Académique Documents
Professionnel Documents
Culture Documents
Table of Contents
1. An introduction to the Organization:............................................................................... 3
1
1.1. All products (current and old):.............................................................................4
1.1.1. Motorcycles:................................................................................................ 4
1.1.2. Scooterettes:................................................................................................ 5
1.1.3. Stepthru:..................................................................................................... 5
1.1.4. Mopeds:..................................................................................................... 5
1.2. Current products:................................................................................................ 5
1.3. Directors:.......................................................................................................... 5
1.4. Organization Structure:......................................................................................... 5
1.5. Company milestones:........................................................................................... 5
2. Conducive factors identified:........................................................................................ 5
3. Mission and Vision of the company:............................................................................... 5
3.1. Mission:........................................................................................................... 5
3.2. Vision Statement:................................................................................................ 5
4. Growth and the factors affecting the growth of TVSM:........................................................5
4.1. Percentage sales:................................................................................................. 5
4.2. Sales in Rupees:.................................................................................................. 5
4.3. Comparison of different data from 2004-05 to 2008-09:.................................................5
5. Rise and Fall of TVS Motors:....................................................................................... 5
6. Awards and Recognitions:............................................................................................ 5
7. Daily Work Management-Culture:.................................................................................. 5
8. Community development and social responsibility:.............................................................5
9. Code of Business conduct and ethics of Board and Senior Management:..................................5
10. Brand Ambassadors and Print Ads:.............................................................................. 5
11. Effective use of Information Technology:......................................................................5
12. Diversification and future plans:................................................................................. 5
13. Conclusion and learning from the project:.....................................................................5
14. References:........................................................................................................... 5
2
1. An introduction to the Organization:
TV Sundaram Iyengar and Sons Limited (TVSs) is the holding company for the TVS Group
of companies engaged in the manufacturing of almost all kinds of automotive components, best
two wheelers and a few other industrial products. They are also into the financial services sector.
Prize. One of its subsidiaries Sundaram Clayton was the first company in India to receive the
Deming followed by Sundaram Brake Linings also getting the Deming Prize. This prize is "given
improvement through the application of TQM in a designated year." Sundaram Clayton went on
The TVS group of companies is mainly situated in Padi, Tamil Nadu, in the outskirts of Chennai
(formerly Madras).
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 USD 1 billion in 2007-2008, and is the
flagship company of the USD 4 billion TVS Group. It is the largest company of the group in
terms of size and turnover. It has its origin in Sundaram Clayton Limited, Moped Division,
started in 1980. The factory was started in Hosur, Tamilnadu in southern India. The first product
launched was a 50 cc moped, which appealed to the masses because of its capability to carry two
people. In the same location, the same promotors started another company in 1984, in
collaboration with Suzuki Motor Corporation of Japan, for the manufacture of 100 cc
3
motorcycles under the brand name of Ind-Suzuki Motorcycles. Subsequently in the moped
division was bought by Ind Suzuki Motorcycles in 1987 and the company changed its name to
TVS Suzuki Ltd. Even though the company started producing all kinds of two wheelers like
mopeds, scooters and motorcycles, the collaboration with Suzuki continued for the motorcycles
only. The collaboration with Suzuki Motor Corporation ended in 2001 and since then the name
of the company changed to TVS Motor Company. The company now develops all types of two-
wheelers through its own in house R&D facility and manufactures in three locations in India,
Hosur in Tamilnadu, Mysore in Karnataka and Baddi in Himachal Pradesh. It has recently started
a new manufacturing plant in Indonesia to cater to the South east Asian market. The Chairman
and Managing Director of the Company is Mr. Venu Srinivasan who is the grandson of TV
Sundaram Iyengar.
TVS AX 100
TVS Fiero
TVS Samurai
TVS Shaolin
TVS Shogun
4
TVS Apache RTR 160
TVS Centra
TVS Fiero
TVS Fiero F2
TVS Fiero FX
TVS Flame
TVS Star
5
TVS Supra
1.1.2. Scooterettes:
1.1.3. Stepthru:
1.1.4. Mopeds:
6
TVS XL 50(50 cc)
TVS Eco
TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing
inspired motorcycles.
