AN EMPIRICAL STUDY ON COMPETENCY MAPPING FOR EMPLOYEES IN TVS MOTOR COMPANY LTDHOSUR

PROJECT REPORT Submitted by

MOHAN RAJ.S Register No : AC13MBF144

In partial fulfillment for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION IN HUMAN RESOURCE MANAGEMENT Under the guidance of Mr. B.N.SIVA KUMAR DEPARTMENT OF MANAGEMENT STUDIESADHIYAMAAN COLLEGE OF ENGINEERING( An Autonomous Institution, Afiliated to Anna University, Chennai )Dr. MGR Nagar, Hosur 635109APRIL - 2015

CERTIFICATE

This is to certify that the project report entitled AN EMPIRICAL STUDY ON COMPETENCY MAPPING FOR EMPLOYEES IN TVS MOTOR COMPANY LTD Submitted by MOHAN RAJ.S (AC13MBF144) is the Bonafide work of the mini project by him during the academic year 2013-2015, under my guidance and supervision in partial fulfillment for the award of DEGREE OF MASTER OF BUSINESS ADMINISTRATION.

PLACE : HOSURDATE :

DIRECTOR GUIDEDr. V.NAVANEETHAKUMAR Dr.B.N.SIVA KUMAR (Dept of Mgt studies) (Dept of Mgt studies)

DECLARATION I affirm that the project work titled AN EMPIRICAL STUDY ON COMPETENCY MAPPING FOR EMPLOYEES IN TVS MOTOR COMPANY LTD submitted to Department of Management Studies, Adhiyamaan College Of Engineering, Hosur in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a original work done by me during the period of my study at the college under the supervision and guidance of Mr.B.N.SIVA KUMAR, Department of Management Studies, Adhiyamaan College of Engineering, HOSUR.

(Signature of the candidate) MOHAN RAJ.S (Register No : AC13MBF144)

I certify that the declaration made above by the candidate is true

Signature of the Guide

ACKNOWLEDGEMENT

I would like to express my sincere gratitude and heartfelt thanks to our Principal Dr. G. Ranganath who has given me a chance to do my post-graduation in this college and also to our Director Dr. NAVANEETHA KUMAR for his valuable guidance and to my guide Dr.B.N.SIVA KUMAR for his guidance in every step and also for constant encouragement which helped in the successful completion of this project. Finally I would like to thank my family members, my college for providing me an opportunity to get an exposure in to real life business practices. Above all am obliged to God and thank all people who have assisted me in the successful completion of this project.

( MOHAN RAJ.S )

ABSTRACT

Right Person For The Right Job This proverb is a dream for every manager of the company In todays competitive world it is becoming very important to build on the competitive activities of the business, particularly regarding what competencies a business needs to have in order to compete in a specific environment. Top management is identifying corporate core competencies and working to establish them throughout the organization.

Human Resource Development builds competency based models that drive business results. Competency modeling addresses the development of people from process design through succession. But most of the organizations of all sizes are still struggling with defining, designing and implementing competency model projects. The process is completely customizable.The decisions of competency design are driven by number of organizational factors, including management philosophy, customer requirements, business needs and in-place processes

Success of any organization depends largely on its competent employees and the extent to which the knowledge is shared in that organization. Competency Mapping is a process through which one assesses and determines ones strengths as an individual worker and in some cases as a part of an organization. Hence, competency mapping play a significant role in growth and development of the organization.

Competency mapping examines two areas: emotional intelligence quotient(EQ),and strengths of the individual in Areas like team structure, leadership, and decision-making.Competency also means the collection of success factors necessary for achieving importantresults in a specific job or work role in a particular organization. Success factors arecombinations of knowledge, skills, and attributes that are described in terms of specificbehaviors, and are demonstrated by superior performers in those jobs or work roles. Attributesinclude: personal characteristics, traits, motives, values or ways of thinking that impact anindividuals behavior.

