption
at the point of purchase. Manufacturers sustain the cost of advertising and
distributing their coupons, redeeming their face values, and paying retailers a
handling fee. Retailers who offer double or triple the amount of the coupon
shoulder the extra cost. Retailers who offer their own coupons incur the total
cost, including paying the face value. In this way, retail coupons are equivalent
to a cents-off deal.
Manufacturers disseminate coupons in many ways. They may be delivered
directly by mail, dropped door to door, or distributed through a central location
such as a shopping mall. Coupons may also be distributed through the media
magazines, newspapers, Sunday supplements, or free-standing inserts
(FSI) in newspapers. Coupons can be inserted into, attached to, or printed on
a package, or they may be distributed by a retailer who uses them to generate
store traffic or to tie in with a manufacturer's promotional tactic. Retailersponsored coupons are typically distributed through print advertising or at the
point of sale. Sometimes, though, specialty retailers or newly opened retailers
will distribute coupons door to door or through direct mail.
Contests/Sweepstakes
The main difference between contests and sweepstakes is that contests
require entrants to perform a task or demonstrate a skill that is judged in order
to be deemed a winner, while sweepstakes involve a random drawing or
chance contest that may or may not have an entry requirement. At one time,
contests were more commonly used as sales promotions, mostly due to legal
restrictions on gambling that many marketers feared might apply to
sweepstakes. But the use of sweepstakes as a promotional tactic has grown
dramatically in recent decades, partly because of legal changes and partly
because of their lower cost. Administering a contest once cost about $350 per
thousand entries, compared to just $2.75 to $3.75 per thousand entries in a

sweepstakes. Furthermore, participation in contests is very low compared to

sweepstakes, since they require some sort of skill or ability.
Special Events
According to the consulting firm International Events Group (IEG), businesses
spend over $2 billion annually to link their products with everything from jazz
festivals to golf tournaments to stock car races. In fact, large companies like
RJR Nabisco and Anheuser-Busch have special divisions that handle only
special events. Special events marketing offers a number of advantages. First,
events tend to attract a homogeneous audience that is very appreciative of the
sponsors. Therefore, if a product fits well with the event and its audience, the
impact of the sales promotion will be high. Second, event sponsorship often
builds support among employeeswho may receive acknowledgment for their
participationand within the trade. Finally, compared to producing a series of
ads, event management is relatively simple. Many elements of event
sponsorship are prepackaged and reusable, such as booths, displays, and
ads. Special events marketing is available to small businesses, as well,
through sponsorship of events on the community level.
Premiums
A premium is tangible compensation that is given as an incentive for
performing a particular actusually buying a product. The premium may be
given for free, or may be offered to consumers for a significantly reduced
price. Some examples of premiums include receiving a prize in a cereal box or
a free garden tool for visiting the grand opening of a hardware store.
Incentives that are given for free at the time of purchase are called direct
premiums. These offers provide instant gratification, plus there is no confusion
about returning coupons or box tops, or saving bar codes or proofs of
purchase.
Other types of direct premiums include traffic builders, door openers, and
referral premiums. The garden tool is an example of a traffic-builder premium
an incentive to lure a prospective buyer to a store. A door-opener premium
is directed to customers at home or to business people in their offices. For
example, a homeowner may receive a free clock radio for allowing an

insurance agent to enter their home and listening to his sales pitch. Similarly,
an electronics manufacturer might offer free software to an office manager
who agrees to an on-site demonstration. The final category of direct
premiums, referral premiums, reward the purchaser for referring the seller to
other possible customers.
Mail premiums, unlike direct premiums, require the customer to perform some
act in order to obtain a premium through return mail. An example might be a
limited edition toy car offered by a marketer in exchange for one or more
proofs-of-purchase and a payment covering the cost of the item plus handling.
The premium is still valuable to the consumer because he or she cannot
readily buy the item for the same amount.
Continuity Programs
Continuity programs retain brand users over a long time period by offering
ongoing motivation or incentives. Continuity programs demand that
consumers keep buying the product in order to get the premium in the future.
Trading stamps, popularized in the 1950s and 1960s, are prime examples.
Consumers usually received one stamp for every dime spent at a participating
store. The stamp company provided redemption centers where the stamps
were traded for merchandise. A catalog listing the quantity of stamps required
for each item was available at the participating stores. Today, airlines'
frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequent-shopper
programs, and bonus-paying credit cards are common continuity programs.
When competing brands have reached parity in terms of price and service,
continuity programs sometimes prove a deciding factor among those
competitors. By rewarding long-standing customers for their loyalty, continuity
programs also reduce the threat of new competitors entering a market.
Sampling
A sign of a successful marketer is getting the product into the hands of the
consumer. Sometimes, particularly when a product is new or is not a market
leader, an effective strategy is giving a sample product to the consumer, either
free or for a small fee. But in order for sampling to change people's future