Variomatic Scooters (TVS Scooty Streak, TVS Scooty Pep +, TVS Scooty Teenz) and
7
Fig: Current products offered by TVS Motor
The company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh,
North India and one at Indonesia. The company has a production capacity of 2.5 million units a
year.
1.3. Directors:
Director
T. Kannan Director
H. Lakshmanan Director
R Ramakrishnan Director
K.S.Bajpai Director
C.R.Dua Director
Prince Asirvatham Director
8
K.N. Radhakrishnan President & CEO
K S Srinivasan Secretary
S. G. Murali Executive Vice President
Finance
The organization structure consists of the Chairman who appoints the CEO. The Vice-
presidents of the different functions report to CEO as shown in the following diagram.
9
I
M
S
V
R
Q
PC
FH
h
E
a
ru
i.e
n
lO
h
&
a
ro
R
fn
ku
lie
std
a
o
f
cse
iD
u
o
&
rn
tlm
a
cn
ltyic
Tn
e
a
in
e
tQ
u
g
d
A
lPo
iC
sr
n
u
o
i
S
rso
&
n
n
e
g
u
cE
rg
n
Ih
S
v
g
y.a
m
in
sR
c
n
te
e
e
m
sr
i
n
g
Fig: TVSMs Organizational structure
10
The R&D department, which is one of the most important departments of the company,
has a very flat structure. This is because, to facilitate innovative behavior, the employees
department should have organic structure with lesser levels of hierarchies. This is shown
11
12
C
N
P
S
V
B
E
h
.trV
n
lo
e
n
a
H
yo
P
g
d
e
h
s
cyild
so
T
iu
ctn
ci
n
e
lra
ts
g
in
e
tV
cd
i.
V
T
a
S
y
P
n
e
lC
rg
sh
i(
ta
sifR
e
i&
sn
m
s
cD
ig
)
sa
t
i
o
n
Fig: Structure of R&D department
13
1.5. Company milestones:
Indo-Japanese motorcycle
1994 Pioneer of mobility for women. Launched Indias first indigenous
Indias first catalytic converter enabled motorcycle, the 110cc Shotgun. Great
drive. Greater speed. Launched Indias first 5 speed motorcycle, the Shaolin.
2000 Hiking speed limits. Launched TVS Fiero, Indias first 150cc, 4-stroke
motorcycle.
2001 Indigenous technology. Launched TVS Victor, 4-stroke 110cc motorcycle,
stroke 100cc motorcycle with the revolutionary VT-i engines for best in class
mileage. All terrain performance. Launched TVS Star, a 100cc motorcycle ideal
for rough terrain. TVS wins TPM excellence award from Japan Institute of Plant
Maintenance (JIPM). TVS wins outstanding Design Excellence award for TVS
Scooty Pep.
2005-2006-Spreading its roots. TVS launches its Indonesian plant. Making a
style statement. Launched TVS Apache, which set the youths imagination on
14
fire. It went on to become the bike of the year for 2006, winning 6 prestigious
awards.
2007 TVS Motor Company rolls out 7 new models. TVS launches its Himachal
coveted IT awards, Sep-2008 SAP ACE 2008 Awards and 2008 Symantec South
Asia Visionary award. Scooty Pep+ launched with balancing wheels. Scooty
Launches the revolutionary 125cc Flame in Mar-2008. It makes its foray into
TVS Motor's strength lies in design and development of new products - the latest launch of 7
products on the same day seen as a first in automotive history. They deliver total customer
satisfaction by anticipating customer need and presenting quality vehicles at the right time
15
TVS has always stood for innovative, easy to handle, environment friendly products, backed
TVS Motors are the pioneers in many things. At the time they entered the 2-wheeler market,
the environment was rich. That means, they had very less competition and had not much of a
problem in acquiring the required resources. The environment was very stable and there was
very less ambiguity. In addition to this, to further reduce Resource Dependency, they formed
They were the first to launch a 2 seater in Indian market back in 1980. They were the first to
launch a 100cc Indo-Japanese motorcycle. Also, they were the first to introduce a new range
of 2-wheelers target for women customers. As a result of all these firsts, they were able to
Also, during the earlier years of 1900, India became open to the globalization. This led to
creation of lot of opportunities. There were more jobs, more options. This improved the
standard of living of the population. They had more money to spend. As a result of this, there
was a huge market for 2- wheelers in India in general and TVS in particular as it was one of
The company had a clear vision and mission which helped the company in formulating long term
strategic planning. Also, these helped in designing the organizational structure which was best
suited to achieve the long term goals. This also led to the growth of the company as the culture
16
3.1. Mission:
We are committed to being a highly profitable, socially responsible, and leading
transportation products under the TVS brand, for customers predominantly in Asian markets
and to provide fulfillment and prosperity for employees, dealers and suppliers.
