TVS Motors is an Indian automotive company and the third largest two-wheeler manufacturer in India. It was founded in 1911 and initially produced mopeds. In 1978 it established TVS Motor Company which now produces motorcycles, scooters, mopeds, and auto rickshaws. In 2008, TVS entered the three-wheeler market with the launch of its TVS King auto rickshaw. The document provides details on TVS Motors' history and products, leadership awards, subsidiaries, and locations.

1. TVS MOTORS PVT.LTD.
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Heritage
TVS Group - 100 years young
The TVS group has always been inspired by a century long mission and
vision of its own destiny. it is not just a business but a
way of doing business,which sets TVS apart from
others.
Back in 1911,to the founder of the company, the
ordinary ambitions of a bus fleet operator or a vehicle
servicing business would not suffice.Rather, he
wanted to create an enduring business led by a
family of likeminded workers and managers united by
a set of shared high principles.
Driven by this inspiration, the TVS group has today emerged as India's
leading supplier of automotive components.Today the TVS Group is the
largest automotive componentmanufacturer in India, with annual
turnover of more than USD 4 billion.
The group has over 30 companies employing a work- force of 40,000
people.
Underlying the successof the group is its philosophyof commitmentto
the cherished values of promoting trust, value and customerservice.
This was the personal philosophyof the Group's Founder Shri T V
Sundaram lyengar, and it remains the overarching code by which the
Group functions. Market leadership and rewards of business have
followed naturally
The inspirationalheritage
although the letters TVS representthe initials of our founder, T V
Sundaram lyengar, to us within TVS they have always stood forTrust,
Value and Service. The founder of the company embodied these values
and set an example for all employees to emulate.
TVS believes that the successof any enterprise is built on the solid
foundation of customersatisfaction.

2. TVS MOTORS PVT.LTD.
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Continuous innovation and close customerinteraction have enabled
TVS companies to stay ahead of competition.Quality at TVS determines
not only the end product but the systems,processesand operations at
all levels. The first four companies in India, which have won the coveted
Deming Prize, are from the TVS group.
The business ranges across automobile componentmanufacturing,
components distribution, manufacturing of powered two-wheelers,
computerperipherals, financial services,contract manufacturing
services and software development.
TVS Motors
What makes TVS stand out from all other two wheeler companies in the
country is that it is without any foreign collaboration. The company was
established by T.V Sundaram Iyengar in the year 1911 and was primarily into
the production of mopeds. TVS Motor Company Limited, the flagship company
of the USD 2.2 billion TVS Group, is the third largest two-wheeler
manufacturer in India and among the top ten in the world, with an annual
turnover of over USD 650 million. The company has many first to its credit like
the introduction of the first indigenous moped and a 100 cc motorcycle in
collaboration with Japanese auto giant Suzuki.When the collaboration ended in
2003, many thought that the company would die a natural death due to the exit
of the foreign collaborator. However the company proved its detractors wrong
by introducing the TVS Victor and rest as they say is history. The company
roped in master blaster Sachin Tendulkar for the promotions and the sales went
northwards after that. TVS Company is aiming to capture a quarter of the total
two wheeler market in the country.
Focus on Motorcycle
TVS group was a pioneer in mopeds but slowly they have shifted focus to the
motorcycle segment since the entire market seems to be moving in that direction
as consumer preferences and choices have changed with the changing times.
The company has been able to outdo itself and spring a surprise, as many
analysts felt that the company would be pushed to the periphery of the two
wheeler market. With the exit of Suzuki, many felt TVS would have to limit
itself to the moped market in the country.
The company did not have a good track record of in-house productdevelopment
as most of its' earlier ventures like the Shoaling, Shogun and the Surpass failed
to take off.
This further heightens the importance of the success ofthe TVS Victor, the
company aims to become the number 2 two wheeler manufacturers in India and

3. TVS MOTORS PVT.LTD.
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also want to crack the top five in Asia. The company has products across all
categories from premium motorcycles to entry level mopeds and has recently
launched Apache in the premium segment.
Some of the models that the TVS Company produces are as follows
Mopeds
 TVS Super XL
Scooterettes
 TVS Scooty
Motorcycles
 TVS Fiero
 TVS Victor
 TVS Centra
 TVS Star
 TVS Apache
 TVS Pep+
TVS Motor enters into three-wheeler business
10 March 2008
Chennai: TVS Motor Company (TVSM), the Chennai based firm, today
launched its first first two-stroke 200cc auto rickshaw, TVS King, marking the
company's entry into the three-wheeler segment. The auto rickshaws will be
available in LPG and petrol versions.
The King, which has an electric start, is priced in the range of Rs90,000 to
Rs1.30 lakh (ex-showroom), the company reported. The King will be
manufactured at the TVSM Hosur factory, which has an installed capacity of
one-lakh units per year. The company plans to introduce a diesel version by
December. TVSM says the auto rickshaw is powered by a 200cc, low friction 7-
port engine, which is fuel-efficient and would run about 30 km per litre. Other
standard features of the King include, a water bottle compartment, a magazine
shelf, mobile charger, FM radio, floor mats, large tail lamps and a rear bumper,
the company reported K Stalin, minister for rural development and local
administration in Tamil Nadu, launched the vehicle in the presence of the state
transport minister, K N Nehru and TVS chairman and managing director Venu
Srinivasan.
''Styled on the lines of a car, TVS King will redefine all performance
characteristics like initial pickup and power, comfortand convenience, fuel

