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Pioneer Institute of Professional Studies Indore

{PHASE-I}A SWOT Analysis

Of

Presented By: -Harish K. Chaturvedi

MBA III Semester

Roll No.14091014

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CONTENT

Company Profile Mergers/alliances/takeovers Top Management Location of manufacturing unit and Touch points Current goals and objectives Financial Aspects Stakeholders

CURRENT PROFILE

INTRODUCTION:-

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FORCE MOTORS Force Motors, formerly Bajaj Tempo, is an Indian manufacturer of three-wheelers multi-utility and cross country vehicles, light commercial vehicles, tractors, buses and heavy commercial vehicles. It was originally named Firodia Tempo Ltd. and later after partial acquisition by Bajaj Auto as Bajaj Tempo Ltd.

Late Shri N.K.Firodia, a dedicated Gandhi an and Visionary Industrialist, was the Founder-Managing Director of Force Motors. Having participated in the freedom struggle for India in 1932 and 1942 he was determined to achieve Industrial modernization for India. He established, starting in 1950, in Collaboration with Vidal & Sohn, Hamburg, Germany the import and later progressive manufacture in India of the Tempo 3-Wheeler.

On 15th August 1957, the 10th anniversary of Indian independence, Mr. N.K. Firodia signed a collaboration with Vidal & Sohn Tempo Worked for phased manufacturing of TEMPO 3-WHEELER & manufacturing was started in a small plant at Goregaon, Bombay. The initial licensed capacity granted by the government was 1000 vehicles per year and 80 vehicles per month(S). Expanding the business in 1961, the Company acquired about 150 acres of land in Akurdi near Pune. The production was transferred to Pune by the end of 1964. Ambitious plans for producing Light Commercial Vehicles for the growing industrial economy of India were drawn up. The manufacture of TEMPO VIKING 4-Wheeled Trucks & Vans commenced in November 1964. The licensed capacity was increased to 6000 vehicles per year (O). The VIKING vehicle subsequently was upgraded with a diesel engine and the MATADOR was born. The production of Matador commenced in 1969. In 1975, the manufacturing capacity of the company was increased to 12,000 vehicles per year, in addition to 6,000 diesel engines for other purposes. The collaborator company in Germany, in the wave of mergers during the 70s merged eventually with Daimler-Benz. In July 1982, the company in a new collaboration - with the then Daimler Benz - produced the Mercedes Benz OM 616 engine under license for fitting on its line of vehicles. The TRAX Vehicle, specifically designed for the rough roads of rural India was developed by the Company's Research & Development department, to cater to the growing mechanisation of passenger transport in rural India. To further modernise its LCV product range, the Company took up the production of the TRAVELLER, under license from Daimler-Benz. A new Plant was set up in 1987, on a green field site in Central India at Pithampur in Madhya Pradesh (S). This modern facility was developed in close co-operation with Daimler-Benz. The plant is equipped with a modern conveyorised body welding and Electrophoresis dip painting shop. The Plant has been expanded to house a new Press Shop in 1997.

Today, Force Motors makes a full family of vehicles - the New Trump, Traveller Shaktiman, Trax and Cutline range of Buses & the Balwan and Orchard range of Tractors. These are products born out of Force Motor's own Research & Development activity. The Product

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designs for these ranges of most modern vehicles were created in our most capable Computer Engineering Environment. The Force Motor's R & D centre is among the most advanced in the country with a 150 terminal (CAD) Computer Aided Design network. Over 90% of the vehicles currently manufactured and sold by Force Motors are the latest designs, where, introduction is less than 5 years old. Further these are the products of most modern Computer Aided Design efforts. The company spends over 5% of its annual turnover on new Product Development. It employs 850 people for its R & D, tooling & project activity - 450 of which are Engineers. Latest software such as IDEAS, CATIA, and ADAMS are used for design & validation. The engines designed by Force Motors are fully proven for emission and for fuel efficiency. The vehicles offer Green engines meeting BS III norms.Force Motors Ltd. is a Company that has reinvented itself. Four decades ago, Force Motors started production of the HANSEAT 3- Wheelers. Today, Force Motors stands on the threshold of a new era in the automobile industry in India, with a stake in Five Product segments.

HISTORYThe company was founded in 1958 by N.K.Firodia. Bajaj Auto bought a controlling stake in the company, renaming it "Bajaj Tempo". Germany's Daimler-Benz, a long-time collaborator with Firodia because of their ownership of the original Tempo works in Germany, owned 16% of Bajaj Tempo. They sold their stake back to the Firodia group in 2001, meaning they once again held a controlling interest. It was agreed that the company would gradually phase out the use of the "Tempo" brand name, as it still belonged to Mercedes-Benz. The name of the company was changed to Force Motors in May 2005, over the objections of Bajaj Auto with whom the company shares a long history as well as a compound wall.

Force Motors started production of the Han seat three-wheeler in collaboration with German Vidal & Sohn Tempo Worked and went on to establish a presence in the light commercial vehicles field with the Matador, the proverbial LCV (light commercial vehicle) in India. Bajaj Tempo was associated with Mercedes-Benz since 1976 and in 1982 they began building the Mercedes-Benz OM616 diesel engine. Through the 1980s and 1990s, and especially in the last five years with a major product development effort, Force Motors has introduced new light commercial vehicles, a face lifted series of Tempo Trax utility vehicles, new tractors, and a new range of three-wheelers. The Matador, which defined the light commercial segment in India, saw sales collapsing in the late 1990s and Bajaj Tempo began a substantial program of developing modern vehicles to replace it.

Bajaj Tempo also built the diesel engines used in the Mercedes-Benz W124, and later W210, as manufactured in India. This was a small-scale endeavour, but while it did not net BT much profit they benefitted from the connection, both in terms of reputation and technology.

The company which mainly operates in commercial vehicle segment, entered into the "personal vehicle" segment in August 2011 with the launch of its first SUV, named Force-One.

The company manufactures trucks at Pithampur, the industrial hub of Madhya Pradesh in Indore in a joint venture, Man Force Trucks Pvt. Ltd, with MAN AG of Germany. MAN Force trucks are exported overseas to countries such as Sri Lanka, Indonesia, and certain African nations; markets where a low selling price is essential. The JV was dissolved as on March 2012 with Force Motors having sold and transferred remaining 50% of Man Force shares to MAN AG for Rs 10 per share.

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Tractors are built under the Balwan and Ox (formerly Tempo Ox) brands. The tractor field was entered by (then) Bajaj Tempo in 1996-1997, and were developed indigenously, rather than depending on imported technology.

