26656946 project on tvs apache

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A STUDY

ON COMPANY IMAGE AND SURVEY RESEARCH TO MEASURE CUSTOMER

SATISFACTION TOWARDS TVS APACHE IN BHATKAL

With special reference to JEEVOTHAM TVS MOTOR BHATKALSubmitted in partial fulfillment of the requirement for the

BACHELOR OF BUSINESS ADMINISTRATION COURSEDegree course of

KARNATAKA UNIVERSITY DHARWAD

Submitted by

MOHAMMED YASIR RUKNUDDIN

REG.NO:08B61626

Project guide

Prof. Zafrulla kokatnur

MR DAMODAR V.SHANBAG

(Proprietor of JEEVOTHAM MOTORS BHATKAL)

A.H.MS

ANJUMAN INSTITUTE OF MANAGEMENT

(Anjumanabad,Bhatkal)

2009-2010

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DEDICATED

TO MY

BELOVEDPARENTS

FAMILYMEMBERS

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AND

FRIENDS

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http://www.tvsapache.com/


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ANJUMAN INSTITUTE OF MANAGEMENT

CERTIFICATE

Certified that Mr. Mohammed YASIR RUKNUDDIN of BBA second yearhad successfully undergone inplant training of 30 days in Jeevotham Motorsand submitted this report entitled A study on company image and surveyresearch to measure customer satisfaction towards Tvs Apache in Bhatkal for

the year 2009-2010 under the guidance of Prof.Zafrulla kokatnur

PRINCIPAL Signature and name of internal guideProf. Zafarulla Kokatnur Prof. Zafrulla kokatnur

CERTIFICATE

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This is to certify that Mr. MOHAMMED YASIR RUKNUDDIN of BBAsecond year of Anjuman Institute of Management, Bhatkal had successfully

undergone in plant training of 30 days on his project A study on companyimage and survey research to measure customer satisfaction towards TvsApache in Bhatkal during the period of Dec-Jan 2009-2010.

His conduct during the project was found excellent and we found himenthusiastic and hardworking. We wish him success in his future endeavors.

Signature

Mr. Damodar V. Shanbag(Proprietor, Jeevotham Motors)

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DECLARATION

I hereby declare that this project report entitled A study

on company image and survey research to measure customer

satisfaction towards Tvs APACHE in Bhatkal has been prepared by

me towards the partial requirements of Bachelor of Business

Administration course of Karnataka University, Dharwad Under the

guidance of Prof.zafrulla kokatnur.

I also declare that this discretion is the result of my own

efforts and not been submitted at anytime to any university.

REG NO.08b61626 YASIR RUKNUDDIN

PLACE: BHATKAL

DATE:1/1/2010

ACKNOWLEDGEMENT

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Success is the fulfillment of your desire. It is the attainment

of your cherished goal. Therefore, to start with, you must have a

well defined and attainable goal or objective. Make up your

resources like manpower, money, materials, efforts, know-how, timeetc. in a planned manner.

I wish to acknowledge this report which I had prepared on

Company image and Survey research to measure Customer

satisfaction towards Tvs in Bhatkal.

First of all I thank Almighty Allah, due to whose grace I was able toprepare this report.

For the development and production of this study itself I feel a

deep sense of gratitude:

I extend my heartfelt thanks to my beloved parents and my

dear friends and colleagues for blessing me to complete

my project.

To the concerned authorities ofJeevotham Motors, Bhatkal forproviding an opportunity to make this project.

To Mr. Damodar (Proprietor, Jeevotham Motors), for his kind

cooperation and support and also I like to thank Mr. Laxman

Mahali (Manager) and all those people of the firm -the

mechanics, the helpers and others who directly and indirectly

helped me during this period.

I express my sincere thanks to our beloved Principal Prof.

Zafarulla Kokatnur for their valuable support and cooperation.

MOHAMMED YASIR RUKNUDDIN

CONTENTScheetu


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CHAPTER NO. TITLE PAGE NO.

1. SCENARIO OF INDIAN AUTOMOBILE

2. TVS MOTRS

19

3. JEEVOTHAM MOTORS 59

4. OBJECTIVES 71

5. METHODOLOGY 746. ANALYSIS AND INTERPRETATION 77

7. LIMITATIONS 98

8. FINDINGS & CONCLUSIONS 100

9. SUGGESTIONS & RECOMMENDATIO 103

10. APPENDICES 105

11. BIBLIOGRAPHY 108

SCENARIO OF INDIAN AUTOMOBILEDuring 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 Ashok Leyland or a Tata.In tractors, it was between a Swaraj and a Mahindra.

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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 to

policy 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, andtractors to the multi utility vehicles, commercial vehicles and the luxury

vehicles, 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 transportationsystem plays an essential role in the countrys rapid economic and industrial

development. The well-developed Indian automotive industry skillfully fulfilsthis 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.

The automotive sector is one of the core industries of the Indianeconomy, whose prospect is reflective of the economic resilience of the country.Continuous economic liberalization over the years by the government of Indiahas resulted in making India as one of the prime business destination for manyglobal automotive players. The automotive sector in India is growing at around18 per cent per annum.

The auto industry is just a multiplier, a driver for employment, for investment,for technology The Indian automotive industry started its new journey from1991 with delicensing of the sector and subsequent opening up for 100 per centFDI through automatic route. Since then almost all the global majors have setup their facilities in India taking the production of vehicle from 2 million in1991 to 9.7 million in 2006 (nearly 7 per cent of global automobiles production

and 2.4 per cent of four wheeler production).

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The cumulative annual growth rate of production of theautomotive industry from the year 2000-2001 to 2005-2006 was 17 per cent.The cumulative annual growth rate of exports during the period 2000-01 to2005-06 was 32.92 per cent. The production of the automotive industry is

expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15per cent in 2007-08. The export during the same period is expected to grow over20 per cent.

The automobile sector has been contributing its share to the shiningeconomic performance of India in the recent years. With the Indian middle classearning higher per capita income, more people are ready to own private vehiclesincluding cars and two-wheelers. Product movements and manned services have

boosted in the sales of medium and sized commercial vehicles for passenger andgoods transport.

Side by side with fresh vehicle sales growth, the automotive components sectorhas witnessed big growth. The domestic auto components consumption hascrossed rupees 9000 crore and an export of one half size of this figure.

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 FDIConfidence 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 thetotal FDI 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. During2000-2005, 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 for Industrial Production has grown at an

annual rate of over 9 per cent over the last three years. Korean auto-makersthink India is a better destination than China. Though China provides a bigger

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market 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 for FDI.