4. TVS MOTORS PVT.LTD.
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efficiency and safety,'' Venu Srinivasan said.
He stated that the three-wheeler business would add Rs400 crore to the top line
of the company in 18 months. TVSM has invested about Rs 120 crore in the
project and the target sales volume is expected to be 30,000 units for 2008-09,
which will include a four-stroke CNG version (to be launched in July) for
places such as Delhi, Venu Srinivasan added.
He said that the company would acquire around 30 per cent of the market share
of three-wheelers in India in 18 months. After Chennai, the company would
launch the King in the southern region of India before making it available to
other parts of the country by December this year, Srinivasan noted.TVSM
would be make use of its existing distribution and service network in the
country, besides exporting the King to more than 20 countries, he added The
company has also tied up with insurance companies such as United India
Insurance, New India Assurance and National Assurance Company to provide
free medical cover of up to Rs30,000 per annum on a floater basis for TVS King
drivers and their families.
The owner of the vehicle will additionally be covered by a personal accident
policy for Rs.1lakh.
TVS Motor will pay the first premium for the Rs.1lakh cover and the
beneficiaries will pay subsequent premiums of Rs240 per annum.
The company also introduced a training programme for drivers in safety and
preventive maintenance, Srinivasan said.
History and Early Years
TVS Motor Company is the third largesttwo-wheeler manufacturer in India
and is among the world's top ten. Itis the flagship company of the parent TVS
Group employing over 40,000 peoplewith an estimated 15 million customers.[
Itmanufactures motorcycles, scooters, mopeds and auto rickshaws. Itis India's
only two-wheeler company to have won the Deming Prize awarded for
commitment to quality control, received in 2002.WhenTVS Motor was
founded in 1978, its parent TVS Group, founded by T. V. Sundaram Iyengar
had already been in existence for 67 years. Over the years TVS Motor has
grown to be the largest in the group, both in terms of size and turnover, with
four state of the art[4] manufacturing plants in Hosur, Mysore and Nalagarh in
India and Karawang in Indonesia. TVS Motor is credited with many innovations
in the Indian automobile industry, notable among them being the introduction of
India's first two-seater moped, the TVS 50cc. The company became the leader
in its category of sub 100 cc mopeds, having sold 7 million units. It also
introduced the TVS Scooty, which is India's second largest brand in the
scooterette segment.

5. TVS MOTORS PVT.LTD.
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InternationalRange-Two Wheeler
Three Wheeler

6. TVS MOTORS PVT.LTD.
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B
TVS makes its foray into the three-wheeler
market with TVS KING
Chennai 09, March 2008: TVS Motor Company
today scripted a new page in its history with the
formal launch of the TVS King, thus announcing
its foray into the three-wheeler market in India.
The company's latest offering was launched at a
glittering function in Chennai by Thiru M. K. Stalin,
Minister for Rural Development and Local
Administration, Government of Tamilnadu and
Thiru K N Nehru, Minister for Transport,
Government of Tamilnadu in the presence of TVS
Motor Company's Chairman Thiru Venu
Srinivasan and other dignitaries.
Launched in
LPG and
Petrol
Versions,
the TVS
King would
be India's
first 200 cc
two stroke
autoricksha
w that will come with electric start and that is
loaded with superior features. The TVS King
promises good mileage and is fitted with a higher
capacity engine with the peak torque at lower rpm
to take care of gradability without frequent
gearshifts. A modern low friction 7-port engine
that is high in fuel efficiency drives the TVS King.
The engine operates at lowe

7. TVS MOTORS PVT.LTD.
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TVS MOTORCOMPANY LIMITED
Board of Directors
VENU SRINIVASAN
Chairman & Managing Director
H. LAKSHMANAN
T. KANNAN
C. R. DUA
K. S. BAJPAI
R. RAMAKRISHNAN
PRINCE ASIRVATHAM
Audit Committee
T. KANNAN
Chairman
C.R. DUA
R. RAMAKRISHNAN
PRINCE ASIRVATHAM
Investors’Grievance Committee
T. KANNAN
Chairman
VENU SRINIVASAN
R. RAMAKRISHNAN
President& CEO
K.N. RADHAKRISHNAN
Executive Vice President – Finance
S.G. MURALI
Secretary
K.S. SRINIVASAN

