CHAPTER I

1.1 INDUSTRY PROFILE

The two-wheeler market in India is the biggest contributor to the automobile industry
with a size of Rs.100,000 million. The two-wheeler market in India comprises of 3
types of vehicles, namely motorcycles, scooters, and mopeds.
Foreign collaborations have been playing a major role in the growth of the Indian
two-wheeler market, and most of them are Japanese firms. The modern two-wheeler
firms in India have been manufacturing new categories of two wheelers such as Step
Thrust and Scooterettes. These have been produced by combining two or more twowheeler segments. Foreign firms have already taken initiatives to own their twowheeler Subsidiaries in India.

Among the 3 segments of the Indian two wheeler market, major growth trends have
been seen in the motorcycle segment over the last four to five years. One good reason
for such increase in demand for motorcycles is due to its resistance and balance even
on bad road conditions. Most of the rural areas in India do not have decent roads and
hence the need for good, shock-resistant, and steady two-wheelers such as
motorcycles had been felt.

Some of the major players in the Indian motorcycles market are Hero Honda CBZ,
Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor,
Star City, Boxer, CD Dawn, Karizma, Caliber, etc. Having classified the motorcycle
brands into economy, executive, and premium segments, Bajaj stands as the leader in
the economy segment, Hero Honda leads in the executive segment, and there is a
competition in the premium segment between Hero Honda and Bajaj.
The following are the main factors that affect two-wheeler sales in India:
Increase in credit and financing for auto vehicles - Two-wheeler loans and financing
has been on the rise.

Increase in consumer's salary - Due to opportunities offered by

multinationals the disposable incomes of salaried individuals have increase
manifold.

Constant petrol prices - Today, the government of India has been working
on reducing subsidies on kerosene and diesel which will keep petrol prices at
more or less the same level.

Delay in initiation of Mass Transport System - Probably a future threat to

the two-wheeler market, the implementation of the mass transport system has
been delayed.

However, the two-wheeler market in India is a fast growing market due to its
technological advancements in product manufacturing and emphasis on design
innovation.

1.2 COMPANY PROFILE

HISTORY

Established in 1978 at Hosur to produce Mopeds

Technical collaboration with Suzuki motor corp in 1982

Started manufacturing motor cycle in 1984

Became Indigenous as TVS Motor company in 2001

Entered into three wheeler manufacturing in 2007

Established overseas plant in 2007

TVS GROUP HISTORY

Established in 1911

Vehicle dealership and parts distribution

Passenger Bus and Freight service

Early innovators in operation and maintenance

TVS : Trust Value Service

TVS WAY OF THINKING

TVS way of thinking is the set of eight guiding principles, deming principles,
which enables common thinking across the organization for effective decision making

Customer focus

Quality first

Fact control

Recurrence preventive

PDCA Cycle

SDCA Cycle

Focus on process for results

Respect for people

DETAILS ABOUT MANAGEMENT

Chairman & Managing Director of TVS Motor Company Ltd: Shri Venu Srinivasan
President of TVS Motor Company Ltd: Shri KN Radhakrishnan

MILESTONES
1979 Sundaram-Clayton Limited (SCL) started manufacture of TVS
mopeds, total indigenous design and development.
1982 SCL established JV with Suzuki Japan. Company named as Ind Suzuki
Ltd.
1984 Commercial production of Suzuki motorcycles started and the moped
division merges Company renamed as TVS Suzuki.
1994 Indigenous design and development of Scooterettes
1998 Set up a second manufacturing plant at Mysore.

 2001 Suzuki exited from JV and Company renamed as TVS Motor Company
Ltd. Launched indigenously designed and developed motorcycle named TVS
Victor.

AWARDS

Deming award for TQM practices in 2002

ISO 14001 & OHSAS for EMS in 2005

TS 16949 certificate for QMS in 2006

TPM Excellence award in 2008

Safety excellence award in 2009

Best QCC team of year in 2010

Best SIT project of the year in 2010

Best DOE project of the year in 2011

INSSAN award consecutively for 10 th year in 2013

R&D ACHIEVEMENTS

Indias first two seat moped, the TVS 50 (1980).

First fuel injection system (1990).

TVS Scooty (1994) designed and developed indigenously, adjudged to be the
best scooterette.
TVS Victor (2001) designed and developed indigenously 4 stroke 110 cc
motorcycle won Technology award.
Concept Hybrid vehicle (2001).
Patents: Cumulative 60 patents have been filed covering the areas of engine &
vehicle technology [(2003-04)(17patents)].

