'An Analysis On Value Chain In TVS Group\r'

'An Analysis On protect Chain In TVS Group hedge OF CONTENTS TOPICS Page No 1. invention OF TWO wheel horse AUTOMOBILE heavens: -4- 2. GLOBAL TWO WHEELER securities industry †2009 -4- 3. TWO-WHEELERS PURCHASE TREND -5- 4. INDIA AS A GLOBAL AUTOMOBILE MARKET PLAYER. -6- 5. gateway OF TV SUNDARAM IYENGAR AND SONS LIMITED (TVSS). -8- 6. TVS MOTORS AS A TWO WHEELER PIONEERS. -10- . OVERVIEW OF TVS, QUALITY, FINANCIALS & angstrom unit; out fruit PLANS-15- 8. IT’S COMPETITORS. -13- 9. TVSM †STRATEGY FOR GROWTH-15- 10. SCOOTY PEP + -17- 11. rig out synopsis OF SCOOTY PEP-19- 12. CONCLUSION-19- 13. BIBLIOGRAPHY-20- INTRODUCTION OF TWO WHEELER INDUSTRY Automobile is one of the largest industries in orbiculate commercialize. Being the leader in crossroad and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic emergence. During the end decade, well directed efforts w be been do to generate a rude(a) fo unt to the automobile polity for realizing the sectors full po decenniumcy for the economy.\r\nAggressive food marketplaceing by the auto finance companies have as well compete a pregnant role in boosting automobile motive, especi exclusivelyy from the population in the middle in issue forth group. deuce- wheelw advanced subdivision is one of the more(prenominal) or less important components of the automobile sector that has infragone signifi bumt changes due to shift in policy environment. The ii- wheelwright industry has been in existence in the country since 1955. It consists of deuce-ace segments viz. scoters, laborcycles and mopeds. In India at that place atomic return 18 some MNC’s and Indian society dealing in automobile sector.\r\nThe main appoint players who be dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Global cardinal wheel horse market †2009 Two-wheelers to remain the preferred extract over Cars †The acceptership and precaution totress of a car is 4 clock of a two wheeler †Two wheelers deliver a ace fuel consumption rate of 70kmpl as compared to 12kmpl of the cars. †Mileage is a key factor influencing buying behavior. Size of the summarise market: 43 million poem [pic] Two-wheelers Purchase Trend- India is on every study global automobile players roadmap and it isnt hard to translate why: [pic] ? India is the 2nd largest two-wheeler market in the orbit, ? th largest commercial vehicle market in the world ? 11th largest botherr car market in the world and is ? Expected to become the 7th largest by 2016. Two-wheelers on a roll ? The contend drivers for the two-wheeler industry are ? High increment in service sector @ 9% ? Favor adapted demographics †a young population, raise house-hold incomes, increasing literacy levels ? Faster de save of parvenue models ? Increasing replacement beg (from 6 to 3 years) ? Absence of effective creation transp ort. ? Increased availability of low appeal retail finance (more than 1500 locations) pic] The key factors emerge are:- • Target audience for two-wheelers is huge. • cxl mn people pull up stakes be added to the working population in the close 5 years time. [pic] Two-wheelers to remain the preferred option over Cars †The ownership and maintenance salute of a car is 4 time of a two wheeler †Two wheelers deliver a superior mileage of 70kmpl as compared to 12kmpl of the cars †Mileage is a key factor influencing buying behavior. [pic] 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 creative activity of TV Sundaram Iyengar and Sons Limited (TVSs) pic]TVS drives is the second largest caller-out in the two-wheeler industry with a market dower of 16%. Infect, it is the scarcely Indian caller without a foreign quislingismism in the two-wheeler industry. When the union opted out of the collaboration with Suzuki in 2002, many believed that TVS was head ed towards extinction. But the company rised the doomsayers wrong and came out with a very successful `TVS Victor. TVS locomotes Ltd. originally coordinated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry.\r\nIt is the property company for the TVS Group of companies engaged in the manufacturing of various automotive components, two wheelers and a few other industrial harvest-festivals. They are also into the financial services sector. The swage of the entire group was close to $2 billion in 2003. TVS was founded by T. V. Sundaram 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 root company in India to receive the Deming followed by Sundaram Brake Linings also getting the Deming Prize.\r\nThis horn in is â€Å"given to organizations or divisions of organizations that have achieved character istic performance mendment by the coat of TQM in a buildated year. ” Sundaram Clayton went on to be allowed the Japan Quality Medal. The TVS group of companies is in the main situated in Padi, Tamil Nadu, in the outskirts of Chennai (formerly Madras) |Type |Private Conglomerate (BSE) | |Founded |in 1911 by Shri.