purchase decisions, the product must have benefits or features that will be
obvious during the trial.
There are several means of disseminating samples to consumers. The most
popular has been through the mail, but increases in postage costs and
packaging requirements have made this method less attractive. An alternative
is door-to-door distribution, particularly when the items are bulky and when
reputable distribution organizations exist. This method permits selective
sampling of neighborhoods, dwellings, or even people. Another method is
distributing samples in conjunction with advertising. An ad may include a
coupon that the consumer can mail in for the product, or it may include an
address or phone number for ordering. Direct sampling can be achieved
through prime media using scratch-and-sniff cards and slim foil pouches, or
through retailers using special displays or a person hired to hand out samples
to passing customers. Though this last technique may build goodwill for the
retailer, some retailers resent the inconvenience and require high payments for
their cooperation.
A final form of sample distribution deals with specialty types of sampling. For
instance, some companies specialize in packing samples together for delivery
to homogeneous consumer groups, such as newlyweds, new parents,
students, or tourists. Such packages may be delivered at hospitals, hotels, or
dormitories and include a number of different types of products.

TRADE PROMOTIONS
A trade sales promotion is targeted at resellerswholesalers and retailers
who distribute manufacturers' products to the ultimate consumers. The
objectives of sales promotions aimed at the trade are different from those
directed at consumers. In general, trade sales promotions hope to accomplish
four goals: 1) Develop in-store merchandising support, as strong support at
the retail store level is the key to closing the loop between the customer and
the sale. 2) Control inventory by increasing or depleting inventory levels, thus
helping to eliminate seasonal peaks and valleys. 3) Expand or improve
distribution by opening up new sales areas (trade promotions are also

sometimes used to distribute a new size of the product). 4) Generate

excitement about the product among those responsible for selling it. Some of
the more common forms of trade promotionsprofiled belowinclude pointof-purchase displays, trade shows, sales meetings, sales contests, push
money, deal loaders, and promotional allowances.
Point-of-Purchase (POP) Displays
Manufacturers provide point-of-purchase (POP) display units free to retailers
in order to promote a particular brand or group of products. The forms of POP
displays include special racks, display cartons, banners, signs, price cards,
and mechanical product dispensers. Probably the most effective way to
ensure that a reseller will use a POP display is to design it so that it will
generate sales for the retailer. High product visibility is the basic goal of POP
displays. In industries such as the grocery field where a shopper spends about
three-tenths of a second viewing a product, anything increasing product
visibility is valuable. POP displays also provide or remind consumers about
important decision information, such as the product's name, appearance, and
sizes. The theme of the POP display should coordinate with the theme used in
ads and by salespeople.
Trade Shows
Thousands of manufacturers display their wares and take orders at trade
shows. In fact, companies spend over $9 billion yearly on these shows. Trade
shows provide a major opportunity to write orders for products. They also
provide a chance to demonstrate products, disseminate information, answer
questions, and be compared directly to competitors. Related to trade shows,
but on a smaller scale, are sales meetings sponsored by manufacturers or
wholesalers. Whereas trade shows are open to all potential customers, sales
meetings are targeted toward the company's sales force and/or independent
sales agents. These meetings are usually conducted regionally and directed
by sales managers. The meetings may be used to motivate sales agents, to
explain the product or the promotional campaign, or simply to answer
questions. For resellers and salespeople, sales contests can also be an

effective motivation. Typically, a prize is awarded to the organization or person

