3. Chap : 1 Industrial Scenario
1.1 History/Evolution of motorcycle
The two-wheeler segment is one of the most important components of the automobile sector
and has undergone significant changes due to shifts in the trade policies in the last two decades.
The two-wheeler industry has been in existence in the country since 1955.The two-wheeler
market was opened for foreign companies in the mid 1980’s which led to an increase in the
number of brands competing and hence the advancement in the features at competitive prices.
Indian two- wheeler industry has seen spectacular growth in recent years. Presently, India is
the second largest producer and manufacturer of two wheelers in the world.It consists of three
segments: scooters, motorcycles and mopeds. According to the figures published by SIAM, the
share of two-wheelers in automobile sector in terms of units sold was about 76 per cent during
2010-11. The high percentage is suggestive of the importance of the sector. In the initial years,
entry of firms, capacity expansion, choice of products including capacity mix and technology
along-with all critical areas of functioning of an industry were effectively controlled by the
State machinery. However, some major set of reforms launched in the year 1991 in response
to the macroeconomic crisis faced by the economy shifted the policies from a regime of
regulation and tight control to a more liberalised and competitive era. Two major results of
policy changes during these years in two-wheeler industry were that the:
1)Weaker players perished giving way to the new entrants and superior products
2) Increase in number of brands that entered the market which forced the firms to compete
on the basis of product features. I believe that the scope of growth in the 2 wheeler industry is
lucrative in future because of the following reasons:
There are limited players to enjoy growth. About 95% of the market share is shared
amongst four players of which three are Indian companies (Hero, Bajaj and TVS) the
fourth is Honda.
Rising income levels of people is also a favorable indication.
About 70% of India’s population is between 15 to 50 age group. As this age group
comprises bulk of working class so this age group can be of vital importance in deciding
the future of the 2 wheeler segment and the economy as well.
4. Rural India accounts for more than 60% of total population of India so this presents a
major opportunity for the 2 wheeler companies.
There is a considerable difference between two wheelers and car prices that makes two
wheelers the obvious choice for majority of people
1.2 Challenges faced by Motorcycle sector in India
In addition to the existing ones, every year brings new challenges to manufacturers and
firms in different industries; the motorcycle industry is no exception, especially with its auto
parts department. 2021 could see even more challenges with all the significant changes taking
place. As we slowly move into the new year, several problems are becoming more evident.
Here are some of them.
I. The challenge to keep up with technological advancement :
Technology is changing and developing faster than ever, especially within the
motorcycle industry. Every day, news of new inventions and innovations are hitting the
airwaves. Most automakers have been announcing their plans to move into
electrification. However, it is unclear how fast the inventions will take over the industry
or succeed. If it does, imagine for a moment that in coming years, most motorbikes will
be electric-powered or something like that. This means that motorcycle owners will no
need to purchase new filters, plugs, oils, and many other parts. Does this mean that the
auto parts industry will be washed away? Will they be ready to improvise and have the
ability to adapt in time to keep up with these changes? What will the retailer or supplier
do when their stock is not needed anymore?
5. II. Boom and Bust Times :
An exciting give and take exist between the motorcycle industry and its aftermarket. It
is worth noting that both industries are actively dependent on the customers’
willingness and ability to spend their money. Even though the motorcycle industry
relies on customers who want to purchase new, the aftermarket relies heavily on older
motorcycles willing to pay for tune-ups and replacement.
The auto industry has hit a historical high with new motorcycle sales. However, 2020
wasn’t exactly a stellar year for them. The industry experienced an estimated 6%
decrease in sales and profit. With all the distractions and mobility issues, this doesn’t
come as much of a shocker.
III. DelayedCustom Clearances :
The auto parts department has experienced an infamous evolution when releasing spare
parts from custom offices. These recent delays have affected distributors’ ability to
deliver timely services and commodities to their customers. Before all these happened,
the release time for spare parts used to be a maximum of two days. However, it can
now take up to two weeks for clearance to be issued, a significant delay in operational
work and product delivery. In the long run, this deceleration might pave the way for
increased supply and use of fake parts and products to provide a more comfortable and
faster alternative. This is an agonizing strand for taxpaying stakeholders and the
marketplace in general. The entire business system will be affected.
6. IV. The COVID 19 Pandemic :
For a long time, the automotive aftermarket was deemed resilient when it comes to
crisis and distractions. However, the Covid-19 pandemic was leaving no industry
behind, resilient or not. This global pandemic has by far affected most economies and
industries all over the world. This does not only affect the manufacturers. Other
businesses and firms within the supply chain (such as small-scale distributors and
motorcycle component manufacturers) have also been affected.
The auto parts after the market’s supply chain felt the heaviest impact. A recent study
showed that at least ninety-two percent of repair shops and auto parts dealers had to
reduce their working hours and salaries by a staggering 54%. Some even had to
downsize so that they would remain efficient while at the same time abiding by the
COVID 19 regulations and restrictions. It even reached a point where customers could
not be able to visit these shops. Obtaining these parts was also a problem. They had to
devise and implement policies to reduce cost reduction, affecting the supply chain and
V. Affordability :
It is rare for motorcycle owners not to complain about the cost of the auto parts. This is
since the production cost is also high. Transport fees, staff costs, and many other factors
still need funding. Therefore, getting authentic parts will have to cost you that extra
Even with all these setbacks, the industry continues to hold its place in the country’s
economy. Even though the growth has slowed, the foreseeable future still has a ray of
hope in it.
7. The two-wheeler market has witnessed a significant growth over the last decade. An increased
demand in Urban and Semi-urban areas, and a relatively low cost of ownership are some of the
leading factors propelling the growth of the Two Wheeler market in India. Being the preferred
alternative to Public transports and four-wheelers also adds to its popularity.
The two-wheeler market in India is segmented on the basis of Scooters, Motorcycles, and
Mopeds. The Motorcycle segment occupies two-third market share of the two-wheeler market
in India, and is followed by the scooters and mopeds segments.
Major Pain points of the Two wheeler Industry can be briefly summarized as below
Rising Fuel Prices- No Link between International Crude Price & Internal Fuel
Price within India.
Growing safety issues (Strict Enforcement of Tough BS 6 Guidelines ) Effective
Road Accidents & Fatalities.
Higher Insurance charges from 1-09-2018
Government’s Favored Policy on fast adoption of EV over Internal Combustible
Enforcing the tough BS 6 Norms will lead to higher costs of compliance because you have to
adopt (FI) Fuel injection system now, which calls for all Two-wheeler engines need Precise
fueling in order to meet the stricter emission norms. This is why it becomes more essential for
all BS 6 Compliant Vehicles and bikes to do away with carburetors and adopt fuel injection
technology, which is a bit expensive, causing a hike of almost ₹5,000 to ₹7,000 alone in most
cases adding to these include adding new hardware like Bigger catalytic converters, Combi-
Soon after The Finance minister gave a statement on proposal to reduce GST on 2 wheelers
from 28 % To 18 %, Mr Rajiv Bajaj of Bajaj Motors put forward his views on the said proposal
“Lot of pain in the market has been aggravated with high GST rate. Prices of two-wheelers
could reduce by Rs 8,000 to Rs 10,000 if the GST rate is lowered to 18 percent”
8. Recently Finance Minister Mrs Nirmala Seetharaman had some words of Encouragement for
the battered two wheeler industry, she was saying that there has to be a review about the GST
charged to the Two wheelers from 28% to 18% which is subject to a discussion , Finance
Minister Mrs Nirmala Sitharaman had earlier said that two-wheelers are neither a luxury nor
(De-Merit) Sin goods and so merit a GST rate revision. Her statement was welcomed by the
captains of the industry including Mr Venu Srinivasan of TVS & Mr Rajiv Bajaj of Bajaj
The cut in export incentives has been another shocker. Bajaj Auto has lost close to Rs 300 crore
due to the ceiling on export incentives. (MEIS – Merchandise exports from India scheme), any
way moving forward benefits under MEIS will also stop because of Tough WTO requirements
when the Per Capita Income >1000 USD For 3 Consecutive Years, Then the Central subsidy
part has to stop.