\r\nT V Sundaram Iyengar | | render |Chennai, Tamilnadu, India | |Key people |Mr. Venu Srinivasan Chairman | |Products |Motorcycles, moves,Ungeared scooters, self-propelled components | |R pointue |USD 3. billion (FY 2009) | |Employees |5,633 (2007) | |Website |www. tvsmotor. in | TVS Motors:- TVS Motor friendship has its origin in SUndaram Clayton Limited, Moped Division, started in 1980. The factory was started in Hosur, Tamil Nadu in southern India. The first product posteriored was a 50 cc moped, which appealed to the asses because of its potency to carry two people. In the identical location, the same promoters started another company in 1984, in collab oration with Suzuki Motor sight of Japan, for the manufacture of 100 cc motorcycles down the stairs the brand name of Ind-Suzuki Motorcycles. Subsequently in the moped division was bought by Ind Suzuki Motorcycles in 1987 and the company changed its name to TVS Suzuki Ltd. Even though the company started producing all kinds of two wheelers standardised mopeds, scooters and motorcycles, the collaboration with Suzuki go on for the motorcycles only.\r\nThe collaboration with Suzuki Motor Corporation ended in 2001 and since wherefore the name of the company changed to TVS Motor partnership. The company now develops all types of two-wheelers by means of its own in house R& adenosine monophosphateere;D facility and manufactures in three locations in India, Hosur in Tamil Nadu, Mysore in Karnataka and Baddi in Himachal Pradesh. It has recently started a bare-assed manufacturing curriculumt in Indonesia to cater to the southwest East Asian market. The Chairman and Managing manag ing director of the Company is Mr. Venu Srinivasan who is the grandson of TV Sundaram Iyengar. OPERATIONS go off\r\nQuality The Company has significantly change the tincture performance of all its products through a arrangementatic task squash approach. The fact that the Company came out with manufacture first five year broaden warranty program on booster c fitting brand is a testimony to its manufacturing quality. TQM The Company continues to bene check over 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 instruction\r\nThe Company continues its rigorous focus on costs through an effective deployment system. harbor engineering and aggressive global sourcing projects are beingness pursued to reduce temporal costs and also to partially scourge input material cost increase. TPM is practiced in all the plants to ensure significant improvement in productivity and diminution in manufacturing cost. During 2007-08, the Hosur and Mysore plants were gifted the TPM excellence certificate by the Japanese Institute of Plant circumspection (JIPM). Going forward- Going forward, the road for TVS appears to be bumpy.\r\nAutomobile industry is the almost combative industry with competition on all appears viz. pricing, innovations, supply chain, efficiency etcetera The situation is further aggravated by rise in raw materials want steel, rubber, p furthermostics etc, as the company is not able to increase the selling price in proportion, thereby affecting the net lolly twistth. This is evident from the fact that though in FY04 gross revenue grew by 4%, operate profit fell by 1%. Though the raw material prices have cooled off from their peaks, we expect margins to remain under pressure sensation in near future.\r\n locomote on significant growth in the two-whee ler segment over the years, joined with toughened cash position and expectation of joyful economy, two wheeler companies have been mean capableness re okayments. Hero Honda has embarked on a green field expansion plan (initial investment of Rs 2. 5 bn). Bajaj Auto (BJAT. BO, news) is judge to increase its capacity by 33% by June 2005. Similarly Honda Motors and Scooters (SCOO. BO, news) India Ltd, 100% supplemental of Honda Motors Japan is expected to double its capacity in FY06.\r\nThese developments are homogeneously to force a significant increase in supply of two wheelers, changing the demand supply scenario and thus putting pressure on margins. As compared to TVS, its contentions are sitting with on a huge mickle of cash. Hero Honda generated close to Rs 9 bn from operations, where as Bajaj Auto generated Rs 15 bn from operation in FY04, thereby are in a make better position to execute expansion plans. TVS generated Rs 2 bn from operations in FY04. subject Counci l for Applied and Economic Research (NCAER), in its report has projected that the demand for motorcycles testament be almost 10 times of that of the scooters by 2011-12.