TVS Motor Company

TVS Motor Company is the flagship company of the TVS Group. Sri T.V. Sundaram Iyenger established the TVS GROUP in 1911.

TVS group commands a strong presence in manufacturing of two-wheelers, auto components and computer peripherals. TVS Motor Company's first launch was 50 CC Moped TVS 50 in August 1980. It is the first Indian company to introduce 100 CC Indo-Japanese motorcycles in India in 1984. It was also the first Indian company to launch indigenous scooterette in India in 1994. It has grown rapidly since it's beginning to become one of the prominent two-wheeler manufacturers in India. Today TVS is a well-known brand in the field of bike manufacturing. The manufacturing unit of TVS Motor is located at Hosur and Mysore.

What makes TVS stand out from all other two wheeler companies in the country is that it is without any foreign collaboration. The company was established by T.V Sundaram Iyengar in the year 1911 and was primarily into the production of mopeds. TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. The company has many first to its credit like the introduction of the first indigenous moped and a 100 cc motorcycle in collaboration with Japanese auto giant Suzuki.

When the collaboration ended in 2003, many thought that the company would die a natural death due to the exit of the foreign collaborator. However the company proved its detractors wrong by introducing the TVS Victor and rest as they say is history. The company roped in master blaster Sachin Tendulkar for the promotions and the sales went northwards after that. TVS company is aiming to capture a quarter of the total two wheeler market in the country.

Focus on Motorcycle

TVS group was a pioneer in mopeds but slowly they have shifted focus to the motorcycle segment since the entire market seems to be moving in that direction as consumer preferences and choices have changed with the changing times.The company has been able to outdo itself and spring a surprise, as many analysts felt that the company would be pushed to the periphery of the two wheeler market. With the exit of Suzuki, many felt TVS would have to limit itself to the moped market in the country.

The company did not have a good track record of in-house product development as most of its' earlier ventures like the Shaolin, Shogun and the Supras failed to take off.

This further heightens the importance of the success of the TVS Victor, the company aims to become the number 2 two wheeler manufacturers in India and also want to crack the top five in Asia. The company has products across all categories from premium motorcycles to entry level mopeds and has recently launched Apache in the premium segment.

What do they Manufacture?

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 20082009, and is the flagship company of the USD 4 billion TVS Group.

TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles.

Motorcycles (Apache RTR 180, Flame DS 125, Flame, TVS Jive, StaR City, Sports) Variomatic Scooters (TVS Wego, Scooty Streak, Scooty Pep+, Scooty Teenz) Mopeds (TVS XL Super, TVS XL Heavy Duty)

TVS Motor Company Ltd: History

1982 - The company was incorporated as Indian Motorcycle Pvt. Ltd. on 15th July. Its name was changed to Indo Suzuki Motorcycles Pvt. Ltd. and it was converted into a public limited company on 12th January, 1984.

1985 - A new company "Lakshmi Auto Components Pvt Ltd." was incorporated for the manufacture of critical engines and transmission parts.

1986 - The company acquired the assets of the moped division from Sundaram Clayton Ltd. The name of the company was changed from Indo Suzuki Motorcycles Ltd. to TVS Suzuki Ltd with effect from 18th August

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 which resulted in a lock-out from 28th February1990. The lock out was lifted in the second week of June 1990.

1990 - The company launched a 34cc miniped to take advantage of the Motor Vehicle Act that exempts such vehicles from the payment of road tax

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'.

1998 - TVS Suzuki Ltd, one of the leading two-wheeler manufacturers in the country, has crossed the Rs.1,000-crore turnover mark in 1997-98. TVS will be the first company in the country to introduce the 4 stroke scooter in the Indian market

2000 - The Company, pioneers of Indo-Japanese motorcycles in the country, has launched its latest offering, Suzuki Fiero, in the Kerala market. TVS-Suzuki Ltd formally launched its indigenously developed 4-stroke motorcycle, TVS Victor. The TVS group and Suzuki Motor Corporation parted 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.

2003 - TVS Motor launched 4 new mobikes.

2004 - TVS Motor, on Jan 5 launched Centra, a 100 cc four-stroke motor cycle, with variable timing intelligent (VTI) engines, claiming to give more mileage to consumers. TVS Motor Company (TVS) launches new 125cc, 4-stroke Victor GLX motorcycle in Chennai on May 02, 2004. TVS Motor rolls out TVS Canmobile. TVS unveils new version of 'Victor GX'.