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 will be one among the top two two-wheeler manufacturers in India and one
TVS Motor will have profitable operations overseas especially in Asian markets,
marketing. The thrust will be to achieve a significant share for international business in
TVS Motor will hone and sustain its cutting edge of technology by constant
17
benchmarking against international leaders.
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 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-actualization 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.
TVS Motor firmly believes in the integration of Safety, Health and Environmental
aspects with all business activities and ensure protection of employees and environment
relationships of mutual trust and interdependence with its customers, employees, dealers
and suppliers.
18
In order to further decrease the environmental complexity and to improve its sales, the
company has gone global. In the year 2005-2006, the company has invested around $43
million to build a factory in Karawang, West Java in Indonesia. It sees Indonesia as the
Fig: Venu Srinivasan (left), Chairman, TVS Motor, with Susilo Bambang Yudhoyono (right),
Speaking at the inauguration of its plant in Indonesia, at the the sprawling facility, TVS Motor
Company India Chairman Venu Srinivasan said: We have chosen Indonesia as our centre [export
hub] for the ASEAN region ... because we think that this country has great deal of potential, most
importantly human resources. Besides the ASEAN region, vehicles manufactured at the plant would
Our initial investment [on the facility] is about $50 million, with local value addition of 40 per cent
at start up. This investment will be scaled up to $100 million over the next three years to achieve
19
local value addition of 80 per cent, Mr. Srinivasan said. A research and development facility forms
As stated earlier, TVS Motor Company is the third largest2-wheeler manufacturer in India.
Below, there is an analysis of the performance of the company taking different factors into
consideration.
20
Percentage Sales 2008-2009
Motorcycles ; 19%
Other income ; 3%
Spares and accessories ; 9%
Scooters ; 19%
Motorcycles ; 52%
Mopeds ; 19%
The mopeds sales remained the same because, there are not many competitors in this field.
Increase in percentage sales of 3-wheelers, as they introduced their first 3-wheeler, TVS King in
2008-2009.
21
Sales (Rs in Crores)
Other income
Three Wheelers
2008-2009
Spares and accessories
2007-2008
Scooters
Mopeds
Motorcycles
introduction of two new models, TVS Apache RTR FI and Flame during that year. These two
models were very successful because of the cutting edge technology that went into them. The
Apache RTR FI had fuel injection technology which gives the motorcycle a crisper throttle
excellent performance.
The 125 cc engine gives 10.5 bhp @ 8250 rpm that are Flame's power performance
statement.
Three wheeler segment is a new revenue earner for TVS in 2008-09, because of the introduction
of King as has been mentioned previously. The company ventured into 3 wheeler segment
because the environment was rich as there were only a few key players in the market, namely
22
Increase in revenue earned by sale of mopeds in 2008-09 because of introduction of two new
3,921
3,741
3,310 3,306
2,955
From the above graph, it can be observed that there has been a steady increase in the Sales from 2004-05
to 2006-07. This is mainly because of heavy investment by the company in the R & D. This strategic
investment in R & D has helped them in releasing new models as well as improving the performance of
23
already existing models. This as well as the other reasons for the increase or decrease in sales for each of
During the year 2004-05, the company successfully launched multiple products:
TVS Star 4-stroke 100cc motorcycle in the economy segment with rugged performance and good
mileage.
New Victor GLX 4-stroke 125cc motorcycle in the executive segment with superior style and power.
New Victor GX 4-stroke 110cc refresh of Victor with 'Duralife' engine and new looks.