Bajaj said the government needed to give consumers incentives at a time when jobs have been
lost and affordability is low. “Over Regulation (BS6 Compliance) has led to a 30-35 percent
increase in prices for the consumers and cost to the consumer needs to be brought down,” he
For the year 2018-2019 only August 2018 to March 2019 data is available, we can easily make
out from the chart that two wheelers peaked out in the year 2018-19 before taking a hit in the
following years due to various reasons and the most prominent reason for the fall in the sales
of Two Wheelers in the year 2020-2021 is undoubtedly because of COVID -19 problem when
India was under Complete lock down in the First Quarter of FY 2020-2021 and it affected very
badly the total industry as a whole
9. 1.3 SWOC analysis of motor industry
1. Significant contribution to Indian
2. Two wheeler market are expanding
from 12% to 14% growth.
3. A favorable industry to Asian
4. Most helpful for a developing
country like India in terms of
1. Rise in raw material cost.
2. Due to competition, pricing reduces
and affects to low quality of products
1. Reduced excise duty . Steep fall in
fuel prices .
2. “Make in India” campaign invites
3. Rural market which possess potential
has been untapped by higher segment
4. KTM plans to open its plant in India.
1. Rising Fuel Prices- No Link between
International Crude Price & Internal
Fuel Price within India.
2. Growing safety issues (Strict
Enforcement of Tough BS 6
Guidelines ) Effective From 1-04-
3. Road Accidents & Fatalities.
4. Higher Insurance charges from 1-09-
5. Government’s Favored Policy on fast
adoption of EV over Internal
Combustible engines (ICE)
10. 1.4 Major player in the sector
Honda Motor Company :
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's
largest manufacturer of internal combustion enginesme assured by volume, producing more
than 14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to
become the second-largest Japanese automobile manufacturer. As of August 2008, Honda
surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda
was the seventh largest automobile manufacturer in the world behind Toyota, General Motors,
Volkswagen AG, Hyundai Motor Group, Ford, and Nissan 2010.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand,
Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also
manufactures garden equipment, marine engines, personal watercraft and power generators,
amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics
research and released their ASIMO robot in 2000.
They have also ventured into aerospace with the establishment of GE Honda Aero Engines in
2004 and the Honda HA-420 Honda Jet, scheduled to be released in 2012. Honda spends about
5% of its revenues into R&D.
Hero Motor Company :
Hero Motors is a moped and scooter manufacturer based in
Delhi, India. It is a part of multinational company Hero Group,
which also currently owns Hero Motocorp (formerly Hero Honda) and Hero Cycles, among
others. Hero Motors was started in the 1960s to manufacture 50cc two stroke mopeds but
gradually divHersified into making larger mopeds, mokicks and scooters in the 1980s and the
1990s. Noteworthy collaborators and technical partners were Puch of Austria and Malaguti of
Italy. Due to tightening emission regulations and poor sales, Hero motors have discontinued
the manufacture of all gasoline powered vehicles and transformed itself into an electric two-
wheeler and auto parts manufacturer
11. Mahindra & Mahindra Company :
Mahindra & Mahindra Limited (M&M) is an Indian multinational automaker headquartered in
Mumbai, Maharashtra, India. It is one of the largest automobile manufacturers by production
in India and a subsidiary of Mahindra Group conglomerate. The company was founded in 1945
in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and
Malik Ghulam Mohammed. After India gained independence and Pakistan was formed,
Mohammed emigrated to Pakistan where he became the nation's first finance minister. The
company changed its name to Mahindra & Mahindra in 1948. It is ranked 21 in the list of top
companies of India in Fortune India 500 in 2011.
12. Bajaj Auto Limited :
Bajaj Auto Limited is an Indian motorized
vehicle-producing company. Bajaj Auto is a
part of Bajaj Group. Its founded by Jamnalal
Bajaj at Rajasthan in the 1930s. It is based in
Pune, Maharashtra, with plants in Chakan
(Pune), Waluj (near Aurangabad) and
Pantnagar inUttaranchal. The oldest plant at
Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto makes and exports automobiles,
scooters, motorcycles and theauto rickshaw.
Bajaj Auto is the world's third-largest manufacturer of motorcycles and second-largest in India.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946. It features at 1639
in Forbes 2011 list. Over the last decade, the company has successfully changed its image from
a scooter manufacturer to a two-wheeler manufacturer. Its product range encompasses
scooterettes, 10 scooters and motorcycles. Its real growth in numbers has come in the last four
years after successful introduction of a few models in the motorcycle segment. The company
is headed by Rahul Bajaj who is worth more than US$1.5 billion.
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained license from the Government of India to manufacture two- and three-wheelers and it
went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce
and sell 100,000 vehicles in a single financial year.
In 1985, it started producing at Waluj near Aurangabad. In 1986, it managed to produce and
sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle
and produced and sold one million vehicles in a year.
13. Kinetic Motors :
Kinetic Engineering Limited is an automotive component
manufacturer in India which formerly sold two-wheelers under
the brand names Kinetic Honda and later Kinetic. In 2008, it
stopped selling two-wheelers after entering into a joint venture
with Mahindra Automobiles, where Mahindra held the major (80%) stakes. By this joint
venture, Mahindra acquired the two-wheeler manufacturing facilities as well as the then selling
brands of Kinetic.
The brand Kinetic-Honda is remembered for its legacy 2-stroke scooters, with variomatic
transmission and electric start, first in India when it was launched (in 1984) and the only in
India until the late 1990s. Part of the Firodia Group of Companies, a pioneer in the Indian
automotive sector, Kinetic Engineering started its operations in the year 1972. It entered into a
joint venture with Honda in 1984 and started selling scooters under the brand name Kinetic
Honda. In 1998, the joint venture split and the company continued to sell scooters under the
brand name Kinetic. Soon the company entered into the fastest growing motorcycle market but
its endeavor failed and put the company into debt. With direct competition from the former ally
Honda, which had now established itself as the leading scooter manufacturer (HMSI) in India,
Kinetic lost its exclusive market foothold by the mid 2000s.
Now having withdrawn from two-wheeler manufacturing, Kinetic Engineering continues to
be a major player in the auto components manufacturing and exporting sector in India. Kinetic
Motors again started its operations from January 2011. Kinetic introduced its very popular
brand Kinetic in 4 stroke version and going to launch 3 more new models to compete the
14. 1.5 GDP contribution by Automobile Sector
The industry contributes 6.4 per cent to GDP, around 35 per cent to manufacturing
GDP, supports over 8 million jobs directly (OEMs, suppliers and dealers) and as many
as 30 million more in the value chain.
Goel echoes the mood of India's Rs 4.8 lakh crore automobile industry.
The sector that employs 37 million people (direct and indirect), contributes 7.5% to
the country's GDP and 49% to the manufacturing GDP, is staring at a multi-layered
Industry Scenario: ;:
In FY 2018-19, sale of passenger vehicles has increased by 2.70%, two-wheeler by
4.86% and three-wheeler by 10.27% as compared to FY 2017-18.In April-March 2019,
overall automobile exports grew by 14.50%. The overall
Commercial Vehicles segment registered a growth of 17.55% in April- March 2019.
15. 1.6 Some figures regarding the automobile sector in INDIA :
MARKET SHARE OF AUTOMOBIL E INDUSTRY IN THE YEAR OF 2014 – 2015
SCOOTER MARKET SHARES 2013 - 2014
16. 1.8 Summary
Some of the major players that dominate the global Motorcycle market are TVS, Honda,
Yamaha, Suzuki, Kawasaki, and Kinetic. Whereas the Indian market shows dominance
of players like Hero Honda, Honda, Bajaj Auto Ltd, TVS motors and Yamaha. The
focus of the study is INDIA YAMAHA MOTORS which holds approximately 3.5 %
market share in the Indian Motorcycle industry whereas it is the second biggest player
in the International Motorcycle Industry. India Yamaha Motor (IYM) is a 100%
subsidiary of Yamaha Motor Corporation of Japan. Its manufacturing unit is in Surajpur
while Faridabad Plant mainly caters to spare parts and paint shop. These two plants
support the production of motorcycles for domestic as well as overseas market.
Presently 8 models roll out of these two plants. The infrastructure at both the plants
supports production of motoreycles and it's parts for the domestic as well as overseas
market. At the core are the 5-S and TPM activities that fuel lean Manufacturing
Processes. The plants have In-house facility for Machining, Welding processes as well
as finishing processes of Electroplating and Painting till the assembly line.