Company History - Force Motors1958 - The Company was incorporated on 8th September. The Company manufactured and assembled 3 & 4 wheeler light commercial vehicles and diesel engines. 1961 - The Company was converted into Public Limited Company on 12th May. - The object of the company is to Assembly and manufacture of 3 & 4 wheeler light commercial vehicles and diesel engines. 1965 - In December 1963, 48,645 Bonus shares issued (prop 1:2). 18,500 Right shares offered at par (prop. 55:20). 1, 77,710 reserved for allotment to collaborators. 2,90,000 shares offered to the public in February 1964. 400 shares allotted to collaborators. 1966 - 1, 69,078 shares allotted to the foreign collaborators.

1970 - The Company's collaborators M/s. Honomag Herschel Fahrazeuquarrke GmbH discontinued the production of the diesel engine D301-E2 in Germany and agreed to shift the entire used machinery and equipment required for the manufacture of components of the diesel engine valued at Rs 1.50 crores to the Company. 1972 - 3,500 shares forfeited. 7, 89,163 Bonus Shares issued (prop.1:1). 1975 - Allotted 13,800 `A' Equity shares (6,495 in 1975-76 and 7,305 in 1976-77) at par to permanent employees of the company. 1977 - 15, 78,326 No. of Equity and 13,800 `A' Equity shares issued as Bonus on prop. 1:1 for the respective classes. 1978 - The area vacated by body shop and part of the press shop departments in part No. 1 was utilised for the installation of the new machinery and equipment for the manufacture of the new OM 16 engine in collaboration with Daimler-Benz of W. Germany.

1982 - The transfer line for the cylinder blocks of the new OM 616 engine was commissioned. - A Research & Development workshop was set up in addition to new Research & Development

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laboratories. 1983 - The Company entered into a technical collaboration agreement with Daimler Benz AG, West Germany, for the manufacture of light commercial vehicles such as Mercedes vans, station wagons and mini buses at Pithampur. 1984 - 1, 15,748 second `A' Equity shares allotted to permanent employees of the Company. 1987 - The licensed capacity was increased from 30,000 to 50,000 numbers per annum including 5,000 three-wheelers. 1989 - The production facility for manufacture of various rear axles and 5-speed Mercedes gear box was fully established. Latest machinery was installed with a view to expand the production facility for manufacture of axles and Mercedes gear boxes. - The Company acquired technology from M/s. Flak Industrial AB, Sweden for FP coating of the primer paint. 1990 - During the year, rear wheel driven Matador Max R 307 vehicle was introduced along with the rear wheel driven bus platform R-407W. - A new model of a 3-wheeler was developed and test marketed. - A new commercial tool room was established at the Akurdi, equipped with the latest CNC 3 dimension die sinking equipment and capable of manufacturing large panel dies for bodies. - Also, a modern CAD/CAM facility was established to support the tool room activity. - An agreement entered into with Ricardo Consulting Engineers, for technology up gradation of D 301 E2 engine, was finalised. 1991 - New models of Tempo Trax called Challenger and Town & Country were introduced in market. Direct injection version of OM 616 engine offering substantial improvement in fuel economy was expected to be introduced shortly. - The Company obtained the technical services of Mercedes-Benz A.G., Germany for panel die making. - The total sales of the light commercial vehicles declined due to recession in the automobile industry. 1992 - In order to enhance the export sales, a new division `Tempo International' was created.

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- The Company proposed to undertake modernisation of various important facilities such as engine manufacturing shop, transmission manufacturing shop as also founder paint shop, etc. - A new model of a `Pick-up-truck' version of the temptress was developed. Also, a new TX-17 gearbox and matching hypoid axle were introduced on the tempo trax range of vehicles. - The matador range was further extended with the addition of `RA307' model, a further upgraded puck-up truck with an I-Beam rigid front axle. 1993 - A separate cell was created for `Tractor' development. - The Company issued 33, 00,000 Rights equity shares of Rs 10 each at a premium of Rs 90 per share in proportion 1:2. (Only 32, 52,850 shares were allotted 47,725 shares were kept in abeyance. (Of these 175 shares were allotted by the Board.) 1994 - Akurdi factory lost production for nearly 5 weeks due to an illegal strike. - The Company has entered into a licence agreement with M/s. Robert-Bosch GmbH, for the manufacture of Tractor Hydraulics. 1995 - The licensed capacity increased from 50,000 to 60,000 numbers of automobiles per annum. - 31,100 No. of Equity shares kept in abeyance issued. 1996 - During the year fully indigenously designed, developed and manufactured Tempo `OX-45' Tractor was successfully launched. - The Company made a Rights issue of 32,96,446 No. of equity shares of Rs 10 each at a premium of Rs 90 per share in proportion 1:3 of which, on 27th January 1997, the Company allotted only 32,37,038 shares. Balance 59,408 shares were kept in abeyance. Only 32, 34,451 shares were taken up. - Another 13,75,722 No. of equity shares were to be issued to Jaya Hind Investments Pvt. Ltd. and Daimler Benz AG, Germany to maintain their holding at 41.69%. - Sales suffered due to shifting and relocation of various production activities at Akurdi, labour unrest at Pithampur and softening of demand for company's vehicles. 1997 - Production of vehicle at Pithampur was affected due to protracted industrial relation problem resulting in no production from 2nd Jun to 19th July. - The Company has launched new products in all four segments in LCV

-Tempo Excel', utility vehicle-`Trax', Mindoro-Auto Rickshaw and pick-up, Tractors, the `Tempo ox' range of tractors.

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- The company has entered into an agreement with M/s. Zahnrad fabrik parson GmbH, Germany for providing technology for the manufacture of Agricultural Tractors. - 46,412 shares kept in abeyance issued. - Bajaj Tempo Ltd. (BTL) the flagship of the Rs.1, 350 crore Firodia group started operations in 1959 in technical and financial collaboration with Daimler Benz, the latter owning 26% of the equity. - Bajaj Tempo Ltd. (BTL) plans to set up a third and possibly a fourth manufacturing facility. 1998 - Bajaj Tempo will introduce a new generation family of light commercial vehicles (LCV) in the next few months and phase out the popular Matador model over a period of time. - Bajaj Tempo Ltd, the third largest automobile manufacturer in the HCV/LCV segment has attributed the on-going sluggishness in the domestic markets to the excise duty. - The company's proposed four wheel military vehicle will be christened as `Gorkha'. - The company is also launching a second range of Tempo Trax utility vehicles including the new 4X4 military and cross country vehicle Trax Ghurkha. - The situation improved from third quarter, mainly due to improved sales of 3-Wheeler `Mindoro' vehicle. 1999 - Bajaj Tempo Ltd, Pune-based light commercial vehicle (LCV) manufacturer, which launched its new model, the Excel-4, will launch its variants in June. - The company, under technical collaboration with Mercedes Benz of Germany. - The first time in the industry, Bajaj Tempo has introduced mobile service training van equipped with audio visual aids; special tools cut section models, to train not only dealers but also the public. 2000 - The Workers will go on strike from May 26th. Work at the factory has been affected following a tool down strike by the union which is affiliated to the Bharatiya Kamgaar Sena. 2001 - The Company will be launching its Mindoro three-wheelers running on CNG during next month. 2003 -Board allots 33% equity shares of Rs.10 each for cash at a premium of Rs.90 per share. -Agrees to procure technology from MAN Nutzfahrzeuge AG, Germany for 4 and 6 cylinder Diesel Engines of higher capacities. -Signs Moue with Punjab Tractors Ltd and Corporation Bank for financing Tractors.