Automotive Mission Plan 2016The bumper-to-bumper traffic of global automobile biggies on the passage toIndia 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.

The ten year mission plan will also set the roadmap for budgetary fiscalincentives The Government of India is drawing up an Automotive MissionPlan 2016 that aims to make India a global automotive hub. The idea is to draw

an innovative plan of action with full participation of the stakeholders and toimplement it in mission mode to meet the challenges coming in the way ofgrowth of industry. Through this Automotive Mission Plan, Government alsowants to provide a level playing field to the players in the sector and to lay a

predictable future direction of growth to enable the manufacturers in making amore informed investment decision.

Major players in the automobile sector are:

Tata

Mahindra Ashok Leyland Bajaj Hero Honda Daimler Chrysler Suzuki Ford Fiat Hyundai General Motors Volvo Yamaha Mazda

Foreign Companies in the Indian auto-sector

Until the mid-1990s, automobile industry in India consistedof just a handful of local companies with small capacities and obsoletetechnologies. Nevertheless, after the sector was thrown open to foreign directinvestment in 1996, some of the global majors moved in and, by 2002, Hyundai,

Honda, Toyota, General Motors, Ford and Mitsubishi set up their manufacturingbases.

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Over the past four to five years, the country has seen the launch of severaldomestic and foreign models of passenger cars, multi-utility vehicles (MUVs),commercial vehicles and two-wheelers and a robust growth in the production ofall kinds of vehicles. Moreover, owing to its low-cost, high-quality

manufacturing, India has also emerged as a significant outsourcing hub for autocomponents and auto engineering design, rivaling Thailand. German auto-maker Volkswagen AG, too, is looking to enter India.

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 tomarkets 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 Motor Corporation ofJapan and Hyundai Motor Company 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 overthe past five years is the newfound success and confidence of domesticmanufacturers. They are no longer afraid of competition from the internationalauto majors.

For instance, today, Tata Motor's Indigo leads the popular customer category,while its Indica is neck-to-neck with Hyundai's Santro in the race for the 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 ccPulsar 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 pastmistakes and developed the skills to build cheaper automobiles using`appropriate' technologies. TVS, for instance, paid an overseas source $100,000to fine-tune home-grown engines rather than $1.5 million to import the entireengine. Similarly, M&M adapted available systems and off-the-shelfcomponents from global suppliers to keep costs down and go for aggressive

pricing. True, Indian players are still lacking in scale of operation. Whileeconomies of scale no doubt play an important role in the auto sector, a fewIndian manufacturers relied on innovation rather than scale of operation forcompetitive advantage. For instance, Sundram Fasteners was able to achieve the

feat of directly supplying radiator caps to General Motors purely on the strengthof innovation in product quality. The domestic tooling industry bagged the order

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for the Toyota Kirloskar transmission plant in the face of stiff competition frommultinational corporations. The cost of the entire job turned out to be only afraction 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 automobilemarket 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 some

of 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 in1995, 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 in2003-04 from just Rs 1,033 crore in 1996-97.

Automobile majors such as Maruti Udyog, Toyota, Hyundai have now finalisedtheir plans to invest in some of the critical auto components. According to theAutomotive Component Manufacturers Association of India (ACMA) officials,auto component manufacturers are expected to invest about Rs 10,000 croreover the next five years at the rate of Rs 2,000 crore per annum.

According to analysts, the auto component industry couldemerge as the next success story after software, pharmaceuticals, BPO and

textiles. 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.

Threat to the Dream!

Indias expedition to become a global auto manufacturing hub could beseriously challenged by its inability to uphold its low-cost production base. Asurvey conducted by the research, KMPMG firm reveals that the Indian autocomponent manufacturers are increasingly becoming skeptical about sustaining

the low-cost base as overheads including labour costs and complex tax regimeare constantly rising.

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The survey said many executives believe that Indias costadvantage is grinding down fast as labour costs are constantly increasing and

retaining employees is becoming more and more difficult. Increased presence ofglobal automotive companies in the country was cited as one of the reasons forthe high erosion rate.

Indian auto businesses will only flourish if they boost investments inautomation. In the longer term, cost advantage will only be retained if Indiancapital can be used to develop low-cost automation in manufacturing. This isthe way to preserve our low cost.

Global auto majors are also cynical about Indias low costmanufacturing base. India taxation remains a big disadvantage. This is not about

tax rates it is just about unnecessary complexity. But some companies alsobelieve there is scope for reducing the cost of doing business.

In spite of this there are opportunities to exploit lower costsright across the board. Its true that labour costs are definitely increasing butthey are still five per cent of the total operational costs. The labour costs can befurther reduced if companies are successful in bringing down other costs likereducing power costs. Low-cost base can never last long. The company saidIndian industry has till now relied on very labour intensive model but it wouldhave to switch to a more capital intensive model now.

About Tvs Company

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TVS Motor Company is one of the premiere automobilecompanies in India. The word TVS stands for TV Sundaram Iyengar and SonsLimited which is the holding company for the TVS Group of companies. Thefirm is engaged in the manufacturing of almost all kinds of automotive

components, two wheelers and a few other industrial products. The companywas founded by TV Sundaram Iyengar in 1911. The company is headquarteredin Chennai and its manufacturing and R&D units are located at Mysore andHosur, near Bangalore, and Baddi in Himachal Pradesh. TVS Motor Companyis the first two-wheeler manufacturer in the world to be honored with DemingPrize for Total Quality Management.

TVS Motor Company Limited isthe third largest two-wheeler manufacturer in India and globally among the topten. It is the flagship company of TVS Group, a USD 2.2 billion conglomerationof companies. At present, the group is comprised of more than 30 companiesand employs more 40,000 people worldwide. Its dealer and service network iswidely spread in India.

TVS has enjoyed a steady growth since its inception. It has continuouslyexpanded and diversified, and brought in new verticals within its fold. Today it

boasts a strong presence in the manufacturing of two-wheelers, autocomponents and computer peripherals. The company is also involved in thedistribution of heavy commercial vehicles, cars, finance and insurance. With

such a portfolio, the company contributes a lot to Indian economy.

The company launched the first of its two-wheeler productin 1980. It was a 50cc moped, which was successful because of its capability tocarry two people. It collaborated with Suzuki Motor Corporation of Japan, forthe manufacture of 100 cc motorcycles under the brand name of Ind-SuzukiMotorcycles. Subsequently, the company changed its name to TVS Suzuki Ltd.However, the collaboration with Suzuki was only for motorcycles. Thecollaboration with Suzuki ended in 2001 and thereafter, the name was changedto TVS Motor Company. The company has set up an overseas manufacturingunit in Indonesia.