The stringent Quality Assurance norms ensure that their motorcycles meet the reputed
International standards of excellence in every sphere. The purpose of the project was to
study the positioning of brand image in the minds of the customers and also to study
the colour preferences of the motorcycle customers.
Consumers should have favourable awareness of brand. Brand awareness and the
ensuing positioning in the minds of consumers differentiates successful organisation
from failed organisation. Harley Davidson has a sort of cult following among its
customers. It is only because the company has successfully ingrained its brand
awareness in the psyche of people. To succeed, in today's rapidly evolving market place
organizations should strive continuously to increase awareness of their brands for the
17. Chap - 2 Company Profile
TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-
wheeler manufacturer in India. The company manufactures a wide range of two-
wheelers from mopeds to racing inspired motorcycles. The company is having their
manufacturing plants at Hosur in Tamilnadu, Mysore in Karnataka and Solan in
Himachal Pradesh. They are also having one unit located at Indonesia. Their
subsidiaries include Sundaram Auto Components Ltd. TVS Motor Company (Europe)
BV, TVS Motor (Singapore) Pte Ltd, PT TVS Motor Company, Indonesia. TVS Energy
Ltd and TVS Housing Ltd. TVS Motor Company Ltd is a part of Sundaram Clayton
group in TVS group of companies. In the year 1979, Sundaram-Clayton Ltd started
Moped Division at Hosur to manufacture TVS 50 mopeds.
In the year 1982, the company entered into a technical know-how and assistance
agreement with Suzuki Motor Co Ltd of Japan and in the year 1985, they incorporated
a new company Lakshmi Auto Components Pvt Lid for the manufacture of critical
engines and transmission parts. In the year 1986, the company acquired the assets of
the moped division from Sundaram Clayton Ltd. Also, the name of the company was
changed from Indo Suzuki Motorcycles Ltd to TVS Suzuki Ltd. In the year 1992, they
launched two modes of motor cycles namely. Samurai and Shogun and in the year 1993,
they launched TVS Scooty. During 1999- 2000, TVS Suzuki Ltd was amalgamated
with Sundaram Auto Engineers Ltd, an unlisted group company which was
incorporated in the year 1992.
18. As per the scheme, all the assets and liabilities of erstwhile TVS Suzuki Ltd together
with all obligations and contingent liabilities were vested in Sundaram Auto Engineers
(India) Ltd with effect from April 22, 1999. This merged entity was later renamed TVS
Suzuki Ltd. The TVS group and Suzuki Motor Corporation parted ways from their 15-
year-old joint venture on September 27, 2001. The shares held by the Suzuki Motor
Corporation were acquired by Anusha Investments Ltd, a wholly owned subsidiary of
Sundaram-Clayton Ltd for Rs 9 crore. Thus, the company became a subsidiary of
Sundaram-Clayton Ltd with effect from November 15, 2001. Since, Suzuki Motor
Corporation ceased to be a shareholder of the company, the company cannot use the
word Suzuki' as the part of their name and hence the name of the company was changed
to TVS Motor Company Ltd. During the year 2002-03, the new stylish TVS Scooty Pep
and the upgraded version of Fiero was launched in the market. In April 1, 2003, the
subsidiary company namely, Lakshmi Auto Components Ltd acquired the entire paid
up capital of Sundaram Auto Components Ltd. Consequently, Sundaram Auto
Components Ltd became a subsidiary company with effect from April 1, 2003. In
October 2003, the company entered into a scheme of arrangement with Lakshmi Auto
Components Ltd and Sundaram Auto Components Ltd. As per the scheme, all the assets
and liabilities of the rubber and plastic businesses of Lakshmi Auto Components Ltd
were transferred to Sundaram Auto Components Ltd on slump sale basis on April 1,
2003 for a con sideration of 12.25 crores. The remaining business of Lakshmi Auto
Components Ltd, namely engine components division together with their in vestments
in other bodies corporate was transferred to the company with effect from April 2, 2003.
During the year 2003-04, the company launched new products such as TVS Centra,
New Victor GL, Fiero F2 & Fx and Scooty Pep. During the year 2004-05, they launched
new products such as TVS Star, New Victor GLX, New Victor GX and Scooty Pep
Splash' series. During the year 2005-06, the company entered into a joint venture with
Columbian party for exploring opportunities in Columbian market with an equity
investment of Rs 5 million. The company incorporated TVS Motor Company (Europe)
B V in Netherlands as a wholly owned subsidiary of the company with an investment
of Rs 91.63 crore. During the year, TVS Motor Singapore Pte Ltd, Singapore became
a wholly owned subsidi ary of the company with an investment of Rs 30.51 crore. PT
19. TVS Motor Company Indonesia was incorporated in Indonesia to manufacture
motorcycles and parts with an investment of USD 27.60 million and became subsidiary
of the company in view of it being the subsidiary of TVS Motor Company (Europe) B
V, which holds 75% of the share capital. The remaining 25% was held by TVS Motor
Singapore Pte Ltd. PT TVS Motor Company Indonesia has acquired lands in Indonesia
for setting up a facility for manufacturing two wheelers. During the year 2006-07, the
company has established a new plant in Himachal Pradesh with an annual production
capacity of 4,00,000 units scalable to 6,00,000 units. TVS Motor Company Indonesia,
a subsidiary of the company, established a manufacturing facility at Karawang, near
Jakarta in Indonesia with production capacity of 3 lakh vehicles per annum. During the
year, the company launched multiple new products and variants such as, StaR City ES,
StaR Sport, Scooty Teenz and 99 Colors on Scooty PEP. During the year 2007-08, the
company commenced commercial production from its Nalagarh Plant located in
2.1 Name & Location of company
Name : TVS Motor Company Limited.
Location : Chennai, INDIA.
2.2 Name & Location of other Branches
Location Of Other branches : Hosur in Tamil Nadu, Mysore in Karnataka and
Nalagarh in Himachal Pradesh and one in Indonesia at Karawang.
20. Name of Branches :
TVS - Motor Company Limited
TVS Electronics Limited
Axles India Limited
Brakes India Limited
Sundaram Polymers Divisio
Harita Finance Limited
Harita Finance Limited
India Motor Parts and Accessories Limited
India Nippon Electricals Limited
IRIZAR TVS (P) Ltd
Lakshmi Auto Components Limited
Lucas Indian Service
Lucas - TVS Limited.
Sundaram Brake Linings Limited
Madras Auto Service
TVS & Sons
21. 2.3 Year of Establishment
TVS Motor Ltd year of 1911.
2.4 Brief Histroy
T. V. Sundaram Iyengar began with Madurai's first bus service in 1911 and founded
TVS, a company in the transportation business with a large fleet of trucks and buses
under the name of Southern Roadways.
Sundaram Clayton was founded in 1962 in collaboration with Clayton Dewandre
Holdings, United Kingdom. It manufactured brakes, exhausts, compressors and
various other automotive parts. The company set up a plant at Hosur in 1976, to
manufacture Mpeds as part of their new division. In 1980 TVS 50, India's first two-
seater moped rolled out of the factory at Hosur in Tamil Nadu, India. A technical
collaboration with the Japanese auto giant Suzuki Ltd. resulted in the joint-venture
between Sundaram Clayton Ltd and Suzuki Motor Corporation, in 1987.
Commercial production of motorcycles began in 1989.
TVS Group is one of India's oldest business groups. It is a giant conglomerate with
presence in diverse fields like automotive component manufacturing, automotive
dealerships and electronics. The TVS Group was established in 1911 by Shri. T V
Sundaram Iyengar. As one of India's largest industrial entities it epitomizes Trust,
Value and Service. Today, there are over thirty companies in the TVS Group,
employing more than 40,000 people worldwide and with a turnover in excess of
USD 4 billion. With steady growth, expansion and diversification, TVS commands
a strong presence in manufacturing of two-wheelers, auto components and
computer peripherals. We also have vibrant businesses in the distribution of heavy
commercial vehicles passenger cars, finance and insurance. 2. COMPANY
PROFILE 11 TVS Group originated as a transport company in 1911. TV Sundaram
Iyengar and Sons Limited is the parent and holding company of the TVS Group
22. TVS Motor Company - a member of the TVS group is the largest company of the group
in terms of size and turnover. 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. TVS Motor Company is the third largest
two-wheeler manufacturer in India and one among the top ten in the world, with annual
turnover of more than $1 billion in 2008- 2009. It is the flagship company of the $4
billion TVS Group. The company has four plants located at Hosur and Mysore in south
India, Himachal Pradesh, North India and one in Indonesia. The company has a
production capacity of 2.5 million units a year.