2005 - TVS Motor Company introduced its entry-level 4-stroke motorcycle, 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.

2006 - TVS Motor Company launched a new version of 125 cc Victor GLX with an electric start option.

2007 - TVS Motor Co, has rolled out seven new vehicles, including its first three-wheeler and a new 125 cc bike, aimed at gaining lost share in a highly competitive market.

2009 - TVS Motor Company launched Scooty Streak, which is its latest scooterette targeted at girls of 16 to 20 age group. TVS Motor Company entered the 110 cc segment by unveiling 2 brand new products, an auto-clutch motorcycle and an automatic scooter.

2010 - TVS Motor Company has launched India's first auto-clutch motorcycle, TVS Jive, in Chandigarh.

Awards

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. 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. In 2004, TVS Scooty Pep won the 'Outstanding Design Excellence Award' from Business World magazine and the National Institute of 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. Company Chairman Venu Srinivasan is a recipient of several awards for corporate excellence such as the Star of Asia Award by Bloomberg BusinessWeek and the JRD Tata Corporate Leadership Award. The University of Warwick, United Kingdom gave him an

honorary Doctorate of Science degree while the Government of India honoured him with the Padma Shri, one of India's highest civilian distinctions.

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 and the Team Tech 2007 Award of Excellence for Integrated use of Computer-aided engineering Technologies. TVS was ranked 54th in The Brand Trust Report Mar ' 10 Profit before tax 76.17 Net cash flow-operating 338.91 activity Net cash used in investing -285.25 activity Net cash used in fin. 88.00 activity Net inc/dec in cash and 141.66 equivalent Cash and equivalent -40.65 (begin of year) Cash and equivalent 101.01 (end of year) published by Trust Research Advisory. Mar ' 09 31.10 161.56 -204.30 20.62 -22.12 -18.53 -40.65 Mar ' 08 35.37 6.33 -106.30 -5.12 -105.09 86.56 -18.53 Mar ' 07 90.85 120.09 -228.84 170.96 62.21 24.35 86.56 Mar ' 06 168.45 105.49 -297.00 141.99 -49.52 73.87 24.35

Cash flow

Profit loss account

Mar ' 10 Income Operating income Expenses Material consumed Manufacturing Personnel expenses Selling expenses Administrative Expenses capitalised Cost of sales Operating profit Other recurring Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash Reported net profit Earnings before Equity dividend Preference dividend Dividend tax Retained earnings 4,363.11 3,171.71 90.99 251.39 501.51 138.15 4,153.75 209.36 79.36 288.72 75.36 102.53 1.95 108.88 -11.84 120.72 -32.71 88.01 121.03 28.51 4.36 88.16

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

3,670.92 2,814.09 74.41 204.69 342.95 113.70 3,549.84 121.08 76.16 197.24 64.61 102.89 1.95 27.79 0.02 27.77 3.31 31.08 62.48 16.63 2.83 43.02

3,219.50 2,476.38 65.90 176.55 355.03 100.33 3,174.19 45.31 67.30 112.61 11.47 94.59 1.95 4.60 3.60 1.00 30.77 31.77 60.86 16.63 2.83 41.40

3,854.96 2,945.90 67.36 172.45 413.91 115.39 3,715.01 139.95 74.53 214.48 42.35 87.60 1.88 82.65 24.25 58.40 8.20 -0.32 66.28 101.78 20.19 2.94 78.65

3,234.96 2,359.78 56.16 157.09 353.66 101.35 3,028.04 206.92 59.99 266.91 20.99 93.91 1.72 150.29 51.45 98.84 18.16 5.50 122.50 160.71 30.88 4.33 125.50

Balance Sheet (in Rs. Cr.)