Scooty Pep "Splash" series 4-stroke 75cc stylish ungeared scooter with new innovative colours to suit
the youth image. Scooty Pep has received the prestigious NID Award for the best style in 2004-05.
During 2005-06, the launch of Apache and two TVS StaR range including the popular TVS StaR City
variant enabled the company to improve its market share and turnover significantly.
The increase in sales during 2006-07 is attributed to the sales of Star brand. The excitement in the StaR
brand was maintained through continuous innovation and launch of variants viz. StaR City alloy wheel,
StaR City Electric start and StaR Sport. Also, Scooty Pep + was launched in 99 colors which strengthened
During the year 2007-08, the motorcycle category of the two wheeler industry registered a decline of 8%.
The economy segment which has been the driver of growth in the past suffered maximum decline of 19%,
because of non availability of retail finance and stringent credit norms imposed by the financiers,
especially in small towns and rural markets. Also, Launch of TVS Flame, in the executive segment by the
company, was delayed due to litigation on usage of twin spark plug. This is an example which shows how
external environment factors cause uncertainty and hence affects the normal operation of an organization.
24
During 2008-09, the launch of Scooty Streak, a tough and stylish variant of Scooty Pep+ and Apache RTR
RD, in the premium motorcycle segment strengthened the portfolio of the Company. The company also
launched TVS Flame which was successful. The Company launched its 2 stroke three wheeler in Petrol/
CNG / LPG variants. This is an example which shows how a company can reduce its uncertainty in one
type of market by diversifying its operations into another related market. All these factors led to an
From the above analysis, it can be observed that if one uses Internal Systems Approach to measure the
effective of the organization, it can be concluded that TVS Motors is a very effective company. This is
because, it achieves or is trying to achieve many of the goals which is used to measure the effectiveness in
this approach. For example, one of the goals to be set in this approach of measurement is increase in the
rate of product innovation. The company is continuously trying to achieve this goal as is evident by the
300
250
200
150
Profit before interest,
100 depreciation and tax
Profit after tax
50
The profit after tax has been steadily decreasing from 2004 to 2009. The main reason for the reduction in
profits is because the environment is getting poorer. Many competitors are coming to India and expanding
25
their base. As a result of this, there is a struggle to acquire sufficient resources. This and certain other
In 2005-06, the fall in profit was due to higher material cost on account of stringent emission
norms coupled with the rise in cost of aluminium, steel, rubber and plastics.
In 2006-07, the fall in profit was mainly due to steep increase in raw material cost. Due to intense
competition in the industry, especially in the highly price sensitive entry level segment, where the
company has a significant presence, it was not possible to pass on the cost increase to its
customers leading to lower margin. Higher marketing cost consequent to introduction of new
products / variants and increase in interest cost due to higher cost of borrowings further led to
half of the year which affected the margins. The Company pursued aggressively the cost
It was 15th July 1982 when the company was incorporated as Indian Motorcycle Pvt. Ltd, which
was later changed to Indo Suzuki Motorcycles Pvt. Ltd. in 1984 after the company got into a
technical know-how agreement with Suzuki Motor Co. Ltd., of Japan. This was the start to a
fruitful and glorious relationship which lasted for about 15 years and gave the Indian consumer
The company initially manufactured spark-ignited internal combustion engines and outboard
motors and gradually incorporated many ancillary units under its fold. It was in August 1986 that
26
It was in 1990 that the company entered the moped market with a 34cc miniped. Some of the
early motorcycle models of the company were the Ind Suzuki, TVS AX100 and TVS Max and
Max R. While the early products were technically sound, the market took some time to absorb
them and mature to motorcycles from the hugely popular scooter segment. TVS Suzuki never
entered this scooter segment initially thanks to BAJAJ Autos monopoly in the scooter market
After extending its contract with Suzuki in 1991, TVS motors launched its successful
motorcycles- Suzuki Samurai and Shogun in 1992. The two bikes went on to be a huge success
thanks mainly to their efficient and powerful two-stroke engines. Also the bikes faced direct
competition only from a few firms like Yamaha with their RX series bikes. Hence the company
was doing decently well in the nascent motorcycle segment as well as the moped segment where
the competition came from the Kinetic Luna and the Hero Puch.