8. TVS MOTORS PVT.LTD.
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Auditors
SUNDARAM & SRINIVASAN
Chartered Accountants,
23, Sir C.P. Ramaswamy Road,
Alwarpet, Chennai - 600 018.
Listing of shares with
Madras Stock Exchange Ltd., Chennai.
Bombay Stock Exchange Ltd., Mumbai.
The National Stock Exchange of India Ltd., Mumbai.
Share Transfer Agent
Sundaram-Clayton Limited
New No. 22, Old No. 31
Railway Colony, 3rd Street,
Mehta Nagar, Chennai - 600 029.
Tel : 044 - 2374 1889,2374 2939
Fax: 044 - 2374 1889
Bankers
STATE BANK OF INDIA
Corporate Accounts Group Branch,
Greams Road, Chennai - 600 006.
STATE BANK OF MYSORE
Industrial Finance Branch,
Midford Garden Road, Bangalore - 560 001.
Registeredoffice
Jayalakshmi Estates,
29 (Old No.8), Haddows Road, Chennai - 600 006.
Tel: 044 - 2827 2233
Fax: 044 - 2825 7121
Factories
Post Box No. 4, Harita, Hosur - 635 109.
Tel : 04344 -276780

9. TVS MOTORS PVT.LTD.
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Fax : 04344 - 276016
Post Box No. 1, Byathahalli village,
Kadakola Post, Mysore - 571 311.
Tel: 0821 - 2596560
Fax: 0821 - 2596530/2596533
Bhatian Village, Nalagarh Post& Taluk
Solan District - 174 101.
Himachal Pradesh
Tel: 01795 - 220494
Fax : 01795 – 220496
Subsidiary Companies
Sundaram Auto Components Limited,Chennai
TVS Motor Company (Europe)B.V., Amsterdam
TVS Motor (Singapore) Pte. Limited,Singapore
PT. TVS Motor Company Indonesia,Jakarta

10. TVS MOTORS PVT.LTD.
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"TVS Motor Company has been awarded 'Star Performer -
Silver Shield' in two/three wheelers category, by EEPC India,
for excellent export performance foryear 2007-08.The
award was presented by the Hon'ble Presidentof Republic of
Maldives, Mr. Mohamed Nasheed, at a glittering function at
Maldives on 21stFeb'10"
Exports
TVS Motor Company has been awarded 'Star
Performer - Silver Shield' in two/three wheelers
category, by EEPC India, for excellent export

11. TVS MOTORS PVT.LTD.
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performance for year 2007-08.
Leadership
Star of Asia Award to Mr. Venu
Srinivasan, CMD TVS Motor Company
by Business Week International.
He was also honoured with Doctorate in
Science by University of Warwick,
United Kingdom.
Mr Venu Srinivasan was conferred with
the prestigious JRD Tata Corporate
Leadership Award for the year 2004.
Engineering
The Deming Prize - TVS Motor Company
is the only two-wheeler company in the
world to be awarded the world's most
prestigious and coveted recognition in
Total 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 Award 2004 - TVS Scooty
Pep won the prestigious 'Outstanding Design

12. TVS MOTORS PVT.LTD.
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Excellence Award' from Business World and National
Institute of Design
Progressive Manufacturer 100 Award - TVS wins
coveted 2009 Progressive Manufacturer 100 Award for
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
Sectorawarded by The Economic Times
and the Harvard Business School
Association of India.
Best Managed Company award from
Business Today, one of India's leading
business magazines.
Most Investor friendly company by Business Today,
one of India's leading 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 Customer Excellence in the Most
Innovative Netweaver Category.
TEAM TECH 2007 Award - TVS Motor Company
bags TEAM TECH 2007 Award of Excellence for
Integrated use of Computer Aided Engineering
Technologies.

13. TVS MOTORS PVT.LTD.
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Many firsts to the Automotive Industry in India
TVS has been at the forefront in bringing a revolution
in the way personal commutation was happening, way
back in the 1980s. Beginning with launching a simple,
easy-to-use moped for the middle class in India in the
1980s to launching 7 new bikes in a single day (first
time in the history of the automotive industry in the
world), TVS has often taken the unbeaten path to
innovation.
Ushering in the personaltransportation revolution
1980
Launched TVS 50, India's first 2 seater 50 cc
moped
1984
First Indian company to introduce 100 cc Indo -
Japanese motorcycles
1994
Launched India's First indigenous scooterette
(sub - 100 cc variomatic) - TVS Scooty
1996
Introduced India's first catalytic converter
enabled motorcycle, the 110 cc Shogun
1997
Introduced India's first 5 speed motorcycle,
Shaolin
2000
Launched India's first 150 cc, 4 stroke
motorcycle - The Fiero
2001
Launched India's first fully indigenously
designed and manufactured motorcycle.
2004
Launched the revolutionary VT-I engine for the
best in class mileage in TVS Centra
2006
Launched TVS Apache - first bike to win 6
awards in a row
2007
Apache RTR - first two wheeler in India to
have racing inspired engine and features.
2008
TVS Flame, TVS Scooty Electric Vehicle and
Three wheeler TVS King launched.
2009
TVS Apache RTR 180 and TVS Streak
launched.