Mar ' 10 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated Net block depreciation Capital work-in-progress Investments Net current assets Current assets, loans & Less : current liabilities & advances Total net current assets provisions Miscellaneous expenses Total not written Notes Book value of unquoted Market value of quoted investments Contingent investmentsliabilities Number of equity sharesoutstanding (Lacs)

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

23.75 841.63

23.75 789.38

23.75 797.83

23.75 785.52

23.75 742.37

829.98 173.31 1,868.67

622.42 283.56 1,719.11

452.68 213.66 1,487.92

446.16 187.40 1,442.83

308.61 76.43 1,151.16

1,909.14 953.41 955.73 27.05 739.26

1,865.36 869.42 995.94 40.43 477.71

1,790.97 774.49 1,016.48 26.57 338.96

1,483.01 685.93 797.08 205.83 344.74

1,378.41 611.63 766.78 26.97 344.19

1,022.03 905.49 116.54 30.09 1,868.67

971.27 841.57 129.70 75.33 1,719.11

839.84 786.70 53.14 52.77 1,487.92

860.59 823.95 36.64 58.54 1,442.83

674.12 754.41 -80.29 93.51 1,151.16

379.79 303.98 121.27 2375.44

393.77 55.73 170.10 2375.44

235.77 118.18 135.65 2375.44

209.95 137.38 230.73 2375.44

209.95 147.31 123.15 2375.44

Shareholdings Share holding pattern as on Face value

31/03/2011

31/12/2010

30/09/2010 1.00 No. Of % Shares Holding 281775786 281775786 59.31 59.31

Indian Promoters Sub total Banks Fin. Inst. and Insurance FII's Sub total Private Corporate Bodies NRI's/OCB's/Foreign Others Sub total General public Grand total

1.00 1.00 No. Of % No. Of % Shares Holding Shares Holding Promoter's holding 281775786 59.31 281775786 59.31 281775786 59.31 281775786 59.31 Non promoter's holding Institutional investors 44878722 22483458 87661890 31384490 1858810 33243300 72406138 475087114 9.45 37904894 7.98 7.24 20.53 6.51 0.34 6.86 13.30 100.00 4.73 34375951 18.45 97553995 Other investors 6.61 0.39 7.00 15.24 100.00 30945700 1629396 32575096 63182237 475087114

29046073 39374924 96782131 22870373 1485208 24355581 72173616 475087114

6.11 8.29 20.37 4.81 0.31 5.13 15.19 100.00

Bonus

The company informed the market (BSE) that the boards of directors of the company have decided to issue bonus shares in the ratio of 1:1 on the record date which would be announced shortly. All the shareholders who will be on roll of the company on record date will be eligible to receive 1 (one) equity share of Rs 10 each held by them. The bonus shares

when issued shall be in all respect rank pari passu with the existing fully paid equity shares of the company.

TVS Motor Company Bonus Share Announcements

TVS Motor Company Ltd - Allotment of Equity Shares as bonus equity shares Sep 14 - TVS Motor Company Ltd has informed BSE that pursuant to the approval of the shareholders of the Company through postal ballot on August 30, 2010, the Committee of directors of the Company, on September 10, 2010, allotted and issued 23,75,43,557 new equity shares of Re. 1/- each in the ratio of 1:1, thereby capitalising a sum of Rs. 23,75,43,557 from the General Reserve account of the Company. Consequently, the paid up share capital of the Company has increased from Rs. 23,75,43,557 consisting of 23,75,43,557 equity shares of Rs. 1/- each to Rs. 47,50,87,114 consisting of 47,50,87,114 consisting of equity shares of Rs. 1/- each.

TVS Motor Company Ltd - Fixes Record Date for Bonus Issue Aug 31 - TVS Motor Company Ltd has informed BSE that the Company has fixed September 09, 2010 as the Record Date for determining the shareholders eligible to receive the bonus shares in the ratio of one new equity share of Re. 1/- each for every one equity share of Re. 1/- each.

TVSMOTOR - Bonus Jul 21 - Tvs Motor Company Limited has informed the Exchange that the Board of Directors at its meeting held on July 21, 2010 has recommended issue of

bonus equity shares to the shareholders of the Company in the ratio of one bonus equity share of Re. 1/- each for every one equity share of Re. 1/- each (in the ratio of 1:1) held by them as on the record date to be fixed later, by capitalizing equivalent amount standing to the credit of the general reserves of the Company, for approval of the shareholders of the Company through Postal Ballot.