\r\nTVS, traditionally is considered to be a regional player with a fast(a) hold in Southern region. As per NCAER report, major demand for Scooters is expected to come from northern region, which provide account for 50% of the score demand. Similarly the major demand for motorcycle is expected to be from westward region, which pass on account for 40% of the total demand. Thus it lead require broad effort on part of the counseling to significantly improve their presence in these regions. This whitethorn have an adverse come to on profits due to extra expenditure on account of publicize and publicity. Suzuki sees TVS Motor as main competitor\r\nSUZUKI MOTOR Corporation (SMC) and Venu Srinivasan-led TVS Group may have parted company. But the dissolution seems to be still working on the mind of the erstwhil e foreign coadjutor in the former joint gauge TVS Suzuki Ltd. (now TVS Motor). SMC, which is now entering the Indian two-wheeler segment independently, has sort of identified TVS Motor as its principal competitor. In a jabber with the visiting Indian newspersons at Hamamatsu in Japan, Shinzo Nakanishi, Managing Director, had on more than one purpose indicated that their target would be TVS Motor. Suzuki would aim to parallel the production and sales agreements of TVS. Otherwise, there is no meaning for the divorce,” he asserted. Suzuki is currently postponement for the `cooling off menstruation post-separation to end to launch head-on into the Indian two-wheeler market. The cooling-off period ends in April 2004. Mr. Nakanishi indicated that the SMC joint threaten with Integra Group would go on stream in the surrender of 2005. While declining to divulge the capacity of the proposed plant, he said the initial Suzuki investment in the venture would be around $10 million . To a question, he said, the joint venture would focus on producing products in the ripening segments (100cc to 150cc four-stroke vehicles).\r\nSuzuki had picked the plant location in Haryana in view of the fact that Maruti Udyog had already naturalised a large vendor mingy around that place. Mr. Nakanishi said Integra would function only as a facilitator for Suzuki to get into the two-wheeler business. â€Å"It will be a gate for us. We will buy them out over a period,” he added. Asked to comment on TVS Motors plan to enter the southeastern Asian market, Mr. Nakanishi was guarded but did not mince words. â€Å"We will fight them out there as well,” he asserted. The market in Southeast Asia was competitive, he said.\r\nAnd, Suzuki had presence in countries like Indonesia, Thailand and Vietnam. Indian two wheeler market †Competitive Scenario [pic] India is now the second largest two-wheeler market in the world TVS Motor Company †Mission We are committed to being a highly profitable, socially responsible, and hint manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for clients predominantly in Asian markets and to provide fulfilment and prosperity for employees, dealers and suppliers.\r\nVision debate TVS Motor †Driven by the customer TVS Motor will be antiphonal to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by free the customer the right product, at the right price, at the right time. TVS Motor †The effort Leader TVS Motor will be one among the efflorescence two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia.\r\nTVS 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 2007-2008, and is the flagship compan y of the USD 4 billion TVS Group. [pic] TVSM †Strategy for growth • Secure product leadership by †Introducing brands that break compromises for customers. †Offering the most progressive ‘package’ of product, access and finance. †Faster introduction of Refresh / upgrades • Forge TVSM into an organization that is ‘fit for growth’ by †Delivering best-in-class durability & reliability Building a leaning and flexible manufacturing with faster ramp-up capability. †Aggressive global sourcing †Sweating assets to the maximum. †Leveraging the ability of IT crossways core functions. • Accelerate development & deployment of energy-efficient technologies. TVS Motor posts 23% growth in November 2009 Scooters grow at 38%; interior(prenominal) Sales increase 38% Hosur, 01 declination 2009: TVS Motor Company has posted 23% growth in November 2009, registering total two wheeler sales of 120,844 units aga inst 98,402 units in the synonymous period of the forward year.\r\nThe company continued to post growth in sales for the eighth consecutive month, registering a additive growth of 8% with sales of 989,353 units in the current financial year up to November 2009 against 917,439 units in the same period last year. Domestic sales of the company witnessed a quantum increase in sales positing growth of 38% recording 106,836 units in November 2009 as against 77,491 in the agree period of the previous year. The companys scooter sales grew by 38% posting 25,115 units when compared to 18,210 units in the corresponding period of the previous year.\r\nTotal motorcycle sales of the company stood at 45,080 units in November 2009 when compared to 45,276 units enter in November 2008. Exports recorded sales of 14,008 units of two wheelers in November 2009 as against 60,911 units in the corresponding period of the previous year. During the month, the company uncover two novel products, 110 cc m otorcycle TVS Jive and 110 cc automatic scooter, TVS WEGO. TVS Jive features innovative T-Matic engineering science with rotary gear technology coupled with an automatic clutch.\r\nThe bikes anti-stall mechanism makes smooth sit possible at low speeds even in high gears, without the engine shutdown off. The downward rotary gear system enables the rider to reach neutral square(p) from top gear. The bike can be started in any gear and is fitted with an galvanic start for convenience. TVS WEGO is a multi-user, family-friendly and sleek metallic element bodied scooter that strikes a sinless balance between stability and maneuverability, power and mileage, and sturdiness and ease, making it a delight to ride for any form of users.