MUHEET GRAND FINALE

8/7/2019 MUHEET GRAND FINALE

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CONTENTS

CHAPTER TITLE PAGE NO.

1 Introduction Types of consumer behavior Factors influencing consumer behavior Marketing research

2 Research methodology Title of the study Scope of the study

Objectives of the study Limitations of the study Chapter desigh

3 Profiles Industrial profile

Company profile Product profile

4 Data Analysis and Interpretations

5 Findings and Conclusions

6 Bibliography

7 Annexure


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CHAPTER 1

INTRODUCTION

Types of consumer behaviorFactors influencing consumer behaviorMarketing research


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Chapter 1

LITERATURE REVIEW

y Consumer behaviory Types of buying decision behavior

y The buyer decision process

y Factors influencing consumer behavior.


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Consumer Behaviour

Definition:

According to the American Marketing Association, Consumer Behaviour is

defined as "the dynamic interaction of affect and cognition, behaviour, and environmental

events by which human beings conduct the exchange aspects of their lives."

More generally, Consumer Behaviour is the psychology behind Marketing and

the behaviour of consumers in the Marketing environment.

Cognitive Psychology and Social Psychology are the two major psychological

disciplines ofConsumer Behaviour.

Cognitive Psychology is the study of mental behaviours. The Attention,

Perception, Comprehension, and Decision Making are the various aspects of cognitive

psychology that play an important role inConsumer Behaviour.

Social Psychology is the study of the manner in which the personality, attitudes,

motivations, and behaviors of the individual influence are influences by social groups.

Today, many brand marketers and advertisement agencies believe that one-to-one

marketing is a key ingredient in the marketing mix. They share the opinion that adding a

large dose of up close and personal interaction sparks consumer behaviour.

Consumer behaviour Study of how people behave when obtaining, using, and

disposing ofproducts and services. Consumerjury test a method of testing advertisementsthat involves asking consumers to compare, rank, and otherwise evaluate the advertisement


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TYPES OF BUYING-DECISION

BEHAVIOURConsumer decision making varies with the type of buying decision. The decisions to buy

shampoo, a cricket bat, a digital television, a new car are all very different. Complex and

expensive purchases are likely to involve more buyer deliberation and more participants.

It consist of four different buying behaviour, i.e. Complex buying behaviour,

Dissonance-Reducing buying behaviour, Habitual buying behaviour, and Variety-Seeking

buying behaviour.

High involvement Low involement

Significantdifferences

Between

brands

Few

differences

between

brands

ComplexBuying

Behaviour

Variety-SeekingBuying

Behaviour

Dissonnance-

Reducing

Buying Behaviour

Habitual

Buying

Behaviour


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Complex Buying Behaviour:Complex buying behaviour involves three steps. First, the buyer develops beliefsabout

the product. Second, he or she develops attitudes about the product. Third, he or she makes a

thoughtful choice. Consumers engage in complex buying behaviour when they are highly

involved in purchases and aware of significant differences among brands. This is usually the

case when the product is expensive, bought infrequently, risky, and highly self-expensive.

Dissonance-Reducing Buying Behaviour:Sometimes the consumer is highly involved in a purchase but sees little difference in

brand. The high involvement is based on the fact that the purchase is very expensive,

infrequent, and risky. If the consumer finds quality differences in the brands, he or she might

go for the higher price. If the consumer finds little difference, he or she might simply buy on

price or convenience.

Habitual Buying Behaviour:It occurs under the conditions of low consumer involvement and little significant

brand difference. They simply go to store and reach for a brand. If they keep reaching for the

same brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low

involvement most low-cost, frequently purchased products.

Variety-Seeking Buying Behaviour:Consumer undertakes variety-seeking buying behaviour in situations characterized by

low involvement but significant brand differences. Here, consumers often do a lot of brand

switching. Brand switching occurs for the sake of variety rather than dissatisfaction.


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The buyer decision processThe buyer decision process consists of five stages: need recognition, information search,

evaluation of alternatives, purchase decision, and post-purchase behavior. Clearly, the

buying process starts long before actual purchase and continues long after. Marketers need to

focus on the entire buying process rather than on just the purchase decision.

The figure implies that consumers pass through all five stages with every purchase. But in

more routine purchases, consumers often skip or reverse some of these stages.

Need Recognition

Information Searc

Evaluation Of Alternatives

Purc ase Decision

Postpurc ase Be aviour


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Need Recognition:

The buying process starts with need recognitionthe buyer recognizes a problem or

need. The need can be triggered by internal stimuli when one of the persons normal need

hunger, thirst, sexrises to a level high enough to become a drive. A need can also be

triggered by external stimuli.

Information Search:An interested consumer may or may not search for more information. If the

consumers drive is strong and satisfying product is near at hand, the consumer is likely to

buy it then. If not, the consumer may store the need is memory or undertake aninformation

search related to the need.

Evaluation ofAlternatives:The marketer needs to know about alternative evaluationthat is, how the consumer

processes information to arrive at brand choices. Unfortunately, consumers do not use a

simple and single evaluation process in all buying situations.

Purchase Decision:In the evaluation stage, the consumer ranks brands and forms purchase intentions.

Generally, the consumers purchase decision will be to buy the most preferred brand, but two

factors can come between the purchase intention and purchase decision. The first factor is

attitudes of others, the second factor is unexpected situational factor.

Post-Purchase Behaviour:The marketers job does not end when the product bought. After purchasing the

product, the consumer will be satisfied or dissatisfied and will engage in post purchase

behavior of interest to the marketer. If the product falls short of expectations, the customer is

disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the

consumer is delighted.


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Factors influencing consumer behaviour

Consumers do not make their decisions in a

vacuum. Their purchases are highly influenced by

cultural, social, personal, and psychological

factors. For the most part, they are non

controllable by the marketer but must be taken in

to account. We want to examine the influence of

each factor on a buyers behavior.

PersonalF

actors:The buyers decisions are influenced by personal factors such as the buyers age, life-cycle

stage, occupation, economic circumstances, life style, and personality.

Age: people change the goods and services they buy over their life times. Tastes in food,

clothes, furniture, and recreation are often age related.

Life cycle: the stage through which families might pass as they mature over a time.

Marketers often define their target market in terms of life cycle stage and develop appropriate

products and marketing plan for each stage. Traditional family life cycle stages include young

singles and married couple with children. Non traditional stages such as unmarried couples,

singles, marring later in life, childless couple, same sex couples, single parents, extended

parents and others.

Occupation: A persons occupation affects the goods and services bought. Marketers try

to identify the occupational groups that have an above average interest in their products and

services. A company can even specialize in marking products needed by a given occupational

group.


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Economic circumstances: A persons economic circumstances will affect economic

choice. Marketers of income-sensitive goods watch trends in personal income, savings, and

interest rates. If economic indicators point to a recession, marketers can take steps to

redesign, reposition, and reprice their products closely.

Lifestyle:People coming from the same subculture, social class, and occupation may have

quite different lifestyles. Lifestyle is a persons pattern of living as expressed in his or her

psychographics. Lifestyle captures something more than the persons social class or

personality.

Psychological factors:

A persons buying choices are influenced by for major psychological factors-motivation, perception, learning, beliefs and attitudes.

Motivation:A person has many needs at any given time. Some needs are biogenic; they

arise from psychological states of tension such as hunger, thirst, or discomfort. Others are

psychogenic; they arise from psychological states of tension such as need of recognition,

esteem, or belonging. A need becomes a motive when it is aroused to a sufficient level of

intensity. A motive is a need that is sufficiently pressing to drive the person to act.

Perception:A motivated person is ready to act. Perception is the process of selecting,

organizing and interpreting information inputs to produce meaning.Perception depends not

only on the physical stimuli, but also on the stimulis relation to the surrounding field and on

conditions within the individual. The key point is that Perception can vary widely among

individuals exposed to the same reality.

Learning: When person act, they learn. Learning involves changes in an individuals

behavior arising from experience. Most human behavior is learned. Learning theorists believethat Learning is produced through the inter play of derives, stimuli, cues, responses, and

reinforcement.


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Beliefs and Attitudes: Through doing and learning, people acquire beliefs and

attitudes. This in turn influences buying behavior. A belief is a descriptive though that a

person holds about something. Peoples beliefs about a product their buying decisions.

Individual learns attitudes through experience and interaction with other people.

Consumer attitudes toward a firm and its products greatly influence the success or failure of

the firm's marketing strategy.

Social Factors:

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family,

reference groups, and social class.

Opinion leaders: An opinion leader is the person in informal, product-relatedcommunication who offers advice or information about a specific product, suchas which of

several brands is best or how a particular product may be used.