Publications: 13 technical papers have been published in International

seminars.

Three-wheeler plant in Hosur.

Three new plants in Indonesia.

Two new plants in Himachal Pradesh.

HRD DEPARTMENT

Mission is Enabling departments to achieve goals through the continuous

improvement of processes and systems, by the active involvement of employees and
their development.
FUNCTIONS

Recruitment of Managers and Executives.

Employee Development.

Kaizen -- Total Employee involvement activities for continuous improvement.

Organization and Methods Standardization.

Knowledge Dissemination.

Performance Management.

TVS CORE VALUES

TRUST
To earn unquestionable trust of all stakeholders in every action by
demonstrating both transparency and fairness in all dealing

VALUE
To add value to all company and its stakeholders in every action and to focus
on simplification. No action should be taken for sake of perpetuating bureaucracy

EXACTNESS
To honor all commitments; to be fact based, accurate and precise in all words
and deeds; to shun ambiguity. Meticulous adherence to standards and compliance with
process

PASSION FOR CUSTOMERS

Possess a story emotional commitment to delight customers; to proactively
understand and address customer needs with deep insight and customer intimacy

MISSION STATEMENT
We are committed to being a highly profitable and socially responsible,
leading manufacturer of high value for money, environmentally friendly, lifetime
personal transportation products under TVS brand for customers predominantly in
Asian markets and to provide fulfillment and prosperity for employers, 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

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TVS Motor will be one among the top 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 Asia market,
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 by constant benchmarking
against international leaders. TVS Motor will justify premium pricing with
technological superiority and by providing continued development and service
support to its customers.

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. There will never be any lowering of
quality standards, whatever the cost to the organization.
TVS Motor believes in the importance of the process. The end does not justify the
means. If the process is right, the end product will be right consistently, time after
time. People and projects will be evaluated not merely by their end results, but also
by 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 RESPONSIBLE CORPORATE CITIZEN

TVS Motor firmly believe in the integration of safety, Health and
Environmental aspects with all business activities and ensure protection of employee
and environment including development of surrounding communities
TVS Motor strives for long term relationship of mutual trust and inter-dependence
with its customers, employees, dealers and suppliers

QUALITY POLICY
TVS MOTOR COMPANY LIMITED is committed to achieving total
customer satisfaction through excellence in TQC. We will continuously strive to
provide the customer the best value for money by supplying quality products at the
right time and at the right price. We shall provide superior after-sales service to
maintain and reinforce customer satisfaction. This objective will be achieved by
continuous improvement through Total Employee Involvement.

EHS POLICY
We are a leading manufacturer of personal transportation products and
components with manufacturing facilities at Hosur, Mysore. We firmly believe in the
integration of Environment, Health and Safety (EHS) aspects of our work in all our
business activities and in ensuring the well being of employees, the neighboring
communities and society

WE ARE COMMITED TO:

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Set and improve the performance standards in all aspects of EHS including
compliance with all regulatory standards.

Conserve input resources such as water, energy, oils, paints, packaging

materials etc, by recycling wherever possible and minimizing pollution loads.

Integrate EHS in decisions such as the selection of technology, materials, and

services and in procurement.

Ensure that best available EHS practices are used in the design and
performance of all our products.

Provide training to our employees for effectively employing sound EHS

practices in their work.

Support our suppliers, dealers and contractors in adopting sound EHS

practices.

CONTRIBUTION TO SOCIETY

Primary health centres in villages.

Improved infrastructure in schools in and around the factories.

Health check-up and scholarship for school children.

Leprosy eradication program.

Aids awareness program.

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BOARD OF DIRECTORS

MANAGING DIRECTOR

PRESIDENT
1.3 ORGANIZATION STRUCTURE

EXECUTIVE VP
R&D

SALES

PURCHASES

MARKETING

AEG

PED

PROGRAM
MOPED

PROGRAM
SCOOTY

PROGRAM
MOTOR CYCLE

QAD
OPERATIONS

INFORMATION SYSTEMS DEPARTMENT

INTERNATIONAL BUSINESS

INDUSTRIAL RELATIONS

BUSINESS PLANNING
FINANCE

HRD & TQC

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CORPORATE COMMUNICATIONS

1.4 PRODUCTS & SERVICES

DOMESTIC:

INTERNATIONAL :

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THREE WHEELER :

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