CHAPTER I

1.1 INTRODUCTION

Employees today are the most important and biggest asset of any organization. This is because employees are the people responsible behind the running of the organization and helping the management in securing a position in the business market. Therefore, keeping the employee satisfied and focused is the aim of any organization to fulfill their objective as well as satisfying the customer requirements.Competencymapping is a process through which one assesses and determines ones strengths as an individual worker and in some cases, as part of an organization. It generally examines two areas:emotional intelligenceor emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decision-making.Competencymapping also used to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work.The value ofcompetencymapping and identifying emotional strengths is that many employers now purposefully screen employees to hire people with specific competencies. They may need to hire someone who can be an effective time leader or who has demonstrated greatactive listeningskills. Alternately, they may need someone who enjoys taking initiative or someone who is very good at taking direction. When individuals must seek new jobs, knowing ones competencies can give one a competitive edge in the job market.The study was carried out at MSquared software and services, technopark Trivandrum. People are the key components of any companys ability to execute its strategies and achieve its goals. Companies who are able to better engage their people can deliver better business performance and returns to shareholders. The competency mapping can help the organization and the other management executives to understand that their employees are effectively engaged in their work according to their individual competency. The competency mapping research is conducted to determine how the employees and the executive management can be effectively engaged in there work according to their individual competencies. It also helps to determine the driving force that can help the organization to sustain growth and improve it.

COMPETENCIES IN ORGANIZATIONS TEND TO FALL INTO TWO BROAD CATEGORIES:

PERSONAL FUNCTIONING COMPETENCIES - These competencies include broad success factors nottied to a specific work function or industry (often focusing on leadership or emotional intelligence behaviors).

FUNCTIONAL/TECHNICAL COMPETENCIES - These competencies include specific success factors within a given work function or industry.

Three other definitions are needed:

COMPETENCY MAP - A competency map is a list of an individuals competencies that represent the factors most critical to success in given jobs, departments, organizations, or industries that are part of the individuals current career plan.

COMPETENCY MAPPING - Competency mapping is a process an individual uses to identify and describe competencies that are the most critical to success in a work situation or work role.

TOP COMPETENCIES - Top competencies are the vital few competencies (four to seven, on average) that are the most important to an individual in their ongoing career management process. Importance to the individual is an intuitive decision based on a combination of three factors: past demonstrated excellence in using the competency, inner passion for using the competency, and the current or likely future demand for the competency in the individuals current position or targeted career field.

Although the definition above for competency mapping refers to individual employees, organizations also map competencies, but from a different perspective. Organizations describe, or map, competencies using one or more of the following four strategies:

1. Organization-Wide 2. Job Family or Business Unit Competency Sets3. Position-Specific Competency Sets4. Competency Sets Defined Relative to the Level of Employee Contribution (i.e. IndividualContributor, Manager, or Organizational Leader)

HOW CAN IT HELP THE OVERALL HRD PROCESS OF AN ORGANIZATION?

Competency is a vehicle for organizational HRD applications such as:

Defining the factors for success in jobs (i.e., work) and work roles within the organization. Assessing the current performance and future development needs of persons holding jobs and roles. Mapping succession possibilities for employees within the organization. Assigning compensation grades and levels to particular jobs and roles. Selecting applicants for open positions, using competency-based interviewing techniques ETC.

Why Should Individual Employees Map Their Competencies?

A list of compelling reasons includes, at a minimum, the following. An individual:

Gains a clearer sense of true marketability in todays job market; once the individual knows how his/her competencies compare to those that are asked for by the job market in key positions of interest.

Projects an appearance as a cutting-edge and well-prepared candidate, who has taken the time to learn about competencies, investigate those in demand, and map his/her own competencies prior to interviewing.

Demonstrates self-confidence that comes from knowing ones competitive advantages more convincingly, and from being able to articulate those advantages in specific language.

Secures essential input to resume development - a set of important terms to use in describing expertise derived from prior career experience.

Gains advanced preparation for interviews, many of which may be delivered using a competency- based approach called structured behavioral interviewing or behavioral event interviewing.