TVS Motor's strength lies in design and development of new products, with the latest
launch of seven products on the same day seen as a first in automotive history. TVS
delivers total customer satisfaction by anticipating the customer's need and presenting
quality vehicles at the right time and at the right price. The customer and his ever
changing need is its continuous source of inspiration. 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 seven 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. 1980 TVS Motor launched India first two-seater 50cc moped -TVS 50 1984
The two-wheeler major became the first Indian company to introduce 100cc Indo-
Japanese motorcycles 1994 - It launched India first indigenous scooterette -- TVS
Scooty. 1996-97 - Introduced India first catalytic converter-enabled motorcycle, the
110cc Shogun. Launched India first 5- speed motorcycle, the Shaolin. 2000 - Launched
TVS Fiero, India first 150cc, 4-stroke motorcycle. 2001 Launched TVS Victor, 4-stroke
110cc motorcycle, India first fully indigenously designed and manufactured
23. 2.5 Name of founders & Promoters
Founder : T.V. Sundaram Iyengar
Promoter’ s Of TVS LTD.
The following promotion variables are considered by TVS for its 2Wheeler segment
Brand ambassador: M.S. Dhoni, Captain of Indian Cricket Team, Virat Kohli for TVS
Sport, Tamil matinee idol Surya for TVS Star.
Tollywood super star Maheshbabu is chosen as the brand ambassador for premium
product “Phoenix 125”.
Anushka Sharma, Bollywood star for Scooty pep+
24. 2.6 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, technology and
marketing. The thrust will be to achieve a significant share for international business
in the total turnover.
TVS Motor - At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.
TVS Motor - Committed to Total Quality
TVS Motor is committed to achieving a self-reviewing organization in perpetuity by
adopting TQM as a way of life. TVS Motor believes in the importance of the process.
People and projects will be evaluated both by their end results and the process adopted.
TVS Motor - The Human Factor
TVS Motor believes that people make an organization and that its well-being is
dependent on the commitment and growth of its people. There will be a sustained effort
through systematic training and planning career growth to develop employees talents
and enhance job satisfaction. TVS Motor will create an enabling ambience where the
maximum self-actualisation of every employee is achieved. TVS Motor will support
and encourage the process of self- renewal in all its employees and nurture their sense
of self worth.
25. TVS Motor - Responsible Corporate Citizen
TVS Motor firmly believes in the integration of Safety, Health and Environmental
aspects with all business activities and ensures 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 group to diversify, eyes 'green' power
The TVS group, a leading brand in the automoti ve industry, is set to create its brand
in "green' power energy through a new company. It is also eyeing the defense sector,
as part of a diversification plan, through Sundaram Clayton, a leading supplier for the
automobile industry. Speak ing on the sidelines of Sundaram Clayton's annual general
meeting Venu Srinivasan, MD, said, "We are planning to venture into green power.
Our immediate focus would be wind and micro-hydro, followed by solar and biomass."
Sundaram Clayton is planning to set up a 5 Mw wind energy farm in Tamil Nadu
through a new company, which is expected to be floated in the next six months. On the
capital for the new company, Srinivasan said, "It's in the drawing stage." And, "we are
talking to (the) defense (ministry) for supplying to aviation and maritime force," said
Srinivasan. The company's products, including raw aluminum castings and machined
castings, catering to commercial vehicles, passenger cars and the two-wheeler industry.
Srinivasan said the proposed di versification plan would help the company reach its
target of Rs 1,000 crore turn over in five years, from Rs 492 crore last year. "To support
the target, we will increase our foundry capacity to 50,000 tons from the current 35,000
tones, with an in vestment of around Rs 200 crore over the next five years."
The increase in capacity is mainly to cater to the company's new customers, including
Nissan Motors, Daimler, BMW and others. The company, said Srini vasan, is
expecting orders worth Rs 400 crore from these majors over the next three to five years.
26. Responding to a shareholder's query, Vemu Srinivasan said the TVS Group will
consider demerging its subsidiary companies. There are 17 subsidiaries, of which
seven are in the auto field and 10 are not. Among the 17, five are direct subsidiaries of
Sundaram Clayton, three under TVS Motor Company Ltd, six under TVS Investments
Ltd, two are under TVS Electronics and one under TVS Motor (Singapore) Pvt Ltd.
2.7 Mission & Value Statement
I. Mission Statement :
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 fulfillment and prosperity for
employees, dealers, and suppliers.
II. Value Statement :
27. 2.8 Organizational Structure :
Board Of Director
Executive Vice president
Operation R & D Production
HRD & TQC Industrial
28. 2.9 SWOT Analysis
Huge brand equity and one of the biggest players in the two wheelers Indian market.
Excellent R&D, and wide variety of products in every segment .
Excellent distribution and good number of service centers .
TVS Group has over 40,000 employees and a customer reach of over 15 million.
Associating itself with celebrity brand ambassadors.
‘Scooty’ as a brand has become a second name for the scooter rate segment.
Absence in the premium bike segment.
Suppose to be very sophisticated.
Spare parts are too costly.
Overdependence on domestic market
Lack of Scale
Two-wheeler segment is one of the most growing industries
Export of bikes is limited i.e. untapped international markets
Change of trends
Strong competition from Indian as well as international brands
Dependence on government policies and rising fuel prices
Better public transport will affect two-wheeler sales
29. 2.10 Other Details :
2.10.1 Future Growth and Prospects:
In the second from last quarter finished December, TVS Motors detailed a net benefit of Rs
132.67 crore, as the automobile business was experiencing tension because of interruptions and
product costs. 10.4% in benefit The organization had posted a net benefit of Rs 120.21 crore in
2015. Esteem Added Profit. Absolute pay for the December quarter remained at Rs 3,239.55
against Rs 3,151.12 crore in the year-back period. TVS Motor's Chief Financial Officer SG
Murali T.S. Narasimhan has helped the TVS and its future ventures. The organization's piece
of the overall industry is around Rs. Raising to Rs 18 and Rs 350 crore in the pending financial
year. Demonitation happened toward the beginning of November, however net benefits
developed after expense (PAT); We have great deals amid the bubbly season and the pipeline
is sensible. Charging proceeded until November. And all brands were doing admirably when
it came to spending showcasing exercises. In the initial a half year, We have grown up to 20
percent and proceed with it in the bubbly season. We had the capacity to record great
development in November thus our Q3 execution is surprisingly better. The effect of the fiasco
was seen just in the second half, a month and a half after the celebration's deal started. The
initial two weeks of January were repressed. Indications of development have been seen after
Pongal and Shankaranthi celebrations, yet these are still early days. Money supply steadily
increments and the Ribbon plant likewise improves, and the emotions are great. Come back to
development in February or March. The monetary allowance can likewise help create
development dependent on measures taken by the administration. Toward the start of the year,
we have a 18 percent piece of the overall industry in under 3 years and state we have a 15
percent focus for FY17. The organization had a net benefit of 15.5 percent in the December
quarter. Piece of the overall industry. 11 In the 2017-18 bike and cruiser fragments we will
begin the host new items. With respect to the BMW adventure, the venture is in advancement
and won't be deferred on dispatch vehicles. In 2017-18, there were around 300-350 crores in
2017-18. (Around Rs 400 crore in 2016-17). They utilize these three units to upgrade limit by
as of now four million units. Necessities for one year from now. What's more, limit extension,
the organization will contribute a few new items.
