COMPANY PROFILE

CHAPTER I

1.1 INDUSTRY PROFILE

The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The two-wheeler market in India comprises of 3 types of vehicles, namely motorcycles, scooters, and mopeds.Foreign collaborations have been playing a major role in the growth of the Indian two-wheeler market, and most of them are Japanese firms. The modern two-wheeler firms in India have been manufacturing new categories of two wheelers such as Step Thrust and Scooterettes. These have been produced by combining two or more two-wheeler segments. Foreign firms have already taken initiatives to own their two-wheeler Subsidiaries in India.

Among the 3 segments of the Indian two wheeler market, major growth trends have been seen in the motorcycle segment over the last four to five years. One good reason for such increase in demand for motorcycles is due to its resistance and balance even on bad road conditions. Most of the rural areas in India do not have decent roads and hence the need for good, shock-resistant, and steady two-wheelers such as motorcycles had been felt.

Some of the major players in the Indian motorcycles market are Hero Honda CBZ, Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor, Star City, Boxer, CD Dawn, Karizma, Caliber, etc. Having classified the motorcycle brands into economy, executive, and premium segments, Bajaj stands as the leader in the economy segment, Hero Honda leads in the executive segment, and there is a competition in the premium segment between Hero Honda and Bajaj.

The following are the main factors that affect two-wheeler sales in India:

Increase in credit and financing for auto vehicles - Two-wheeler loans and financing has been on the rise. Increase in consumer's salary - Due to opportunities offered by multinationals the disposable incomes of salaried individuals have increase manifold.

Constant petrol prices - Today, the government of India has been working on reducing subsidies on kerosene and diesel which will keep petrol prices at more or less the same level.

Delay in initiation of Mass Transport System - Probably a future threat to the two-wheeler market, the implementation of the mass transport system has been delayed.However, the two-wheeler market in India is a fast growing market due to its technological advancements in product manufacturing and emphasis on design innovation.

1.2 COMPANY PROFILE

HISTORY

Established in 1978 at Hosur to produce Mopeds Technical collaboration with Suzuki motor corp in 1982 Started manufacturing motor cycle in 1984 Became Indigenous as TVS Motor company in 2001 Entered into three wheeler manufacturing in 2007 Established overseas plant in 2007

TVS GROUP HISTORY

Established in 1911 Vehicle dealership and parts distribution Passenger Bus and Freight service Early innovators in operation and maintenance TVS : Trust Value Service

TVS WAY OF THINKING

TVS way of thinking is the set of eight guiding principles, deming principles, which enables common thinking across the organization for effective decision making Customer focus Quality first Fact control Recurrence preventive PDCA Cycle SDCA Cycle Focus on process for results Respect for people

DETAILS ABOUT MANAGEMENT

Chairman & Managing Director of TVS Motor Company Ltd: Shri Venu SrinivasanPresident of TVS Motor Company Ltd: Shri KN Radhakrishnan

MILESTONES

1979 Sundaram-Clayton Limited (SCL) started manufacture of TVS mopeds, total indigenous design and development. 1982 SCL established JV with Suzuki Japan. Company named as Ind Suzuki Ltd. 1984 Commercial production of Suzuki motorcycles started and the moped division merges Company renamed as TVS Suzuki. 1994 Indigenous design and development of Scooterettes

1998 Set up a second manufacturing plant at Mysore. 2001 Suzuki exited from JV and Company renamed as TVS Motor Company Ltd. Launched indigenously designed and developed motorcycle named TVS Victor.

AWARDS

Deming award for TQM practices in 2002 ISO 14001 & OHSAS for EMS in 2005 TS 16949 certificate for QMS in 2006 TPM Excellence award in 2008 Safety excellence award in 2009 Best QCC team of year in 2010 Best SIT project of the year in 2010 Best DOE project of the year in 2011 INSSAN award consecutively for 10 th year in 2013

R&D ACHIEVEMENTS

Indias first two seat moped, the TVS 50 (1980). First fuel injection system (1990). TVS Scooty (1994) designed and developed indigenously, adjudged to be the best scooterette. TVS Victor (2001) designed and developed indigenously 4 stroke 110 cc motorcycle won Technology award. Concept Hybrid vehicle (2001). Patents: Cumulative 60 patents have been filed covering the areas of engine & vehicle technology [(2003-04)(17patents)]. Publications: 13 technical papers have been published in International seminars.

Three-wheeler plant in Hosur. Three new plants in Indonesia. Two new plants in Himachal Pradesh.

HRD DEPARTMENT

Mission is Enabling departments to achieve goals through the continuous improvement of processes and systems, by the active involvement of employees and their development.