14. TVS MOTORS PVT.LTD.
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Launch of 7 vehicles on the same day -
Manufacturing Excellence makes this feasible
At the heart of the new product launches is the
Production Team, setting to motion the dream put
forward by the R&D.
Driven by the Five Pillars of TQM
The management philosophy is based on five pillars of
TQM (Total Quality Management) which rests on the
foundation of Total Employee Involvement, daily
management and Kaizen (Continuous improvement).
The Total Employee Involvement
The Total Employee Involvement program ensures that
responsibility for the company's performance is the
shared responsibility of all levels of employees. It
provides all employees with the opportunity to be
involved in breakthrough activities and other
improvements, over and above their daily routine.
Daily work management
Daily work management consists of defining and
monitoring key processes, ensuring that they meet set
targets, detecting abnormalities and preventing their
recurrence. TVS Motor encourages continuous
improvement in all aspects of work, using Cross
Functional Teams (CFT), Supervisory Improvement
Teams (SIT) Quality Control Circles (QCC) and
suggestion schemes
The five pillars start with policy management, which is
used to arrive at the annual breakthrough objectives.
There are generally not more than three company
objectives, arrived at after a detailed exercise, which
are deployed and reviewed periodically.
The company conducts an exhaustive range of training
programs, utilising both in-house skills and consuftants

15. TVS MOTORS PVT.LTD.
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from all over the world. The programs are conducted
for all employees, at all levels.
The Inspiration Moment
When we won the Deming Prize in Quality in 2002, we
were the only two wheeler manufacturer in the world
to have won the award. However, our penchant for
quality continues as we work in line with the principles
of Kaizen (Japanese for Continuous improvement) and
TQM (Total Quality Management).
TVS Motor company Ltd (TVS Motor)- member of the
TVS group is the largest company of the group in
terms of size and turnover
TVS MotorCompany – Vision & Mission
We are committed to being a highly profitable, socially responsible, and leading
manufacturer of high value for money, environmentally friendly, lifetime
personal transportation products under the TVS brand, for customers
predominantly in Asian markets and to provide fulfilment and prosperity for
employees, dealers and suppliers.
Vision Statement
TVS Motor- Driven by the customer
TVS Motor will be responsive to customer requirements consonant with its core
competence and profitability. TVS Motor will provide total customer
satisfaction by giving the customer the right product, at the right price, at the
right time.
TVS Motor- The Industry Leader
TVS Motor will be one among the top two two-wheeler manufacturers in India
and one among the top five two-wheeler manufacturers in Asia.
TVS Motor- Global overview
TVS Motor will have profitable operations overseas especially in Asian
markets, capitalizing on the expertise developed in the areas of manufacturing,

16. TVS MOTORS PVT.LTD.
16
technology and marketing. The thrust will be to achieve a significant share for
international business in the total turnover.
TVS Motor- At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.
TVS Motor- Committed to TotalQuality
TVS Motor is committed to achieving a self-reviewing organization in
perpetuity by adopting TQM as a way of life. TVS Motor believes in the
importance of the process. Peopleand projects will be evaluated both by their
end results and the process adopted.
TVS Motor- The Human Factor
TVS Motor believes that people make an organization and that its well-being is
dependent on the commitment and growth of its people. There will be a
sustained effort through systematic training and planning career growth to
develop employees talents and enhance job satisfaction. TVS Motor will create
an enabling ambience where the maximum self-actualisation of every employee
is achieved. TVS Motor will supportand encourage the process ofself-renewal
in all its employees and nurture their sense of self worth.
TVS Motor- Responsible Corporate Citizen
TVS Motor firmly believes in the integration of Safety, Health and
Environmental aspects with all business activities and ensure protection of
employees and environment including development of surrounding
communities. TVS Motor strives for long-term relationships of mutual trust and
interdependence with its customers, employees, dealers and suppliers.
TVS Motorreports turnover of Rs. 3741.18crore
exports up 44% in FY '08-'09
Hosur, June 26, 2009: Despite the challenges brought
on by the global economic meltdown, the TVS Motor