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2004 -Automobile manufacturer, Bajaj Tempo Ltd, on January 16, 2004 announced that it would enter the heavy commercial vehicles (HCV) segment in the next 12 months following its technology tie-up with MAN of Germany. -Bajaj Tempo inks pact with Andhra Bank. 2005 - The Registrar of Companies (Rocs), Maharashtra, issued the certificate for name change from Bajaj Tempo Ltd to Force Motors on May 12th and the new name came into effect immediately. -Force Motors unveils Mindoro cB. 2005 -Company has changed its name from Bajaj Tempo Ltd. to Force Motors Ltd. 2006 -Force Motors signs Moue with Man to set up unit in MP. 2007 - Force Motors Ltd has informed that Mr. R B Bhandari is appointed as an Additional Director of the Company w.e.f. June 29, 2007. -Force Motors Ltd has informed that Mr. L. Lakshman is appointed as an Additional Director of the Company w.e.f. September 29, 2007. 2008 -Force Motors Ltd has appointed Mr. Dinesh Chhabra, as an Additiona Director. -Force Motors Ltd has informed that the Board of Directors of the Company at its meeting held on June 25, 2008, inter alia, have appointed Mr. Dinesh Chhabra, as an Additional Director. 2010 - Force Motors Ltd has appointed Mr. Atul Chordia of Pune as an Additional Director of the Company. 2011 -Force Motors enters into Agreement with Daimler AG, Germany, in Respect of licensing of technology for Multi Purpose Vehicle (MPV). -Force Motors launches SUV Force One 2012 -Force Motors shakes hand with HPCL for oil supplies

-Force Motors has recommended a payment of dividend of Rs. 10/- per share (i.e. 100%) 2013-Force Motors expands it presence with the launch Force One SX and Force One EX.

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-Force Motors launched the Ghurkha, the world’s first E.O.V (Extreme Off roader Vehicle) 4x4x4 at the International Bus and Utility Show.

-2013 being held at the India Expo Mart, Greater Noida.

2014-The opening season of the Force Ghurkha Rain Forest Challenge saw Malaysian Tang Eng Joo taking top honours.

-Force Motors is lead sponsor for COEP’s Team Nemesis Racing at SAE Baja 2015 Competition which will be held at Pithampur, Madhya Pradesh.

-Force Ghurkha claims the First and Second position at the Rainforest Challenge India 2014.

Force Motors targets Rs 3,000 crore revenue in 3 years

Pune-based Force Motors expects to triple its revenue to Rs 3,000 crore in next three years driven by its contract manufacturing business for leading automobile companies like Mercedes Benz and BMW."We are in OEMs business. We make vehicles. We work for OEMs like BMW, John Deere. When I say we are targeting Rs.3, 000 crore revenue, it will be generated out of these businesses. The time frame we expect to be about three years," Force Motors Managing Director Prasan Firodia said here."Currently, the revenue generated (from OEMs business) is around Rs 1,000 crore," he said.

Firodia was talking to reporters after the formal inauguration of the Chennai plant that would produce power trains to German car major BMW.

"This is the first outsourced plant globally for BMW. Nobody (No other manufacturer) has done this before. We are the first company in the world to do power trains for both Mercedes (Benz) and BMW which is very unique thing."The company is setting up a dedicated manufacturing facility for German luxury car maker Mercedes Benz.

"About our plant at Chakan, Pune, we are building up brand new facility for Mercedes Benz with higher (plant) capacities and everything," Firodia said.

Declining to reveal the investments proposed and other details about the unit, Firodia said the company had supplied over 50,000 engines to Mercedes Benz since it formed a partnership with Mercedes Benz in 1997.Force Motors currently assembles engines for Mercedes Benz C, E, M Class range of cars. Referring to the Singaperumalkoil plant, about 55 km from Chennai, he said, "an investment of about Rs 200 crore at the facility and the plant will make diesel engines for BMW range of cars and SUVs."

The plant was formally inaugurated by Union Heavy Industries Minister, Anant Geete. It has been operational since January and already supplied about 3,000 units.Firodia said the facility, spread across five acres, was capable for the company to ramp up the

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existing unit as and when required by BMW. "This plant has a total of 100 engineers all trained by BMW," he said. The company was setting up two manufacturing facilities, one each in Madhya Pradesh and Gujarat to manufacture auto-components. "We will be inaugurating our facility in Dewas, Madhya Pradesh shortly", he said but did not elaborate on details on the project.

Force Motors sells vehicles including small commercial vehicles, multi-utility vehicles, light commercial vehicles, sports utility vehicles and agricultural tractors.

Outlook and valuation

We believe FML’s recent entry into the SUV segment coupled with the launch of Traveller 26, will enable it to post a top-line CAGR of 13.8% over FY2012-14E to 2,700cr. The EBITDA is expected to grow at 12% CAGR to `153cr in FY2014E while the margins are to dip initially from 5.8% in FY2012 to 5% in FY2013E but to revive to 5.7% in FY2014E. The net profit is to soar by 46.8% CAGR from `41cr in FY2012 to `88cr in FY2014E on the back of reduced interest cost and stable other income. FML is trading at an attractive PE of 6.7 xs for FY2014E earnings. We remain positive on FML and maintain our Buy recommendation with a target price of `537, based on target PE of 8x and implied EV/Sales of 0.2x on FY2014E earnings. Traveller 26 to assist extend market share and boost top-line FML launched its latest offering, world’s only 26-seater monologue panel van, Traveller 26’ in October 12. Traveller 26 is a unique combination of outstanding performance, excellent fuel economy, unmatched strength, total safety and maximum comfort, making it an ideal choice for corporate, fleet owners, tour and travel operators, hospitality industry and school bus operators. The market size of this segment is ~25,000 units and FML plans to sell 1,300 units in FY2013 and 4,500 units FY2014 thereby aiming for 20% market share. FML already has a market share of about 50% in the 6 to 20-seater segment. The standard version of Traveller 26 is priced ex-showroom at `10.87 lakh, the school bus version at `11.16 lakh and the Deluxe version at `13.87 lakh. The product is available through 27 dealers in Maharashtra and Goa and FML looks forward to export it post six months mainly to Sri Lanka, Bangladesh and Africa. The product is rolled out from FML’s Pithampur unit which is expected to produce up to 10,000 units in the first phase while the second phase is to commission after a year.