Quick Facts

Founder T V Sundaram Iyengar

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Country India

Year of Establishment August 1980 (TVS Group in 1911)

Industry Manufacturing of two-wheelers and auto components

Business Group TVS GroupListings & its codes NSE

TVS - Suzuki Ltd: TVSSUZUKITVS Motor Company Limited: TVSMOTORTVS Motor Company Limited: TVS-SUZUKIBSETVS Motor Company Ltd.: 532343

Head Office TVS Motor CompanyJayalakshmi Estates V Floor

8, Haddows Road, Chennai - 600006Tel.: +(91)-(44)-28272233Fax: +(91)-(44)-28257121

Factory Post Box No. 4Harita, Hosur - 635 109Tel.: +(91)-(4344)-276780Fax: +(91)-(4344)-276878

Post Box No.1

Byathahalli Village, Kadakola PostMysore - 571 311Tel.: +(91)-(821)-2596561Fax: +(91)-(821)-2596550/ 2596553

TVS Motor Company is the third largest two-wheelermanufacturer in India and one among the top ten in the world, with annual

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turnover of more than USD 1 billion in 2008-2009, and is the flagship companyof the USD 4 billion TVS Group.

A bike for anyone

TVS Motor currently manufactures a wide range of two-wheelers from mopedsto racing inspired motorcycles.Motorcycles (Apache RTR, Flame DS 125, Flame, Jive, StaR City, Sports)Variomatic Scooters (Wego, Scooty Streak, Scooty Pep+, Scooty Teenz)Mopeds (TVS XL Super, 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 helm

TVS Motor'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.

Top of Form

COMPANYS HISTORY:

of the company effective April 21, 2009.

TVS Motor Company Ltd.: History

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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 was

promoted by Mr. N. Krishnan in collaboration with Suzuki Motor Co. 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 Motor Co. 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 Motor Co., Ltd., Japan; 2,20,000shares allotted to employees and business associates and 29,70,000 shares

offered 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 the

company.

- The name of the company was changed from Indo Suzuki Motorcycles Ltd. toTVS Suzuki Ltd with effect from 18th August.

- 154,00,000 Rights Equity shares issued at par in prop. 2:1. 1988

- The company obtained a letter of intent for expanding the capacity to 4,00,000Nos. two wheelers. 1989

- The working was adversely affected due to labour unrest which resulted in alock-out from 28th February 1990. The lock out was lifted in the second week

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of June 1990. 1990

- The company launched a 34cc miniped to take advantage of the Motor VehicleAct that exempts such vehicles from the payment of road tax. The Company

worked for only 10 months due to lock-out. 1991

- The technical aid agreement entered into with Suzuki Motor Co., Japan whichexpired in August 1991 was extended for three more years with the approval ofthe Government of India.

1992

- The Company launched two new models of motor cycles viz. `Sumurai' and

`Shogun'.

1993

- The Company launched a new model of moped viz. `TVS Scooty'.

1995

- The Company was studying the feasibility of opening a second plant at adifferent location to meet the growth in demand for two wheelers in the near

future. It also proposed to introduce upgraded version of mopeds. In addition,during the year, the Company undertook to develop new models of motorcycles.

1996

- The company is taking steps to meet the increase in demand for its productsand improve the market share.

- A statement relating to the subsidiary, M/s Lakshmi Auto Components

Limited, Chennai, and a copy of its annual accounts for the year ended 31stMarch, 1996 are attached to the Balance Sheet pursuant to section 212 of theCompanies Act, 1956.

- As per the requirements of section 217(1)(e) of the Companies Act, 1956 readwith the Companies (Disclosure of Particulars in the Report of Board ofDirectors) Rules, 1988, the information regarding conservation of energy,technology absorption and foreign exchange earnings and outgo are given inannexure I to this report.

1997

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- TVS-Suzuki plans to set up an auto ancillary estate through joint venture withsome of its existing components suppliers. The proposed project is to come upat a new 57 - acre site near TVS-Suzuki's existing plant at Hosur.

- Leading two-wheeler manufacturer in the country, TVS Suzuki, will soon setup a new 2.5 lakh capacity scooter plant in Mysore.

- TVS-Suzuki (TSL) - a joint venture between the TVS group and Suzuki MotorCorporation, Japan - was the first company to launch a 100-cc motorcycle in theIndian market.

- Credit Analysis & Research Ltd (Care) has assigned the credit rating of CAREAA+ (double A plus) to the proposed non-convertible debenture issue of Rs.100

crore by TVS-Suzuki Ltd (TSL).

- TVS Suzuki is a joint venture between Saundaram Clayton Ltd. of the TVSgroup and Suzuki Motor Corporation, Japan.

- The company proposes to introduce kick start facility.

- TVS Suzuki Ltd (TSL), the second largest two-wheeler manufacturer in thecountry, will be restructuring its entire vendor-base in the next five years withthe objective of creating robust vendors to meet its future expansion plans.

- TVS Suzuki Limited is officially launching its new moped model, the XLSuper.

- The Rs. 100 crores non-convertible debentures of TVS-Suzuki Limited ratingof AA + (high safety with higher standing) has been retained by CARE.

1998

- TVS Suzuki Ltd, one of the leading two-wheeler manufacturers in the country,has crossed the Rs.1,000-crore turnover mark in 1997-98.

- TVS will be the first company in the country to introduce the 4 stroke scooterin the Indian market.

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

- TVS Suzuki Ltd on October 1 launched its new generation 4-stroke scooter`TVS Spectra' in Delhi.

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1999

- TVS Suzuki is all set to launch a scaled-down version of Spectra -- the

recently 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 of Indo-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-Suzuki Limited 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 TVS Suzuki is all set to cross the magic one million markdurisng the current fiscal with 12 new models lined up over the next 18 months.

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

- The TVS group and Suzuki Motor Corporation 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

- TVS Motor Company Ltd has informed that the Board declared an interimdividend of Rs 9.00 per share on 2,31,00,070 equity shares of Rs 10/- each fully

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paid up, aggregating to Rs 231.00 million.

2003

-TVS Motor Company 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.

-TVS Motor has recorded a 31% growth in its sales.

-C V R Panikar has been appointed as Additional Director on the Board of TVSMotor Company Ltd.

-TVS Motor Company has reintroduced Fiero, inorder to compete with BajajPulsar.