It was in 1993 when TVS introduced its would-be-successful moped, the Scooty. The Scooty was
instantly popular with the masses thanks to its aesthetic appeal, ease of use and efficient engine.
Around the same time, TVS Suzuki introduced the Suzuki Shaolin. It was a racier version of its
popular Shogun with Indias first 5-speed gearbox and a 140cc engine. The bike did not do very
well in the market as it was deemed to be too ahead for its time. Also the motorcycle market was
slowly shifting to the more efficient four-stroke bikes from the Hero Honda stables. The four-
strokes promised better efficiency and reliability than the two-stroke engines which TVS-Suzuki
and Yamaha used in their bikes. This was the phase when the four-stroke sloper engine from
Honda started making its presence felt in the market. Even the popular Shogun and Samurai
27
In the late 90s, TVS launched a number of new models like the XL Super moped, TVS Spectra
four-stroke scooter and the Scooty ES. But the most successful product of the lot turned out to be
the 150cc motorcycle Suzuki Fiero. The Fiero competed head-on with the Hero Honda CBZ
(Indias first 150cc 4-stroke motorcycle) in the nascent premium motorcycle segment. The Fiero
turned out to be a successful product and did manage to beat the CBZ on most technical accounts
but still did not set the sales charts on fire which the CBZ very well managed to do. Market
analysts attributed this to various reasons like aesthetic appeal, brand name and comfort. The
other products in the TVS-Suzukis range, barring the Scooty and the XL, were steadily losing
The year 2000 was a milestone in the companys history. Not only did it cross the one-million
customer mark and launch its future-cash-cow, the 100cc Victor but it also marked the end of a
15 year alliance between TVS motors and Suzuki Motors, Japan with the former buying out the
latters 25.97% stake for 9 crore rupees. Due to the exit of Suzuki Motors, the company faced a
downfall in its market share for a few years which was generally attributed to two reasons. First,
the loss of consumers faith in the company after the exit of a giant like Suzuki. Second, the
company did not come out with a truly competition-killing product for a few years which led to
28
Despite the lack of new launches, TVS Motors held onto a strong position in the motorcycle
market thanks to its brilliant 100 cc TVS Victor. The Victor and the Scooty were the two models
which gathered the maximum number of sales for the company and in 2003, TVS Motors
recorded a market share of 35% from motorcycles division. It was during this time that the
Victor started to capture market share from Hero Honda in the 100cc segment. In the same year,
TVS launched the revamped Fiero F2 to compete against the newly launched but hugely popular
Bajaj Pulsar. The Fiero F2 hardly made a dent in the market thanks to its inferiority to the
mighty Pulsar on a number of accounts. The Scooty was also revamped, given a bigger four-
stroke engine, better graphics and christened the Scooty Pep. With the Pep, TVS got it right and
It was in 2004 when TVSs patented technology VT-I made appearance on the 100cc motorcycle
Centra. Though the Centra was technologically superior to its rivals, it could not garner sales
and was gradually phased out of production a couple of years later. The Centra was a learning
curve for the company and the subsequent products stressed on both aesthetics and performance.
In the same year , TVS Motors decided to tap into the nascent but promising 125cc sector with
the TVS Victor GLX. The bike again did not rule the market despite the Victor brandname. In the
next two years, TVS launched a number of variants of the Scooty and the Victor to keep the sales
alive and the product fresh. It again tried its hand at the 100cc segment by introducing the Star
and later the Star City models which continue to achieve impressive sales figures till date.
In 2006, TVS Motors launched its most iconic brand till date the Apache. Apache was a 150cc
motorcycle and took the fight directly to the Bajaj Pulsar which ruled the segment at that time.