MERGERS/ALLIANCES/TAKEOVERS

BAJAJ ENDS DECADES-OLD ALLIANCE WITH FORCE MOTORS

Bajaj Group has exited Force Motors through a series of share sales, cashing in on an 83 per cent appreciation in the stock in three months. The group once controlled the Navalmal Kundanmal Firodia-founded Force. According to a BSE disclosure, Bajaj Holdings and Investment had 4.04 per cent stake in Force Motors on August 1, compared with 9.32 per cent on July 23. At the end of the quarter ended June last year, the stake stood at 23 per cent; the stake was accounted for by Bajaj group companies Bajaj Holdings, Bach raj & Co, and Jamnalal Sons. According to latest bulk deal disclosures on the BSE, Bajaj Holdings has sold

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the final tranche of 532,695 shares in Force Motors, ending the partnership. Force Motors promoter entities bought these shares, the disclosures showed.

Niraj Bajaj, director of Bajaj Group, said, “We have been offloading shares in Force Motors since the past many months. We thought we were getting a good price (on the sale). Though we have no direct business relations, we share a very cordial relationship with the Firodia family. This is a normal treasury transaction; there is no arrangement with the Firodia family here.” Post Independence, both groups have worked to pave the way for mechanised mass transport solutions. While N K Firodia tied up with German company Vidal & Sons Tempo Worked to make passenger three-wheelers, Bajaj Auto joined hands with Italy’s Piaggio to build geared scooters. Subsequently, Bajaj Group controlled a quarter of the shares of Force Motors, called Bajaj Tempo at that time. Force Motors held nine per cent stake in Bajaj Auto. N K Firodia was chief executive of Bajaj Auto before Rahul Bajaj took over the reins of the company in the early 1970s.

Ties between the two groups soured when they fought each other in court over the use of the Bajaj brand. While the Firodias wanted to do away with the Bajaj brand when Daimler (which controlled the Tempo brand) exited Bajaj Tempo, the Bajaj camp urged the brand be retained. In 2005, Bajaj Tempo, popular for Matador mini buses, was renamed Force Motors. While Force expanded to sports utility vehicles, light trucks & buses, ambulances and tractors, Bajaj Auto focused on two- and three-wheelers, with about 40 per cent of its revenue coming from abroad.

For 2013-14, Bajaj Auto’s net profit stood at Rs 3,243 crore, 60 per cent more than Force Motors’ turnover for the same year. At Rs 2,200 crore (according to BSE), the worth of Force Motors’ stake in Bajaj Auto is higher than the company’s turnover in 2013-14 (Rs 2,021 crore). Prasan Firodia, managing director of Force Motors, declined to comment when asked whether the company would seek to monetise its stake in Bajaj Auto. For growth, the company is keen on the sports utility vehicle and multi utility vehicle segments.

BREAKING OFF

83% Appreciation in share price of Force Motors in three months 

4.04% Bajaj Holdings and Investment’s stake in Force Motors as on August 1, compared to 9.32% on July 23 

532,695 The final tranche of shares that Bajaj Holdings has sold in Force Motors 

9% Stake that Force Motors’ held in Bajaj Auto in the earlier years 

2005 Bajaj Tempo was renamed Force Motors 

40% Share of foreign revenues in Bajaj Auto 

60% Difference between Bajaj Auto's net profit and Force Motors’ turnover in 2013-14

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PROMOTERS HIKE STAKE IN FORCE MOTORS TO OVER 60%

Force Motors today said its promoters have acquired more than one lakh shares of the company from open market, thereby increasing their stake in the vehicle manufacturer to over 60 per cent.

“The promoters of the company, Jaya Hind Investments Pvt Ltd, have acquired 1,00,200 equity shares of Rs. 10 each from the market on March 13, 2015,” Force Motors said in a filing to the BSE.

With this acquisition, the number of shares held by the promoter group stands increased from 78,21,295 equity shares to 79,21,495 equity shares, from 59.36 per cent to 60.12 per cent of the total paid up share capital of the company, it added.

Pune—based Force Motors markets a range of products including small commercial vehicles, multi—utility vehicles (MUVs), light commercial vehicles, sports utility vehicles (SUVs) and agricultural tractors.

Force Motors shares ended at Rs. 1,388.50 apiece on the BSE, down 2.22 per cent from their previous close.

SEBI provides Force Motors promoter clarity on takeover norms

SEBI has informed Jaya Hind Investment, a promoter of Force Motors that it will not have to make an open offer as its proposed stake buy in the auto firm is less than the 5 per cent cap in a given financial year.

Securities and Exchange Board of India (SEBI) also said that the proposed acquisition which is based on 'spot delivery contract' would not attract application of rules relating to dealing in equity shares on floor of the stock exchange.

The interpretive letter, which was made public on Monday, has come in response to query by Jaya Hind, an NBFC, on whether its proposed acquisition of 4.79 per cent stake in Force Motors would attract certain provisions under takeover norms as well as rules of the stock exchanges.

"On the matter of proposed acquisition of shares of Force Motors, as the quantum of shares intended to be acquired during the financial year 2013-14 by Jaya Hind Investment is less than 5 per cent of the total fully paid-up shares of FML, the provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations SAST Regulations) would not be attracted," SEBI said.

As per takeover rules, an entity with 25 per cent stake in a company but less than the maximum permissible non-public shareholding, can acquire more than 5 per cent shares of the firm within any fiscal year subject to making an open offer.

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In October, last year, Jaya Hind had informed SEBI that it intends to acquire 6.31 lakh shares (4.79 per cent stake) of Force Motors from 12 members of the auto maker on 'spot delivery basis'.

 The NBFC along with the persons acting in concert held 68.18 lakh equity shares of Force Motors as on October 2013. Following the share-purchase its stake would stand at 56.54 per cent in the company.

RUN THE BUSINESS:-

Management Team

The company has a young and dynamic Managing Director, Mr Prasan Firodia, the grandson of Shri N K Firodia, who is assisted by a team of highly qualified professionals in all departments.  

Mr Prasan Firodia is just 35 years of age. Having been appointed the Managing Director of the Company since 2014, he operates from the Mumbai headquarters of the company. He is assisted by the following people to successfully run the company.

Mr. S.A Gundecha- Gundecha is the Non-Executive Independent Director of Force Motors and a member of ICSI.

Mr Sudhir Mehta- Mehta is a Member of Board of Management of Force Motors. He is also the Director of Force, and the State Bank of Indore. Mr. Mehta has a Bachelor’s Degree from DePauw and a Master’s Degree from University of Chicago in Business Management.