who exceeds a quota by the largest percentage.
Push Money
Similarly, push money (PM)also known as spiffsis an extra payment given
to salespeople for meeting a specified sales goal. For example, a
manufacturer of refrigerators might pay a $30 bonus for each unit of model A,
and a $20 bonus for each unit of model B, sold between March 1 and
September 1. At the end of that period, the salesperson would send evidence
of these sales to the manufacturer and receive a check in return. Although
some people see push money as akin to bribery, many manufacturers offer it.
Deal Loaders
A deal loader is a premium given by a manufacturer to a retailer for ordering a
certain quantity of product. Two types of deal loaders are most typical. The
first is a buying loader, which is a gift given for making a specified order size.
The second is a display loader, which means the display is given to the retailer
after the campaign. For instance, General Electric may have a display
containing appliances as part of a special program. When the program is over,
the retailer receives all the appliances on the display if a specified order size
was achieved.
Trade Deals
Trade deals are special price concessions superseding, for a limited time, the
normal purchasing discounts given to the trade. Trade deals include a group of
tactics having a common themeto encourage sellers to specially promote a
product. The marketer might receive special displays, larger-than-usual
orders, superior in-store locations, or greater advertising effort. In exchange,
the retailer might receive special allowances, discounts, goods, or money. In
many industries, trade deals are the primary expectation for retail support, and
the marketing funds spent in this area are considerable. There are two main
types of trade deals: buying allowances and advertising/display allowances.
Buying Allowances

A buying allowance is a bonus paid by a manufacturer to a reseller when a

certain amount of product is purchased during a specific time period. For
example, a reseller who purchases at least 15 cases of product might receive
a buying allowance of $6.00 off per case, while a purchase of at least 20
cases would result in $7.00 off per case, and so forth. The payment may take
the form of a check or a reduction in the face value of an invoice. In order to
take advantage of a buying allowance, some retailers engage in "forward
buying." In essence, they order more merchandise than is needed during the
deal period, then store the extra merchandise to sell later at regular prices.
This assumes that the savings gained through the buying allowance is greater
than the cost of warehousing and transporting the extra merchandise. Some
marketers try to discourage forward buying, since it reduces profit margins
and tends to create cyclical peaks and troughs in demand for the product.
The slotting allowance is a controversial form of buying allowance. Slotting
allowances are fees retailers charge manufacturers for each space or slot on
the shelf or in the warehouse that new products will occupy. The controversy
stems from the fact that in many instances this allowance amounts to little
more than paying a bribe to the retailer to convince him or her to carry your
company's products. But many marketers are willing to pay extra to bring their
products to the attention of consumers who are pressed for time in the store.
Slotting allowances sometimes buy marketers prime spaces on retail shelves,
at eye level or near the end of aisles.
The final type of buying allowance is a free goods allowance. In this case, the
manufacturer offers a certain amount of product to wholesalers or retailers at
no cost if they purchase a stated amount of the same or a different product.
The allowance takes the form of free merchandise rather than money.
Advertising Allowances
An advertising allowance is a dividend paid by a marketer to a reseller for
advertising its product. The money can only be used to purchase advertising
for example, to print flyers or run ads in a local newspaper. But some
resellers take advantage of the system, so many manufacturers require
verification. A display allowance is the final form of trade promotional

allowance. Some manufacturers pay retailers extra to highlight their display

from the many available every week. The payment can take the form of cash
or goods. Retailers must furnish written certification of compliance with the
terms of the contract before they are paid. Retailers are most likely to select
displays that yield high volume and are easy to assemble.

BIBLIOGRAPHY
Boone, Louis E. Contemporary Marketing 2006. Thomson South-Western,
2006.
Cummins, Julian, and Roddy Mullin. Sales Promotion: How to Create,
Implement and Integrate Campaigns That Really Work. Kogan Page,
2002.
Endicott, Craig R., and Kenneth Wylie. Agency Report. Advertising Age. 1
May 2006.

Raghubir, Priya, J. Jeffrey Inman, and Hans Grande. "The Three Faces of
Consumer Promotions." California Management Review. Summer 2004.
Taylor, Derek. Hospitality Sales and Promotion. Butterworth-Heinemann,
2001.
van Heerde, Harold J., Peter S.H. Leeflang, and Dick R. Wittink.
"Decomposing the Sales Promotion Bump with Store Data." Marketing
Science. Summer 2004.