HOW DO COMPETENCIES RELATE TO MANPOWER PLANNING?

COMPETENCE MAPPING PROVIDES THE MANPOWER PROFILE

1. Organization-Wide (often called core competencies or those required for organization success)2. Job Family or Business Unit Competency PROFILE3. Position-Specific Competency PROFILE4. INDIVIDUAL profile.

THE ANALYSIS OF THESE INDICATES TO THE MANPOWER PLANNERS

Required manpower / competency profiles Current availability of manpower / competency profiles Estimated gap in manpower / competency .

THIS INFORMATION COMPETENCY IS USED BY MANPOWER PLANNERS IN

Recruitment/Section Process Training Development

Since competency mapping provides database information for manpower planning they are closely linked without competency mapping it is not possible to complete a successful effective manpower planning.

HOW DOES COMPETENCY-BASED INTERVIEWING AND SELECTION WORK?

Competency-based interviewing and selection presupposes that a set of organization-wide, jobfamily/department, or position-specific competencies have been identified by the organization.Interviewers are then trained in the art of Structured Behavioral Interviewing, which has severalhallmarks:

A structured set of questions is used to interview all candidates. Each question is designed toelicit behavioral examples from the candidate which demonstrate the use of one or more keybehaviors underlying each competency that is accounted for in the interview.A team of interviewers is usually used and they typically divide the list of competencies amongthemselves so that each interviewer can focus on asking the related detailed behavioral questionsand documenting candidate responses.Interviewers typically ask open-ended and situation-based questions such as, Think of a specifictime when you faced interview? How did you handle the situation? How did it turn out? Interviewers record evidence of behaviors that the candidate relates, and they ask probing questions to gather complete behavioral evidence that includes details of the circumstance, theactions taken by the candidate, and the results achieved. This process is called the CAR (circumstance, action, results) Model.At the conclusion of the interview, all interviewers of a particular candidate meet and comparethe behaviors they heard from the candidate that support the assertion that the candidate possesses a specific competency. If the candidate did not offer specific examples with relevant behaviors, after additional attempts at rephrasing the question or asking different but related questions, then the determination is made that the candidate does not possess the competency.The underlying philosophy here is that the best predictor of future performance is past performance that was demonstrated by concrete, observable behavior.A final hiring decision is made based on the total strength of competencies demonstrated by each candidate, compared with those competencies that are considered essential for success in the position and in the organization, and as compared with the competency strengths of the remaining candidates for the same position.

COMPETENCY MAPPING IS HR TOOL USED IN

Recruitment /Selection Training/Development Performance Management Career Planning/Development Succession Planning Manpower Planning Human Resource Development Human Resource Planning Human Resource Strategic Planning.

HOW DO COMPETENCIES RELATE TO INDIVIDUAL CAREER DEVELOPMENT?

First and foremost, competencies must be demonstrated by individuals. Perhaps the mostcommon place where they are demonstrated is within the scope of a particular job or projectinvolvement. However, competencies are also developed and demonstrated by individuals in thefollowing settings: volunteer roles in the community, professional associations, school projects,sports participation settings, and even within ones own home life.One of the first encounters with competencies for most individuals is in securing employmentwith a new organization. Organizations that are purposefully using cutting-edge methods tochoose talent for positions or project roles are engaging in what is called competency-basedinterviewing and selection. These interviewing and selection methods are being used not onlyfor hiring external applicants, but also for staffing internal roles.Many organizations that use competency-based interviewing and selection are also later usingthe same competencies to assess performance, to encourage future development plans fromindividuals, and to plan for succession in the organization. Therefore, the individual employeesin such an organization will have an ongoing need to use and map their competencies.Up to this point, it is implied that the main need for identifying and mapping competencies is forindividuals who may be pursuing full-time employment with an organization.