BOARD OF DIRECTOR

S.No Name Designation

1 Abhay kumar Firodia Chairman

2 Prasan Firodia Managing Director

3 Aparna G Lambore Company Secretary

4 Sudhir Mehta Non Executive Director

5 Vinay Kothari Non Executive Director

6 PV Inamdar Executive Director - Operations

7 Pratap Pawar Non Executive Independent Director

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8 S Padmanabhan Non Executive Independent Director

9 Nitin Desai Non Executive Independent Director

10 Indira Parikh Non Executive Independent Director

11 Arun Sheth Non Executive Independent Director

COMPANY SECRETARYMrs. Aparna G. Lambore

Vision & Values

“Force Motors continues its vision of providing efficient, utilitarian vehicles that empower the individual entrepreneur.”

Mission

“We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.We anticipate consumer need and deliver outstanding products and services that improve people's lives”.

Future Plans

Force aims to be the market leader in Light Commercial Vehicles (LCV). Force Motors is looking to re-engineer its product line to meet the norms and emission standards along with getting into newer segments and expanding dealership network.

Force is expecting to sell 4,000 SUVs in 2011. Also in 2011, it plans to come up with two-three new models of SUVs priced between Rs. 10-12 lakh.  

The company also plans to have a personalized vehicle division which will have 50 dealerships; who will set up workshops and sales outlet for PVs.

Force also has plans to launch a passenger van which will seat 8 or 9 people. This van is will be launched at a price tag of under 10 lakhs, cheaper than the Force SUV. It will come with a diesel engine, which is the OM Series from Daimler.

Manufacturing Facilities

Force Motors has two “state of the art” manufacturing facilities, one at Akurdi, near Pune with a covered area of 1, 00,000 sqm, spread over an estate of 100 acres where the Trump range of small commercial vehicles and Balwan agricultural tractors are manufactured, and

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the other factory at Pithampur, near Indore, with a covered area of 2, 00,000 sqm, spread over an estate of 200 acres, where the Trax, MUVs, Traveller LCVs and the MAN FORCE HCVs are manufactured.

Realizing its strength in terms of excellent engineering infrastructure and technical capabilities, Daimler requested Force in 1999 to set up a dedicated line for the assembly of its engines and gearboxes, which were to be fitted in the Mercedes cars, which were to be manufactured in India. Till date Force Motors has supplied over 21,000 engines. The warranty on engine assembly and testing is also with Force, and it is a matter of great pride that till date there are no failures or complaints from Mercedes. This business has now grown to a substantial size, as manufacturing of both front and rear axles for the C and E class cars has also been added recently.

Technology

Force Motors makes a full family of vehicles - the New Trump, Traveller Shaktiman, Trax and Citiline range of Buses & the Balwan and Orchard range of Tractors currently. The products are borne out of Force Motor's own Research & Development activity. The Product designs for these ranges of most modern vehicles were created by what is called the Computer Engineering Environment.

The Force Motor's Research & Development centre has a 150 terminal (CAD) Computer Aided Design network. Over 90% of the vehicles currently manufactured & sold by Force Motors are the latest designs, where, introduction is less than 5 years old. Furthermore, these are the products of most modern Computer Aided Design efforts. The company spends over 5% of its annual turnover on new Product Development. It employs 850 people for its R & D, tooling & project activity - 450 of these people are Engineers. New software’s such as IDEAS, CATIA, and ADAMS are used for design & validation. The engines designed by Force Motors are fully proven for emission and for fuel efficiency. The vehicles offer Green engines meeting that meet the BS III norms.

Awards & Recognition:-

Certification:

In the year 2000, the Pithampur plant and its Mercedes Engine facilities received the prestigious ISO 9002 certification by quality system.

In the year 2003, the entire Akurdi plant and Pithampur plant were certified to 9001:2000.

2000: In 2000, Force Motors launched the Trax Judo and the Trax Gama for rural and urban transportation. They were multi-utility vehicles. It was in the same year that Prithampur plant received the ISO 9002 certification for quality systems.

2003: The completion of certification of the Pithampur and Akurdi plant took place in this year.  

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2004: Two partnerships were formed – one with MAN (the world’s leaders in engines and truck technologies) to produce trucks, and the second partnership was formed with ZF to produce transmission technology.

2005: The year 2005 brought about change in the name of the company from Tempo to Force Motors. This name was chosen as it denoted power.

2006: At Pithampur, the company's state of the art HCV manufacturing facility was inaugurated

2008: The Traveller Shaktimaan, the Traveller Luxury and the Traveller Smooth were all launched.

2009: Force Motors introduced the New Catholic Electro Deposition Paint Shop.

2010: Abhay Firodia was awarded the “Commercial Vehicle Man of the Year award by Commercial Vehicle Magazine. This was the same year the MAN CLA truck won the “HCV Rigid of the Year” award.

2011Force Motors enters into Agreement with Daimler AG, Germany, in respect of licensing of technology for Multi Purpose Vehicle (MPV). Force Motors launched its first offering in the Personal Vehicles segment, the FORCE ONE.

2012

Force Motors shakes hand with HPCL for oil supplies Force Motors introduces a revolutionary passenger vehicle, Traveller 26.

2013Force Motors introduces Gurkha, the Extreme Off-Roader Vehicle

PRODUCT LINE:-

FORCE MOTORSForce Motors is a fully, vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles.

Its range includes Small Commercial Vehicles, Multi-Utility Vehicles (MUV), Light Commercial Vehicles (LCV), Sports Utility Vehicles (SUV) and Agricultural Tractors. So no matter what the need be, Force has a solution to offer.

Force provides appropriate solutions for transport – goods as well as passenger – rugged, reliable and efficient transport solutions for every need- Rural or urban, long distance or local, over good roads or bad tracks.

TRAVELER

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Originally designed and produced by Mercedes Benz AG, Germany as T1 Transporter, it is now manufactured in India as the “Traveller”. This range of passenger and goods carriers is powered by the fuel efficient TD 2200 Common rail engine available in both BS III and IV versions. So whether it is for personal or business use, movement of men or material, the Traveller is an ideal choice.

An iconic brand, the Traveller is one of the most popular inter and intra city mobility vehicles in the country today. The recently launched variant in this range is called the Traveller 26.

TRAX

Trax is the first fully indigenous multi utility vehicle developed in the country. Over the past two decades it has established itself as the preferred people and goods carrier in rural India.

The Trax is a rugged, reliable; all-terrain vehicle powered by the legendary Mercedes- OM 616 derived diesel engines. Tough and stylish with durable steel pressed body primed with state-of-the-art CED process, the Trax has unmatched off-road applications for people and goods transport.