TVS Motor Company Limited Company Profile TVS Motor Company, the flagship
company of the TVS Group, is Indias third largest two-wheeler manufacturer and
one among the top ten in the world. The TVS Group was established back in 1911,
when the founder of the company, Shri T V Sundaram Iyengar created an enduring
business, led by a family of like-minded workers and managers united by a set of

high, yet shared principles. Driven by this inspiration, the TVS group has today
emerged as India's leading player in the automobile and automotive components
industries. The group has 30 companies employing a work force of around 40,000
people. TVS Motor Company is the largest among the group companies in terms of
size and turnover. Today, TVS Motor Company has, o 4 manufacturing plants (Hosur
in Tamilnadu, Mysore in Karnataka, Nalagarh in Himachal Pradesh India and
Karawang - Indonesia) o 16% market share in the two-wheeler industry in India o
Product offerings in all segments of the two-wheeler industry in India o Product
offerings for the three-wheeler industry in India o More than 15 million customers o
Products exported to more than 50 countries worldwide Leading from the front, the
Chairman of TVS Motor Company, Mr.Venu Srinivasan, has won many laurels for the
company. The most recent awards conferred on him, while being head of the
Confederation of Indian Industries include the Honoris Causa Doctor of Science (D.
Sc.) for his outstanding contributions in the field of Quality Movement and
Manufacturing Excellence, the distinguished civilian honour Order of Diplomatic
Service Merit (Heung-In Medal) conferred by the President of the Republic of Korea,
His Excellency Lee Myung-bak in recognition of his valuable contribution in
promoting Korea-India bilateral relations and the prestigious honour by the
President of Indian with the Padma Shri award for his valuable and outstanding
contributions in the field of Trade and Industry. The JRD Tata Corporate, The Star of
Asia award by Business Week, The Jamshedji TATA Lifetime Quality Achievement
Award, Emerging Corporate Giant - Times & Harvard Business School Association
are some of the other high-profile awards bestowed on him. Resilience, can-do
attitude, indomitable spirit to continuously better industry norms, doing business
with a human touch and putting customers at the forefront are some of the salient
features that best define Team TVS. Driven by technology and innovation at the
helm, TVS Motor Company boasts of a rich talent pool, manufacturing facilities that
conform to world class standards and constantly emphasizes a strong commitment
to ensure best practices. The Company has been a competitive player, constantly
challenging industry standards and creating revolutionary innovations. Take for
example the many firsts that the Company has been credited with, such as the
deployment of a catalytic converter in a 100 cc motorcycle or even the first four
stroke 150cc motorcycle; both premiered from TVS Motor Company. Also, there is
the Apache, which in 2006 became the first Indian motorcycle to win six prestigious
awards in a row and that too, immediately on being launched. The companys
penchant for quality resulted in it becoming the first two-wheeler manufacturer to
win the coveted Deming Award in 2002. The year 2007 also proved to be a special
one for the Company as in that year; it became the first Indian automobile
manufacturer to roll out as many as seven new products on a single day, a
testimony to manufacturing prowess. TVS Motor Company is committed to achieve
total customer satisfaction through excellence in quality, its management
philosophy being based on five pillars of TQM (Total Quality Management). Quality
awareness therefore percolates through the entire organisation from new product
development to after sales services. The current product portfolio of the company

comprise of motorcycles including TVS StaR in the economy segment, TVS Flame in
the executive segment and TVS Apache RTR in performance segment. TVS Scooty
Pep+, TVS Scooty Teenz, TVS Scooty Teenz Electric and TVS Scooty Streak make up
the scooterette segment while XL Super and Heavy Duty form the mopeds segment.
The company recently launched Indias first clutchless motorcycle, TVS Jive along
with an automatic metal bodied scooter TVS WEGO therefore offering consumers a
comprehensive product portfolio. TVS Motor Company is renowned for its human
resource management. The principle of Total Employee Involvement (TEI) that the
company employs, gives equal opportunity to each employee to create a promising
career path. Employees get exposure to various skill developmental aspects like
Cross Functional Teams (CFT), Supervisory Improvement Teams (SIT), Quality Control
Circles (QCC) among various others. Specific care is taken to ensure the creation
and maintenance of an incomparable working environment with employee welfare
at the focal point. TVS Motor Company believes in going beyond the product and
reaching out to people. It values customers and their expectations. In fact, it is this
attribute that has inspired the company to innovate with concepts like 99 colours for
TVS Scooty Pep+, balancing wheels for first-time scooter riders and among many
others, racing technology in the Apache RTR for performance lovers. This has
resulted in the company enjoying a base of more than 15 million satisfied
customers. Constant innovation has led to regular setting of new benchmarks to
meet fresh challenges and customer requirements. While adopting new
technologies and processes, there is the ever present rationale to continually
remain a green company, sensitive to the ever changing needs of the
environment. As part of its global operations, TVS Motor Company has set up a
manufacturing facility in Indonesia, which caters specifically to the Indonesian and
ASEAN Markets. PT TVS Motor Company Indonesia, wholly owned subsidiary of TVS
Motor Company, manufactures TVS Neo, the new generation of bebeks for those
markets. TVS Motor Company has international presence in more than 50 countries
in Asian, African and Latin American Continents and will enter more international
markets in due course. In India, the company functions through a strong network of
sales, service, authorised service centers and other certified service points.