30. 2.10.2 Women On Wheels
THE TVS INSTITUTE TVS Motors wanted to increase sales of the two-wheeler
TVS Scooty in smaller towns and mini-metros by creating relevance and need for
the brand amongst women. With the insight that ‘Any girl who learns to ride on a
particular brand of bike would prefer to buy the same brand’, we set up ‘The Scooty
Institute’ to promote learning riding a two wheeler amongst women, with the focus
purely on education and empowerment. This was done in 55 towns across the
country, with 400 certified women trainers. The emphasis was on education rather
than sales, yet the results of this program spilled over into creating phenomenal sales
for the Scooty brand. 0.3 Million women contacted. 25,000 women trained. This was
India’s biggest ever two-wheeler contact program. On the flip side, it enabled TVS
to achieve a sales conversion figure of 10%, against the targeted 5%, dealers who
participated in the program saw a 15% increase in sales over those dealerships who
31. Chap 3 Finance Department
Sr no. 1. Tradding and P & L account
Profit & Loss account in Rs. Cr.
32. Mar 21
Revenue From Operations [Gross] 16,750.54
Less: Excise/Sevice Tax/Other Levies 0.00
Revenue From Operations [Net] 16,750.54
Other Operating Revenues 0.00
Total Operating Revenues 16,750.54
Other Income 32.97
Total Revenue 16,783.51
Cost Of Materials Consumed 12,506.89
Purchase Of Stock-In Trade 224.21
Changes In Inventories Of FG,WIP And Stock-In Trade -7.25
Employee Benefit Expenses 948.47
Finance Costs 141.60
Depreciation And Amortisation Expenses 493.68
Other Expenses 1,649.67
Total Expenses 15,957.27
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax 826.24
Exceptional Items 0.00
Profit/Loss Before Tax 826.24
Tax Expenses-Continued Operations
Current Tax 214.20
34. Sr no. 2. Balance sheet
Balance Shee in Rs. Cr.
35. Mar 20
EQUITIES AND LIABILITIES
Equity Share Capital 47.51
Total Share Capital 47.51
Reserves and Surplus 4,123.44
Total Reserves and Surplus 4,123.44
Total Shareholders Funds 4,170.95
Long Term Borrowings 1,035.58
Deferred Tax Liabilities [Net] 195.45
Other Long Term Liabilities 93.76
Long Term Provisions 116.30
Total Non-Current Liabilities 1,441.09
Short Term Borrowings 0.00
Trade Payables 3,921.60
Other Current Liabilities 587.57
Short Term Provisions 76.24
Total Current Liabilities 4,585.41
Total Capital And Liabilities 10,197.45
Tangible Assets 3,289.01
Intangible Assets 0.00
Capital Work-In-Progress 0.00
36. Intangible Assets Under Development 0.00
Fixed Assets 3,289.01
Non-Current Investments 3,314.52
Other Non-Current Assets 147.13
Total Non-Current Assets 6,750.66
Trade Receivables 869.98
Cash And Cash Equivalents 929.81
Total Current Assets 3,446.79
Total Assets 10,197.45
37. Sr no. 3. Ration and Their interpretation
PER SHARE RATIOS
Basic EPS (Rs.) 12.88
Diluted EPS (Rs.) 12.88
Cash EPS (Rs.) 23.27
Book Value [ExclRevalReserve]/Share (Rs.) 87.79
Book Value [InclRevalReserve]/Share (Rs.) 87.79
Dividend / Share(Rs.) 3.50
Revenue from Operations/Share (Rs.) 352.57
PBDIT/Share (Rs.) 30.76
PBIT/Share (Rs.) 20.37
PBT/Share (Rs.) 17.39
Net Profit/Share (Rs.) 12.88
38. PBDIT Margin (%) 8.72
PBIT Margin (%) 5.77
PBT Margin (%) 4.93
Net Profit Margin (%) 3.65
Return on Networth / Equity (%) 14.67
Return on Capital Employed (%) 17.24
Return on Assets (%) 6.00
Total Debt/Equity (X) 0.25
Asset Turnover Ratio (%) 164.26
Current Ratio (X) 0.75
Quick Ratio (X) 0.50
Inventory Turnover Ratio (X) 14.54
Dividend Payout Ratio (NP) (%) 0.00
40. Sr no. 4 Financial Statement Analysis
I. Higher than industry revenue growth:
Over the last 5 years, revenue has grown at a yearly rate of 11.15%, vs
industry avg of 4.56%.
II. Higher than Industry Net Income:
Over the last 5 years, net income has grown at a yearly rate of 6.73%, vs
industry avg of 1.61%.
III. Increasing Market Share:
Over the last 5 years, market share increased from 17.85% to 24.23%
Financial Year 2019-20
Total Revenue 18,901.14
Earning Before Interest & Tax and
Profit Before Interest & Tax 1,719.96
Profit Before Tax 854.54
Net Income 865.42
Earning Per Share 624.62
Dividend Per Share 13.15
Payout Ratio 0.27
41. 3.6 CSR & Expenses:
CSR activities have already been textured into the Company’s value system through
Srinivasan Services Trust (SST), established in 1996 with the vision of building self-
reliant rural community.
Over 21 years of service, SST has played a pivotal role in changing lives of people in
rural India by creating self-reliant communities that are models of sustainable
The Company is eligible to spend on their ongoing projects/ programmes, falling within
the CSR activities specified under the Act 2013, as mandated by the Ministry of
Corporate Affairs for carrying out the CSR activities.
The Committee formulated and recommended a CSR Policy in terms of Section 135 of
the Act, 2013 along with a list of projects / programmes to be undertaken for CSR
spending in accordance with the Companies (Corporate Social Responsibility Policy)
Based on the recommendation of the CSR Committee, the board has approved the
projects / programmes carried out as CSR activities by the following non-profitable
organizations having an established track record for more than the prescribed years in
undertaking similar programmes / projects, constituting more than 2% of average net
profits, made during the three immediately preceding financial years, towards CSR
spending for the current financial year 2016-2017 amounting to Rs.919.50 lakhs:
S.No. Name of the Institution Amount spent (Rs. in Lakhs)
1 Srinivasan Services Trust 470.00
2 Sri Sathya Sai Central Trust 285.00
3 Sri Sathya Sai Loka Seva Trust 100.00
4 National Institute of Mental Health and Neurosciences 64.50
42. The Company shall implement the CSR Policy in accordance with the requirements
under Section 135 of the Companies Act, 2013 and the rules framed thereunder, and
currently, the Company’s CSR activities will focus on:
A. ECONOMIC DEVELOPMENT:
Empowering women through self help groups; promoting improved agriculture
practices through adoption of scientific methods of agriculture; improve livestock
management through organizing of regular veterinary camps in rural areas; improve
employability by providing enhancing vocational skills (especially among children,
women, elderly and the differently abled) and providing livelihood enhancement
projects and career counselling; survival, protection and education of girl children will
be given primary focus to improve child sex ratio.
Promoting education, including special education, especially among children, women
and the differently abled, including by way of setting up of balwadis in rural areas;
establishing village level adult education centres, contributing towards improving the
infrastructure of schools by building additional classrooms and other infrastructure
(such as public libraries), providing study and play materials, and providing special care
to introduce digital technology in primary and secondary education for improving
quality of education.
Ensuring environmental sustainability, ecological balance, protection of flora and
fauna, animal welfare, agroforestry, conservation of natural resources and maintaining
quality of soil, air and water, including by way of : (i) educating the public on effective
solid waste management; (ii) construction and periodic cleaning of drains for free flow
of liquid waste; (iii) undertaking afforestation measures and supporting conservation
measures to protect forest areas and prevent forest fires; and (iv) construction of various
water and soil conservation structures, including rain water harvesting systems to
increase the groundwater level, reduce soil erosion and increase crop cultivation area.
43. D. HEALTH:
Reduction of infant mortality and maternal mortality rate; reduction of malnutrition
among children; reduction of anaemia among women by conducting nutrition
demonstration programmes and supply 5 of iron and calcium supplements to women
and especially people belonging to the weaker section of society; setting up old age
homes, day care centres and such other facilities for senior citizens and measures for
reducing inequalities faced by socially and economically backward groups; reduction
of open defecation by individuals by construction of toilets and promoting awareness
of the disadvantages of open defecation; and promoting access to safe drinking water.
E. HUNGER, POVERTY, MALNUTRITION AND HEALTH:
Eradicating extreme hunger, poverty and malnutrition, promoting preventive healthcare
and sanitation, and making available safe drinking water.