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

-TVS Motor launched 4 new mobikes including a new brand 100-cc mobikecalled the Centra.

-TVS Motor Chairman and MD Venu Srinivasan has been selected in BusinessWeek's Stars of Asia which covers the top 25 achievers in the continent.

-TVS Motor Company adds two new models in two-wheeler segment.

-TVS Motor ties up with State Bank of India 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 TVS Motors effective from April 2,2003

2004

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-TVS Motor , 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 fuel

efficiency 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.

-TVS Motor Company Unveil TVS Centra With ' VT-i Engines',, a 100 CC 4stroke motorcycle

-TVS Motor Company launched its new bike - TVS Centra - here on February9, 2004, for the first time in the State. It is a 100-cc four-stroke motorcycle

targeted 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 Motor Company and Union Bank of India (UBI) have announced thelaunch of `Union Miles Scheme,' an exclusive two-wheeler finance scheme

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

-TVS Vice President resigns

-TVS Motors forges alliance with Andhra Bank

-Canara Bank, TVS Motor rolls out TVS Canmobile

-TVS picks up Asian Network for Quality award

-TVS unveils new version of 'Victor GX'

2005

-TVS Motor Company introduced its entry-level 4-stroke motorcycle - TVSStar - in the Kerala market

-TVS rolls out Star bike in Andhra Pradesh

-TVS Motor Company launches TVS Centra VT-i, a variant of its four-stroke100cc model TVS Centra on May 6

-TVS Motor rolls out two motorcycle variants named Victor EDGE, StaR City

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and Scooty Pep plus

2006

-TVS Motor appoints new President

-TVS launches Apache in Vizag

-TVS Motor Company launched a new version of 125 cc Victor GLX with anelectric start option

2007

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

2009

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

- Tvs Motor Company Limited has appointed Mr Prince Asirvatham as an

additional and independent director of the board of directors

Bottom of Form

TVS GroupTVS Group is one ofIndia'soldest business groups. It is a giant conglomerate with presence in diversefields like automotive component manufacturing, automotive dealerships andelectronics. Today, there are over thirty companies in the TVS Group,employing more than 40,000 people worldwide and with a turnover in excess of

USD 2.2 billion.

TVS Group originated as a transport company in 1911. TV Sundaram Iyengarand Sons Limited is the parent and holding company of the TVS Group. TVSundram Iyengar and Sons Limited has the following three divisions:

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 Ashok Leyland,Mahindra and Mahindra Ltd., and Honda. The company is also one of the

leading logistics solution providers and has set up state-of-the-art warehousesall over the country. TVS and Sons has also diversified into distributing a range

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of Garage equipments.

Sundaram Motors: Sundaram Motors distributes Heavy Duty CommercialVehicles, Cars, and auto spare parts for several leading manufacturers. The

company is also the dealer for Ashok Leyland, Honda, Fiat, Ford and MercedesBenz.

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

Other major companies of TVS Group are:

TVS - Motor Company Limited: TVS Motor Company Limited is one of the

largest two-wheeler manufacturers in India. It manufactures Motorcycles,Mopeds, Scooterettes and Scooters.

TVS Electronics Limited: TVS Electronics was incorporated in 1986 incollaboration with Citizen Watch Co. of Japan. The company manufactures acomplete 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 heavyduty 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 Indian

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Service and Kokusan Denki Co Ltd., Japan. The company manufacturesElectronic Ignition Systems for two wheelers and portable gensets.

IRIZAR TVS (P) Ltd: IRIZAR TVS (P) Ltd. is a joint venture between

Sundaram Industries Ltd, Ashok Leyland Ltd and IRIZAR S. Coop of Spain.The company builds bus bodies for export and domestic market.

Lakshmi Auto Components Limited: The company is a subsidiary of TVS-Suzuki. It manufactures gears, crankshafts and connecting rods for TVS-Suzukimotorbikes and mopeds.

Lucas Indian Service: Lucas Indian Service is a wholly owned subsidiary ofLucas-TVS Ltd., engaged in the sales and service of auto-electricals and fuel

injection equipment.

Lucas - TVS Limited: Lucas-TVS, a joint venture between Lucas Varitygroup, 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 complete

range of air brake actuation system - compressors, actuators, valves, brakechambers, spring brakes, slack adjusters, couplings, hoses, switches and vacuum

boosters for light/medium and heavy commercial vehicles and trailers. FoundryDivision manufactures aluminum, gravity and pressure die-castings.

Company Profile

TVS Motor Company (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 subsidiary M/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 Americ

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Our productsMotorcycles

TVS AX 100

TVS Fiero

TVS Samurai

TVS Shaolin

TVS Shogun 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)

TVS Centra

TVS Fiero

TVS Fiero F2 TVS Fiero FX

TVS Flame

TVS Flame (125 cc,ccvti technology)

TVS MAX 100

TVS MAX R 100

TVS Star

TVS Star City

TVS Star Sport

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TVS Supra

TVS Victor (110 cc)

TVS Victor EDGE (125 cc)

TVS Victor GLX (125 cc)

Scooterettes

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

TVS Scooty ES (60 cc)

TVS Scooty Pep (90 cc) (3rd largest used scooter in India)

TVS Scooty Pep + (90 cc)

TVS Teenz (60 cc) TVS Streak (90 cc)

Stepthru

TVS NEO 110

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

TVS Champ (50 cc)

TVS Super Champ (60 cc)

TVS Sport (70 cc)

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

TVS ApacheTVS Apache is an exciting offer from TVS. A powerful blend of

contemporary design and engineering, TVS Apache is superbly styled withfantastic finish. The mighty machine has sleek finish with lines that flowsmoothly and seamlessly.

TVS Centra

TVS Centra is an efficient bike in the popular 100 cc segment inIndia. Thanks to the VTI (Variable Timing Intelligent) engine technology, it is

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one of the most fuel efficient bikes in India. Coming with a slew of innovativetechnologies and superb design, the bike promises style, mileage and ridingcomfort.

TVS Fiero F2TVS Fiero FX 2 is a dynamic looking body with lots of power

packed features. The all-new twin pod instrument cluster comprises thespeedometer and trip tachometer. Triple rated 5-step shock absorber at the rearand hydraulically damped front suspension imparts stability and comfort.

TVS Scooty Pep+TVS Scooty Pep+ is an addition on TVS Scooty Pep. The two-

wheeler has been successful all over the market due to its sleek dual tone body

with complementary colored mirrors, appealing body lining and 5 differenttypes of metallic colors.