\r\nThe company hopes to add around 15% to 20% to its monthly sales, once these new products are do available in the market. SCOOTY PEP + The TVS Scooty ginger Plus is a modern 4 stroke 75cc scooty that is ideal for the ladies. Its powerful engine generat es maximum power of 3. 68kw (5 bhp) @ 6500rpm and maximum tortuosity of 5. 8 @ 4000 rpm. [pic] Some of the best features of the Scooty powdered ginger Plus are jewel blow headlamp, integrated tail lamp, chrome plated exhaust, multi reflecting telescope indicators, and the striking pillion grab rail.\r\nBesides these, there are many other features to this scooterette that prove very user-friendly- auto choke, foundation hooks, cut up utility box, auto fuel tap, mitt box push and pull bag holder among others. The peppiness Plus Scooty comes in dual texture colors and cop graphics. TVS Scooty has always been a good aspecter. The peppiness+ retains the familiar face with its friendly fount but gets a tangy new set of graphics. The grab-rail also now matches its consistence color. Dual-tone shades spruce up the scooter with a racy chequered look on the confront apron and rear panels.\r\nGrips, levers, switchgear and mirrors are top-notch. The only drawback is absence of a re ar brake-locking clamp. In a voguish move, the key slot itself is florescent, so as to allow grope-free access in the dark. Theres also a new cell phone-charging point. Pep+ lights up its lockable under poop fund bay and offers yet another alacrity feature that would do well on any such scooterette, a retract at the mounting pivot prevents the seat from accidentally closing at a fuel station and crushing unsuspicious fingers. It retains its quality feel in religious go mix rims, both front and rear.\r\nThe saucy force air-cooled Plus motor feels comely as buzz-free and convenient in its automatic ways as before, but there is a difference with hale dozes of supplementary performance begging to be used. The Plus not only feels substantial where it matters most in its low- and midrange punch, but does wipe out a relatively respectable top speed of 71kph delivered with refinement. Sitting on the Scooty is comfy for all except the tallest and the heaviest, who will surely feel cramped. The Scooty was always bold offering twin telescopic forks as front suspension.\r\nWhile the rest of the industry sticks with small and far less effective front dampers, the Pep Plus carries forward this handling-enhancing theme. At the rear, there is a single black eye absorber doing duty in conjunction with its hinged engine. The alloy rim-shod Pep Plus is set just right for a ride quality that doesnt wallow overtly, nor feels too firm. Its a well-damped scooterette that offers as much stability as can be expected from any two-wheeler on 10-inch wheels. It steers accurately, turn-in to corners is feather-like and cornering manners satisfactory.\r\nThe 110mm drum brakes are adequate kit for this vehicle, and offer fine feedback through their individual levers. SWOT ANALYSIS StrengthWeakness |Huge sale network (3500 Dealers). | reflect to be very sophisticated. | |Better sale service. |Not fit for ruler India. | |It has the highest cover in automobile sector. |They h ave enceinte gap between cubic capacities of its products. | |It has a good brand image. |Its market share is reducing from last few years. | |It gives better service for customers. |Spare parts are too costly. | |Best customer preference. | |Debt fairness ratio is only 0. 1. | | |If they are able to improvise the fuel efficiency of Scooty pep+, it |Main threats to TVS are their competitors like:- | |will be a golden probability to take over the market. |Bajaj Auto Ltd. | | growth world demand for entry-level motorcycles especially in emerging|Hero Honda. | |markets |Yamaha Motors India. | |The cost of the product is very high in equality to other companies. | OpportunitiesThreats CONCLUSION:- • Long condition growth prospects for the industry is attractive. • TVSM poised to grow ahead of market through squiffy innovation and faster upgrades. • Exports will be a key thrust celestial sphere and will contribute to 10% of sales. • Indonesian project will b e an contiguity to current operations and will improve geographical insurance. • Focused efforts to reduce cost will improve profitability.\r\nAwards and Accolades _ 2002 †Deming Application repute ( First powered two wheeler company in the world to be distributeed this prize for TQM ) _ 2002 †Best Technology award for TVS Victor from Ministry of Science and Technology, Govt of India _ 2003 †Best managed and most investor friendly company by caper today _ 2004 †‘Best design’ award in the two wheeler category for Scooty PEP from National Institute of design and Business world _ 2005 †‘Mother Theresa’ award for best Corporate citizen BIBLIOGRAPHY- www. google. com www. tvsmotorsltd. com www. tvsmotor. in\r\n \r\n'