As well company building sustainable livelihoods, creating prosperous
communities,Ensuring environmental development.
F. NATIONAL HERITAGE, ART AND CULTURE:
Protecting national heritage, art and culture including restoration of buildings and sites
of historical importance and works of art, setting up public libraries and promoting and
developing traditional arts and handicrafts. The CSR activities shall be undertaken
within the territory of the Republic of India, and the Company shall give preference to
the local area/ areas around where it operates, for spending the amount earmarked for
CSR activities. CSR projects, programmes or activities that benefit only the employees
of the Company and their families shall not be considered as CSR activities. Also,
activities undertaken in pursuance of the normal course of business of the Company
and any direct / indirect contributions to any political party shall not constitute CSR
Sr no. 7. A listed Company ? If yes, then where & since how long?
44. Yes, TVS MOTOR COMPANY is Listed.
Company Listed On Bombay Stock Exchange, Mumbai , National Stock Exchange
of India Ltd and at 2002.
45. Chap-4 : Marketing Department
List of Products & Services :
Motorcycle Scooter Moped 3 wheeler
Apache RTR 180 Scooty pep + XL Super TVS king
Apache RTR 180 Disc Scooty pep (fashion
XL heavy duty
Apache RTR 160 Scooty pep
Phoenix drum Scooty streak
Phoenix disc Wego
Jive Wego fresh
Star city Scooty zest
Number of customers :
With more than 35 million vehicles on road, TVS has ensured mobility and progress
for countless number of people.
TVS Motor Company has its presence in 60 countries across the world. Some of the
countries in which TVS retails its two-wheelers are South Africa, Tanzania,
Madagascar, Ethiopia, Liberia, Brazil, Argentina, Chile, Bolivia, Colombia,
Mexico, Philippines, Laos, Cambodia, Myanmar, Sri Lanka, Turkey, Egypt,
Qatar, Iraq etc.
47. PLC (Product Life Cycle) associate the product with respect
to the PLC stage :
48. I. Introduction :
Introduction This is the stage when the product is very new to the market , and the firm
tries to create product awareness and develops a market for the product.
II. Growth :
This stage is characterized by increased sales and profits as the product becomes a hit
in the market.
III. Maturity :
This stage is characterized by slow growth and intense competition. There are several
firms that offer similar kinds of products and competition is high.
IV. Decline :
Finally , the product reaches the stage where the profits touch the lowest point,
competition becomes severe and customers start using other better alternatives .
49. Market Segmantation :
To observe the two wheeler market strategy and segmantation in India.
Marketers provide a range of product or services choices to meet diverse consumer
interests , consumers are satisfied and their overall happiness , satisfaction and quality
of life are ultimately enhanced . Hence market segmentation is a positive force for both
consumers and marketers alike.
Market segmantation is done based on certain criteria :
Demographic - Demography is study of population. Demographically characters such
as sex, age, marital status number and age of children, place of residence, mobility,
income, education, occupation, family life cycle, social class, culture etc., make the
basis of demographic sub culture.
Psychographic - Personality-Family man Lifestyle-Comfort seeking, social economic
class-B1, B2, A3 . Here buyers are divided into different groups on the basis of social
class, life style and for personality characteristics. People within same demographic
group can exhibit very different psychographics profiles.
Target customer includes the sole bread winner who is influenced by the Parents and
better half in purchasing decision. Customer is looking for ease to travel. In 110 cc
range TVS victor is a good deal.
Geographic segmentation - Geographic location is usual and popular basis for market
segmentation. Further distinction as rural and urban markets, city and suburban markets
etc also form geographic segmentation.
The range of TVS bikes are less. It caters to the lower middle class and the middle
middle class income groups. Its caters to the youth. It segments itself on the basis of
genderas well -as it caters to male.
50. Postioning strategy :
Powerful and stylish shows that TVS bikes are stylish, powerful, masculine and can be
easily flaunted off amongst peers
Celebrity endorsements Brand Ambassador- Amitabh Bachchan, Alia Bhatt, Deepika
TVS positions itself as a bike that is safe,balance and can be easily maintained.
Promotion tools used :
Companies face the task of distribution the total promotion budget over the five
Public Relations and Publicity
Whatever method a company adopts for promotion its product it must be from above
51. Pricing method :
Strictly keeping in mind the sentiments and value of Indians, TVS prices its products
competitively, undercutting the competition in case of Scooters, scooterettes, and entry
Traditionally TVS has been known for its value pricing for its spare parts too, many of
which are used in its own products. Since buyers of these segments have constantly
changing needs, TVS uses survival strategy to remain competitive.
Thus, mostly the pricing strategy in the marketing mix of TVS Motors is based on
competition. The hotly contested Rs50000 to Rs80000 segment sees a lot of entrants
each year but TVS continues to be profitable and drives home good sales because of its
pricing strategies. Through new tie ups with financial institutions and launch of updated
variants, TVS is able to attract customers without raising its product prices.
CRM practices :
Registration & insurance processes
Enquiry handling & follow up
52. List of products expert and in which country :
TVS Motor exports :
o the Apache series
o Ntorq 125
o Metro Plus,
o Sport, XL100,etc to some of these markets. Also, in partnership with some of
the local manufacturers, TVS makes some two-wheelers like the Neo NX,
RockZ 125, HLX, etc, exclusively for select markets.
TVS Motor Company has its presence in 60 countries across the world. Some of the
countries in which TVS retails its two-wheelers are South Africa, Tanzania,
Madagascar, Ethiopia, Liberia, Brazil, Argentina, Chile, Bolivia, Colombia,
Mexico, Philippines, Laos, Cambodia, Myanmar, Sri Lanka, Turkey, Egypt,
53. Chap 5 – Human Resource Department
Recruitment & Selection Process:
1. Recruitment Process :
Application (Apply Online)
Assessment (Tests, interview)
Selection (Review, Offer, join)
Starting from the position where the recruitment process as produced a no of applicants,
the important steps as follows:
o Short listing the candidates for the next stage.
o Setting up tests for the short listed candidate some times in the form of an
o Interviewing the candidates and allowing the candidates to interview the
o Choosing the successful candidates.
o Obtaining references.
o Offering the position, confirming in writing and gaining acceptance.
o Organizing the induction process.
o Evaluating the results.
2. Selection Process :
The method of personnel selection include:
o Personality test
o Biographical data
o Cognitive aligibilty test
o Work sample test
o Physical ability test
o Self assessment
o Assessment centers
Number of Employees :
In the TVS MOTOR COMPANY 5,133 employees performing.
54. Training methodology :
TVS Training and Services Ltd is a TVS group company that provides training in a
variety of domains from automotive and engineering to finance and retail. It sources,
trains and ensures employment to its trainees through a wide network of long
relationships with top industry partners.
1. Demonstrations :
This technique uses an educator to produce the
learners with context that is supported,
elaborated, explains, or distended on through interactions every among the trainees and
between the trainer and conjointly the trainees. The interaction and conjointly the
communication between these a pair of produce it rather more practical and powerful
than the lecture technique. If the discussion technique is used with correct sequence i.e.
lectures, followed by discussion and questioning, will do higher level information
objectives, love downside determination and principle learning. The discussion
technique consists a two-way flow of communication i.e. information at intervals the
kind oflecture is communicated to trainees, then understanding is shipped back by
trainees to trainer
2. Computer-based Training :
55. With the worldwide growth of firms and dynamical technologie stress for data and good staff
have accumulated over ever, that successively, is putt pressure on 60 minutes department to
produce coaching at lower prices. several organizations square measure currently
implementing CBT as an alternate to schoolroom primarily based coaching to accomplish those
3. Games and Simulations :
They are structured and generally
unstructured, that square measure typically
compete for enjoyment generally square
measure used for coaching functions as an academic tool. coaching games and
simulations square measure completely different from work as they're designed to breed
or simulate events, circumstances, processes that ensue in trainees’ job.
4. Discussion :
This methodology uses a tutor to supply the
learners with context that's supported, elaborated,
explains, or expanded on through interactions each
among the trainees and between the trainer and
also the trainees. The interaction and also the
communication between these 2 build it rather
more effective and powerful than the lecture methodology. If the discussion
methodology is employed with correct sequence i.e. lectures, followed by discussion
and questioning, can do higher level information objectives, corresponding to drawback
determination and principle learning. The discussion methodology consists a twoway
flow of communication i.e. information within the kind oflecture is communicated to
trainees, then understanding is sent back by trainees to trainer.