TVS StarThe TVS Star is TVS' entry-level bike that challenges the dominance

of the Bajaj CT 100 in the economy-segment. TVS has launched different kindsof motorcycles which are marketed with all customized specifications.

TVS Super XL

TVS Super XL has been incorporated with all features a two-wheeler needs to sell itself. The vehicle has been designed with rural vehicles inmind. With proper safety, speed and easy-to-ride features, it has been able totaste success in its target market.

TVS Victor

TVS Victor is an impressively styled powerful motorcycle. The bikeis available in new graphics and alloy wheels, which accentuate its sporty style.The fuel tank has rounded lines with an aircraft styled fuel filler lid.

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ENERGY CONSERVATION POLICY

Energy policy energy

TVS Motor Company is committed toEnergy conservation through

Optimization of usage & loud, continuous

Auditing and climinating wastages .

We are also committed to energy saving

By using alternative methods, efficiency

Improvement using non-conventional

Resources minimizing waste generation

& encouraging recycling .

We shall comply with the energy

Legislation and regulation and build

Awareness among all employees for

Total involvement in energy conservation

Drive

Milestones of TVS Motor

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

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Aug.

1984 First Indian Company to introduce 100cc Indo-Japanese

motorcycles in Sept.1994

Launched first indigenous Scooterette (sub-100 ccvariomatic scooters), TVS Scooty in June.

1996 Introduced first catalyticconverter enabled

motorcycle, the 110cc Shogun in Dec.

1997 Launched India's first 5-speed motorcycle, the Shaolin

in Oct.

2000 Launched TVS Fiero, India's first 150 cc, 4 stroke

motorcycle in April.

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

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

2004 Launched TVS Centra in January, a world-class 4-

stroke 100 cc motorcycle with the revolutionary VT-i

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

is ideal for rough terrain.

awards

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Star of Asia Award to Mr. Venu Srinivasan, CMD TVS MotorCompany by Business Week International.

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

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

Technology Award 2002 from Ministry of Science,Government of India for the successful commercialization

of indigenous technology for TVS Victor Asian Network for Quality Award2004 - TVS Scooty Pep won the prestigious 'Outstanding Design ExcellenceAward' from Business World and National Institute of Design

Progressive Manufacturer 100 Award TVS wins coveted 2009 Progressive Manufacturer 100 Awardfor end-to-end automation of the entire business process of its lubricant brand,TVS TRU4

TPM Excellence Award 2008 First category by Japan Institute of Plant Maintenance

(JiPm) Management

Emerging Corporate Giant in the Private Sector awarded byThe Economic Times and the Harvard Business SchoolAssociation of India.

Best Managed Company award from Business

Today, one of India's leading business magazines.

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Most Investor friendly company by Business Today, one of India'sleading business

The 'Good Advertising' award by Auto India Best Brand Awards 2009.

SAP ACE AWARD 2007

The company won the SAP ACE 2007 Award for CustomerExcellence in the Most Innovative Netweaver Category. t

TEAM TECH 2007 Award -

TVS Motor Company bags TEAM TECH 2007 Award ofExcellence for Integrated use of Computer Aided EngineeringTechnologiesTVS wins coveted 2009 Progressive Manufacturer 100 Award

Tvs motor company awarded the total productivemaintainance (TPM) excellence award

TVS Motor wins TPM Excellence Award by Japan Institute of Plant

Maintenance

New Delhi: The Japan Institute of Plant Maintenance (JIPM) has awarded thecoveted Total Productive Maintenance (TPM) Excellence Award to TVS MotorCompany in the first category. The company won the award for its exemplary

implementation of TPM processes in its Plant II in Hosur and its Mysore plant.The TPM Excellence Award is the most prestigious award presented to

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organizations, which have attained excellence in equipment performance. Mr.M. Muthuraj, Senior Vice President (Operations) received the award on behalfof the company at a ceremony held in Yokohama, Japan on Wednesday.

The award was conferred inacknowledgment of the performance andproficiency of TVS Motor Companysstate-of-the-art manufacturing facilities andTPM process implementation in its Hosurand Mysore plants. The TPM ExcellenceAward indicates that the company has beenconsistent in terms of significant businessresults and performance indicators onQuality, Cost, Delivery, Productivity,

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 zealof the team and induces a spirit to achieve even better operational excellenceand business results, said Mr Venu Srinivasan, Chairman, TVS MotorCompany.

This is the second time that TVS Motor Company 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, TVS Motor Company hasachieved significant results in quality and cost effective manufacturing. Zeroaccident has been achieved in both plants and productivity has improved by35%.

This award reflects our ultimate goal to constantly endeavor tomaintain high levels of efficiency resulting in superior products which meetsthe aspirations of rapidly maturing customers Mr. Srinivasan added.

TVS Motor Company Limited, the flagship company of the USD 2.7 billionTVS Group, is the third largest two-wheeler manufacturer in India and amongthe 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.

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TVS Motors wins two IT awards

HOSUR: TVS Motor Company Limited has won two IT Awards, the SAP ACE

2008 Awards for customer excellence and the 2008 Symantec South AsiaVisionary 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 company

press statement said here on Friday.

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

Approximately 150 organisations participated across India for this award. Theaward is given to different categories of Industries leveraging SAP to achieve

business excellence, the release said.

It is indeed an honour for TVS Motor Company 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. TVS MotorCompany was chosen out of 25 participants in South Asia for this award'' said,Mr T G Dhandapani, Corporate Chief Information Officer, TVS M otorCompany, who received the awards on behalf of the company. - PT

TVS Motor Bags Deming Award For Quality Mgmt

Chennai, November 2:: TVS Motor Company (TVSMC) has been awarded theprestigious Deming award by the Union of Japanese Scientist and Engineers forachieving distinctive performance improvement through the application of totalquality management. TVSMC is the first two-wheeler company in the world to

get the award.Industry considers the Deming award as equivalent to the Nobel prize in thefield 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 isonly the second company outside Japan to win the award, and the first one inthe country.

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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 TVSway 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 in a crisis period. During

the early 1980s, the recession and increased competition had led to a drop in themarket share and profitability of SCL. The company embraced the qualitymantra, which helped boost profit, besides improving quality, recalls SCL

president C Narasimhan.

TVSMC was plagued by problems after acquisition of SCLs 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 TVSMC

president CP Raman

Research and development

The Company fs R&D team has a strong technicaltalent pool and modern computer aided laboratory, capable of developing newand innovative styles and designs. It also has state-of-art facilities for enginetesting, NVH measurements and life testing.