Roles and Family Influences: Role...things you should do based on the

expectations of you from your position within a group. People have many roles. Husband,

father, employer, etc. Individuals role are continuing to change therefore marketers must

continue to update information.

Family is the most basic group a person belongs to. Marketers must understand:

o that many family decisions are made by the family unit

o consumer behavior starts in the family unit

o family roles and preferences are the model for children's future family

o family buying decisions are a mixture of family interactions and individual

decision making

o family acts an interpreter of social and cultural values for the individual.


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Reference Groups: Individual identifies with the group to the extent that he takes on

many of the values, attitudes or behaviours of the group members. Families, friends,

sororities, civic and professional organizations. Any group that has a positive or negative

influence on a persons attitude and behaviour.

The degree to which a reference group will affect a purchase decision depends on an

individuals susceptibility to reference group influence and the strength of his/her

involvement with the group.

Social Class: An open group of individuals who have similar social rank. Social class

influences many aspects of our lives. Social class determines to some extent, the types,

quality, and quantity of products that a person buys or uses. Lower class people tend to stay

close to home when shopping, do not engage in much pre-purchase information gathering.

Family, reference groups and social classes are all social influences on consumer behaviour.

All operate within a larger culture

Cultural factors:

Cultural factors exert a broad and deep influence on consumer behaviour. The marketer needs

to understand the role played by the buyers culture and subculture.

Culture:Culture is the set of basic values, perceptions, wants, and behaviors learned by a

member of society from family and other important institutions.

Every group or society has a culture, and Cultural influences on buying behavior may

vary greatly from country to country. International marketers must understand the culture in

each International market and adapt their marketing strategies accordingly.

Sub-culture: Culture refers to the set of values, ideas, and attitudes that are accepted by

a homogenous group of people and transmitted to the next generation. Culture also

determines what is acceptable with product advertising. Culture determines what people

wear, eat, reside and travel. Cultural values in our country good health, education,

individualism and freedom.


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Culture can be divided into subcultures:

o geographic regions

o Human characteristics such as age and ethnic background.

Culture affects what people buy, how they buy and when they buy.

Understanding Consumer Buying Behavior offers consumers greater satisfaction. We

must assume that the company has adopted the Marketing Concept and are consumer

oriented.


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CHAPTER 2

Research methodology

Title of the study Scope of the study

Objectives of the study Limitations of the study Chapter design


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METHODOLOGY

The report has been prepared as per the information obtained fromtwo sources. They are:

1. Primary data2. Secondary data

Primary data:The primary data included the information collected from the

1. Proprietor, manager and employees of TVSMotors Harita Hosur,Tamilnadu..

2. Structured questionnaire3. Personal interview with customers

Secondary data:

Secondary data includesa. Data from various magazines esp. bike magazines.b. Internetc. Brochures

d. Bookse. Newspapers etc


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Definition of population:The population was defined as TVS motorcycles owners of 18 years of age and

older (element) at showroom and market (unit) (extent) during the month ofjanuary 2011-march 2011 (time).

Sampling plan:Data collected has been analyzed and interpreted by using simple percentagemethod and finally the data is presented in graphs and charts.

Sampling frame :1. Customers visiting showrooms for servicing their motorcycles2. Shopping malls, Supermarket, Markets, College parking etc

Sampling unit:

Motorcycles owners esp. TVS Apache motorcycle owners

Sampling method:Simple random sampling method was used.

Desired sample size:A sample size of 100 motorcycle owners was specified.


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SCENARIO OF INDIAN AUTOMOBILE

During early 60s & 70s, automobiles came largely in twos.In scooters, you had a Lambretta or a Vespa.In motorcycles, you had a Bullet or a Java.In cars, you had to choose between an Ambassador and a Fiat.In trucks, it was either an AshokLeyland or a Tata.In tractors, it was between a Swaraj and a Mahindra.

This situation reflected the India of yester years.Economic reforms and deregulation have transformed that scene. Automobileindustry has written a new inspirational tale. It is a tale of exciting multiplicity,

unparalleled growth and amusing consumer experience all within a few years.India has already become one of the fastest growing automobile markets in theworld. This is a tribute to leaders and managers in the industry and, equally topolicy planners. The automobile industry has the opportunity to go beyond thisremarkable achievement. It is standing on the doorsteps of a quantum leap.

The Indian automobile industry is going through atechnological change where each firm is engaged in changing its processes andtechnologies to maintain the competitive advantage and provide customers withthe optimized products and services. Starting from the two wheelers, trucks, and

tractors to the multi utility vehicles, commercial vehicles and the luxuryvehicles, the Indian automobile industry has achieved splendid achievement inthe recent years.

The opportunity is staring in your face. It comes only once. Ifyou miss it, you will not get it again

On the canvas of the Indian economy, auto industry maintains ahigh-flying place. Due to its deep frontward and rearward linkages with severalkey segments of the economy, automobile industry has a strong multiplier effectand is capable of being the driver of economic growth. A sound transportation

system plays an essential role in the countrys rapid economic and industrialdevelopment. The well-developed Indian automotive industry skillfully fulfils

this catalytic role by producing a wide variety of vehicles: passenger cars, light,medium and heavy commercial vehicles, multi-utility vehicles such as jeeps,scooters, motorcycles, mopeds, three wheelers, tractors etc.


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Eye-Catching FDI Destination INDIA!

India is on the peak of the Foreign Direct Investment wave. FDI flows intoIndia trebled from $6 billion in 2004-05 to $19 billion in 2006-07 and areexpected to quadruple to $25 billion in 2007-08. By AT Kearney's FDI

Confidence Index 2006, India is the second most attractive FDI destination afterChina, pushing the US to the third position. It is commonly believed that soonIndia will catch up with China. This may also happen as China attempts to coolthe economy and its protectionism measures that are eclipsing the MiddleKingdom's attractiveness. With rising wages and high land prices in the easternregions, China may be losing its edge as a low-cost manufacturing hub. Indiaseems to be the natural choice.

India is up-and-coming a significant manufacturer, especially of electrical andelectronic equipment, automobiles and auto-parts. During 2000-2005 of the

totalF

DI

inflow, electrical and electronic (including computer software) andautomobile accounted for 13.7 per cent and 8.4 per cent respectively.

In services sectors, the lead players are the US, Singapore and the UK. During

2000-2005, the total investment from these three countries accounted for about40 per cent of the FDI in the services sector. In automobiles, the key player isJapan. During 2000-2005, Japan accounted for about 41 per cent of the totalFDI in automobile, surpassing all its competitors by a big margin. India's vastdomestic market and the large pool of technically skilled manpower were themagnetism for the foreign investors. Hitherto, known for knowledge-basedindustries, India is emerging a powerhouse of conventional manufacturing too.The manufacturing sector in the Index forIndustrial Production has grown at anannual rate of over 9 per cent over the last three years. Korean auto-makersthinkIndia is a better destination than China. Though China provides a biggermarket for automobiles, India offers a potential for higher growth. Clearly,manufacturing and service-led growth and the increasing consumerisationmakes India one of the most important destinations forFDI.

Automotive Mission Plan 2016

The bumper-to-bumper traffic of global automobile biggies on the passage to

India has finally made government sit up and take notice. In a bid to drivegreater investments into the sector, ministry of heavy industries has decided to

put together a 10-year mission plan to make India a global hub for automotiveindustry.


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for auto components and auto engineering design, rivaling Thailand. Germanauto-maker Volkswagen AG, too, is looking to enterIndia.

India is expected to be the small car hub for Japanese majorToyota. The car, a hot hatch like the Swift or Getz is likely to be exported to

markets like Brazil and other Asian countries. This global car is crucial forToyota, which is looking to improve its sales in the BRIC (Brazil, Russia, India,China) markets.

Two multi-national car majors Suzuki MotorCorporation of

Japan and Hyundai MotorCompany of Korea have indicated that theirmanufacturing facilities will be used as a global source for small cars. The spurtin in-house product development skills and the uniquely high concentration ofsmall cars will influence the country's ability to become a sourcing hub for sub-compact cars.

A heartening feature of the changing automobile scene in India over thepast five years is the newfound success and confidence of domesticmanufacturers. They are no longer afraid of competition from the international

auto majors.

For instance, today, Tata Motor's Indigo leads the popular customercategory, while its Indica is neck-to-neck with Hyundai's Santro in the race forthe top-slot in the B category. Meanwhile M&M's Scorpio has beaten back thechallenge from Toyota's Qualis to lead the SUV segment. Similarly, a fewIndian winners have emerged in the motorbike market the 150 and 180 cc

Pulsar from Bajaj and 110 cc Victor from the TVS stable. The 93 cc Bike fromBajaj and 110 cc Freedom bike from LML have also emerged as winners.