56. 5. Lectures :
It is one among the oldest strategies of
coaching. This technique is employed to
make understanding of a subject or to influence behavior, attitudes through lecture. A
lecture may be in written or oral kind. Lecture is telling somebody regarding one thing.
Lecture is given to reinforce the information of hearer or to grant him the theoretical
side of a subject. coaching is essentially incomplete while not lecture. once the trainer
begins the coaching session by telling the aim, goal, agenda, processes, or strategies
that may be employed in coaching which means the trainer is exploitation the lecture
technique. it's troublesome to imagine coaching while not lecture format. There area
unit some variations in Lecture technique. The variation here implies that some kinds
of lectures area unit interactive whereas some area unit not”.
Employee safety mechanism :
SAFETY Safety section facilities safe work environment to the employees. The
company follows all company provisions for safety. Safety posters and slogans are
exhibited inside the company especially in the workplace.
57. Specific HR Policies :
To build a strong corporate constitutuion in the organisation ny constitution improving
skill and morale of the employees and ensuring climate for total employee involvement
of the organisation in all facets of business.
TVS company using following policies in their company for their empployees :
Framing personnle policies
Attendence & leave policies
Feedback & Coaching
58. Performance Appraisal Process :
TVS Ltd. have a formal performance appraisal system in which employee
jobperformance is rated on a regular basis, usually once a year. A good
performanceappraisal system can greatly benefit an organization. It helps direct
employee behaviortoward organizational goals by letting employees know what is
expected of them, andit yields information for making employment decisions, such as
those regarding payraises, promotions, and discharges.
Developing and implementing an effective system is no easy task, however.
Forinstance, one study found that a majority of companies³65 percent³are
dissatisfiedwith their performance appraisal systems. Analysts have found that a fairly
low degreeof reliability and validity remains a major bug in most appraisal systems.
Many suchsystems are met with considerable resistance by those whose performance
is beingappraised, thus hampering the possibilities for effectiveness. While accurate
andinformative appraisal systems can be a major asset to a business, they are too often
There are three major steps in the performance appraisal process followed by
TVSMotors : identification, measurement, and management. With identification,
thebehaviours necessary for successful performance are determined.
Measurementinvolves choosing the appropriate instrument for appraisal and assessing
performance.Management, which is the ultimate goal, is the reinforcing of good
performance and thecorrection of poor performance. Each step is described below.
Additionally,management by objectives, which involves evaluating performance
without atraditional performance appraisal, is also followed.
59. EMPLOYEE COMPARISON SYSTEMS :
Most appraisal instruments require raters to evaluate employees in relation to
somestandard of excellence. With employee comparison systems, however,
employeeperformance is evaluated relative to the performance of other employees. In
otherwords, employee comparison systems use rankings, rather than ratings. A
number offormats is used to rank employees, such as simple rankings, paired
comparisons, orforced distributions. Simple rankings require raters to rank-order their
employees frombest to worst, according to their job performance.
Employee comparison systems are low cost and practical; the ratings take very
littletime and effort. Moreover, this approach to performance appraisal effectively
eliminatessome of the rating errors discussed earlier. Leniency is eliminated, for
instance, becausethe rater cannot give every employee an outstanding rating. In fact, by
definition, only50 percent can be rated as being above average. By forcing raters to
specify their best worst performers, employment decisions such as pay raises and
promotionsbecome much easier to make.
60. IDENTIFICATION :
TVS Motors determine for each job family the skills and behaviours that are
necessaryto achieve effective performance. The organization identifies dimensions,
which arebroad aspects of performance. For instance, "quality of work" is a dimension
required inmany jobs. To determine which dimensions are important to job
performance, theorganization rely on an accurate and up-to-date job analysis. Job
descriptions writtenfrom job analyses should offer a detailed and valid picture of which
job behaviours arenecessary for successful performance.
In the identification stage, the company also choose who will rate
employeeperformance. Supervisors, peers, and the employees themselves may
provideperformance ratings. In most instances, performance appraisals are the
responsibility ofthe immediate supervisor of an employee. Supervisors rate
performance because theyare usually the ones most familiar with the employee's work.
Additionally, appraisalsserve as management tools for supervisors, giving them a
means to direct and monitoremployee behavior. Indeed, if supervisors are not allowed
to make the appraisals, theirauthority and control over their subordinates could be
61. MEASUREMENT :
Once the appropriate performance dimensions have been established for jobs,
TVSMotors determine how best to measure the performance of employees. This raises
thecritical issue of which rating form to use. In the vast majority of
organizations,managers rate employee job performance on a standardized form. A
variety of formsexist, but they are not equally effective. To be effective, the form must
be relevant andthe rating standards must be clear. Relevance refers to the degree to
which the rating form includes necessary information, that is, information that indicates
the level ormerit of a person's job performance. To be relevant, the form include all the
pertinentcriteria for evaluating performance and exclude criteria that are irrelevant to
GRAPHIC RATING SCALE :
A graphic rating scale (GRS) presents appraisers with a list of dimensions, which
areaspects of performance that determine an employee's effectiveness. Examples
ofperformance dimensions are cooperativeness, adaptability, maturity, and
motivation.Each dimension is accompanied by a multi-point (e.g., 3, 5, or 7) rating
scale. The pointsalong the scale are defined by numbers and/or descriptive words or
phrases thatindicate the level of performance. The midpoint of the scale is usually
anchored by suchwords as "average," "adequate," "satisfactory," or "meets standards.
BEHAVIORALLY-ANCHORED RATING SCALES:
behaviorally-anchored rating scale (BARS), like a graphic rating scale,
requiresappraisers to rate employees on different performance dimensions. The typical
BARSincludes seven or eight performance dimensions, each anchored by a multi-point
scale.But the rating scales used on BARS are constructed differently than those used
ongraphic rating scales. Rather than using numbers or adjectives, a BARS anchors
eachdimension with examples of specific job behaviours that reflect varying levels
62. BEHAVIOR OBSERVATION SCALES :
behavior observation scale (BOS) used by TVS motors contains a list of
desiredbehaviours required for the successful performance of specific jobs, which are
assessedbased on the frequency with which they occur. The development BOS, like
BARS, alsobegins with experts generating critical incidents for the jobs in the
organization andcategorizing these incidents into dimensions. One major difference
between BARS andBOS is that, with BOS, each behavior is rated by the
appraiser.When using BOS, an appraiser rates job performance by indicating the
frequency withwhich the employee engages in each behavior. A multi-point scale is
used ranging from"almost never" to "almost always." An overall rating is derived by
adding theemployee's score on each behavioral item. A high score means that an
individualfrequently engages in desired behaviours, and a low score means that an
individualdoes not often engage in desired behaviours.
In the management phase of performance appraisal, employees are given
feedbackabout their performance and that performance is either reinforced or modified.
Thefeedback is typically given in an appraisal interview, in which a manager
formallyaddresses the results of the performance appraisal with the employee. Ideally,
theemployee will be able to understand his or her performance deficiencies and can
askquestions about the appraisal and his or her future performance. The manager
shouldgive feedback in a way that it will be heard and accepted by the employee;
otherwise,the appraisal interview may not be effective.The appraisal interview may also
have an appeals process, in which an employee canrebut or challenge the appraisal if
he or she feels that it is inaccurate or unfair. Such asystem is beneficial because it allows
employees to voice their concerns.fosters more accurate ratings³the fear of a possible
challenge may discourageraters from assigning arbitrary or biased ratings. often
prevents the involvement of outside third parties (e.g., unions, courts).The downside of
using an appeals system is that it tends to undermine the authority ofthe supervisor and
may encourage leniency error. For example, a supervisor may givelenient ratings to
avoid going through the hassle of an appeal.
63. Wages & salary administration :
The average TVS Motor Company salary ranges from approximately ₹ 7,79,000 per
year for a GET to ₹ 57,14,551 per year for a Territory Manager. TVS Motor Company
employees rate the overall compensation and benefits package 3.7/5 stars.