COMPETENCY FLOW MODEL

PERSONAL ATTRIBUTES MOTIVES, KNOWLEDGE, AND SKILL

COMPETENCIES

OBSERVABALE BEHAVIOURS

JOB PERFORMANCE

1.2 OBJECTIVE OF THE STUDY

To find out the outstanding performance.

To identify the personal, technical and behavioral competencies.

To benchmark the higher level of performance.

To know whether right job is assigned to right people.

To determine the Gap between required level and current level competency of managers and employees.

To know about the effectiveness of the knowledge, skills, and abilities which have direct impact on the success of the employees

To know about the ambiguities in the job and work experience.

To know how competency mapping align behavior with organization strategy and values which adapt changes.

To know about the concept of competency mapping

To know about the level of awareness about the competency mapping among the employees

To know about how TVS MOTORS get benefit out of this Competency mapping

To know about how the Competency mapping can be used for various purposes

1.3 SCOPE OF THE STUDY

The study is mainly conducted to know about the competency mapping for the employees in an organization and also about how the organization will get benefit out of this competency mapping.

So by conducting the research at the end we gather more information regarding how the competency instrument will give benefit to both the employees and the organization.

To find Is they any pitfalls behind that. Through this we can give necessary suggestion wherever necessary and also to suggest innovative ideas so that it will prevent the company from future challenges to a greater extent.

As the organization chosen for the study belongs to automotive industry which is ever changing with the change in the technology and are greatly affected by financial ups and downs.

It is important to know whether the employees understand the organization goals and objectives so that they can deliver there best in return.

The employee should also understand there individual competencies to keep themselves abreast in their career progression.

Competency mapping helps to understand the individual competency that leads to the behavior which meets the job requirements with in the parameter of organizational environment and in turn brings about desired results.

1.4 LIMITATIONS OF THE STUDY

While conducting research, at most care was taken to collect data in unprejudiced manner to make this study precise and truthful. But, due to certain unavoidable reasons, there are certain limitations which are as mentioned below.

This study engrosses only a part of total number of employees working at TVS Motors.

Research was to be conducted maintaining the decorum of the company.

Employees were busy in their work and thus did not spare much time to respond openly to the questions asked.

Information and responses given by the respondents may be a biased due to several reasons.

Limited time span for carrying out study also restricted the research work.

As company is large, as per their tactics and guiding principle employees were not ready to disclose confidential facets.

1.5 THEORETICAL PERSPECTIVE

CHAPTER II

2.1 REVIEW OF LITERATURE

In todays competitive market, companies are aware that their workforce must be properly trained and fully competent over a range of tasks within any given work discipline. Competency mapping is a process through which one assesses and determines ones strengths as an individual worker and as part of an organization.

It generally examines two areas: emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decision-making. Competency mapping are used to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work.

The value of competency mapping and identifying emotional strengths is that many employers now purposefully screen employees to hire people with specific competencies. They may need to hire someone who can be an effective time leader or who has demonstrated great active listening skills.

Alternately, they may need someone who enjoys taking initiative or someone who is very good at taking direction. When individuals must seek new jobs, knowing ones competencies can give one a competitive edge in the job market.

STATEMENT OF THE PROBLEM

Competency Mapping is excessively used in the organization to determine the crucial elements and activities. The basic reasons due to which the mapping of the competencies is done are as follows:

Key performance areas can be improved by understanding the fields where there is a gap between the actual and the desired results.

If the competencies are determined for the given job, then the person whose career panning phase is taking place can consider those competencies and can be ready for the same.

Through competency mapping, the individual is preparing himself for the next set of responsibilities.

With the help of the competency mapping the individual can alter the style of work where the gap exists.

By overcoming the differences in the desired level and the actual status of performance the individual can feel the increase in the self confidence and the motivation level.

Competency mapping leads the individual to understand the actual position and the gap from the desired status of work.

Once the competencies are determined, proper training can be provided to the individuals to work more efficiently on the processes.

CHAPTER III

3.1 INDUSTRY PROFILE

India is the second largest producer and manufacturer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. Enfield 350cc bikes and Escorts 175cc bike initially dominated the motorcycle segment.