Initially the Apache did well in the market and managed to erode the Pulsars market share to an
extent but quick marketing and product-upgrade from Bajaj Auto saw the Pulsar reining the
29
150cc segment comfortably. Realizing the need for an upgrade, TVS motors used its experiences
from the racetrack and launched a 160cc variant christened the Apache RTR. The RTR was an
instant hit and managed to eat into the market share of both the Pulsar 150 and the Pulsar 180
thanks to its strategic market positioning. The RTR was further upgraded in 2008 and got a fuel-
injection system as the RTR-Fi. Also in 2008, TVS Motors launched the Scooty Streak, a version
of the Scooty targeted at the college youth. Recently, in 2009 TVS launched the Apache RTR
180, a 180 cc motorcycle which caters to the premium end of the motorcycle market. The sales
of the Apache models, the Star City and the Scooty lineup have been steadily growing despite
Mr Venu Srinivasan, was conferred with the prestigious JRD Tata Corporate Leadership
Star of Asia Award to Mr. Venu Srinivasan, CMD TVS Motor Company by Business
Week International.
Venu Srinivasan, Chairman and Managing Director, TVS Motor Company was
Engineering
30
The Deming Prize - TVS Motor Company is the only two-wheeler company in
the world to be awarded the worlds most prestigious and coveted recognition
Maintenance (JiPm) Asian Network for Quality Award 2004 - TVS Scooty
Pep won the prestigious 'Outstanding Design Excellence Award' from Business
Management
Association of India.
Best Managed Company award from Business Today, one of
31
7. Daily Work Management-Culture:
The management philosophy is based on five pillars of TQM (Total Quality Management)
which rests on the foundation of Total Employee Involvement, daily management and Kaizen
(Continuous improvement).
The Total Employee Involvement program ensures that responsibility for the company's
performance is the shared responsibility of all levels of employees. It provides all employees
with the opportunity to be involved in breakthrough activities and other improvements, over
At TVSM, everyone is a leader and there is an overall grounding in Do it right the first
time- a strand of thought from Japanese manufacturing standards. People are happy to take
Daily work management consists of defining and monitoring key processes, ensuring that
they meet set targets, detecting abnormalities and preventing their recurrence. TVS Motor
encourages continuous improvement in all aspects of work, using Cross Functional Teams
(CFT), Supervisory Improvement Teams (SIT) Quality Control Circles (QCC) and
suggestion schemes.
The five pillars start with policy management, which is used to arrive at the annual
32
breakthrough objectives. There are generally not more than three company objectives, arrived
The company conducts an exhaustive range of training programs, utilising both in-house
skills and consuftants from all over the world. The programs are conducted for all employees,
at all levels.
33
8. Community development and social responsibility:
Srinivasan Services Trust (SST) is a trust co-sponsored by the Company with the vision of
building self-reliant rural communities. SST extended its coverage to 473 villages across 4
states of Tamil Nadu, Karnataka, Maharashtra and Himachal Pradesh. Some of the significant
achievements are:
22,001 Self Help Groups' members and 23,696 families earn additional income above
Rs.1,000/- through Income generation projects. 7,296 youth are made employable and
Eco leadership:
New technology should also answer appropriately to growing concerns on global warming and pollution.
At TVS Motor, they have always been in the forefront in bringing cleaner technology to two wheelers.
TVS brought the first bike to use the catalytic converter in India way back in 1996 TVS Shogun.
All their vehicles are 85% recyclable. This is of utmost importance in a scenario where countries like
Japanese and Germany have laws on recyclability of the vehicle. Their vehicles comply with world
New age fuels are very exciting area for TVSM and they have started their exploration into this with the
launch of the electric scooter and the three-wheeler available in factory-fitted CNG, LPG options.
34
9. Code of Business conduct and ethics of Board and Senior Management:
and code of ethics, which are the basic tenets of corporate governance. TVSM always
seeks to achieve optimum performance at all levels in adopting and adhering to best
35
governance practices. TVSM has always focused on corporate governance as means
to maximize long term stakeholders value through disciplined and sustained growth
Code:
This code of business conduct and ethics helps to ensure compliance with legal
requirements and standards of business conduct. The board of directors (the board)
has adopted a code of business conduct and ethics (the code) for all board members
and senior management personnel viz., all levels of management one level below
executive directors, including all functional heads. Every board member and senior
management personnel is expected to read and understand this Code and its
Conflict of interest:
All board members and senior management personnel shall not engage in any
36
or potential conflict situations shall exclude themselves from any discussion or
Fair dealing:
All board members and senior management personnel should deal fairly with TVSMs
accepted or extended.