TVS motor company employees with the job title mechanical engineer make
1,770,000rs , Research & development manager make 5,610,000rs, territory manger
make 2,170,000rs, seniour mechanical engineer makes 2,810,000, design engineer
makes3,590,000rs, research & development engineer makes 4,220,000rs, project
manager makes 7,840,000rs, accountant makes 1,870,000rs, training & development
manager makes8,760,000rs, territory sales manager makes3,000,000rs, seniour
marketing manager makes 1,000,000rs, seniour design manager makes1,880,000rs,
basis administrator makes1,310,000rs, purchasing manager makes3,750,000rs, product
design manager makes 2,000,000rs, maintence manager makes 2,620,000rs.
Grievance handling procedures :
The study surmises the satisfaction of employees, with the procedures for grievance
handling. It was comprehended that, the employees were highly satisfied with the
mechanism being followed. A grievance is, any discontent or feeling of unfairness. In
the workplace, this definition could extend to the system and nature of work. This study
intends to determine whether, employers efficiently manage the grievances of their
employees. The study acknowledges that, the most common factors for grievances in
the workplace are disparity in wages and salary, working conditions, promotions,
transfer, lack of communication, inter-departmental relationship, etc. In addition, the
study also explores to identify the foundation for grievances, their triggering factors,
grievances handling techniques, and the management procedures, for resolving the
issues. Effective grievance management, ensures good employee relations, smooth and
successful running of the organization, and improved productivity at work. The root
cause of any grievance must be ascertained by the employer, along with best possible
means of redressal, to ensure the satisfaction of employees in an organization.
64. To enable employee to air his/her grievance.
To clarify the nature of grievance.
To investigate the reasons of dissatisfaction.
To obtain where possible a speedy resolution to the porblem.
To take appropriate actions & ensure that the promises are kept.
To inform the employee his /her right to voice the grievance a take it to next stage of
65. Chap 6. Production Department
Raw material used :
Raw materials can be explained as substance or material used in the manufacturing
or primary production of goods. Generally, raw materials are natural resources like
oil, wood, and iron. Raw materials are often altered for use in various processes prior
to being used in the manufacturing process.
Raw materials are commodities that are bought and sold on commodities exchanges
worldwide. Traders buy and sell raw materials in what is called the factor market
because raw materials are factors of production as are labor and capital.
Raw materials are transformed by physical and chemicals processes into the various
types of materials that are used for manufacturing. they are prepared so that they are
ready to use for making many different products called manufactured goods.
Technical materials are common materials used to make manufactured goods.
Product Name Unit Quantity
% Of RM Cost
To Total Cost
Intermediates & Components >NA 0 2657.05 97.58
Aluminium Alloys >Kg 3556340 40.31 1.48
Steel Sheets/Coils/Strips/Bars >Kg 4849161 25.35 0.93
Steel Tubes >Mtr 22751 0.12 0.00
Tvs company making annual turover is 16,780 crore in 2020.
Plant location :
The company has manufacturing plants located at Hosur in Tamil Nadu Mysore in
Karnataka and Nalagarh in Himachal Pradesh. It also has one manufacturing unit
located at Karawang in Indonesia.In the year 1979 TVS Group company Sundaram-
Clayton Ltd started Moped Division at Hosur to manufacture TVS 50 mopeds.
67. Product produced:
TVS Motor Company has been actively engaged in production of an impressive range
of two-wheelers that have easily captured the hearts of the consumers of all generations
and all segments of the society. The following is the list of its commendable initiatives:
TVS 50 – India's 1st two-seater 50 cc moped was launched in August, 1980.
TVS Scooty – India's 1st indigenous 100 cc variomatic scooter was launched in June,
Shogun – India's 1st catalytic converter enabled 110 cc motorcycle was launched in
68. Shaolin – India's 1st 5-speed motorcycle was launched in October, 1997.
TVS Fiero – India's 1st 150, cc 4-stroke, motorcycle
was launched in April, 2000.
TVS Victor – India's 1st 110, cc 4-stroke, indigenously designed and manufactured
motorcycle was launched in August,2001.
VS Centra – A world class, 4-stroke,100 cc motorcycles fitted with revolutionary VT-
i engines for best in class mileage was launched in January,2004.
69. TVS Star – A 100 cc economical motorcycle, ideally suited for rough terrain was
launched in September,2004.
TVS Apache – Named “Bike of
the year” for the year 2006 was launched in November,2005.
TVS jupiter - 110 cc. 7.8 bhp. 108 kgs. Was launched in 2009 ,become most giving
average in moped variants in india.
70. Machines & euipment :
TVS motor co. produce their production with the fully automatically robots, machinery
and used latest technology for produce production.
Tvs motor co. also used robots like humans to the final product which they import from
They used latestc paint machine for the paint their scooters or bike and 3 wheeler
products, which is good matter for the worker safety and health.
The company has their own track for the testing the bikes, production and vehicles.
The company used their latest design software for designing new production.
TVS motor company has many failure product which they used for changes in that
failure product and making perfect product for the buyers and understand the consumer
71. Even TVS has their expert riders and drivers in their company.
They also do lots of work by men who play a very big role in providing employment in
Manufacturing Process used :
The manufacturing process is explained clearly with block diagram below :
fabrication machining Engine assembling
Vehicle assembling painting stores
warehouses dealer customers
72. As shown above TVS MOTOR LTD shows its own process we see in brief with this
At TVS Motor, quality processes are based on BIG M, where manufacturing is not
limited to production. Manufacturing includes product development, SCM, production,
sales and post-sales service.Levelled production, JIT and Kanban revolutionised the
supply chain in improving efficiency and improved product quality too.
Raw materials as well as parts and components arrive at the manufacturing plant by
truck or rail, typically on a daily basis. As part of the just-in-time delivery system on
which many plants are scheduled, the materials and parts are delivered at the place
where they are used or installed. Manufacturing begins in the weld department with
computer-controlled fabrication of the frame from high strength frame materials.
Components are formed out of tubular metal and/or hollow metal shells fashioned from
sheet metal. The various sections are eded together. This process involves manual,
automatic, and robotic equipment.
TVS CO.collecting the raw material from the their raw material provider from there
begins the first phase of the process.then company will send that material to their stores
and then check the raw material and send that raw material to the different department
of the company like fabrication department for the fabricate the raw material to each
In this time that material will going in other department that called in machining
department in this department workers will make the proper using of that semi finished
good and process will going other department.
Then after manuallyn workers will join the engine main parts and make a proper useable
engine for fitting in the chasis of the bikes or moped.
After the assembling of the chasis and the body of the vehicle , vehivcle will going for
the further process of the manufacturing with the painting job in this area automatic
machines will paint the vehice with the proper climate and proper portion of the
painting style as per companies decided designs and colours.
Then in the last step product will be stores in the warehouse but when dealers and
distributers want at that time company will check the product first and then aprroved
that particular lot of product.
After this aprrovation company will provide that final product to the dealers and the
distributer of the whole market of the two wheeler seller.
73. Then dealers will order to the company or distributors as per the demand of the products
and the company will provides vehicle as per demand and production lot.
This is we seen all about the production process in brief as per following with the shown
chart of the production process.
Quality is the way of lifeAt TVS Motor Company, every department works in tandem
to produce quality product.The people from the pillars of support, strengthening the
overall quality standards andmoving towards total customer satisfaction.
In our quest to achieves world class levels in quality as well as improvements in
designand processes, the company has formed special task forces to monitor quality
relatedperformance. The basis tents of TQM, including daily work management,
Policymanagement, Kaizen (continuous improvement), training and standardization
arefollowed across our organization.
Acknowledges by the Japanese for Quality. We at TVS Motor Company are proud
tohave been awarded the prestigious and coveted Deming Prize, instituted by JUSE
(Unionof Japanese Scientists and Engineers). TVS Motor Company in the only 2-
wheelercompany in the world to have received this award.
TVS Motor Company was also awarded the prestigious “TPM Excellence award
Firstcategory” by Japan Institute of Plant Maintenance (JIPM), rated as the benchmark
inTPM excellence in India.Social responsibilityThis extended arm of the company
believes in social responsibility and has involveditself in several community
development initiatives that have significantly improved thestandard of living of the
people in 51 villages across the country.