17. TVS MOTORS PVT.LTD.
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Company (TVS) crossed several important milestones
in the financial year 2008-09. Not only was the one
millionth ScootyPep+ rolled out from the company's
Mysore plant, the Apache brand celebrated its first
anniversary crossing the three-lakh mark. New models
were introduced in the company's premium motorcycle
and scootersegments. During the year, TVS also
expanded its presence in the Indian three-wheeler
market, adding CNG to the already-launched LPG and
Petrol versions. The company also expanded ts global
footprint to 55 countries and strengthened its
dealership network in Indonesia .
FINANCIAL PERFORMANCE:
During the year ended March 2009, TVS registered a
5% growth in sales with overall sales registering 13.42
lakh units against 12.77 lakh units in the the previous
financial year. Motorcycles accounted for 6.45 lakh
units against 6.10 lakh units in the year 2007-2008,
posting a growth of 6%. Scooters registered sales of
2.59 lakh units against 2.58 lakh units in the
corresponding period of the previous year.
TVS recorded a total revenue of Rs. 3741.18 crores for
the year ended March 2009, compared to previous
year's 3310.35 crores . Profit after tax during the year
ended March 2009 was marginally lower at Rs. 31.08
crores as against Rs. 31.77 crores recorded in the
corresponding period last year.

18. TVS MOTORS PVT.LTD.
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0%
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20%
25%
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35%
40%
45%
Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10
tvsmotorsgrowrate
tvs motors time period
Chart Title

19. TVS MOTORS PVT.LTD.
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Project Report Consumers Attitude "After Sales Services"
About TVS Motors Pvt. Ltd.
Preamble:
ConsumerAttitudesAfter SalesServices :- In past six years of experience in
the field of sales and services, TVS has build "Good Image" through
advertisement, but through "Word of Mouth". TVS has created "Good Image"
by continuously rendering high quality services by focusing on all the five
determinants of quality of services - Reliability, Responsiveness, Assurance,
Empathy and Tangibles. More investment has been done in Manufacturing,
training and tangibles.
Keeping pace with changing technology, the group today has widely diversified
operations, covering the entire gamut, of automobiles activities. Each of them
highly focused and operating either as a separate company or as a separate
profit centre.
This success is attributed to its satisfied customers and efficient, devoted 35
technical & supportprofessionals.
Businessattitudes towards
cross-bordersales and
consumerprotection
This survey was requested by Directorate General Health and
ConsumerProtection
and coordinated by Directorate General Communication
Flash EB Series #186
Business attitudes
towards cross-border
sales & consumer
protection
Conducted by
The Gallup OrganizationHungary
& Gallup Europe

20. TVS MOTORS PVT.LTD.
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upon the request of DG Health and Consumer
Protection
Survey organised and managed bythe
Eurobarometer Team ofDirectorate-General
“Communication”
Thisdocument does not reflect the views of the
EuropeanCommission.
The interpretationsand opinionscontained init
are solely those of the authors.
THE GALLUP ORGANIZATION
Main findings
− A significant percentage of EU retailers are currently carrying out cross-
bordertransactions
(29%). E-Commerce also seems to be the key driver for opening up the retail
Internal
Market. But on average, the retail Internal Market is far from being like a
national retail
market: for those retailers who do trade cross-border, mostdo only to a very
few other
Member States (MS), only five percent of retailers with ten MS or more. 48% of
retailers
are prepared to trade cross-border, but 29% do at all. Finally, 46% of retailers
are not
prepared to trade cross-border.
− Although most EU retailers (SMEs employing at least 10 persons represented
97% of the
sample) sell to customers through shops, a very significant proportionis also
engaged in
Internet-based sales (57%).
− Two-thirds (66%) of EU retailers only sell in their domestic market. Overall,
three-in-ten
retailers in the EU (29%) sell cross-border, using distance sales methods, to at
least one
other EU country, but only one-in-five (19%) advertise cross-border. The
businesses most
likely to be involved in cross-borderretailing are the medium or medium-large
retail
enterprises, with a limited number of outlets in other Member States and with
significant
existing language capabilities.

21. TVS MOTORS PVT.LTD.
21
− Compared to actual sales activities, a surprisingly high number of retail
enterprises are
“prepared” to sell on a cross-borderbasis. Almost half of the EU retailers (48%)
consider
they are prepared to sell to consumers in different Member States. Eighteen
percent of all
EU retailers also consider they are prepared to make cross-bordersales to 10 or
more
Member States, while only 5 percent report that they actually do so.
− The most important obstacle to cross-bordertrade identified by the retailers is
the
perceived insecurity of transactions (61% of respondents that answered the
question
consider it is a fairly important or very important obstacle). Other obstacles are
almost
equally important: retailers are concerned about different national fiscal
regulations (58%),
the difficulty to resolve complaints and conflicts cross-border(57%), the
differences in
national laws regulating consumer transactions (55%), the difficulties in
ensuring an
efficient after-sales service (55%) and, finally, the extra costs arising from
cross-border
delivery (51%). Only the costs arising from language differences clearly stand
out as being
less important (43%).
− Retailers who have no direct experience with cross-bordertrade are much
more concerned
with possible obstacles to the development of such sales, than those familiar
with crossborder
activities.
− Retailers agree that if the provisions of the laws regulating transactions with
consumers
were the same throughout the EU, their cross-bordersales would increase: 43%
of retailers
say that their cross-bordersales would increase (28 % that they would increase
a little, and
15% that they would increase significantly). Retailers that use e-commerce, but
are not
currently involved in cross-bordersales, are optimistic about the possible effects
of such