The two-wheeler market was opened to foreign competition in the mid-80s. And the then market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel-efficient low power bikes, demand swelled, resulting in Hero Honda - then the only producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years.

The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. During that period, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.

MAJOR PLAYERS IN THE TWO-WHEELER INDUSTRY

There are many two-wheeler manufacturers in India. Major players in the two-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

The scooter and the scooterette share in the Indian two wheeler market is 13.4%. The main models available in India are Bajaj Chetak, Honda Eterno, Kinetic Blaze, LML NV SPL and LML Select II. TVS Motors launched India's first 50cc, 2 seater moped: TVS Moped 50. TVS also launched India's first indigenous scooterette: Scooty in 1994. This segment has about one-fourth share in the Indian two wheeler industry. The major models available in India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade DTSi, Hero Honda Pleasure, Kinetic Kine, Kinetic 4S, Kinetic Nova, Kinetic Zoom, Kinetic V2 Range, Kinetic King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo Smart, Honda Dio, Honda Activa, TVS Scooty and TVS XL.

MARKET SHARE:

Company Market in three segments as on MAR2015

ProductLast year(Mar14)Current Year(Mar15)

Moped5.9%6.4%

Motorcycles8%14.7%

Scooty19.8%21%

TWO-WHEELERS: MARKET SIZE & GROWTHIn terms of volume, 4,613,436 units of two-wheelers were sold in the country in 9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian industry accounted for around 77.5% of the total vehicles sold in the period mentioned.After facing its worst recession during the early 1990s, the industry bounced back with a 25% increase in volume sales in FY1995. However, the momentum could not be sustained and sales growth dipped to 20% in FY1996 and further down to 12% in FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales, with the year-on-year sales (volume) growth rate declining to 3% that year.

However, sales picked up thereafter mainly on the strength of an increase in the disposable income of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations), higher access to relatively inexpensive financing, and increasing availability of fuel efficient two-wheeler models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the scooter and moped segments faced de-growth. FY2003 also witnessed a healthy growth in overall two-wheeler sales led by higher growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth while the mopeds continued to decline. Figure 1 presents the variations across various product sub-segments of the two-wheeler industry between FY1995 and FY2004.

3.2 COMPANY PROFILE

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than US $1 billion in 2007-2008, and is the flagship company of the TVS Group. The TVS Group is Indias leading supplier of automotive components and one of the countrys most respected business groups.With a combined turnover of more than US$ 4 billion, the TVS Group employs a total workforce of close to 25,000. Charting a steady growth path of expansion and diversification, it currently comprises around 30 companies. These operate in diverse fields that range from two-wheeler and automotive component manufacturing to automotive dealerships, finance and electronics. Uniting these multiple businesses is a common ethos of quality, customer service and social responsibility.

From being the first to introduce a two-seater moped in India (TVS 50 in 1980), to being the first two-wheeler company in the world to receive the coveted Deming Prize for Total Quality Management, TVS Motor has consistently set benchmarks for the industry.

TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-wheeler manufacturer in India. The company manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. The company is having their manufacturing plants at Hosur in Tamilnadu, Mysore in Karnataka and Solan in Himachal Pradesh. They are also having one unit located at Indonesia. Their subsidiaries include Sundaram Auto Components Ltd, TVS Motor Company (Europe) BV, TVS Motor (Singapore) Pte Ltd, PT TVS Motor Company, Indonesia, TVS Energy Ltd and TVS Housing Ltd.

TVS Motor Company Ltd is a part of Sundaram Clayton group in TVS group of companies. In the year 1979, Sundaram-Clayton Ltd started Moped Division at Hosur to manufacture TVS 50 mopeds. In the year 1982, the company entered into a technical know-how and assistance agreement with Suzuki Motor Co Ltd of Japan and in the year 1985, they incorporated a new company Lakshmi Auto Components Pvt Ltd for the manufacture of critical engines and transmission parts. In the year 1986, the company acquired the assets of the moped division from Sundaram Clayton Ltd. Also, the name of the company was changed from Indo Suzuki Motorcycles Ltd to TVS Suzuki Ltd.