TVS Motor - Board recommends Bonus Shares & declares second interim dividend Jul 21 TVS Motor Company Ltd has informed BSE that the Board of Directors of the Company at its meeting held on July 21, 2010, inter alia, : 1. Declared a second interim dividend of Re. 0.50 per share (50%) absorbing a sum of Rs. 13.41 crores including dividend distribution tax for the year 2009-10. 2. Approved the proposal for amendment to the capital clause of the memorandum of association of the Company for increase in the authorised share capital from Rs. 25,00,00,000 (Rupees twenty five crores) divided into 25,00,00,000 (twenty five crores) equity shares of Re. 1 each to Rs. 50,00,00,000 (Rupees fifty crores) divided into 50,00,00,000 (fifty crores) equity shares of Re. 1 each subject to the approval of the shareholders through Postal ballot. 3. Recommended issue of bonus equity shares to the shareholders of the Company in the ratio of one bonus equity share of Re. 1/- each for every one equity share of Re. 1/- each (in the ratio of 1:1) held by them as on the record date to be fixed later, by capitalizing equivalent amount standing to the credit of the general reserves of the Company, for approval of the shareholders of the Company through Postal ballot.

Dividends

TVS Motor Company Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 20, 2011, inter alia, have declared an interim dividend for the financial year ending March 31, 2011 at Re. 0.50 per share on 47,50,87,114 equity shares of Re. 1/- each fully paid up, absorbing a sum of Rs. 27.70 crores, including dividend distribution tax. Dividend paid from 1997 is given below.

Dividend Year 2011 2010 2010 2009 2008 2007 2006 2006 2005 2005 2004 2004 2003 2003 2002 2002 2002 2001

Month Jan Jul Jan Jun Jul Jun Oct Jun Oct May Oct Apr Oct May Sep Jun Feb Jul

Dividend (%) 50 50 70 70 70 15 70 60 70 60 70 70 60 70 50 90 80

2000 1999 1998 1997

Mar Aug Jun Jul

80 70 50 35

Future Plans

TVS Motor is scripting a new twist in the race to capture the12-million plus twowheeler market. The company plans to introduce low-cost models across product segments. This would result in creation of a new segment within an existing segment.

The work is on (for low-cost models) but I cant share more details, the companys chairman Venu Srinivasan told FE.

Over the last one year, leading motorcycle makers have been developing costeffective products, primarily, in the low-cost segment to rake in high numbers. The FE had reported in October that Mahindra & Mahindra has started preliminary work on developing a low-cost motorcycle which is going to be sub-100cc. Hero Honda Motors and Bajaj Auto are also weighing options to introduce a low-cost & high mileage bike.

TVS Motor is looking at international designs and new technologies for its product portfolio.

TVS Motor Company on Saturday exuded confidence that it would turn around its fortune with a slew of launches in the next fiscal. It had put in place a strategy that would

help the company overcome the pressure of declining sales volumes. However, the company had no plans to enter the four-wheel segment. Though it reported 40 per cent decline in motorcycle sales during April-December 2007-08, the company sees annual sales growing to touch the 1.7-million mark in 2008-09.

TVS Chairman Venu Srinivasan told reporters here that the company would revive and consolidate its position through new offerings that included LPG, CNG and petrol powered three-wheelers, pushing their sales globally from two million to four million units in next three to four years and focusing on new and innovative technologies.

Lack of finance availability, especially in B and C towns, has led to a decline of 12 per cent in the overall motorcycle market during the current fiscal. The decline is more pronounced in the entry level segment, which slipped nearly 25 per cent. TVS has been largely dependent on this segment and has therefore felt the pinch, he explained. He said the company would be launching a slew of products including a scooter, two motorcycles and three-wheelers in the coming few months.

Unfolding the future plans, He said that in the two-wheelers segment, TVS would first roll out Flame pan-India by February, which would be followed by a new variant of 100 cc Star city, priced at Rs. 32,000 (ex-showroom), a fuel injection variant of its 160 cc bike Apache RTR and a new scooter later in the year.

In reply to a question, he said TVS had no intention of entering the four-wheel segment but at the same time lauded the Tata`s for rolling out the peoples car. However, he

maintained that the Rs. 1 lakh car would not have any significant impact on the two-wheeler market.

Conclusion

In conclusion, TVS Motors is one of the fast growing companies in India both in terms of size and turnover. It has come out with many new innovations in the Indian automobile industry. The strong demand for the company`s products has been the result of its continuous efforts in bringing out world class products for its customers. So it has always stood for innovative, user and environment friendly products backed by reliable customer service.