TVS Motor Company Ltd

BSE: 532343 | NSE: TVSMOTOR | ISIN: INE494B01023
Market Cap: [Rs.Cr.] 11,164.85 | Face Value: [Rs.] 1
Industry: Automobiles - Motorcycles / Mopeds

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Company Profile
TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-wheeler
manufacturer in India. The company manufactures a wide range of two-wheelers from mopeds to
racing inspired motorcycles. The company is having their manufacturing plants at Hosur in
Tamilnadu, Mysore in Karnataka and Solan in Himachal Pradesh. They are also having one unit
located at Indonesia. Their subsidiaries include Sundaram Auto Components Ltd, TVS Motor
Company (Europe) BV, TVS Motor (Singapore) Pte Ltd, PT TVS Motor Company, Indonesia,
TVS Energy Ltd and TVS Housing Ltd. TVS Motor Company Ltd is a part of Sundaram Clayton
group in TVS group of companies. In the year 1979, Sundaram-Clayton Ltd started Moped
Division at Hosur to manufacture TVS 50 mopeds. In the year 1982, the company entered into a
technical know-how and assistance agreement with Suzuki Motor Co Ltd of Japan and in the
year 1985, they incorporated a new company Lakshmi Auto Components Pvt Ltd for the
manufacture of critical engines and transmission parts. In the year 1986, the company acquired
the assets of the moped division from Sundaram Clayton Ltd. Also, the name of the company
was changed from Indo Suzuki Motorcycles Ltd to TVS Suzuki Ltd. In the year 1992, they
launched two modes of motor cycles namely, Samurai and Shogun and in the year 1993, they
launched TVS Scooty. During 1999-2000, TVS Suzuki Ltd was amalgamated with Sundaram
Auto Engineers Ltd, an unlisted group company which was incorporated in the year 1992. As per
the scheme, all the assets and liabilities of erstwhile TVS Suzuki Ltd together with all obligations
and contingent liabilities were vested in Sundaram Auto Engineers (India) Ltd with effect from
April 22, 1999. This merged entity was later renamed TVS Suzuki Ltd. The TVS group and
Suzuki Motor Corporation parted ways from their 15-year-old joint venture on September 27,
2001. The shares held by the Suzuki Motor Corporation were acquired by Anusha Investments
Ltd, a wholly owned subsidiary of Sundaram-Clayton Ltd for Rs 9 crore. Thus, the company
became a subsidiary of Sundaram-Clayton Ltd with effect from November 15, 2001. Since,
Suzuki Motor Corporation ceased to be a shareholder of the company, the company cannot use
the word 'Suzuki' as the part of their name and hence the name of the company was changed to
TVS Motor Company Ltd. During the year 2002-03, the new stylish TVS Scooty Pep and the
upgraded version of Fiero was launched in the market. In April 1, 2003, the subsidiary company
namely, Lakshmi Auto Components Ltd acquired the entire paid up capital of Sundaram Auto
Components Ltd. Consequently, Sundaram Auto Components Ltd became a subsidiary company
with effect from April 1, 2003. In October 2003, the company entered into a scheme of
arrangement with Lakshmi Auto Components Ltd and Sundaram Auto Components Ltd. As per
the scheme, all the assets and liabilities of the rubber and plastic businesses of Lakshmi Auto
Components Ltd were transferred to Sundaram Auto Components Ltd on slump sale basis on
April 1, 2003 for a consideration of 12.25 crores. The remaining business of Lakshmi Auto
Components Ltd, namely engine components division together with their investments in other
bodies corporate was transferred to the company with effect from April 2, 2003. During the year
2003-04, the company launched new products such as TVS Centra, New Victor GL, Fiero F2 &
Fx and Scooty Pep. During the year 2004-05, they launched new products such as TVS Star,
New Victor GLX, New Victor GX and Scooty Pep 'Splash' series. During the year 2005-06, the
company entered into a joint venture with Columbian party for exploring opportunities in
Columbian market with an equity investment of Rs 5 million. The company incorporated TVS
Motor Company (Europe) B V in Netherlands as a wholly owned subsidiary of the company with