Evidently, Indian players have learnt from past mistakesand developed the skills to build cheaper automobiles using `appropriate'technologies. TVS, for instance, paid an overseas source $100,000 to fine-tunehome-grown engines rather than $1.5 million to import the entire engine.Similarly, M&M adapted available systems and off-the-shelf components fromglobal suppliers to keep costs down and go for aggressive pricing. True, Indianplayers are still lacking in scale of operation.

While economies of scale no doubt play an important rolein the auto sector, a few Indian manufacturers relied on innovation rather thanscale of operation for competitive advantage. For instance, Sundram Fastenerswas able to achieve the feat of directly supplying radiator caps to GeneralMotors purely on the strength of innovation in product quality.


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The domestic tooling industry bagged the order for the Toyota Kirloskartransmission plant in the face of stiff competition from multinationalcorporations. The cost of the entire job turned out to be only a fraction of the

original estimate.

As the automobile industry has matured over the past decade, the autocomponents industry has also grown at a rapid pace and is fast achieving globalcompetitiveness both in terms of cost and quality.

In fact, industry observers believe that while the automobile

market will grow at a measured pace, the components industry is poised for atake-off. For it is among the handful of industries where India has a distinctcompetitive advantage. International automobile majors, such as Hyundai, Ford,Toyota and GM, which set up their bases in India in the 1990s, persuaded someof their overseas component suppliers to set up manufacturing facilities in India.

Consequently, the value of cumulative output of the auto components industryrose rapidly to Rs 30,640 crore at end-2003-04 from just Rs 11,475 crore in1996-97. Foreign companies such as Delphi, which followed General Motors in

1995, and Visteon, that followed Ford Motors in 1998, soon realised thesubstantial cost advantage of manufacturing components in India.

Finding the cost lower by about 30 per cent, they began exploringthe possibility of exporting back these low-cost, high-quality components totheir global factories and, thus, reducing their overall costs. Not surprisingly,the industry's exports registered a more than four-fold jump to Rs 4,800 crore in

2003-04 from just Rs 1,033 crore in 1996-97.

Automobile majors such as Maruti Udyog, Toyota,Hyundai have now finalised their plans to invest in some of the critical autocomponents. According to the Automotive Component ManufacturersAssociation ofIndia (ACMA) officials, auto component manufacturers areexpected to invest about Rs 10,000 crore over the next five years at the rate ofRs 2,000 crore per annum.

According to analysts, the auto component industry could

emerge as the next success story after software, pharmaceuticals, BPO andtextiles. The size of the global auto component industry is estimated at $1trillion and is set to grow further. Against this backdrop, McKinsey's latestreport has estimated that the sector has the potential of increasing its exports to$25 billion by 2015 from $1.1 billion in 2004.


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The various objective of apache rtr 180 are :

Split bull horn rails:

The split bull horn rails not only adds up to the motorcycles style quotient but also helps the pillion rider to get a good grip thusensuring safety. The split bull horn design is the result of input gathered fromthousands of palm types and grab holdings.

Style and graphics:The stylish graphics of TVS Apache RTR 180 makes it a

stand out from the crowd. The racing stripes, luminous rims, aerodynamic

airscoops and race crouch mirrors makes it lean mean racing machine.

Aerodynamic airscoops:The aerodynamc airscoops makes sure that cool air

flows towards the engine unit to cool it down.

Engine fairing:The engine fairing adds up to the aero dynamic design of the

TVS Apache RTR 180. It also protects RTR engine from harsh road conditions.

Lightweight stylish alloys:The lighthweight alloys does not add up too much

weight at the same time they can withstand the toughest surface.

Forged brake lever:

The forged brake lever and gear lever set of the ApacheRTR 180 gives it a distinctive look.


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Removable rear fender:

The Apache RTR 180 comes with a replaceable mud flap

Engine:The Rev happy oversquare engine truly upholds the ingenuity of TVS

engineers. This engine won the TVS Apache RTR 160 the performance bike ofthe year award from BSMotoring and Overdrive & NDTV car and bike awards.

Roto petal disc:The Apache RTR 160 was the first Indian bike to come with the

Roto Petal disc with a diameter of 270 mm. It helps in sharp braking and thelarge size of the disc ensures quick heat dispersion. The Apache RTR 180comes with roto petal disc on both front and rear wheels.

Digital speedo console:The backlit digital speedo console gives out necessary

information about the motor cycle such as, two trip logs, max speed and so on.

LED Tail lamp:The stylish LED (Light Emitting Diode) tail lamp consumes less energy

and shines more brightly and ensures high visibility at any weather condition.

Head Lamp:The head lamp and park lights are integrated into the cowl. It

provides good visibility.

Poly shock absorbers:

The poly shock makes the TVS RTR 180 a toughmotorcycle that can run on any terrain. Be it a smooth road, or rough road filledwith potholes. The poly shock absorber takes the rebound from a shock anddissipates it as heat energy.

Clip on handle bars:The clip on handle bar of the TVS RTR 180 is designedbased on racing insights. The handle bar consists of two units- the two differenthandle bars and base unit. The handle bars are joined with the base unit in sucha way that it gives the rider a racing posture. The clip on handle bar is alsoadjustable according to the riders height.


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TVS SALES PERFORMANCE

Despite the challenges brought on by the global

economic meltdown, the TVS Motor Company (TVS) crossed severalimportant milestones in the financial year 2008-09. Not only was the onemillionth ScootyPep+ rolled out from the company's Mysore plant, the Apachebrand celebrated its first anniversary crossing the three-lakh mark. New modelswere introduced in the company's premium motorcycle and scooter segments.During the year, TVS also expanded its presence in the Indian three-wheelermarket, adding CNG to the already-launched LPG and Petrol versions. The

company also expanded ts globalfootprint to 55 countries andstrengthened its dealership network inIndonesia.

FINANCIAL PERFORMANCE:During the year ended March 2009

, TVS registered a 5% growth in sales

with overall sales registering 13.42 lakh units against 12.77 lakh units in the theprevious financial year. Motorcycles accounted for 6.45 lakh units against 6.10lakh units in the year 2007-2008, posting a growth of 6%. Scooters registeredsales of 2.59 lakh units against 2.58 lakh units in the corresponding period of

the previous year.

TVS recorded total revenue of Rs. 3741.18 crores for the year ended March2009, compared to previous year's 3310.35 crores. Profit after tax during theyear ended March 2009 was marginally lower at Rs. 31.08 crores as against Rs.31.77 crores recorded in the corresponding period last year.

INTERNATIONAL BUSINESSExports contributed handsomely to the growth of the company registering a

continuous growth of 44%. Exports accounted for 1.95 lakh units in 2008-2009in comparison to 1.36 lakh units in 2007-08. During the year, the companyadded two new countries to its portfolio and products are now being exported to55 countries.


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NEWPRODUCTS LAUNCHED DURING 2008-09

The past year also witnessed the launch of the Apache RTRFI,thereby introducing fuel injection in the 160cc segment . This was followed upwith the launch of the Apache RTR 160 with rear disk brakes, a new featurethat enhances braking performance. The company also launched TVSScootyStreak, with smart and sleek unisex styling. Sharp head lamps, LED tail-lamps

and contemporary styling takes the Scooty Streak to a different league, makingit the most stylish scooter for young girls.

NEW LAUNCHES:

Apache RTR, TVSFlame, New Motorcycle, New Scooter and Four Stroke

Three-Wheeler:

In keeping with its plan for new launches during the current financialyear, the company, in June 2009, launched a larger capacity ApacheMotorcycle in the premium segment. The motorcycle's sporty, chiseled looksand unmatched performance-packed superior engine technology make the bike aclass leader in terms of acceleration, performance, styling, ride handling andstability.

TVS has also launched the 2009 model of its Flame

motorcycle under the brand name Flame SR 125, which features an enhancedengine and revamped graphics. The new commuter motorcycle is loaded with ahost of new and exciting features and is being targeted at smart city commuters.Developed with AVL Austria, SR 125's engine is propelled by three valve,Controlled Combustion Variable Timing Intelligent (CC-VTi) technologywhich ensures better pickup with optimum mileage and power.

The company would also be expanding its scooter platform tooffer a large scooter and will introduce an all-new motorcycle in the executive

segment. In the three-wheeler segment, the company plans to introduce four-

stroke TVS King in Petrol, LPG and CNG versions.

Futuristic technology, contemporary styling andsuperior quality will continue to be the focus for all new products.