In the year 1992, they launched two modes of motor cycles namely, Samurai and Shogun and in the year 1993, they launched TVS Scooty. During 1999-2000, TVS Suzuki Ltd was amalgamated with Sundaram Auto Engineers Ltd, an unlisted group company which was incorporated in the year 1992.

As per the scheme, all the assets and liabilities of erstwhile TVS Suzuki Ltd together with all obligations and contingent liabilities were vested in Sundaram Auto Engineers (India) Ltd with effect from April 22, 1999. This merged entity was later renamed TVS Suzuki Ltd. The TVS group and Suzuki Motor Corporation parted ways from their 15-year-old joint venture on September 27, 2001. The shares held by the Suzuki Motor Corporation were acquired by Anusha Investments Ltd, a wholly owned subsidiary of Sundaram-Clayton Ltd forRs.9 crore.

Thus, the company became a subsidiary of Sundaram-Clayton Ltd with effect from November 15, 2001. Since, Suzuki Motor Corporation ceased to be a shareholder of the company, the company cannot use the word 'Suzuki' as the part of their name and hence the name of the company was changed to TVS Motor Company Ltd. During the year 2002-03, the new stylish TVS Scooty Pep and the upgraded version of Fiero was launched in the market. In April 1, 2003, the subsidiary company namely, Lakshmi Auto Components Ltd acquired the entire paid up capital of Sundaram Auto Components Ltd. Consequently, Sundaram Auto Components Ltd became a subsidiary company with effect from April 1, 2003.

In October 2003, the company entered into a scheme of arrangement with Lakshmi Auto Components Ltd and Sundaram Auto Components Ltd. As per the scheme, all the assets and liabilities of the rubber and plastic businesses of Lakshmi Auto Components Ltd were transferred to Sundaram Auto Components Ltd on slump sale basis on April 1, 2003 for a consideration of 12.25 crores. The remaining business of Lakshmi Auto Components Ltd, namely engine components division together with their investments in other bodies corporate was transferred to the company with effect from April 2, 2003. During the year 2003-04, the company launched new products such as TVS Centra, New Victor GL, Fiero F2 & Fx and Scooty Pep. During the year 2004-05, they launched new products such as TVS Star, New Victor GLX, New Victor GX and Scooty Pep 'Splash' series.

During the year 2005-06, the company entered into a joint venture with Columbian party for exploring opportunities in Columbian market with an equity investment ofRs.5 million. The company incorporated TVS Motor Company (Europe) B V in Netherlands as a wholly owned subsidiary of the company with an investment ofRs.91.63 crore. During the year, TVS Motor Singapore Pte Ltd, Singapore became a wholly owned subsidiary of the company with an investment ofRs.30.51 crore. PT TVS Motor Company Indonesia was incorporated in Indonesia to manufacture motorcycles and parts with an investment of USD 27.60 million and became subsidiary of the company in view of it being the subsidiary of TVS Motor Company (Europe) B V, which holds 75% of the share capital.

The remaining 25% was held by TVS Motor Singapore Pte Ltd. PT TVS Motor Company Indonesia has acquired lands in Indonesia for setting up a facility for manufacturing two wheelers. During the year 2006-07, the company has established a new plant in Himachal Pradesh with an annual production capacity of 4,00,000 units scalable to 6,00,000 units. PT TVS Motor Company Indonesia, a subsidiary of the company, established a manufacturing facility at Karawang, near Jakarta in Indonesia with production capacity of 3 lakh vehicles per annum. During the year, the company launched multiple new products and variants such as, StaR City ES, StaR Sport, Scooty Teenz and 99 Colors on Scooty PEP. During the year 2007-08, the company commenced commercial production from its Nalagarh Plant located in Himachal Pradesh. They commenced their commercial production from their state-of-the art plant located at Karawang in Indonesia and launched TVS Neo, which is exclusively developed for the Indonesian market. During the year, the company launched various new products and variants such as TVS Flame, Apache RTR, StaR Sport, StaR City 110 cc, Scooty TeenZ Electric, TVS Tru4 Oil.