FORCE ONE

FORCE ONE is one of the finest sports utility vehicles made by an Indian OEM (Original Equipment Manufacturer). The turbocharged Force One beats faster than any other SUV in its segment. Infused with a new 2.2 litter FMTECH Common Rail engine, its subdued growl is like a beast waiting to be unleashed. It’s available in EX, SX and LX variants.

Technologically advanced, great road presence, excellent ride and handling, immense space creating comfort at a very competitive price are some of the features of the Force One. This is an SUV tailor made for the Indian customer.

SCVThe Trump 40 range of small commercial vehicles is an extremely competent and efficient last mile goods carrier. Its 8ft long cargo hold mounted on the rugged pressed steel ladder type chassis ensures that it can carry both heavy as well as voluminous goods effortlessly. It offers best in class safety on account of the combination of powerful disc brakes in the front and drum brakes in the rear.

Agriculture vehicleThe Balwan and Orchard are the most technologically advanced tractors which not only make work easier but also more efficient, resulting in higher productivity. The Balwan and Orchard sport synchromesh transmission, excellent ergonomics and fuel efficient engines. The Balwan 550 variant takes this a notch up with power steering added into its features list.

These tractors are designed to suit the various applications and needs of the modern farmer including the specific accessibility requirements within orchards.

TRACTORS-

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OX and Balwan-Modern, Tractors, Sporting synchromesh transmission, Bosch hydraulics, excellent ergonomics and fuel efficient engines. Designed for demanding farmers of developing countries.

THREE WHEELERS- A family of new engineered three-wheelers, Economical, rugged and environment friendly very efficient transport for people and goods.

LIGHT COMMERCIAL VEHICLES- Traveller and Excel range of passenger and goods carriers. Powered by a family of DI and IDI engines including the legendary Mercedes derived OM 616 engines. A range of high reliability axles and transmissions add value.

MULTI UTILITY VEHICLES- Complete range of multi- utility vehicles including the Trax Judo, Trax GAMA, Trax Cruiser, Trax Kargo King, range of single cabin and double cabin pickups; and the 4 X 4 cross country vehicle- Trax Gurkha.

HEAVY COMMERCIAL VEHICLES- In technical collaboration with MAN AG, Germany, Force Motors will be introducing shortly, a range of heavy commercial vehicles with a payload capacity ranging from 16 to 50 tonnes. Five areas of excellence support the five market segments: Research and Development- Using a 150 terminal CAD installation and modern testing facilities, staffed by 400 young engineers and technicians.

Power Pack Manufacturing-State of art facilities for in house manufacturing of engines and transmission components.

Vehicle Manufacturing – Complete, with in-house foundry, press shops, robotized body welding, electrophoresis dip painting and high quality assembly facilities. SPORTS UTILITY VEHICLES- Force Motors wants to make a giant leap into the passenger vehicle segment. And for beginners, Force Motors want to manufacture sports utility vehicles. Force Motors, which will mark its entry into the passenger vehicle segment with its sports utility vehicle (SUV). In line with its passenger vehicle plans, the company is setting up a separate division called personalised vehicle division to cater to its plans in the segment. It has roped in people from various other automakers to steer the new division. "We have a new vertical formed called the personalised vehicle division, which, on the front end, is being headed by Sanjeev Garg, as president (SUV sales, service and marketing) of the company. He comes from General Motors. Prasan Firodia, managing director of the company told Financial Express.

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Company chairman, AN Firodia, has quoted in a leading news paper, ―We will launch a sports utility vehicle (SUV) sometime this year. We do not have a product in this segment, but we have developed a new platform which will allow us to launch a stylish new vehicle in a segment which is very popular. We are in the rural market with the Trax, which is rural multi-utility vehicle used as a rural taxi in those states that allow it. The SUV is a completely different segment from the Trax, though. So far, Force Motors has had three platforms, Trump, a small commercial vehicle, the Trax a multi-utility vehicle for rural markets and the Traveller, a city coach, which is mainly targeted at the rural, multi-utility or mass transport markets. Force Motors has its manufacturing plant in Akurdi near Pune and Pithampur, Madhya Pradesh. The company is a low profile, commercial vehicle maker, but has the capacity to make its own engines, chassis, gear boxes, axles, etc for its entire product range. You would find it interesting to note that Force Motors is the sole supplier of engines to Mercedes Benz India for its passenger cars, and makes the cab and nine-speed gear boxes for its joint venture, MAN Force Trucks.

MANUFACTURING The famous Mercedes OM-616 engine made under license has been further developed with Force Motors' own R & D and with assistance from M/s. Ricardo of UK and M/s. AVL of Austria, to create a large and modern facility of IDI, Direct injection, turbo / intercooled and Tractor Engines. The critical components such as cylinder blocks and precision cylinder heads etc. are made in Force Motors' own foundry. These are machined using elaborate and modern mass production methods - both transfer lines and Computer Numerical Controlled (CNC) flexible machining systems. Mercedes standard precision and durability is built into the reliable and modern engines.

R & DForce Motors Engineering R&D centre is one of the most advanced Research and Development centres. It has launched a full family of vehicles including the FORCE ONE, Trump, Traveller, Shaktiman, Trax and the Balwan and Orchard range of Tractors. These are products born out of Force Motors' own research & development activity. Force Motors encourages innovation and motivates the 500 odd expert design engineers to create path-breaking automotive designs.

Our R&D facility includes hardware, software, verification and validation, and test facilities which are utilized during the complete product development cycle from concept to SOP. The process includes creative vehicles styling and design by our CAE team, well-equipped with the most advanced software. At Force Motors, every vehicle is run though durability test lab, engine test lab and driveline test setups before it hits the road. Apart from test labs Force Motors has in-house torture track (Pave Track) for complete vehicle durability testing.

FINANCIAL ASPECTS OF COMPANY

2014 2013 2012 2011 2010

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Operating profit margin (%) 4.78 2.73 5.82 6.60 3.84Gross profit margin (%) 0.58 -0.82 2.93 3.67 -0.40Net profit margin (%) 3.73 0.70 39.07 3.72 5.76EPS (Rs) 76.91 58.95 10.83 625.49 44.48Return on net worth (%) 5.33 1.23 -11.92 17.26 20.00Dividend payout ratio (%) 5.08 27.68 1.59 11.23 7.65PBDIT (%) 156.65 97.53 146.10 149.41 98.03Depreciation (%) 81.28 84.84 70.16 6.36 44.82PBIT (%)PBT (%) 62.63 19.13 1011.30 82.13 42.88PAT (%) 77.69 14.28 -136.38 57.72 56.69Net profit (%) 101.36 77.69 14.28 824.33 58.62

Financials Total Income - Rs. 24294.989046 Million ( year ending Mar 2015) Net Profit - Rs. 1013.627237 Million ( year ending Mar 2015)