At present, more than 450 engineers are working on the

development of new products and in other advanced areas of technology. TheCompany works with leading technological research laboratory and institutions.

The Company fs R&D is cognizant of 2010 emissionnorms and is focused on ensuring complete compliance in all its products. TheCompany is also working on development of fuel-efficient technologies andalternate fuel technologies to take care of emerging needs of the consumers andenvironment.

The Company has applied for over 200 patents and its R&D team has published44 technical papers in national and international conferences .

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In addition to the requirements of domestic markets, the R&D team hasdeveloped products for ASEAN markets. The team has also developed threewheelers. TVS Racing Group, which is an integral part of the R&D ,participated

in the major two-wheeler racing events in the country and won nearly 90% ofthe events. Information technology ERP system is used to integrate all the

business processes across the Company.

The Company has also integrated its dealers and suppliers into its IT systems.During the year 2007-08, the Company has implemented Product LifecycleManagement system to digitize the new product of new products into themarket. It integrates different processes within the Company and enableselectronic collaboration with product development vendors.

The Company has also introduced Business Intelligence tool to get quickaccess to information through dashboards for effective decision-making.

COMPANY PERFORMANCE

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

TVS Flame

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 RTRThis 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.

StaR Sport

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The new StaR Sport with superior style, refreshing graphics,pleasing colours and contemporary design became an instant hit. Moreimportantly , this bike delivers the bestmileage in its class.

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

newmotorcycle packs a more powerfulpunch with increased power andhigherfuel efficiency with VTi technology.

Scooty TeenZ Electric

This new entrant in the TVS Scooty 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.

TVS Tru4 OilTVS Tru4 oil has been indigenously developed by the Company

in association with BPCL. This is specifically designed for smooth clutchoperations , smoother gearshift and enhanced engine protection providing an

ultra smooth biking experience for the customer. This product has been certifiedby JASO (Japanese Automotive Standards Organisation ) for MA2 with API20W40 grade.

MotorcyclesIn 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 TVS Flame was delayed due to litigation on usage oftwin spark plug. While the legal process is still going on, in order to avoidbusiness disruption , the Company has launched TVS Flame with a single sparkplug without compromising on any of the performance parameters . With thecomplete product range now available, the Company hopes to reverse thedecline and grow during 2008-09.Un geared scooters Scooty Pep+ continues to be the market leader in sub100ccmarket. Emergence of electric scooters segment has affected TVS Scootysales marginally. The newly launched TeenZ Electricwill address this issue.This product is also rated the best

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amongst the competing brands by Overdrive Magazine (June2008 issue). TheCompany will also be launching a new variant of Scooty 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 toachieve 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 OperationsThe three wheeler industry has grown at a

compounded 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 being

goods carriers. In addition to domestic demand,exports offer an attractive opportunity. The Company launched its threewheeler, TVS King in two variants . two stroke petrol and two stroke LPG inMarch 2008. The product comes with many first time features in the industryand delivers higher comfort and convenience, better fuel efficiency and moreimportantly superior style to give pride of ownership to the drivers. The producthas received encouraging response from the market. TVS King has beenlaunched in selected towns and will be gradually extended to allover India byDecember 2008.

TVS MOTOR COMPANY LIMITEDThe Company plans to introduce four

stroke version in Petrol, LPG and CNG fuels for domestic and export marketsduring 2008-09.

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OPPORTUNITIES AND THREATS

Growth in two wheeler demand would come mainly from risingpopulation 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 and

performance, frequent refreshes and upgrades are required.

The executive segment accounts for over 50% of the motorcyclecategory. The recently launched TVS Flame has been well received by

discerning 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 thecontext of rising fuel prices provides a new avenue of growth.

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OPERATIONS REVIEW

QualityThe 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 onStaR brand is a testimony to its manufacturing quality.

TQMThe Company continues to benefit from 100% participation of employees

in TQM activities. The employees have completed more than 1,200 projectsthrough QC Circles and Cross Functional Teams. The average number ofsuggestions implemented per employee was 69 during 2007-08.

Cost managementThe Company continues its rigorous focus on costs through

an effective deployment system. Value engineering and aggressive global

sourcing 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 in

productivity and reduction in manufacturing cost.During 2007-08, the Hosur and Mysore plants

were awarded the TPM excellence certificate by the Japanese Institute of PlantManagement (JIPM).

Research and development

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The Company fs R&D team has a strongtechnical talent pool and modern computer aided laboratory, capable ofdeveloping new and innovative styles and designs. It also has state-of-artfacilities for engine testing, NVH measurements and life testing. At present,more than 450 engineers are working on the development of new products andin other advanced areas of technology. The Company works with leadingtechnologicalresearch laboratory and institutions. The Company fs R&D is cognizant of2010 emission norms and is focused on ensuring complete compliance inall its products. The Company is also working on development of fuel-efficienttechnologies and alternate fuel technologies to take care of emerging needs ofthe consumers and environment. The Company has applied for over 200 patentsand its R&D team has published 44 technical papers in national and

international conferences. In addition to the requirements of domestic markets,the R&D team has developed products for ASEAN markets. The teamhas alsodeveloped three wheelers.

During the year 2007-08, the Company has implementedProduct Lifecycle Management system to digitize the new product development

process. This solution will help in faster introduction of new products into themarket.

Supply Chain Management

During the year, the Company streamlined itsglobal sourcing operations apart from strengthening its domestic supply base.Supplier cluster programmes enabled transfer of best practices from theCompany to the suppliers and also among the suppliers. The domesticdealership network was further strengthened with addition of 48 dealers in2007-08. The Company now has 604 exclusive dealers and over 2,500authorised sub dealers and service centres. The customer loyalty programme .Smiles forever - has beenupgraded and revamped. The current customer base of the CRM programme is

over 4.3 lakh members PT TVS Motor Company Indonesia PT TVS MotorCompany Indonesia, a subsidiary of the Company, has established amanufacturing facility at Karawang (near Jakarta), Indonesia with an annualcapacity of 3,00,000 units. The new product exclusively developed for theIndonesian market was launched during 2007-08 in select markets. Theresponse from the customers has been extremely satisfactory. Apache RTRlaunched during 2007-08 has also caught the fancy of Indonesian customers.The Company has established a network of 25 dealers as on 31st March 2008and plans to add another 125 during 2008-09.