an investment of Rs 91.63 crore. During the year, TVS Motor Singapore Pte Ltd, Singapore
became a wholly owned subsidiary of the company with an investment of Rs 30.51 crore. PT
TVS Motor Company Indonesia was incorporated in Indonesia to manufacture motorcycles and
parts with an investment of USD 27.60 million and became subsidiary of the company in view of
it being the subsidiary of TVS Motor Company (Europe) B V, which holds 75% of the share
capital. The remaining 25% was held by TVS Motor Singapore Pte Ltd. PT TVS Motor
Company Indonesia has acquired lands in Indonesia for setting up a facility for manufacturing
two wheelers. During the year 2006-07, the company has established a new plant in Himachal
Pradesh with an annual production capacity of 4,00,000 units scalable to 6,00,000 units. PT TVS
Motor Company Indonesia, a subsidiary of the company, established a manufacturing facility at
Karawang, near Jakarta in Indonesia with production capacity of 3 lakh vehicles per annum.
During the year, the company launched multiple new products and variants such as, StaR City
ES, StaR Sport, Scooty Teenz and 99 Colors on Scooty PEP. During the year 2007-08, the
company commenced commercial production from its Nalagarh Plant located in Himachal
Pradesh. They commenced their commercial production from their state-of-the art plant located
at Karawang in Indonesia and launched TVS Neo, which is exclusively developed for the
Indonesian market. During the year, the company launched various new products and variants
such as TVS Flame, Apache RTR, StaR Sport, StaR City 110 cc, Scooty TeenZ Electric, TVS
Tru4 Oil. In March 2008, the company launched their three wheeler, TVS King in two variants,
namely two stroke petrol and two stroke LPG. The company won the Team Tech 2007 Award of
Excellence for Integrated use of Advanced Computer Aided Engineering Technologies in product
development. They also won the prestigious SAP ACE 2007 Awards for Customer Excellence in
the Most Innovative Netweaver Category for several SAP implementations that are put in place.
In June 2008, the company entered into a contract manufacturing arrangement with Mahabharat
Motors Manufacturing Pvt Ltd whereby TVS motor cycles will be manufactured at the latter's
two-wheeler manufacturing facility that is located on the outskirts of Kolkata. TVS would help
Mahabharat Motors to set up the factory and provides engineering support to them. The
production would commence from June 2009. During the year 2008-09, the company launched
Scooty Streak, a tough and trendy variant of Scooty Pep+ and Apache RTR RD, premium
segment motorcycle. Also, they launched their three-wheeler, TVS King in six states. In June
2009, T V Sundram Iyengar & Sons Ltd and their subsidiaries acquired the holding of foreign
collaborators, Clayton Dewandre Holdings Ltd in Sundaram-Clayton Ltd. Thus, SundaramClayton Ltd became a subsidiary of T V Sundram Iyengar & Sons Ltd. Consequent to this
acquisition, the company also became the subsidiary of TVS with effect from June 3, 2009.
During the year 2009-10, the company launched TVS JIVE and TVS Wego in the market. They
also launched a four stroke three-wheeler with superior features. They commenced export of
TVS Apache to Brazil. Also, they developed a pan India presence in three-wheelers. In
December 2009, the company acquired the entire shareholding of TVS Energy Ltd. Thus, TVS
Energy became a wholly owned subsidiary of the company. In June 2010, they acquired the
entire paid up capital of TVS Housing Ltd and thus, TVS Housing Ltd became a wholly owned
subsidiary of the company. In October 2010, the company won the SAP ACE Award for
Consumer Excellence 2010 in 'Best Run Award in Automotive' category. They also won the
Silver EDGE award from Information Week, a leading IT magazine for in house design and
development of Data Acquisition System for improving shop floor productivity. Information
Week annually recognize enterprises driving growth and excellence through IT. In November
2010, the company launched TVS TRU4 Premium, a semi-synthetic 4T Engine Oil. In February

2011, Indian Bank signed an MoU with the company for financing three wheelers manufactured
by the company. In March 2011, the company introduced ABS (Anti-lock Braking System) in
their premium segment motorcycle TVS Apache RTR 180, giving the bike formidable stopping
power and superior braking control that compliments its high performance capability.