PROFIT & LOSS A/C (in crore)

Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10

Income

Operating income 2,021.63 1,972.72 2,085.01 1,524.85 988.47

Expenses

Material consumed 1,486.93 1,482.58 1,541.37 1,098.46 728.37

Manufacturing expenses 37.94 37.22 34.32 45.04 28.84

Personnel expenses 240.56 262.32 258.88 197.03 126.02

Selling expenses - - - 48.53 29.82

Administrative expenses 159.48 136.72 128.94 55.89 44.19

Expenses capitalized - - - -20.90 -6.77

Cost of sales 1,924.91 1,918.84 1,963.50 1,424.06 950.47

Operating profit 96.71 53.88 121.50 100.79 38.00

Other recurring income 59.94 43.65 24.60 48.62 60.03

Adjusted PBDIT 156.65 97.53 146.10 149.41 98.03

Financial expenses 9.18 8.24 35.15 23.32 16.89

Depreciation 84.84 70.16 60.36 44.82 42.00

Other write offs - - - - -

Adjusted PBT 62.63 19.13 50.59 81.27 39.14

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Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10

Tax charges -15.07 4.85 186.97 23.55 -17.54

Adjusted PAT 77.69 14.28 -136.38 57.72 56.69

Nonrecurring items - - 960.71 0.31 1.14

Other non cash adjustments - - - 0.58 2.60

Reported net profit 77.69 14.28 824.33 58.62 60.42

Earnings before appropriation 819.50 747.86 831.33 197.12 149.17

Equity dividend 3.28 3.28 11.04 5.52 3.95

Preference dividend - - - - -

Dividend tax 0.67 0.67 2.14 1.07 0.67

Retained earnings 815.55 743.90 818.16 190.53 144.54

RATIO ANALYSIS (in crore)

Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10

Per share ratios

Adjusted EPS (Rs) 58.97 10.84 -103.50 43.81 43.02

Adjusted cash EPS (Rs) 123.35 64.08 -57.70 77.82 74.89

Reported EPS (Rs) 58.97 10.84 625.62 44.49 45.86

Reported cash EPS (Rs) 123.35 64.08 671.43 78.50 77.73

Dividend per share 3.00 3.00 10.00 5.00 3.00

Operating profit per share (Rs) 73.40 40.89 92.21 76.49 28.84

Book value (excl rev res) per share EPS (Rs) 930.48 875.02 867.69 253.70 215.02

Book value (incl rev res) per share EPS (Rs) 930.48 875.02 867.69 253.70 215.02

Net operating income per share EPS (Rs) 1,534.29 1,497.18 1,582.40 1,157.27 750.19

Free reserves per share EPS (Rs) - - - 243.50 204.83

Profitability ratios

Operating margin (%) 4.78 2.73 5.82 6.60 3.84

Gross profit margin (%) 0.58 -0.82 2.93 3.67 -0.40

Net profit margin (%) 3.73 0.70 39.07 3.72 5.76

Adjusted cash margin (%) 7.80 4.18 -3.60 6.51 9.41

Adjusted return on net worth (%) 6.33 1.23 -11.92 17.26 20.00

Reported return on net worth (%) 6.33 1.23 72.10 17.53 21.32

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Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10

Return on long term funds (%) 5.76 2.29 7.12 26.06 15.82

Leverage ratios

Long term debt / Equity 0.01 0.03 0.05 0.20 0.24

Total debt/equity 0.01 0.03 0.05 0.74 0.52

Owners fund as % of total source 98.36 96.48 95.03 57.26 65.71

Fixed assets turnover ratio 1.66 1.65 2.33 3.00 2.41

Liquidity ratios

Current ratio 1.75 1.75 2.43 1.14 1.11

Current ratio (inc. st loans) 1.75 1.75 2.43 0.75 0.92

Quick ratio 1.04 1.00 1.64 0.52 0.58

Inventory turnover ratio 5.36 5.17 5.75 5.86 6.28

Payout ratios

Dividend payout ratio (net profit) 5.08 27.68 1.59 11.23 7.65

Dividend payout ratio (cash profit) 2.43 4.68 - 6.36 4.51

Earning retention ratio 94.92 72.32 109.66 88.59 91.85

Cash earnings retention ratio 97.57 95.32 - 93.58 95.32

Coverage ratios

Adjusted cash flow time total debt 0.12 0.49 - 2.43 1.50

Financial charges coverage ratio 17.06 11.83 4.16 6.41 5.80

Fin. charges cov.ratio (post tax) 18.70 11.24 26.17 5.44 7.06

Component ratios

Material cost component (% earnings) 73.45 76.69 75.69 73.89 72.97

Selling cost Component - - - 3.18 3.01

Exports as percent of total sales 2.43 1.80 49.90 1.78 2.72

Import comp. in raw mat. Consumed 29.56 21.24 22.27 19.64 20.45

Long term assets / total Assets 0.47 0.47 0.32 0.43 0.42

Bonus component in equity capital (%) 43.47 43.47 43.47 43.47 43.47

ANNUAL RESULTS IN BRIEF (in crore)

Mar ' 15 Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11

Sales 2,363.72 2,021.63 1,972.72 2,085.01 1,573.36

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Mar ' 15 Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11

Operating profit 147.00 96.71 53.88 121.50 148.97

Interest 6.55 9.18 8.24 35.15 22.72

Gross profit 206.23 147.47 89.29 110.95 126.95

EPS (Rs) 76.91 58.95 10.83 625.49 44.48

ANNUAL RESULTS IN DETAIL (in crore)

Mar ' 15 Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11

Other income 65.78 59.94 43.65 24.60 0.69

Stock adjustment -6.12 1.97 -30.44 -36.93 -28.38

Raw material 1,647.16 1,414.07 1,439.20 1,492.98 1,134.19

Power and fuel - - - - -

Employee expenses 277.73 240.56 262.32 258.88 197.03

Excise - - - - -

Admin and selling expenses - - - - -

Research and development expenses - - - - -

Expenses capitalised - - - - -

Other expenses 297.95 268.31 247.76 248.57 121.54

Provisions made - - - - -

Depreciation 81.28 84.84 70.16 60.36 44.82

Taxation 21.32 -15.31 4.43 186.97 23.51

Net profit / loss 101.36 77.69 14.28 824.33 58.62

Extra ordinary item - - - 960.71 -

Prior year adjustments -2.26 -0.24 -0.42 - -

Equity capital 13.18 13.18 13.18 13.18 13.18

Equity dividend rate - - - - -

Agg. of non-prom. shares (Lacs) 52.55 57.27 63.58 63.58 63.58

Agg. of non promote holding (%) 39.88 43.46 48.25 48.25 48.25

OPM (%) 6.22 4.78 2.73 5.83 9.47

GPM (%) 8.49 7.08 4.43 5.26 8.07

NPM (%) 4.17 3.73 0.71 39.08 3.72

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BALANCE SHEET (in crore)