Corporate opportunities:
All board members and senior management personnel shall not exploit for their own
personal gain opportunities that are discovered through the use of TVSM property,
information or position.
Confidential information:
All board members and senior management personnel shall maintain confidentiality
of information they receive while being in office of TVSM and ensure always
Protection of asset:
All board members and senior management personnel shall endeavor their best to
protect TVSMs asset and shall not use the same for their personal benefit, unless
Regulations:
All board members and senior management personnel shall comply with all
takeover and insider trading regulations and shall report actual non-compliances, if
any, of law, this code, or other TVSM policies or procedures to the board.
37
10. Brand Ambassadors and Print Ads:
TVS Motors has always signed very effective brand ambassadors for its different range of
products. Through these brand ambassadors, it has been able to successfully connect with the
mass. The current brand ambassador for the Scooty brand is the ace tennis star of India, Sania
Mirza. She emanates the brand attributes of being self sufficient and is a young achiever.
Fig: Print Ad for the new Scooty Streak having Sania Mirza as the brand ambassador
TVSM had earlier roped in Sachin Tendulkar as their brand ambassador for their motorcycles.
Now, they have Mahendra Singh Dhoni, Indias wicket-keeper batsmen, as their brand
ambassador for the Apache and Star City brand of motorcycles as he emanates the brand
attributes of the brands like the power, speed and style. Company officials had then said that
Sachin Tendulkar would ultimately become the brand ambassador for the company itself, rather
38
Fig: Print Ad for TVS Star City which is one of their most successful models
TVS Motor has followed a trend of appointing celebrities as their brand ambassadors in
India. In the same vein, TVS Motor has roped in local celebrity Iwan Fals who happens to be
In order to improve its operating efficiency and to improve its relationship with the suppliers
and dealers, TVS Motors has effectively made use of IT. This is explained below:
39
IT in product development:
Product development would include conceiving the product to availability of the new
product in the retail market. The IT Department has been generating feedbacks from
the market, which have been compiled, analyzed and worked upon to understand the
saving time. Due to various tests conducted with the help of high-end computer
planning, time office administration, payroll and employee self service where
(ERP) to manage its relationship with its large base of suppliers and dealers. This has
enabled them to improve its relationship with these very important external
auction bid for specific materials. The auction bids automatically create
quotations in the SAP system, and at the end of the auction, a Purchase Order
is raised by the SAP system on the successful vendor. With this, the supplier
saves time and money and can bag a purchase order sitting in his office!
When a customer in any part of the country buys a product of TVS Motor
Company from any of its dealers, his or her name would be added to the
40
customer database of the company automatically and the aim is to reach the
of TVS thus has access to all the information on the Web. Also in the case of a
two-bin inventory system, when one of the bins gets empty it gets recorded in
SAP and the information is immediately available for the supplier, so that he
can send the replenishment. Suppliers can also create shipping notifications in
SAP through the Internet (which simplifies the goods receipt activity at TVS
Motor).
Dealers can enter their sales orders through the Internet, and subsequently
view details like sales target, their Sales Order status (eliminating multiple
data entries, errors, etc) and payment details. Warranty claims are fed in by the
dealer through the Internet, and the processing status including details of
TVS Motor Company is planning to look at IT as a profit centre by providing IT and IT-
enabled services (ITeS) to external customers. TVS IT team, which comprises around 100
people, has over the years, developed domain competencies in niche areas like Just-in-Time
(JIT) management, Kanban (replenishment inventory based on pull system) and Total
the competency for implementing IT projects in-house, we are looking at the possibility of
41
providing services for external business partners, particularly in areas where we have
The in-house IT team has implemented projects at TVS Himachal Pradesh plant, its
Indonesia unit and at the companys three-wheeler plant in Hosur. We have six group
companies and once the IT projects at all our units are completed, we do not mind helping
external customers. Once the thirst of all our group companies has been fulfilled over the
next one year, then we will look at external assignments. IT for us has been a cost centre and
Several companies have sought solutions for specific IT-related problems and have
approached the TVS IT team which has been helping them and providing clarifications
purely on an informal basis. The companys initiatives include digitising new product
TVS expects to outdo its past year's performance. In keeping with its overall business plan,
the company expects to maintain cumulative growth in sales, leveraging its recently launched
products. New products to be introduced will trigger growth and improve profitability. The
Wheeler:
In keeping with its plan for new launches during the current financial year, the
42
performance-packed superior engine technology make the bike a class leader in
TVS has also launched the 2009 model of its Flame motorcycle under the brand
name Flame SR 125, which features an enhanced engine and revamped graphics.