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QuickFacts

Founder TVSundaram Iyengar

Country India

Year of

Establishment

August 1980 (TVS Group in 1911)

Industry Manufacturing of two-wheelers and autocomponents

Business Group TVS Group

Listings & its codes NSETVS - Suzuki Ltd: TVSSUZUKI

TVSMotorCompany Limited: TVSMOTORTVSMotorCompany Limited: TVS-SUZUKI

BSETVSMotorCompany Ltd.: 532343

Head Office TVSMotorCompanyJayalakshmi Estates V Floor8, Haddows Road, Chennai - 600006Tel.: +(91)-(44)-28272233Fax: +(91)-(44)-28257121

Factory Post Box No. 4

Harita, Hosur - 635 109Tel.: +(91)-(4344)-276780Fax: +(91)-(4344)-276878

Post Box No.1Byathahalli Village, Kadakola PostMysore - 571 311Tel.: +(91)-(821)-2596561Fax: +(91)-(821)-2596550/ 2596553

TVSMotorCompany is the third largest two-wheeler manufacturerin India and one among the top ten in the world, with annual turnover of morethan USD 1 billion in 2008-2009, and is the flagship company of the USD 4billion TVS Group.

A bike for anyone


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TVSMotor currently manufactures a wide range of two-wheelers from mopedsto racing inspired motorcycles.

Motorcycles (Apache RTR, Flame DS 125, Flame, Jive, StaRCity, Sports)Variomatic Scooters (Wego, Scooty Streak, Scooty Pep+, Scooty Teenz)

Mopeds (TVS XLSuper, TVS XL Heavy Duty)

Penchant for Quality

The company has 4 plants - located at Hosur and Mysore in South India,in Himachal Pradesh, North India and one at Indonesia. The company has a

production capacity of 2.5 million units a year. Innovation at the helmTVSMotor's strength lies in design and development ofnew products - the latest launch of 7 products on thesame day seen as a first in automotive history. We atTVS deliver total customer satisfaction by anticipatingcustomer need and presenting quality vehicles at theright time and at the right price. The customer and hisever changing need is our continuous source ofinspiration.


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COMPANYS HISTORY:

of the company effective April 21, 2009.

TVSMotorCompany 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 wasconverted into a public limited company on 12th January, 1984. It waspromoted by Mr. N. Krishnan in collaboration with Suzuki MotorCo. Ltd.Japan; Sundaram-Clayton, Ltd., a member of the Company to the extent of Rs70 lakhs.

- The company entered into a technical know-how and assistance agreementwith Suzuki MotorCo. Ltd., of Japan on 22nd September. As per the terms ofthe Colloboration, Suzuki agreed to furnish complete technical information andknow-how, trade secrets and other data.

- All shares taken up by promoters etc. 1984

- The company received a letter of intent for the manufacture of 20,000 sparkignition operated out board motors and 30,000 internal combustion sparkignition engines upto 500cc per annum.

- 59,40,000 shares issued at par in 1984. 7,00,000 shares allotted to SundaramClayton, Ltd. Chennai, 70,000 shares allotted to Anusha Investments (P) Ltd.Chennai, 20,00,000 shares allotted to Suzuki MotorCo., Ltd., Japan; 2,20,000shares allotted to employees and business associates and 29,70,000 sharesoffered to the public. 1985

- A new company "Lakshmi Auto Components Pvt Ltd." was incorporated forthe manufacture of critical engines and transmission parts. 1986

- The company acquired the assets of the moped division from SundaramClayton Ltd. The cost of acquisition was met partly by rights issue of equityshares. The company subscribed to 39,20,000 equity shares of Rs.10 each ofLakshmi Auto Components Pvt Ltd, whereupon it became a subsidiary of thecompany.- The name of the company was changed from Indo Suzuki Motorcycles Ltd. to


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- TVSSuzuki 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.

- TVS' new-generation state-of-the-art four-stroke scooterSpectra, of which wegave you an exclusive preview last month, was launched in spectacular fashionat the TVSMillennium Show on October 1 in New Delhi.

- TVSSuzuki Ltd on October 1 launched its new generation 4-stroke scooter`TVSSpectra' in Delhi.

1999

- TVSSuzuki is all set to launch a scaled-down version ofSpectra -- therecently launched four-stroke scooter.

- The company is set to launch Spectra on a nation-wide basis in April.

- Suzuki has indicated to the TVS group that if it did not agree to the Japanesecompany's acquiring a majority stake, it should allow Suzuki to set up a 100 percent subsidiary.

2000

- The Company, pioneers ofIndo-Japanese motorcycles in the country, haslaunched its latest offering, Suzuki Fiero, in the Kerala market.

- The Tamil Nadu based TVS-Suzuki has launched the 150 CC four-strokepowerhouse Suzuki Fiero in Tamil Nadu, close on the heels of its launch inRajasthan, Karnataka and Kerala.

- Two-Wheeler major, TVS

-S

uzukiL

imited is set to create a special cell to tapthe institutional segment.

- The Company proposes to relaunch its four-stroke scooter, Spectra, in July.

- Two-wheeler major TVSSuzuki is all set to cross the magic one million markdurisng the current fiscal with 12 new models lined up over the next 18 months.


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- Motocycle giant, TVSSuzuki, has forged an alliance with Brand Dotcom toleverage the latter's online expertise brand building on the Net.

- TVS-Suzuki Ltd on August 30th, formally launched its indigenously

developed 4-stroke motorcycle, TVS Victor, here. The price has been fixed atRs 41,187, (ex-showroom, Chennai).

- The TVS group and Suzuki MotorCorporation September 27 parted waysfrom their 15-year-old joint venture with the former buying out the 25.97 percent stake of the Japanese company for Rs 9 crore.

2002

- TVSMotorCompany Ltd has informed that the Board declared an interim

dividend of Rs 9.00 per share on 2,31,00,070 equity shares of Rs 10/- each fullypaid up, aggregating to Rs 231.00 million.

2003

-TVSMotorCompany has recorded a market share of 35% from motor cyclesdivision

-K.S.Bajpai has been appointed as an Additional Director on the Board.

-TVS, Bajaj Auto and Yamaha have grabbed the market share from thecountry's largest motor cycle maker Hero Honda.

-The TVS victor sales has crossed 4 lakh unit mark in less than 18 months of its

launch.-TVSMotor has recorded a 31% growth in its sales.

-C V RPanikar has been appointed as Additional Director on the Board of TVSMotorCompany Ltd.

-TVS

M

otorC

ompany has reintroducedF

iero, inorder to compete with BajajPulsar.

-TVSMotorCompany Ltd has introduced its own racing bikes which TeamTVS will test on the tracks in Asian Circuit.

-TVSMotor launched 4 new mobikes including a new brand 100-cc mobike


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called the Centra.

-TVSMotorChairman and MD Venu Srinivasan has been selected in Business

Week's Stars of Asia which covers the top 25 achievers in the continent.

-TVSMotorCompany adds two new models in two-wheeler segment.

-TVSMotor ties up with State Bank ofIndia for scooter and Motorcyclefinancing.

-Launches Fiero F2 and Scooty Pep models

-Board of approves the merger of engine components division of its subsidiary,Lakshmi Auto Components (LAC) with TVSMotors effective from April 2,2003

2004

-TVSMotor , on Jan 5 launched Centra, a 100 cc four-stroke motor cycle, withvariable timing intelligent (VTI) engines, claiming to give more mileage toconsumers. The Centra has bundled price, style, power along with fuelefficiency making it a fill-once-a-month bike, and it's priced at Rs.36,990.nearly Rs 100 crore investment had gone into the launch of 'Centra', includingR&D, plant and machinery.

-TVSMotorCompany Unveil TVSCentra With ' VT-i Engines',, a 100 CC 4stroke motorcycle

-TVSMotorCompany launched its new bike - TVSCentra - here on February9, 2004, for the first time in the State. It is a 100-cc four-stroke motorcycletargeted at the popular segment and a Fill-it-once-a-month bike, competitivelypriced at Rs. 36,990. The vehicle has been launched in January in the metrosand other cities and so far 8,000 vehicles had been sold in the country.

-TVS

M

otorC

ompany and Union Bank ofIndia (UB

I) have announced thelaunch of `Union Miles Scheme,' an exclusive two-wheeler finance scheme

- TVSMotorCompany (TVS) launches new 125cc, 4-stroke Victor GLXmotorcycle in Chennai on May 02, 2004

-TVS Vice President resigns


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-TVSMotors forges alliance with Andhra Bank

-Canara Bank, TVSMotor rolls out TVSCanmobile

-TVS picks up Asian Network for Quality award

-TVS unveils new version of 'Victor GX'

2005

-TVSMotorCompany introduced its entry-level 4-stroke motorcycle - TVSStar - in the Kerala market

-TVS rolls out Star bike in Andhra Pradesh

-TVSMotorCompany launches TVSCentra VT-i, a variant of its four-stroke100cc model TVSCentra on May 6

-TVSMotor rolls out two motorcycle variants named Victor EDGE, StaRCityand Scooty Pep plus

2006

-TVSMotor appoints new President

-TVS launches Apache in Vizag

-TVSMotorCompany launched a new version of 125 cc Victor GLX with an

electric start option2007

-TVSMotorCo, has rolled out seven new vehicles, including its first three-wheeler and a new 125 cc bike, aimed at gaining lost share in a highlycompetitive market.