Mar ' 14

Mar ' 13

Mar ' 12

Mar ' 11

Mar ' 10

Sources of funds

Owner's fund

Equity share capital 13.18 13.18 13.18 13.18 13.18

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 1,212.84 1,139.77 1,130.12 321.10 270.14

Loan funds

Secured loans - - - 119.08 62.00

Unsecured loans 20.38 41.99 59.69 130.43 85.83

Total 1,246.40 1,194.94 1,202.99 583.78 431.15

Uses of funds

Fixed assets

Gross block 1,485.42 1,397.41 1,161.50 1,089.32 937.73

Less : revaluation reserve - - - - -

Less : accumulated depreciation 842.12 775.82 710.78 696.78 653.42

Net block 643.29 621.59 450.72 392.53 284.31

Capital work-in-progress 205.77 188.99 93.37 59.49 45.71

Investments 1.23 1.18 0.95 56.74 56.74

Net current assets

Current assets, loans & advances 921.58 896.08 1,119.33 605.45 456.36

Less : current liabilities & provisions 525.47 512.90 461.38 530.43 411.98

Total net current assets 396.10 383.18 657.95 75.02 44.38

Miscellaneous expenses not written - - - - -

Total 1,246.40 1,194.94 1,202.99 583.78 431.15

Notes:

Book value of unquoted investments 0.96 0.91 0.68 56.48 56.48

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Mar ' 14

Mar ' 13

Mar ' 12

Mar ' 11

Mar ' 10

Market value of quoted investments 7.86 6.60 5.60 7.03 6.01

Contingent liabilities 136.80 141.49 158.48 89.64 54.54

Number of equity shares outstanding (Lacs) 131.76 131.76 131.76 131.76 131.76

CASH FLOW (in crore)

Mar ' 14 Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10

Profit before tax 62.63 19.13 1,011.30 82.13 42.88

Net cash flow-operating activity 120.67 83.26 -139.22 72.87 58.67

Net cash used in investing activity -99.57 -304.11 814.52 -157.70 -19.58

Net cash used in fin. Activity -30.18 -16.10 -227.91 73.84 -29.97

Net inc/deck in cash and equivalent -9.08 -236.95 447.39 -10.99 9.12

Cash and equivalent begin of year 224.95 461.90 14.51 25.76 16.64

Cash and equivalent end of year 215.86 224.95 461.90 14.76 25.76

STAKE HOLDER

COMPETITION (in crore):-

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Tata Motors 358.75 121,819.50 36,294.74 -4,738.95 34,943.56

Eicher Motors 19,970.00 54,203.34 3,031.22 558.92 1,233.66

Ashok Leyland 85.60 24,360.70 13,562.18 334.81 7,710.02

Tata Motors (D) 241.45 7,747.61 - - -

SML Isuzu 1,303.40 1,886.23 1,105.55 36.94 276.41

Force Motors 2,818.00 3,713.07 2,363.72 101.36 1,246.39

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Indian commercial vehicle market to double by 2016-17 - E&Y Report

Ernst & Young in its latest report on 'Mega trends shaping the Indian commercial vehicle market’ said that the Indian commercial vehicle market will double to 1.6 million units in next five years thanks to the increase in infrastructure spend, rapid urbanisation and entry of major multinational players in the country. 

It said that the country is likely to see the emergence of more than six cities (each with a total population of over 10 million) and 63 cities with a projected population of more than 1 million by 2025. E&Y said that the Indian market which has seen the entry of international majors like Daimler, Volvo, Beiqi Foton will see a CAGR growth of 15% till 2016-17. 

The overall commercial vehicle sales in India grew by 18.20% in 2011-12 at 809,532 untis Vs 684,905 units in 2010-11. The sales of medium & heavy trucks posted a growth of 8.79% in 2011-12 at 299,309 vs 275,121 units in 2010-11 & light commercial vehicles grew faster at almost 30% with 4,11,460 units sold in the last fiscal. 

TATA Motors & Ashok Leyland continues to dominate the domestic truck scene in India with a combined market share of over 85-90% and rest of the players making up the rest of the pie. 

Force Motors Inaugurates New Plant in Chennai

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Force Motors' new manufacturing facility has been strategically located to strengthen its operations in its engine deal with BMW. Force Motors will produce engines for the BMW 3 Series, 3 GT, 5 series, 7 Series, X1,X3 and the X5 range in this facility.

Force Motors to invest around Rs 1,000 cr in 4 yrs to develop BMW engine assembly facility

Panaji: Force Motors plans to invest around Rs 1,000 crore over the next four years on

various activities, including product development and setting up of a dedicated facility for

assembling engines for BMW vehicles.

"We are looking to invest around Rs 1,000 crore in the next four years on technology

advancement, new vehicle development and also on a dedicated engine assembly facility for

BMW in Chennai," Force Motors Managing Director Prasan Firodia told PTI here.

This investment would be in addition to the Rs 1,000 crore that the company had announced

in 2012, he added. The Pune-based firm, which markets a range of vehicles, is in the process

of developing an all new light commercial vehicle, which would add to the already popular

Traveller portfolio.

"We are working on a completely new van which will come out in the next few years,"

Firodia said.

Force motors share holding

Category No. of Shares Percentage

Promoters 7,921,495 60.12

General Public 3,733,627 28.34

Foreign Institutions 795,447 6.04

Other Companies 588,913 4.47

NBFC and Mutual Funds 106,437 0.81

Financial Institutions 24,711 0.19

Foreign – Others 5,632 0.04

REFRENCES

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http://auto.economictimes.indiatimes.com/news/passengervehicle/cars/mm-steps-on-the-pedal-to-lift-market-share/47562171http://www.foundryinfoindia.org/Indian%20commercial%20vehicle%20market%20to%20double%20by%202016-17%20-%20EY%20Report.aspx

http://info.shine.com/company/force-motors-ltd/3792.html http://www.moneycontrol.com/competition/forcemotors/comparison/FM01

http://money.rediff.com/companies/Force-Motors-Ltd/10510002/balance-sheethttp://money.rediff.com/companies/Force-Motors-Ltd/10510002/profit-and-loss

http://www.forcemotors.com/page/index/tooling#&panel1-3 http://www.forcemotors.com/page/index/company_profilehttps://en.wikipedia.org/wiki/Force_Motorshttp://www.driveinside.com/cars/force-motors

http://www.moneycontrol.com/company-facts/forcemotors/shareholding-pattern/FM01#FM01

http://articles.economictimes.indiatimes.com/2015-07-21/industry/64683536_1_force-motors-chennai-plant-bmw