22. TVS MOTORS PVT.LTD.
22
harmonisation (47%), but those who have an experience of cross-bordere-
commerce are
even more optimistic (59%).
− Regarding the costs ofcompliance with national consumer regulations,
retailers who are
prepared to trade cross-border(but not trading) tend to give more importance to
these
costs:44% of them evaluate these costs as high (rather high or very high costs),
and 33%
as low or negligible.
− The majority of EU retailers are not sure where to obtain information about
consumer
regulations in the different Member States (62%).
Introduction
EU policies have a gone a long way towards establishing an Internal Market.
However, while this has
created a flourishing business-to-business (B2B) Internal Market, the same
cannot be said for the
business to consumer (B2C, or retail) transactions, which remain largely
fragmented along national
lines. So an area of economic activity which represents 58% of EU GDP is not
yet truly integrated and
not fully subject to the competitive forces of the largest market in the world. A
lack of consumer
confidence, but also companies’ reluctance to make cross–borderoffers to
consumers, restricts the
extent to which consumers could benefit from the Internal Market.
In order to assess cross-bordertrade or cross-bordersales (CBS) activity from a
retail perspective, the
Directorate General Health and Consumer Protection sought to poll managers of
retail enterprises,
with at least 10 employees, on their experiences in cross-bordertransactions, as
well as their views on
certain consumer protection measures. A total of 6,606 managers in the 25
countries of the European
Union (EU) and Norway were interviewed by telephone between the 6th and the
27th October2006 in a
Flash Eurobarometer survey. (Eurobarometer 252 analyses consumer attitudes
towards cross-border
shopping and consumer protection in the Internal Market.)
The sample was randomly selected according to two criteria - country and
company size - within

23. TVS MOTORS PVT.LTD.
23
certain activity sectors that are considered to be prone to have significant retail
activity (see the Annex
of the full report for the list of sectors included) and are also likely to be able to
sell via distant
methods. Further technical notes explaining the manner in which Gallup and its
partner institutes
conducted the survey is also attached in the full report. 85% of the companies
interviewed were small
enterprises (10 – 49 employees), 12% were medium enterprises (50 – 249
employees). 90 % of them
were independent companies, while 3% were the mother of a multinational
group and a further 7%
were members of a multinational group
Cross-border trade among EU retailers
Most retailers use the traditional method of selling goods to consumers in shops
(79%), but a very
significant number of EU retail enterprises are also engaged in Internet-based
sales (57%). This
percentage gives an indication of the potential for growth in cross-bordertrade.
On average, retailers
use at least two channels (2,05) to target their customers, and one third (33%) of
EU retailers offer
their products and services via three or more channels.
GALLUP
Source:
FLASH EB 186
October 2006
Sales channels used for retail

24. TVS MOTORS PVT.LTD.
24
When analysing the average number of distant sales channels (that is: e-
commerce, mail order,
telesales, or home visits) used for retail purposes, it appears that an average
retailer in the EU offers at
least one distantsales method to consumers (1,26). Slovenian (1,84), Czech
(1,82) and Austrian (1,72)
retailers put the most emphasis on utilising multiple distant sales channels,
while those in Belgium
(0,77), Finland (0,77) and France (0,82) seem to be the least interested.
Retailers who are actually
involved in distant cross-bordersales are enthusiastic about the very positive
effects of, and the
opportunities provided by, e-commerce on their businesses; 50% say Internet
make it much more
interesting for them.
Two-thirds (66%) of EU retailers only sellin their domestic market. One-in-
ten retailers (9%)
within the EU-25 claim to be selling goods to final consumers in at least three
other EU Member
States. This proportionrises to 20% of Maltese and 15% of Luxembourgish
retailers, and drops to only
3% in Finland.
Current cross-bordersales to final consumers
Overall, three-in-ten enterprises interviewed in the EU (29%) claimed to be
selling cross-borderto at
0% 20% 40% 60% 80% 100%
Direct sales
e cmmerce/internet
mail order
call center
sales through representetives visiting
consumer in their homes
Column1
Column2
Series 1