In March 2008, the company launched their three wheeler, TVS King in two variants, namely two stroke petrol and two stroke LPG. The company won the Team Tech 2007 Award of Excellence for Integrated use of Advanced Computer Aided Engineering Technologies in product development. They also won the prestigious SAP ACE 2007 Awards for Customer Excellence in the Most Innovative Netweaver Category for several SAP implementations that are put in place. In June 2008, the company entered into a contract manufacturing arrangement with Mahabharat Motors Manufacturing Pvt Ltd whereby TVS motor cycles will be manufactured at the latter's two-wheeler manufacturing facility that is located on the outskirts of Kolkata.

TVS would help Mahabharat Motors to set up the factory and provides engineering support to them. The production would commence from June 2009. During the year 2008-09, the company launched Scooty Streak, a tough and trendy variant of Scooty Pep+ and Apache RTR RD, premium segment motorcycle. Also, they launched their three-wheeler, TVS King in six states. In June 2009, T V Sundram Iyengar & Sons Ltd and their subsidiaries acquired the holding of foreign collaborators, Clayton Dewandre Holdings Ltd in Sundaram-Clayton Ltd. Thus, Sundaram-Clayton Ltd became a subsidiary of T V Sundram Iyengar & Sons Ltd. Consequent to this acquisition; the company also became the subsidiary of TVS with effect from June 3, 2009.

During the year 2009-10, the company launched TVS JIVE and TVS Wego in the market. They also launched a four stroke three-wheeler with superior features. They commenced export of TVS Apache to Brazil. Also, they developed a pan India presence in three-wheelers. In December 2009, the company acquired the entire shareholding of TVS Energy Ltd. Thus, TVS Energy became a wholly owned subsidiary of the company.

In June 2010, they acquired the entire paid up capital of TVS Housing Ltd and thus, TVS Housing Ltd became a wholly owned subsidiary of the company. In October 2010, the company won the SAP ACE Award for Consumer Excellence 2010 in 'Best Run Award in Automotive' category. They also won the Silver EDGE award from Information Week, a leading IT magazine for in house design and development of Data Acquisition System for improving shop floor productivity. Information Week annually recognize enterprises driving growth and excellence through IT.

In November 2010, the company launched TVS TRU4 Premium, a semi-synthetic 4T Engine Oil. In February 2011, Indian Bank signed an MoU with the company for financing three wheelers manufactured by the company. In March 2011, the company introduced ABS (Anti-lock Braking System) in their premium segment motorcycle TVS Apache RTR 180, giving the bike formidable stopping power and superior braking control that compliments its high performance capability.

PRODUCTS AND SERVICES

DOMESTIC RANGE- TWO WHEELER

THREE WHEELER TVS KING

INTERNATIONAL RANGE- TWO WHEELER

ORGANIZATION STRUCTURE OF TVS MOTOR COMPANY

TVS MOTOR COMPANY STRENGTS

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 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 Asian markets, 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 of technology by constant benchmarking against international leaders.

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. TVS Motor believes 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

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.

PLANT LOCATION

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

Plant NoPlant LocationTwo-wheeler Models

IHosurTVS XL Super, TVS XL Duty, TVS Wego

IIHosurStar, Star City, Star Sports, Victor,Victor GX, Victor GLX, Flame, Max 4R, Jive

IIIHosurGears, Shafts, etc.,

IVMysoreApache, Scooty, Scooty (Pep, Pep+, Streak, Teenz), TVS XL Duty

VIMysore

VIIHimachal Pradesh (HP)Star City, Star Sports, TVS XL Duty

VIIIIndonesiaNeo, Rockz, Tormaz

IXHosur3 wheeler (Auto 2 & 4 Stroke)