2009

- TVSMotorCompany launched Scooty Streak, which is its latest scooterettetargeted at girls of 16 to 20 age group.


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- Tvs MotorCompany Limited has appointed MrPrince Asirvatham as anadditional and independent director of the board of director

TVSGroup

TVS Group is one ofIndia'soldest business groups. It is agiant conglomerate with presence in diverse fields like automotive component

manufacturing, automotive dealerships and electronics. Today, there are overthirty companies in the TVS Group, employing more than 40,000 peopleworldwide and with a turnover in excess of USD 2.2 billion.

TVS Group originated as a transport company in 1911. TVSundaram Iyengar and Sons Limited is the parent and holding company of the

TVS

Group. TVS

undramI

yengar andS

onsL

imited has the following threedivisions:

TVS and Sons: TVS and Sons is the largest automobile distribution companyin India. It distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVSand Sons represents premier automotive companies like AshokLeyland,Mahindra and Mahindra Ltd., and Honda. The company is also one of theleading logistics solution providers and has set up state-of-the-art warehousesall over the country. TVS and Sons has also diversified into distributing a rangeof Garage equipments.

Sundaram Motors:Sundaram Motors distributes Heavy Duty CommercialVehicles, Cars, and auto spare parts for several leading manufacturers. Thecompany is also the dealer for AshokLeyland, Honda, Fiat, Ford and MercedesBenz.

Madras Auto Service:Madras Auto Service distributes automotive spare partsfor all leading manufacturers.

Other major companies ofTVSGroup are:

TVS- Motor Company Limited: TVSMotorCompany Limited is one of thelargest two-wheeler manufacturers in India. It manufactures Motorcycles,Mopeds, Scooterettes and Scooters.

TVSElectronics Limited: TVS Electronics was incorporated in 1986 incollaboration with Citizen Watch Co. of Japan. The company manufactures a


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complete range of computer peripherals.

Axles India Limited: Axles India was promoted by Sundaram Finance, WheelsIndia and Eaton Corporation for the manufacture of axles for medium and heavy

duty commercial vehicles in India.

Brakes India Limited: Brakes India is a joint venture between TV SundramIyengar and Sons Ltd. and Lucas Industries Plc., UK. The companymanufactures braking equipment for automotive and non-automotiveapplications.

Sundaram Polymers Division:Sundaram Polymers Division manufacturesEngineering Plastic compounds for various applications.

Harita Finance Limited: Harita Finance Ltd is a finance company under theTVS Group. It deals in retail finance, hire purchase, leasing and billdiscounting.

Harita Finance Limited: Harita Finance Ltd is a finance company under theTVS Group. It deals in retail finance, hire purchase, leasing and billdiscounting.

India Motor Parts and Accessories Limited:It is engaged in the distributionof automobile spare parts.

India Nippon Electricals Limited:It is a joint venture between Lucas IndianService and Kokusan Denki Co Ltd., Japan. The company manufacturesElectronic Ignition Systems for two wheelers and portable gensets.

IRIZARTVS (P) Ltd:IRIZAR TVS (P) Ltd. is a joint venture betweenSundaram Industries Ltd, AshokLeyland Ltd and IRIZARS. Coop ofSpain.The company builds bus bodies for export and domestic market.

Lakshmi Auto Components Limited: The company is a subsidiary of TVS-S

uzuki.It manufactures gears, crankshafts and connecting rods for TV

S-S

uzukimotorbikes and mopeds.

Lucas Indian Service:Lucas Indian Service is a wholly owned subsidiary ofLucas-TVSLtd., engaged in the sales and service of auto-electricals and fuelinjection equipment.


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Lucas -TVS Limited:Lucas-TVS, a joint venture between Lucas Varity

group, UK and TVS Group, is a leading manufacturer of auto electrical productsand diesel fuel injection equipment in India.

Sundaram Brake Linings Limited:Sundaram Brake Linings is the leadingmanufacturer of brake linings in India.

Sundaram-Clayton Limited:Sundaram - Clayton Ltd manufactures completerange of air brake actuation system - compressors, actuators, valves, brakechambers, spring brakes, slack adjusters, couplings, hoses, switches and vacuumboosters for light/medium and heavy commercial vehicles and trailers. FoundryDivision manufactures aluminum, gravity and pressure die-castings.

CompanyProfile

TVSMotorCompany (TVS-M) one of the largest two wheelermanufacturers in India, started manufacturing in 1979. TVS-M currentlymanufactures a range of two wheelers namely motorcycles, scooters,scooterettes and mopeds in its plants located at Hosur (in Tamilnadu) and atMysore (in Karnataka). Our subsidiaryM/s Lakshmi Auto Components Ltd(LAC), the Engine component division has been merged with TVS-M, so theannual report of 2003-04 comprises of both. Our market share is around 22 %.TVS-M is also the market leader in the moped segment enjoying a share of 69

%. The combined capacity as of march 04 is more than 1.6 million vehicles andthe annual turn over was Rs. 28,560 million (2003-04). TVS-M also exports its

bikes as SKDs and CKDs to African and South America


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Product Profile.

TVSProducts

Motorcycles

TVS AX 100 TVSFiero TVSSamurai TVSShaolin TVSShogun TVS Apache (150 cc,13.7 Ps @8500rpm) TVS Apache RTR 160

TVS Apache RTR 160 EFI (Electronic Fuel Injection) TVS Apache RTR 180 (17.3ps) TVSCentra TVSFiero TVSFiero F2 TVSFiero FX TVSFlame TVSFlame (125 cc,ccvti technology) TVSMAX 100 TVSMAX R 100 TVSStar TVSStarCity TVSStarSport

TVSSupra TVS Victor (110 cc) TVS Victor EDGE (125 cc) TVS Victor GLX (125 cc)


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Scooterettes

TVSScooty KS (60 cc) (2nd Largest used Scooter in India)

TVSScooty ES (60 cc) TVSScooty Pep (90 cc) (3rd largest used scooter in India) TVSScooty Pep + (90 cc) TVS Teenz (60 cc) TVSStreak (90 cc)

Mopeds

TVS 50 (The most used moped in India and its subcontinent, has beenmanufactured 11,26,325 (its variants and derivates included) times(August 2005) and still going on in service.

TVS XL (60 cc) TVS Eco TVSChamp (50 cc) TVSSuperChamp (60 cc) TVSSport (70 cc)

TVS XL Super (70 cc) TVS XL Super Heavy Duty (70 cc)

TVSApache

TVS Apache is an exciting offer from TVS. A powerful blend ofcontemporary design and engineering, TVS Apache is superbly styled withfantastic finish. The mighty machine has sleek finish with lines that flowsmoothly and seamlessly.

TVS Centra

TVSCentra is an efficient bike in the popular 100 cc segment inIndia. Thanks to the VTI (Variable Timing Intelligent) engine technology, it isone of the most fuel efficient bikes in India. Coming with a slew of innovativetechnologies and superb design, the bike promises style, mileage and riding

comfort.

TVSFiero F2

TVSFiero FX 2 is a dynamic looking body with lots of powerpacked features. The all-new twin pod instrument cluster comprises the


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MISSION AND VISION

TVS Motor Company

Mission

We are committed to being a highly profitable, socially responsible, and leading

manufacturer of high value for money, environmentally friendly, lifetimepersonal transportation products under the TVS brand, for customerspredominantly in Asian markets and to provide fulfilment and prosperity foremployees, dealers and suppliers.

Vision Statement

TVS Motor - Driven by the customer

TVSMotor will be responsive to customer requirementsconsonant with its core competence and profitability. TVSMotor will providetotal customer satisfaction by giving the customer the right product, at the rightprice, at the right time.

TVS Motor -The Industry Leader

TVSMotor will be one among the top two two-wheelermanufacturers in India and one among the top five two-wheeler manufacturersin Asia.

TVS Motor -Global overview

TVSMotor will have profitable operationsoverseas especially in Asian markets, capitalizing on the expertise developed inthe areas of manufacturing, technology and marketing. The thrust will be to


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achieve a significant share for international business in the total turnover.

TVS Motor -At the cutting edge

TVSMotor will hone and sustain its cutting edge of technologyby constant benchmarking against international leaders.