25. TVS MOTORS PVT.LTD.
25
least one other EU country. As previously stated, 9% indicated that they sell to
three or more
countries, the same proportion told Eurobarometer that they are trading cross-
borderwith consumers
in two EU countries, and another 12% sell to one other EU country). Such
activity is less widespread
in the new Member States (24%) than in the EU-15 (30%).
Turning to the average proportion of cross-bordersales per sales channel,
answers were not weighted
to reflect the market shares of the respondents, and only respondents who were
using the given
channel were polled. Therefore, they indicate the average proportion of
retailers’ cross-bordersales
per sales channel, and not the overall percentage of cross-bordersales compared
to total sales.
The highest proportion of cross-bordertrade in shops is to be found in Malta
and Cyprus. In Malta,
29% of income in stores is spent by visitors, and in Cyprus, the figure is 24%.
Belgian retailers also
rely significantly on incomes from tourists or other EU-foreign nationals (22%),
while the figure for
Luxembourg is 20%. Spanish retailers estimate that about 17 cents of every
euro spent, come from
people visiting from another EU Member State. Managers do not see
noteworthy income from EU
visitors in Slovenia (2% of retail store income is attributed to such a source),
Finland (3%), Sweden
(3%), Denmark (4%), Norway (4%) and Germany (5%).
Managers of EU retail enterprises that do use distance sales methods estimate
that about 17% of the
revenue generated via distant sales channels comes from customers living in
other EU countries. The
proportion of such revenue among total distant sales revenue is the highest in
Malta (48%) and Cyprus (37%), and it is around 30% in Greece, the Czech
Republic, Austria and Lithuania. At the same time,
this percentage is perceived as small by some managers, especially in Finland
(4%).
Retailers do not limit their distant sales to EU countries. However, they are
most likely to use the
advantages offered by the EU Internal Market. Adding the revenue of non-EU
cross-bordersales to
that achievedwithin the Union shows that moe than a quarter (29%) of all
distant retail revenue is

26. TVS MOTORS PVT.LTD.
26
coming from cross-bordertransactions. In other words, only 71% of all sales via
e-commerce, call
centres, mail and in-home visits in the EU are performed domestically.
Small companies usually have a somewhat higher proportion of domestic sales
as compared to
medium and large enterprises (29% of cross-bordertransactions of all kinds for
small enterprises, and
33% for medium and large retailers). Cross-bordersales are especially
important for those enterprises
(55%), and finally the extra costs arising from cross-borderdelivery (51%).
Only costs arising from
language differences clearly stand out as being less important (43%).
The analysis of the intensity of the responses, confirms that the primary barrier
to cross-border
retailing is the perceived fear that cross-bordersales could involve a higher risk
of fraud and nonpayment:
40% of retailers told Eurobarometer that this is a very important obstacle to
cross-border
trade.
Practical obstacles to B2C cross-border tradeL
Higher risk of fraud and non-payments in cross-border
sales
Extra costsof compliance with different nationalfiscal
regulations(VAT rules, etc.)
Greater difficultyinresolving complaintsand conflicts
cross-border
0% 20% 40% 60% 80% 100%
Higher risk of fraud and non-
payments in cross-border
Extra costs of compliance with
different national fiscal
Greater difficulty in resolving
complaints and conflicts
cross-border
Extra costs of compliance with
different national laws
Greater difficulty in ensuring an
efficient after-sales service
Not important
Fairly
Very
DK/NA

27. TVS MOTORS PVT.LTD.
27
Extra costsof compliancewith different nationallaws
regulating consumer transactions
Greater difficultyinensuring an efficient after-salesservice
Extra costsarising from cross-border delivery
Costs arising from languagedifferences
Contents
• Company profile
• Marketing Department
• Functions
• Objectives
• Future of Company
• Research Methodology
• Objectives of Study
• Limitations
• Introduction to the topic
• Option about the topic
• Conclusion & Suggestions
• Questionnaire
• Bibliography

28. TVS MOTORS PVT.LTD.
28
HODOLOGY
Objective
Primary:
1) To understand about derivative market
2) To study how does a derivative has the risk or position
3) To know why the derivatives is considered safer then the cash market
Secondary:

29. TVS MOTORS PVT.LTD.
29
1. To understand scope of derivatives in capital market
Research Approach:
Data collection:
1) Primary Data: - Formal and InformalDiscussion with thecompany
guide and clients of the company.
2) Secondary Data: - Internet, Books, Newspapers, TV channels,
News Channels.
Research Problem:
There are very few ways for hedging price risk or price volatility in equity
markets and derivatives is one of them. My study is to see how derivatives are
used for hedging price risk in equity market.

30. TVS MOTORS PVT.LTD.
30
Limitation:
1) As research required detail information of portfolios of clients, which is very
confidential for the company, a huge difficulty was faced in getting the
data.
2) As the company guide was very busy in his exhausting work schedule very
less guidance was available.
Scope of study:
1) As derivatives are very vast subject the scope of research is limited to the
financial derivatives viz. future & options.
2) Forwards has been kept out of the scope of this research.
3) Since options are widely used for hedging, only the options cases have been
taken into the consideration in my research.