HUMAN RESOURCE DEVELOPMENT

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The Company focuses on attractingthe best talent through strategic recruitment from reputed Engineering Collegesand Business Schools across the country. Managers are developed throughstructured foundation programs in association with reputed institutions. The

Company sponsors managers to overseas and inland universities for developingtheir capabilities to handle new technologies and management practices. Theyare also deputed to international conferences and seminars to gain globalexposure. Leadership development programs have been institutionalized as partof career development for senior executives. Career development workshopshelp identifying the high potential talents. This is reinforced with robustdevelopment plans supported by reward and recognition system. The Companyhas developed a blueprint for creating Centers of Excellence in the key business

processes. These Centers of Excellence build competencies required for the

present and the future to provide competitive advantage. The Companycontinues to maintain its record on industrial relations with not a single day ofwork being lost because of labour unrest. As on 31st March 2008, the Companyhad 4,284 employees onits rolls.

ENVIRONMENT, HEALTH & SAFETYAn integrated EHS Management

System is instituted both at Hosur and Mysore units. Both the sites have beencertified under ISO 14001 for Environment Management System and underOHSAS 18001 for Occupational Health Safety Management System. TheCompany continues to excel in key environmental performance areas, achievinga 35% reduction in fresh water consumption, 45% per unit reduction in landfillwaste disposal and 33% reduction in paint sludge generation. In line with theWorld Environment Day . 2008 theme g Kick the Habit - Towards LowCarbon Economy h , the Company is making a conscious effort to reduceits Carbon Foot print. Accordingly, it has taken various energy conservation

measures like the use of waste heat from central power plants, use of energyefficient motors, use of CFL lighting systems, use of natural lights, special VBelts in machine drives etc. The eventual goal is to become a Carbon NeutralManufacturing Company.

COMMUNITY DEVELOPMENT AND SOCIAL RESPONSIBILITYSrinivasan Services Trust (SST) is

a trust co-sponsored by TVS Motor Company 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.

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No case of Infant 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.

CAUTIONARY STATEMENT

Statements in the management discussion andanalysis report describing the companys objectives, projections,estimates and expectations may be gforward looking statements h within the meaning of applicable securities laws and regulations. Actualresults could differ materially from those expressed or implied. Important

factors that could make a difference to the Companys operations include,among others, economic conditions affecting demand supply and priceconditions in the domestic andover seas markets in which the Company operates, changes in the Governmentregulations, tax laws and other statutes and incidental factors.

INTERNAL CONTROL AND THEIR ADEQUACY

The Company has a proper andadequate Internal control system to ensure that all the assets of the Company aresafeguarded and protected against any loss and that all the transactions are

properly authorised, recorded and reported.

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specialisation

TVS Apache RTR 180: The new member of the TVS Apache stable

TVS, the maker of the popular Apache RTRbrand, released TVS Apache RTR 180cc bike last month, the new member ofthe Apache family. The Apache bikes are racing bikes. If you are looking for a

bike which is stylish and powerful at the same time, then this is the bike for you.The Apache RTR 180 comes with superb aerodynamic design. TVS mainlymade changes in the engine which made the major difference in the

performance of this bike. The new Apache RTR 180 will compete with BajajPulsar 180cc and Bajaj Pulsar 200cc bikes, Yamaha FZ-S bike. TVS is also

planning to launch another motorcycle in India by the end of this year and itwould start exporting its Apache RTR 160 FI to North America at the same

time.

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http://www.southasiablog.com/2009/07/tvs-apache-rtr-180-new-member-of-tvs.htmlhttp://www.tvsapache.com/http://www.southasiablog.com/2009/07/tvs-apache-rtr-180-new-member-of-tvs.html


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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 astand out from the crowd. The racing stripes, luminous rims, aerodynamicairscoops 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 Apache

RTR 180 gives it a distinctive look.

Removable rear fender:The Apache RTR 180 comes with a replaceable mud flap

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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 BS Motoring 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 necessaryinformation 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 designed

based 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.

Wide tubeless tyres:

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The wide tubeless tyres of TVS RTR 180 ensure high stabilityfor the rider on all types of roads.

Stylish exhaust:The roar says it all for TVS RTR 180. Designed with great

care, the exhaust not only releases the gas produced from internal combustionbut also adds up to the overall style icon of the bike.

Foot pegs:

The rear set foot pegs is fitted in such a way that is gives the rider asporty stance while riding the bike. The foot pegs of TVS Apache RTR 180 arelightweight and contribute to the power to weight ratio.

Price:TVS Apache RTR 180 will cost Rs.64,000 (ex-showroom).

TVS Apache RTR 180 specification

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Dimensions, weight and color:

Length: 2085.00 mm Width: 730.00 mm Height: 1100.00 mm Kerb weight: 137 kg. Maximum payload: 130 kg. Colors: White, gray, yellow and black.

Other specifications:

Ground clearance: 180 mm Saddle height: 790 mm Chassis type: Double cradle sychrostiff. Fuel tank capacity: 16 ltrs Reserve fuel tank capcity: 2.5 ltrs. Battery: 12v. 9.0 AH Headlamp: 12V 35/35W Halogen HS1, Clear lens with MFR.

Taillamp: 0.5 W LED twin-triangle with prism on Wheel Type: Six spoke magnesium alloy wheels. Wheelbase: 1326.00 mm Front rim size: 1.85 X 17 Rear rim size: 2.15X17 Front wheel size: 90/90 x 17 Rear wheel size: 110/80 x 17 mm Front suspension: Telescopic Forks (105 mm strokes) Rear suspension: Mono tube inverted gas filled shocks Front brake type: 270 mm petal disc. Rear brake type: 200 mm petal disc.

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Brake fluid: Dot 3.

Engine:

Engine type: Single cylinder, air cooled, four stroke. Displacement: 177.4 cc. Max Power: 17.3bhp @ 8500rpm Max Torque: 1.58kgm @ 6500rpm Maximum speed: 124 kmph. Bore: 62.5 mm. Stroke: 57.8 mm. Compression ratio: 9.5:1 Carburettor: Mikuni BS-29.

Valve train: Two valves, overhead cam. Valves per cylinder: Two valves. Power to weight ratio: 124.08 bhp/tonne. Starting: Electronic and kick start.

ABOUT JEEVOTHAM TVS

JEEVOTHAM TVS is a proprietaryconcern started on 19th December 1997 by Mr. Dhamodar V Shanbhag aresident of shirali . Having a good reputation and hailing from reputed businessfamily. It located at Krishna complex NH 17 Shirali which is very best place for

such type of unit.

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Working hour of JEEVOTHAM TVS is between 10.00 amto 6.30pm and helpline breakdown service is available for 24hrs within citylimit.

For the convenience of the customer and smooth running of the concern, theunit has been divided into various section.