TVS Motor - Committed to Total Quality

TVSMotor is committed to achieving a self-reviewingorganization in perpetuity by adopting TQM as a way of life. TVSMotorbelieves in the importance of the process. People and projects will be evaluated

both by their end results and the process adopted.

TVS Motor -The Human Factor

TVSMotor believes that people make an organization and that itswell-being is dependent on the commitment and growth of its people. There willbe a sustained effort through systematic training and planning career growth todevelop employees talents and enhance job satisfaction. TVSMotor will createan enabling ambience where the maximum self-actualisation of every employee

is achieved. TVSMotor will support and encourage the process of self-renewalin all its employees and nurture their sense of self worth.

TVS Motor - Responsible Corporate Citizen

TVSMotor firmly believes in the integration ofSafety, Healthand Environmental aspects with all business activities and ensure protection ofemployees and environment including development of surroundingcommunities. TVSMotor strives for long-term relationships of mutual trust and

interdependence with its customers, employees, dealers and suppliers.


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Milestones ofTVS Motor

1980 y India's first 2 seater 50cc Moped TVS 50, launched

in Aug.

1984 y First Indian Company to introduce 100cc Indo-Japanesemotorcycles in Sept.

1994 y Launched first indigenous Scooterette (sub-100 ccvariomatic scooters), TVSScooty in June.

1996 y Introduced first catalytic converter enabledmotorcycle, the 110cc Shogun in Dec.

1997 y Launched India's first 5-speed motorcycle, the Shaolinin Oct.

2000 y Launched TVSFiero, India's first 150 cc, 4 strokemotorcycle in April.

2001 y Launched TVS Victor, 4-stroke 110 cc motorcycle, in

August, India's first fully indigenously designed andmanufactured motorcycle.

2004 y Launched TVSCentra in January, a world-class 4-stroke 100 cc motorcycle with the revolutionary VT-i

Engines for best-in-class mileage.y Launched TVSStar in Sept, a 100 cc motorcycle which

is ideal for rough terrain.


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AWARDS

Star of Asia Award to Mr. Venu Srinivasan, CMD TVSMotorCompany by Business WeekInternational.

He was also honoured with Doctorate in Science by University ofWarwick, United Kingdom.

Mr Venu Srinivasan was conferred with the prestigious JRD TataCorporate Leadership Award for the year 2004.

EngineeringThe Deming Prize

TVSMotorCompany is the only two-wheeler company in theworld to be awarded the world's most prestigious and coveted recognition inTotal Quality Management

TechnologyAward 2002 from Ministry ofScience,Government ofIndia for the successful

commercialization of indigenous technology for TVS Victor Asian Networkfor Quality Award 2004 - TVSScooty Pep won the prestigious 'OutstandingDesign Excellence Award' from Business World and National Institute ofDesign

Progressive Manufacturer 100 Award

TVS wins coveted 2009 ProgressiveManufacturer 100 Award for end-to-end automation of the entire businessprocess of its lubricant brand, TVS

TPM Excellence Award 2008

First category by Japan Institute ofPlant Maintenance (JiPm)


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The total productive maintainance (TPM) excellence

award

TVS Motor wins TPM Excellence Award by Japan Institute ofPlant

Maintenance

New Delhi: The Japan Institute ofPlant Maintenance (JIPM) has awarded thecoveted Total Productive Maintenance (TPM) Excellence Award to TVSMotorCompany in the first category. The company won the award for its exemplaryimplementation of TPM processes in its Plant II in Hosur and its Mysore plant.The TPM Excellence Award is the most prestigious award presented toorganizations, which have attained excellence in equipment performance. Mr.

M. Muthuraj, Senior Vice President (Operations) received the award on behalf

of the company at a ceremony held inYokohama, Japan on Wednesday. Theaward was conferred in acknowledgment ofthe performance and proficiency of TVSMotorCompanys state-of-the-artmanufacturing facilities and TPM processimplementation in its Hosur and Mysoreplants. The TPM Excellence Awardindicates that the company has beenconsistent in terms of significant business

results and performance indicators on Quality,C

ost, Delivery,P

roductivity,Morale and Safety.

The journey towards excellence is endless and team TVS is always committedto attaining higher level targets. It is the combined effort and hard work of allthe team members, which has resulted in us being awarded the TPM Excellenceaward. Such recognitions definitely boosts the morale, determination and zeal ofthe team and induces a spirit to achieve even better operational excellence andbusiness results, said Mr Venu Srinivasan, Chairman, TVSMotorCompany.

This is the second time that TVSMotorCompany has bagged this esteemedaward. In 2004 the Engine Component Division at Hosur had received thedistinguished honor in recognition for excellence in application of TPMmethodology. By implementing TPM processes in its plants, TVSMotorCompany has achieved significant results in quality and cost effectivemanufacturing. Zero accident has been achieved in both plants and productivity

has improved by 35%.This award reflects our ultimate goal to constantly endeavor to


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maintain high levels of efficiency resulting in superior products which meets theaspirations of rapidly maturing customers Mr. Srinivasan added.

TVSMotorCompany Limited, the flagship company of the USD 2.7 billionTVS 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 740 million. Thecompany is the only two-wheeler manufacturer in the world to be honouredwith the hallmark of Japanese Quality The Deming Prize for Total QualityManagement.

TVS Motors wins two IT awards

HOSUR: TVSMotorCompany Limited has won two IT Awards, the SAP ACE

2008 Awards for customer excellence and the 2008 Symantec South Asia

Visionary Award.

While the company won the SAP ACE Award for digitization of new productdevelopment process in SAP by implementing PLM (Product LiftManagement), the Symantec South Asia Visionary Award was conferred for theway the company secured and managed system and information, a companypress statement said here on Friday.

The SAP ACE Award recognizes achievement of business excellence throughimplementation ofSAP projects.

Approximately 150 organisations participated across India for this award. Theaward is given to different categories ofIndustries leveraging SAP to achievebusiness excellence, the release said.

It is indeed an honour for TVSMotorCompany to win the SAP ACE Awardfor the second consecutive year. PLM helped us to assimilate customerexperience and connect it to drawing board and also will help us in systematicintroduction of new product by mee ting quality, costs and delivery targets. TheSymantec Award was also a prestigious achievement for us. TVSMotorCompany was chosen out of 25 participants in South Asia for this award'' said,

Mr T G Dhandapani, Corporate ChiefInformation Officer, TVSM otorCompany, who received the awards on behalf of the company. P


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TVS Motor Bags Deming Award For Quality Mgmt

Chennai,November 2:: TVSMotorCompany (TVSMC) has been awarded the

prestigious Deming award by the Union of Japanese Scientist and Engineers forachieving distinctive performance improvement through the application of total

quality management. TVSMC is the first two-wheeler company in the world toget the award. Industry considers the Deming award as equivalent to the Nobelprize in the field of quality.

In another feather on TVSMCs cap, its parent, Sundaram Clayton Ltd (SCL)has been awarded the Japan Quality Medal by the Union for its brakes division.This division had won the Deming award in 1998 and the current award is inrecognition of its achievement in its total quality management practices. SCL is

only the second company outside Japan to win the award, and the first one inthe country.

With the latest award, the TVS group has hit a hat trick. Earlier, SCL andSundaram Brake Linings were awarded the prize. So far only TVS groupcompanies have bagged this prestigious award in the country.

There is a strong resemblance of the quality awards requirements to the TVS

way of life. These quality principles were in force when the TVS group founderhad been operating a 400-strong bus fleet in the early 1900s before theirnationalisation, says SCL and TVSMC managing director Venu Srinivasan.

There is no instant mantra or extra effort that can prepare one for such anexamination (required for the award), except the arduous and diligent process ofconsistently applying the process of TQM over a long period in every facet ofoperation, he explains. For the group, the journey towards the awards began ina crisis period. During the early 1980s, the recession and increased competitionhad led to a drop in the market share and profitability ofSCL. The company

embraced the quality mantra, which helped boost profit, besides improvingquality, recalls SCL president C Narasimhan.

TVSMC was plagued by problems after acquisition ofSCLs moped division bythe erstwhile Ind Suzuki in 1987. There was an incompatibility in theorganisational structure, high fixed cost, poor financials and low morale amongthe workforce. The quality journey helped turnaround the fortunes, says TVSMCpresident CP Raman


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FINANCIAL HIGHLIGHT OF TVS MOTOR COMPANY


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SOCIAL RESPONSIBILITY

Economic Development:38,340 families have a minimum income of Rs.4,000/- per month.

This has been made possible by helping the women to earn an additionalincome by way of income generation activities, increase in agriculture

production and better livestock management. This income helps their familieshave both food and financial security.