The new commuter motorcycle is loaded with a host of new and exciting features
and is being targeted at smart city commuters. Developed with AVL Austria, SR
The company would also be expanding its scooter platform to offer a large scooter
and will introduce an all-new motorcycle in the executive segment. In the three-
wheeler segment, the company plans to introduce four-stroke TVS King in Petrol,
TVS Motor Company is planning to set up an arm that would exclusively finance its two-
It may be noted that last year, the company had delisted its financing arm TVS
Finance from stock markets and said it will re-enter vehicle financing.
43
Venu Srinivasan, chairman and managing director, TVS Motor, said that the company had
approached the Reserve Bank of India (RBI) for approval which is expected to come in two
months and the operations would commence by the end of the current calendar
In a slowdown year, when the availability of retail finance, especially in small towns and
rural areas, is tight, an in-house retail finance arm would help, he said. He said the demand
Meanwhile, TVSM intends to set up an engine testing facility at its R&D centre in Hosur.
The company plans to launch two new vehicles an automatic scooter and a motorcycle
before the end of this calendar year. Last year, the company sold 6.44 lakh motorcycles, 4.38
lakh mopeds and 2.59 lakh scooters. It also sold 4,613 three-wheelers with two-stroke
engines. Sales have picked up and are averaging about 1,000 a month, Mr Srinivasan said.
The company plans to launch a four-stroke version soon at a few places including Delhi and
Bangalore.
1. The TVS Motor Company has shown steady growth in a very competitive market thanks
to its competitive products and technologies. This in turn is due to the proactive and
44
competent approach by its R&D department which has not only created practical but
can be witnessed by its consistent endeavor to move towards greener technologies and
company and this can be gauged from the number of awards conferred upon it in the
organization even after its venture with Suzuki Motors, Japan on which it was dependent
for technology know-how, came to an end, TVS Motors continued to hold its market
position.
5. Another factor responsible for the companys success is its speed of innovation thanks to
which it can introduce new products quickly in a highly dynamic market environment.
This can partly be attributed to the use of efficient practices like Kanban, Total
state-of-the-art technologies like mySAP R/3 ERP. This efficient use of technology
allows it to effectively manage its symbiotic interdependencies with its suppliers and
14. References:
http://www.tvsmotor.in/index.asp
http://www.tvsmotor.in/directors.asp
http://en.wikipedia.org/wiki/TVS_Motors
http://www.tvsmotor.in/milestones.asp
www.indonesiamatters.com/933/tvs-motor-company/
http://www.thehindu.com/2007/07/17/stories/2007071760381600.htm
http://apachertr.blogspot.com
45
http://www.surfindia.com/automobile/tvs-flame.html
http://auto.indiamart.com
http://www.infibeam.com/bikes/make/suzuki.html
http://TVS Motors/TheHinduBusiness/TVSMotorCompanytolookatITasprofitcentre.asp
http://www.tvsmotor.in/news.asp?id=204&yr=2009
http://www.business-standard.com/india/storypage.php?autono=367266
http://www.thehindubusinessline.com/2009/08/18/stories/2009081851200200.htm
http://www.2wheelsindia.com/2008/11/whats-up-with-tvs-motor-in-indonesia.html
http://www.tvsmotor.in/excellence.asp
http://www.tvsmotor.in/leader-ship.asp
http://www.thehindubusinessline.com/2007/08/26/stories/2007082651020200.htm
http://www.ciol.com/content/enterprise/2004/104071901.asp
http://www.financialexpress.com/news/how-tvs-motor-rides-on-the-web/54212/0
Annual reports from 2005 to 2009
46