TVS Motor Company a member of the TVS group is the largest company of the group in
terms of size and turnover. The TVS group has always been inspired by a centurylong mission
and vision of its own destiny. It is not just a business but a way of doing business, which sets
TVS apart from others. TVS Motor Company is the third largest twowheeler manufacturer in
India and one among the top ten in the world, with annual turnover of more than $1 billion in
20082009. It is the flagship company of the $4 billion TVS Group. The company has four
plants located at Hosur and Mysore in south India, in Himachal Pradesh, North India and one in
Indonesia. The company has a production capacity of 2.5 million units a year. TVS Motor's
strength lies in design and development of new products the latest launch of seven products
on the same day seen as a first in automotive history. TVS delivers total customer satisfaction by
anticipating the customer's need and presenting quality vehicles at the right time and at the right
price. The customer and his ever changing need is its continuous source of inspiration.
TVS has been at the forefront in bringing a revolution in the way personal commutation was
happening, way back in the 1980s. Beginning with launching a simple, easytouse moped for
the middle class in India in the 1980s to launching seven new bikes in a single day (first time in
the history of the automotive industry in the world), TVS has often taken the unbeaten path to
innovation.
Milestones:
1980 TVS Motor launched India?s first twoseater 50cc moped TVS 50.

1984 The twowheeler major became the first Indian company to introduce 100cc IndoJapanese
motorcycles.
1994 It launched India?s first indigenous scooterette TVS Scooty, a 100cc model.
199697 Introduced India?s first catalytic converterenabled motorcycle, the 110cc Shogun.
Launched India?s first 5 speed motorcycle, the Shaolin.
2000 Launched TVS Fiero, India?s first 150cc, 4stroke motorcycle.
2001 Launched TVS Victor, 4stroke 110cc motorcycle, India?s first fully indigenously designed
and manufactured motorcycle.
2002 TVS becomes the world?s first twowheeler company to win the world?s most prestigious
recognition in Total Quality Management ? the Deming Award 2002. TVS wins the Technology
Award from Ministry of Science, Government of India for successful commercialization of
indigenous technology.
2004 Launched TVS Centra, a world class 4stroke 100cc motorcycle with revolutionary VT I
engine for best in class mileage. Launched TVS Star, a 100cc motorcycle ideal for the rough
terrain. TVS wins TPM Excellence award from Japan Institute of Plant Maintenance (JIPM).
TVS wins Outstanding design Excellence Award for TVS Scooty Pep.
2005 06 TVS launches its Indonesian plant. Launched TVS Apache, which set the youth?s
imagination on fire. Apache went on to be the Bike of the year for 2006, winning six prestigious
awards.
2007 TVS Motor Company rolls out seven new products. TVS launches its Himachal Pradesh
Plant at Nalagarh.
2008 09 Apache Refresh with Rear Disc Brakes was launched in December 2008. TVS Motor
company bags two coveted IT awards in September 2008 SAP ACE 2008 Award and 2008
Symantec South Asia Visionary Award. Scooty Pep was launched with balancing wheels in
August 2008. Scooty Wimbledon Collection launched in June 2008. Apache RTR FI was
launched June 2008. TVS Motor Company launched the revolutionary 125cc Flame in March
2008. TVS made by its foray into the threewheeler market with TVS King in March 2008.
2009 TVS unveils ?High performance? with Apache RTR 180 in June 2009. TVS scooty Streak
was launched. TVS Flame SR 125 launched was June 2009.
TVS Brands:

? TVS Apache ? TVS Apache RTR FI 160 ? TVS Centra ? TVS Fiero FX ? TVS Flame ? TVS
Scooty ? TVS Star ? TVS Victor ? TVS Victor GLX 125 ? TVS XL Super