Health:

Easy access to primary health care and adoption of proper sanitation,hygiene and nutrition has resulted in improved general health standards of thecommunity. There has been no case of infant or maternal mortality in the

project areas. Now, over 189 villages have access to safe drinking water. Asagainst 70% of the women found anemic 4 years ago, today the incidence ofanemia is down to 11%. Only about 4% of the children are foundmalnourished.

Education:There is 100% enrolment of children in schools. Average pass percentage

of the government higher secondary schools in the project area is 72%. So far10535 women members have become literate. They have basic reading skills up

to class 2 levels.

Environment:

People segregate biodegradable and degradable garbage at theirhomes. Garbage is being collected by members ofSelf Help Groups.Biodegradable waste is converted to vermi compost. Over 27 tons of vermi

compost is produced every month. Sale of vermi compost generates aboutRs.1.08 lakhs per month. 10,900 individual toilets, 174 school toilets and 56community toilets have been constructed and are being used. Over 1,12,000

hectares of degraded forests have been reforested.SS

T helped the people to earnan extra income from non-forest related activities. This has created awarenessabout safeguarding the forests.


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Watershed Development

Watershed development refers to the conservation, regeneration

and the judicious use of natural (land, water, plants, animals) and human -within a particular watershed. Watershed management tries to bring about the

best possible balance in the environment between natural resources on the oneside, and human and other living beings on the other.

SST has taken up Micro Watershed Programs in Padavedu fundedby Ford foundation. Irumbuli, Kothakondapalli and Saragapalli micro watersheddevelopment program have been funded by NABARD in Tiruvannamalai andKrishnagiri districts of Tamil Nadu. SST covers 5854 Hectares under thisprogram. Involvement of local communities through Watershed association andWater users association have made this program very successful to the farmingcommunities.

The trust has initiated various water and soil conservationstructures such as contour banding, continuous contour trenches (CCT), waterabsorption trenches, Loose rock check dams (LRCD), check weir, farm ponds,percolation ponds, desilting of tanks and ooranis, rehabilitation of abundantwells.

This has resulted in Improving the ground water availability, change in crop, cropping

pattern.

Reduce seasonal migration through generating year round and sustainablelivelihood employment

Increase in grazing land, fodder production and improved livestockmanageme

Utilizing limited irrigation water more efficient and reduce theexploitation of the ground wate

Raising high value cash crops with increasing in yield and desired quality Increasing vegetative cover through farm forestry, dry land horticulture

and Afforestation.


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COMPANY PERFORMANCE

New Product Launches and Initiatives During the year2007-08, the Company launched various newproducts and variants.

TVSFlame

This is the hottest riding experience sporting many first timefeatures (in the executive segment) like the embedded trafficators, InstantMileage Indicator, Delta Edge exhaust andglove box. Flame sports arevolutionary 3 Valve CCVTi engine which delivers best in class mileagewithout compromise on power. With this launch, the Company will activelycompete in the executive segment.

Apache RTR

This 160cc Apache launched in the growing premium segment,was declared Performance Bike of the year 2008 by Auto Business StandardMotoring , NDTV and Overdrive. It also bagged the NDTV Car & Bike Awardfor Best Design of the year.

StaRSport

The new StaRSport with superior style, refreshing graphics,pleasing colours and contemporary design became an instant hit.Moreimportantly , this bike delivers the best

mileage in its class.


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StaR City 110 ccAn upgrade of the existing and highlysuccessful StaRCity, this

newmotorcycle packs a more powerfulpunch with increased power and

higherfuel efficiency with VTi technology.

ScootyTeenZElectric

This new entrant in the TVSScooty family is an electriceco-friendly scooter. This will address the growing demand for electric scootersin India. Scooty TeenZ Electric has been launched in Gujarat and Maharashtra.During the year 2008-09, this product will be made available across the country.

TVSTru4 Oil

TVS Tru4 oil has been indigenously developed by the Companyin association with BPCL. This is specifically designed for smooth clutchoperations , smoother gearshift and enhanced engine protection providing anultra smooth biking experience for the customer. This product has been certifiedby JASO (Japanese Automotive Standards Organisation ) forMA2 with API20W40 grade.

Motorcycles

In this category, the Company faced a steep decline of 33%during2007-08. The Company's motorcycle portfolio was largely dependent onStaR brand of motorcycles and the impact of non availability of retail finance

was severe.Launch of TVSFlame was delayed due to litigation on usage of twinspark plug. While the legal process is still going on, in order to avoid business


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disruption , the Company has launched TVSFlame with a single spark plugwithout compromising on any of the performance parameters . With thecomplete product range now available, the Company hopes to reverse the

decline and grow during 2008-09.Un geared scooters Scooty Pep+ continues to

be the market leader in sub 100ccmarket. Emergence of electric scooterssegment has affected TVSScooty sales marginally. The newly launched TeenZElectricwill address this issue. This product is also rated the bestamongst the competing brands by Overdrive Magazine (June2008 issue). TheCompany will also be launching a new variant ofScooty and a big scooterduring the year 2008-09 to expand its customer base.

Mopeds

Mopeds grew by 19% and increased its market share to 95% from89% in the previous year. Focused efforts on non-south states have helped to

achieve this growth.International Business In 2007-08, export business saw steep growth of 32% ascompared to 28% in the previous year. During this period, 5 more countrieswere included, taking the total countries to which the Company exports to 53.

Three Wheeler Operations

The three wheeler industry has grown at acompounded average growth rate (CAGR) of 12% over the last 5 years to reach5 lakh units in 2007-08. Passenger segment accounts for 73% and balance beinggoods carriers. In addition to domestic demand,

exports offer an attractive opportunity.The Company launched its three wheeler, TVS King in two

variants . two stroke petrol and two stroke LPG in March 2008. The productcomes with many first time features in the industry and delivers higher comfort

and convenience, better fuel efficiency and more importantly superior style togive pride of ownership to the drivers. The product has received encouragingresponse from the market. TVS King has beenlaunched in selected towns and will be gradually extended to alloverIndia byDecember 2008.

TVS MOTOR COMPANY LIMITED

The Company plans to introduce four stroke version inPetrol, LPG and CNG fuels for domestic and export markets during 2008-09.


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OPPORTUNITIES AND THREATS

Growth in two wheeler demand would come mainly from rising

population in relevant age and income groups and increasing use ofpersonal transport.

The StaR brand stands to gain from this, but the current retail financesituation may hinder its growth in the current year.

Apache RTR is gaining popularity with the younger male population. Toretain this segment of customers, who are very conscious about style andperformance, frequent refreshes and upgrades are required.

The executive segment accounts for over 50% of the motorcyclecategory. The recently launched TVSFlame has been well received bydiscerning customers.

The Company has a strong presence in the sub 100cc ungeared scootersegment. However, the Company has no presence in the large scooterformat which accounts for 70% of the total ungeared scooters.

The Company plans to launch a new product during the year to targetthese customers. Emergence of electric scooters, especially in the

context of rising fuel prices provides a new avenue of growth.


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OPERATIONS REVIEW

Quality

The Company has significantly improved the quality performance of

all its products through a systematic task force approach. The fact that theCompany came out with Industry first five year extended warranty program on

StaR brand is a testimony to its manufacturing quality.

TQM

The Company continues to benefit from 100% participation of employeesin TQM activities. The employees have completed more than 1,200 projectsthrough QCCircles and Cross Functional Teams. The average number ofsuggestions implemented per employee was 69 during 2007-08.

Cost management

The Company continues its rigorous focus on costs through

an effective deployment system. Value engineering and aggressive globalsourcing projects are being pursued to reduce material costs and also to partiallyneutralize input material cost increase.TPM is practiced in all the plants to ensure significant improvement inproductivity and reduction in manufacturing cost.

During 2007-08, the Hosur and Mysore plants were awarded theTPM excellence certificate by the Japanese Institute ofPlant Management(JIPM).

Research and development

The Companys R&D team has a strong technical

talent pool and modern computer aided laboratory, capable of developing new

and innovative styles and designs. It also has state-of-art facilities for enginetesting, NVH measurements and life testing. At present, more than 450engineers are working on the development of new products and in other

advanced areas of technology. The Company works with leading technologicalresearch laboratory and institutions.


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The Company now has 604 exclusive dealers and over 2,500authorised sub dealers and service centres. The customer loyalty programme .Smiles forever - has been upgraded and revamped. The current customer base of

the CRM programme is over 4.3 lakh members PT TVSMotorCompanyIndonesia PT TVSMotorCompany Indonesia, a subsidiary of the Company,

has established a manufacturing facility at Karawang (near Jakarta), Indonesiawith an annual capacity of 3,00,000 units. The new product exclusivelydeveloped for the Indonesian market was launched during 2007-08 in selectmarkets. The response from the customers has been extremely satisfactory.Apache RTR launched during 2007-08 has also caught the fancy of Indonesiancustomers. The Company has established a network of 25 dealers as on 31stMarch 2008 and plans to add another 125 during 2008-09.