31. TVS MOTORS PVT.LTD.
31
Definition: Option is a legal contract in which the writer of the option grants to
the buyer, the right to purchase from or sell to the writer a designated
instrument or a scrip at a specified price within a specified period of time.
Parties involved:
1) Buyer of the asset
2) Exchange
3) Seller of the asset
Options are fundamentally different from forwards and futures contracts. An
option gives the holder of the option the right to do something. The holder
does not have to exercise this right. In contrast, in a forward or futures
contract, the two parties have committed themselves to doing something.
There are two types of options:
1) call option

32. TVS MOTORS PVT.LTD.
32
2) put option
 A call option gives the holder the right but nit the obligation to buy an
asset by a certain price. E.g.: X purchases a call option from Y of REL it
means Y gives the right to purchase REL at a fix strike price within a certain
period.
 Where as a put option gives the holder the right but not the obligation
to sell an asset by a certain date for a certain price.
Options terminology;
 Index option: These options have the index as the underlying. Some
options are European, American. E.g. – index futures contracts, index
options contracts are also settled.
 Stock option: Stock options are options on individual stock. Options
currently trade on over 500 stocks in the US.
 Buyer of an option: The buyer of an option is the one who by paying the
option premium buys the right but not the obligation to exercise his
option on the sellerwriter.
 Writer of an option: The writer of a callput is the one who receives the
option premium and is thereby obliged to sell buy the asset if the buyer
wishes to exercise his option.

33. TVS MOTORS PVT.LTD.
33
 Option price: It is the price which the option buyer pays to the option
seller. It is also referred as the option premium.
 Expiration date: The date specified in the options contract is known as
expiration date, the exercise date, the striker date or the maturity.
 Strike price: The price specified in the options contract.
 In the money option : A call option on the index is said to be in the
money when the current value of index at a level higher than the strike
price(i.e. spot price>strike price )
 At-the-money option: An at-the-money (ATM) option is an option that
would lead to zero cash flow if it were exercised immediately. An option
on the index is at-the-money when the value of current index equals the
strike price (i.e. spot price = strike price)
 Out-of-the-money option: An out-of-money (OTM) option is an option
that would lead to a negative cash flow it was exercised immediately. A
call option on the index is said to be out-of-the-money when the value of
currentindex stands at a level which is less than the strike price (i.e. spot
price < strike price)

34. TVS MOTORS PVT.LTD.
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Since hedging is mostly done by means of option nowadays. There are certain
strategies which are considered before hedging the positions or risks by the
investors:
Options strategies
1. Long Call: A long call can be an ideal tool for investors who wish to
participate from an upward price movement in the underlying stock.
2. Long Put: A long put can be an ideal tool for an investor who wishes to
participate profitably from a downward price move in the underlying stock.
3. Married Put: An investor purchasing a put while at the same time
purchasing an equivalent number of shares of the underlying stock is
establishing a “married put” position- a hedging strategy with a name from
an old IRS ruling.
4. Protective Put: An investor who purchases a put option while holding
shares of the underlying stock from a previous purchase is employing a
“protective put”.
5. CoveredCall: The covered call is a strategy in which an investor writes a call
option contract while at the same time owning an equivalent number of

35. TVS MOTORS PVT.LTD.
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shares of the underlying stock. If this stock is purchased simultaneously
with writing the call contract the strategy is commonly referred to as a buy-
write. If the shares are already held from a previous purchase it is
commonly referred to an overwrite.
6. Cash Secured Put: According to the terms of a put contract, a put writer is
obligated to purchase an equivalent number of underlying shares at the
put’s strike price if assigned an exercise notice on the written contract.
Many investors write puts because they are willing to be assigned and
acquire shares of the underlying stock in exchange for the premium
received fromthe put’s sales. For this discussion, a put writer’s position will
be considered as “cash-secured” if he has on deposit with his brokerage
firm a cash amount sufficient to cover such a purchase of all option
contracts.
7. Bull Call Spread: Establishing a bull call spread involves the purchase of a
call option on a particular underlying stock, while simultaneously writing a
call option on the same underlying stock with the same expiration month,
at a higher strike price. Both the buy and the sell sides of this spread are
opening transactions, and are always the same number of contracts.
8. Bear Put Spread: Establishing a bear put spread involves the purchase of a
put option on a particular underlying stock, while simultaneously writing a
put option on the same underlying stock with the same expiration month,
but with a lower strike price. Both the buy and the sell sides of this spread
are opening transactions, and are always the same number of contracts.

36. TVS MOTORS PVT.LTD.
36
9. Caller: A caller can be established by holding shares of an underlying stock,
purchasing a protective put and writing a covered call on that stock. The
option portions of this strategy are referred to as a combination. Generally,
the put and the call are both out-of- the-money when this combination is
established, and have the same expiration month.