Spare part devison Work section Sales department

JEEVOTHAM TVS also made the automated workshop in 05january 2005 .Generally all kinds of repairs and services like Reconditioning ,lathwork,firefighting etc are carried out in automated workshop for the smooth workingof workshop. Under the workshop in charge there are two skilled mechanics andtwo mechanics cum electricians and under each of them there are two helpers.

The mechanic in the workshop are talented and have efficient andhave attend various training camp organized by TVS COMPANY .

The various machines and tools installed in workshop are Hydraulic ramp Pneumatic tools Tools board Special tools Engine jig Air compressor

Air inflator Bench vice Impact driver General tools Verneir Timing light Battery charger Battery tester Hydro meter Soldering iron

Spark plug cleaning machine Air gauge

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Water wash machine Multi meter Compression gauge Mileage tester

Rpm meter

This installation of tools and machinery of automatedworkshop are very sophisticated. Everyday there are 15 to 20 vehicle forservicing purpose in the workshop of JEEVOTHAM TVS .

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 TVS COMPANY. Theunit has spare parts of all ranges bike of TVS.

JEEVOTHAM TVSdeals 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)

TVS Centra

TVS Fiero TVS Fiero F2

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TVS Fiero FX

TVS Scooty Pep (90 cc) (3rd largest used scooter in India)

TVS Star

TVS Star City

TVS Star Sport

TVS Victor (110 cc)

TVS Victor EDGE (125 cc)

TVS Flame (125 cc,ccvti technology)

TVS Scooty

INVESTMENTS OF JEEVOTHAM TVS

The following were the investments made by Mr.Dhamodar V. Shanbagh theproprietor ofJEEVOTHAM TVS for establishment of this motorcycle giant inBhatkal:

Particulars Amount (in Rs.)

Land Purchased 15,00,000Vehicles(Initial Investment) 5,00,000

Spare Parts(Initial Investment) 2,00,000Furniture & Fittings 1,50,000

Automated Workshop 2,00,000TOTAL 25,50,000

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ORGANISTIONAL BEHAVIOUR

In firm size , it is humanly impossible for an

individual 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 structure

The pattern of network of relationship between the various

position is in a firm as well as between the person who hold those positionreferred to as organizational chart.

As it has been mentioned earlier that it is a sole proprietary

concern, followed by one manager, one workshop in charge, one supervisor,one spare part in charge, one receptionist.

Under the workshop in charge there are two skilled mechanics andtwo mechanics cum electricians and under each of them there are two helpers.

The top down chart of the JEEVOTHAM TVS, the major function at the topwhich subordinates function is successive lower position.

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SERVICES OFFERED BY SHOWROOM

JEEVOTHAM TVS provide quality services to their customers to keep long

lasting customers relationship. The services offered by the showroom are: Sales Repairs Servicing Maintenance of vehicles

The unit undertakes all kinds of sales, repairs, servicing and maintenance ofall TVS motorcycles. As a sub-dealer JEEVOTHAM TVS provides 2 yearswarranty after sales services to all TVS motorcycles on certain terms &conditions. It offers FIVE free services for new vehicles, regular services afterfree services and general checkups. Everyday there are at least 15-20 vehiclesfor servicing.

The free services are offered on all TVS motorcycles on the following basis:

Free Services EligibilityFirst Service 500-750 kms or 1month from the

date of purchaseSecond Service 2500 -3000kms or 3 month from

the date of purchaseThird Service 5500-6000kms or 6 month from the

date of purchaseFourth Service 7000-7500 kms or 9 month from

the date of purchaseFifth Service 11500-12000kms or 12 month from

the date of purchase

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COMPETITORS

As the business grows the competition also

increases. So the firm to be successful must prove greater customer value andsatisfaction than its competitors. So the firm should carry out continuousinnovative marketing strategy to hold the market. The main competitors of

JEEVOTHAM TVS are:

India Motors (Hero Honda). Baba Auto (Yamaha-Escorts). Amar Sales & Services (Kinetic Engg Ltd.). Mahamya motors ( Bajaj)

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SALES PROMOTION

Sales promotion tool are used by most firm including

manufacturers, distrubuters, retailers and trade association. They are targetedtowards final buyers. It is a short term incentives to encourage purchase or saleof a product, where advertising offers reason to buy a product , sales promotionoffers reason to buy now .

Promotion plays an important role in the total performance mix.Mahamaya Motors undertakes various promotional activities. Such as:

Exchange offers by arranging exchange melas

Monsoon Mela

Mega service camp

Finance facilities

Test drive

Free service camps

Keeping customer data base

Calling for free service to the customers

Follow-up customers complaint

Diwali Dhamaka offers

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Free gifts with bikes (mobiles, electronic items).

OBJECTIVES

The main objective of the study isfinding the popularity of TVS co in Bhatkal and also the titleditself indicates the Consumer behaviour towards TVS Apachein Bhatkal and to see why the customer preferring TVSApache at the alternatives of Hero Hondas CBZ Xtreme andBajajs Pulsar .

The main sub objectives of the study are outlined below:

To study the market share of TVS motors

To study the customers biking preference

To study the customers want and demand

To make necessary suggestion on the basis of studyconducted

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Customer Satisfaction:

Satisfaction is a persons feelings of pleasure or

disappointment resulting from comparing a products perceived performance (oroutcome) in relation to his or her expectations. Whether the buyer is satisfiedafter purchase depends on the offers performance in relation to the buyersexpectations. If the performance falls short of the expectations, the customer isdissatisfied. If the performance matches the expectations, the customer issatisfied. If the performance exceeds expectations the customer is highly satisfiedor delighted.

A company would be wise to measure customer satisfaction regularlybecause one key to customer retention is customer satisfaction. A highly satisfied

customer generally stays loyal longer, buys more as the company introduces newproducts and upgrades existing products, talks favorably about the company andits products, pays less attention to competing brands and is less sensitive to price,offers product or service ideas to the company, and costs less to serve than newcustomers because transactions are routine.

When customers rate their satisfaction with an element of thecompanys performance - say, delivery. It could mean early delivery, on-timedelivery, order completeness, and so on. The company must also realize that two

customers can report being highly satisfied for different reasons. One may beeasily satisfied most of the time and the other might be hard to please but waspleased on this occasion.

A number of methods exist to measure customer satisfaction.Periodic surveys can track customer satisfaction directly. Respondents can also

be asked additional questions to measure repurchase intention and the likelihoodor willingness to recommend the company and brand to others. Companies that

26656946 project on tvs apache

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