HUMAN RESOURCE DEVELOPMENT

The Company focuses on attracting the best talent throughstrategic recruitment from reputed Engineering Colleges and Business Schoolsacross the country. Managers are developed through structured foundationprograms in association with reputed institutions. The Company sponsorsmanagers to overseas and inland universities for developing their capabilities tohandle new technologies and management practices. They are also deputed tointernational conferences and seminars to gain global exposure. Leadershipdevelopment programs have been institutionalized as part of career developmentfor senior executives. Career development workshops help identifying the highpotential talents. This is reinforced with robust development plans supported by

reward and recognition system.

The Company has developed a blueprint forcreating Centers of Excellence in the key business processes. These Centers of

Excellence build competencies required for the present and the future to providecompetitive advantage. The Company continues to maintain its record onindustrial relations with not a single day of work being lost because of labourunrest. As on 31st March 2008, the Company had 4,284 employees onits rolls.


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ENVIRONMENT, HEALTH & SAFETY

An integrated EHSManagement System is instituted

both at Hosur and Mysore units. Both the sites have been certified underISO14001 for Environment Management System and underOHSAS 18001 for

Occupational Health Safety Management System. The Company continues toexcel in key environmental performance areas, achieving a 35% reduction infresh water consumption, 45% per unit reduction in landfill waste disposal and33% reduction in paint sludge generation. In line with the World Environment

Day . 2008 theme g Kick the Habit - Towards Low Carbon Economyh, the

Company is making a conscious effort to reduce its Carbon Foot print.

Accordingly, it has taken various energy conservation measures like the use ofwaste heat from central power plants, use of energy efficient motors, use of

CFL lighting systems, use of natural lights, special V Belts in machine drivesetc. The eventual goal is to become a Carbon Neutral ManufacturingCompany.

COMMUNITY DEVELOPMENTAND SOCIAL RESPONSIBILITY

Srinivasan Services Trust (SST) is a trust co-sponsored byTVSMotorCompany with the vision of building self-reliant rura communities.SST extended its coverage to 363 villages, serving a population of 3.71 lakhs.Some of the significant achievements are :

Regular income of over Rs.4,000/- per month for 14,446 families. No case ofInfant and maternal mortality in the project areas. Morbidity caused by poor sanitation & hygiene reduced from 37% to

13%. 100% enrolment of children in Balwadis and Schools. 1,12,000 hectares of degraded forest land reforested. 5,830 hectares were covered under Watershed Program.


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This installation of tools and machinery of automatedworkshop are very sophisticated.

For the convenience of the satisfaction of cutomers ,separate waiting room has been constructed with various facilities like news

paper , journals , magazines , TV etc .

The unit has separate spare parts counter , where in all spare andequipment are genuine and indirectly supplied by the TVSCOMPANY. Theunit has spare parts of all ranges bike of TVS.


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TVS MOTORS HARITA HOSUR, TAMILNADU.

deals with following TVS company motor cycle

TVS Apache (150 cc,13.7 Ps @8500rpm) TVS Apache RTR 160 TVS Apache RTR 160 EFI (Electronic Fuel Injection) TVS Apache RTR 180 (17.3ps) TVSCentra TVSFiero TVSFiero F2 TVSFiero FX TVSScooty Pep (90 cc) (3rd largest used scooter in India) TVSStar TVSStarCity TVSStarSport TVS Victor (110 cc) TVS Victor EDGE (125 cc) TVSFlame (125 cc,ccvti technology) TVSScooty


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ORGANISTIONAL BEHAVIOUR

In firm size , it is humanly impossible for anindividual to do justice to the multitudes and the complex demand of themanaging and operating of the business .since management essentially impliestaking work from other as per the plan . there authority to the work done fromthe later as per specific directives . All the management function of planning ,organizing , directing and controlling cannot be perform by an officer at the top.

In short authority has to deligated as the responsibility diversified in orderachieve optimum results.


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ORGANISTIONAL STRUCTURECEO

K. Radhakrishnan

Chairman of the Board

Venu Srinivasan

Director

R. Ramakrishnan

Director

Prince Asirvatham

Director

K. Bajpai

Director

C. Dua

Director

H. Lakshmanan

Director

T. Kannan

Secretary

KS

Finance

SM

Marketing & Sales

HG

NPI

HC

MANAGER

A Manager is a person who manages all the organizational activities.A Manager is a person responsible for planning and directing the work of agroup of individuals, monitoring the work and taking corrective action whennecessar . for many people this is their first step into a management career.

The manager must be familiar with the work of all thegroup he/ she supervises, but does not need to be the best need in any or all ofthe areas. It is more important for the manager to know how to do their work

well.

A manager have the power to hire or fire employees or to promotethem. In larger companies, a manager may only recommends such action to the

next level of management. The manager has the authority to change the workassignments of team members.


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A manager can have responsibilities in one ormore of five key areas: managing activities; managing resources; managinginformation; managing people; and managing him- or herself at the same time

as working within the context of the organizational, political, and economicbusiness environments.

There are managers in all disciplines and activities, although somemay not bear the title of manager. Some specialize in areas such as personnel,marketing, production, finance, or project management, while others are generalmanagers, applying management skills across all business areas. Very few jobsare entirely managerial, and very few exist without any managementresponsibilities. It is the capability to harness resources that largelydistinguishes a manager from a non-manager.

Roles of a manager:

Managers are building blocks of the organization. A manager performsfive basic functions - Planning, organizing, staffing, directing andcontrolling. At all the levels of management we have managers workingthere and performing one or more of these managerial functions. Amanager's main role is to achieve effective utilization of resources in anorganization. He achieves so through coordinated human efforts.

A manager has a very important role to play in achieving organizationalobjectives. He is responsible for aligning the individual's objectives withthe organizational objectives. This is very essential for achieving long-term organizational success.

A Manager is the one who communicates organizational vision to the

employees of the organization. He should ensure that there is effectivecommunication flow in an organization and that there should nomisinterpretations taking place.


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A manager has crucial role to play in decision making process in anorganization. He has to decide how to bring and communicateorganizational changes. He plays a major role in setting organizational

goals. He has to be in close contact with the employees of theorganization. He should understand them and motivate them. He should

encourage them so that they can perform effectively. He should praisethem when they show brilliant performance and on bad performance, heshould give them constructive feedback rather than negative feedback. Heshould provide them online support and coaching.

A manager should resolve conflicts among the employees and try to reachat an acceptable solution. This would improve employees work quality aswell as performance. Thus, a manager's role is very important so as to

improve employees productivity as well as organization's productivity.He should understand that organizational success depends on employees.Thus the more satisfied and happy the employees are the more successthe organization will show. A manager must be committed to his work soas to set an example for his subordinates.

Managers at different levels have different roles to perform. In anyorganization we have mainly 3 levels of management and at all theselevels we have different managers working with their respective powersand authority. Author is the writer ofLevels ofManagement whichexplains in detail about the roles performed by managers at differentlevels.

Responsibilities of manager:

There are a number of general responsibilities concomitant with the role

of office manager.

These will vary from business to business but many of

the responsibilities include hiring and firing of employees, orderingsupplies, performing payroll duties, performing accounting duties,taking phone calls and performing general everyday tasks necessary forthe efficient running of the business.


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action to the next level of management. The supervisor does, however, oftenhave the authority to change the work roles of the members of the team, forinstance deciding which individual will work at which station.

Roles of supervisor:

Supervisor plays multiplinary role at one time like

As a Planner - A supervisor has to plan the daily work schedules in thefactory. At the same time he has to divide the work to various workersaccording to their abilities.

As a Manager -It is righty said that a supervisor is a part of themanagement team of an enterprise. He is ,in fact, an operative manager

As a Guide and Leader - A factory supervisor leads the workers byguiding them the way of perform their daily tasks. In fact, he plays arole of an inspirer by telling them.

As a Mediator - A Supervisor is called a linking pin between

management and workers. He is the spokesperson of management aswell as worker.

As an Inspector - An important role of supervisor is to enforcediscipline in the factory. For this, the work includes checking progressof work against the time schedule, recording the work performances atregular intervals and reporting the deviations if any from those. He canalso frame rules and regulations which have to be followed by workersduring their work.

As a Counselor - A supervisor plays the role of a counselor to theworkers problem. He has to perform this role in order to build goodrelations and co-operation from workers. This can be done not only by

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MUHEET GRAND FINALE

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