FUNCTIONS

Recruitment of Managers and Executives. Employee Development. Kaizen -- Total Employee involvement activities for continuous improvement. Organization and Methods Standardization. Knowledge Dissemination. Performance Management.

TVS CORE VALUES

TRUST

To earn unquestionable trust of all stakeholders in every action by demonstrating both transparency and fairness in all dealing

VALUE

To add value to all company and its stakeholders in every action and to focus on simplification. No action should be taken for sake of perpetuating bureaucracy

EXACTNESS

To honor all commitments; to be fact based, accurate and precise in all words and deeds; to shun ambiguity. Meticulous adherence to standards and compliance with process

PASSION FOR CUSTOMERSPossess a story emotional commitment to delight customers; to proactively understand and address customer needs with deep insight and customer intimacy

MISSION STATEMENT

We are committed to being a highly profitable and socially responsible, leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under TVS brand for customers predominantly in Asian markets and to provide fulfillment and prosperity for employers, dealers and suppliers.

VISION STATEMENT

TVS MOTOR DRIVEN BY THE CUSTOMER TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time.

TVS MOTOR THE INDUSTRY LEADER

TVS Motor will be one among the top two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia

TVS MOTOR GLOBAL OVERVIEW

TVS Motor will have profitable operations overseas especially in Asia market, capitalizing on the expertise developed in the areas of manufacturing, technology and marketing. The thrust will be to achieve a significant share for international business in the total turnover.

TVS MOTOR AT THE CUTTING EDGE

TVS Motor will hone and sustain its cutting edge by constant benchmarking against international leaders. TVS Motor will justify premium pricing with technological superiority and by providing continued development and service support to its customers.

TVS MOTOR COMMITTED TO TOTAL QUALITY

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life. There will never be any lowering of quality standards, whatever the cost to the organization.TVS Motor believes in the importance of the process. The end does not justify the means. If the process is right, the end product will be right consistently, time after time. People and projects will be evaluated not merely by their end results, but also by the process adopted.

TVS MOTOR THE HUMAN FACTOR

TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people. There will be a sustained effort through systematic training and planning career growth to develop employees talents and enhance job satisfaction.

TVS MOTOR RESPONSIBLE CORPORATE CITIZEN

TVS Motor firmly believe in the integration of safety, Health and Environmental aspects with all business activities and ensure protection of employee and environment including development of surrounding communitiesTVS Motor strives for long term relationship of mutual trust and inter-dependence with its customers, employees, dealers and suppliers

QUALITY POLICY

TVS MOTOR COMPANY LIMITED is committed to achieving total customer satisfaction through excellence in TQC. We will continuously strive to provide the customer the best value for money by supplying quality products at the right time and at the right price. We shall provide superior after-sales service to maintain and reinforce customer satisfaction. This objective will be achieved by continuous improvement through Total Employee Involvement.

EHS POLICY

We are a leading manufacturer of personal transportation products and components with manufacturing facilities at Hosur, Mysore. We firmly believe in the integration of Environment, Health and Safety (EHS) aspects of our work in all our business activities and in ensuring the well being of employees, the neighboring communities and society

WE ARE COMMITED TO:

Set and improve the performance standards in all aspects of EHS including compliance with all regulatory standards. Conserve input resources such as water, energy, oils, paints, packaging materials etc, by recycling wherever possible and minimizing pollution loads. Integrate EHS in decisions such as the selection of technology, materials, and services and in procurement. Ensure that best available EHS practices are used in the design and performance of all our products. Provide training to our employees for effectively employing sound EHS practices in their work. Support our suppliers, dealers and contractors in adopting sound EHS practices.

CONTRIBUTION TO SOCIETY

Primary health centres in villages. Improved infrastructure in schools in and around the factories. Health check-up and scholarship for school children. Leprosy eradication program. Aids awareness program.

1.3 ORGANIZATION STRUCTURE

BOARD OF DIRECTORSMANAGING DIRECTORPRESIDENTEXECUTIVE VPSALESMARKETINGPURCHASESOPERATIONSR&DAEGPEDQADPROGRAMMOPEDPROGRAMSCOOTYPROGRAMMOTOR CYCLEINFORMATION SYSTEMS DEPARTMENTINTERNATIONAL BUSINESSCORPORATE COMMUNICATIONSBUSINESS PLANNINGINDUSTRIAL RELATIONSFINANCEHRD & TQC

1.4 PRODUCTS & SERVICES DOMESTIC:

INTERNATIONAL :

THREE WHEELER :

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