Force Motors is an automobile company in India that manufactures commercial vehicles and tractors. It has two manufacturing plants and recently opened a new one in Chennai. The company has a small market share but is expanding production capacity and product lines. It focuses on research and development to remain competitive in the automotive industry.
4. COMPANY PROFILE
FML is an integrated automobile company manufacturing light commercial
vehicles and tractors in India. The company has recently entered the SUV
(Sports utility vehicle) segment with the launch of Force One.
Force Motors Ltd is an integrated automobile company, which focuses on
design, development and manufacture of automotive components,
aggregates and vehicles in India. The company offers tractors, three
wheelers, light commercial vehicles, multi utility and cross country
vehicles, and heavy commercial vehicles.
In April 2006, the company signed a joint venture agreement with MAN for
manufacture and sale of heavy commercial vehicles. They established a
new plant at Pithampur for manufacturing of heavy commercial vehicles.
5. STRENGTH
S.
No.
Category No. of
Shares
Percentage %
1 Promoters 79,21,495 60.12
2 General public 37,33,627 28.34
3 Foreign institutions 7,95,447 6.04
4 Other companies 5,88,913 4.47
5 NBFC (Non-Banking Financial Company) and
mutual funds
1,06,437 0.81
6 Financial institutions 24,711 0.19
7 Foreign-others 5,632 0.04
Total 1,31,76,262 100.00
NO. OF SHAREHOLDERS
6. CONT..........
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.
A new Plant was set up in 1987, on a green field site in Central India at Pithampur
in Madhya Pradesh.
Manufacturing 1000 commercial vehicles per year and 80 vehicles per month.
Force Motors Inaugurates New Plant in Chennai in July 2015.
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.
7. CONT.......
FML has recently launched ‘Traveller 26’ in October-2012 with three variants- standard,
school bus and deluxe.
The company expects to sell 4,500 units in the first year of its launch and thereby aiming
to acquire a 20% market share in this segment.
FML already has a market share of about 50% in the 6 to 20-seater segment.
Good product line.
Wide factory area of 100 acre of Akurdi, near Pune and 200 acre of Pithampur, Indore.
The company spend over 5% of its annual turnover on new product development.
The force motors R&D centre is among the most advanced in the country with a 150
terminal (CAD) Computer Aided Design network.
Cover domestic market in India.
Increasing earning per share.
8. WEAKNESSES
Small business units (only 2 plant in India)
Weak distribution network.
Company have not self technology.
9. OPPORTUNITIES
Government of India encourages foreign investment in the automobile
sector and allow 100% FDI.
The licensed capacity was increased to 6000 vehicles per year.
Increasing global market.
Target more and more farmers.
Company is committed to expand its production capacity.
Company expects to introduce new versions, variants and models of cross-
country vehicles and sports utility vehicles.
Re-energized tractor business.
10. THREATS
Strong competitor (Tata motors, M&M, Eicher)
Government rules & regulations (license in different state)
High interest rates and inflation.
India automotive industry is one of the most competitive in the world.
Dependence upon License agreements for technology.
11. BCG MATRIX
Industry growth rate 15% per year (last 5 year)
Company market share 3.45% overall industry.
14. EXTERNAL OPORTUNITIES EXTERNAL THREATS
INTERNAL
STRENGTH
SO “MAXI-MAXI STRATEGIES”
a) Innovative products can be launch
through R&D
b) Government supports helps in
booming ups in the company
manufacturing
c) Tractor business to target formers
which is helpful taping rural
market
ST “MAXI-MINI STRATEGIES”
a) Introduce quality products then the
competitors
b) Make the company policies according to
government policies
c) Optimum utilization of resources as the
company has a good manufacturing plant
d) Focused on R&D
INTERNAL
WEAKNESS
WO “MINI-MAXI”
a) Increase in demand of the product
in the market helps in easy selling
of the product
b) Reduce the cost of the production
by strong R&D
c) Effective and efficient utilization
of resources
WT “MINI-MINI”
a) Study the strategies adopted by the
competitor and work according
b) Work according to government rules and
regulations in legal aspect
c) Prepare a budget taking in the mind the
inflation rate
d) Make quality products in small units with
optimum utilization of resources
e) Works on assets and liabilities
RECOMMENDATION AND SUGGESTIONS
15. OPINION ABOUT THE COMPANY
My opinion about the company are improvise a production capacity and
coverage of market. Force motors has not popular brand but not ignored in
either. The company utilise a advertisement and marketing. 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.
Company improvise self technology.
16. CONCLUSION
The capacity expansion over last 2 years (The company has set up
‘Advanced Technology Centre’ at Akurdi for engine and vehicle testing. It
undertakes project work on design, development and up gradation of
engine configurations in various displacements and capacities) could be
leading to a new phase of growth. This utility vehicle company has not
been a very popular brand but then its existence was not ignored either.