A

PROJECT
REPORT
OF
STRATEGIC MANAGEMENT
ON
TVS MOTORS

Submitted by:
NAME ROLL NO.
GOHIL SAROJ 5
PATEL FALGUNI 19
PATEL KOMAL 25
PATEL NEHA 28
PATEL NIDHI 29
THAKKAR BHAGYASHRI 46

Submitted to:
RAKESH LARA

VIVEKANAND COLLEGE FOR BBA

INDEX
 TVS MOTOR COMPANY – MISSION

We are committed to being a highly profitable, socially responsible, and leading

manufacturer of high value for money, environmentally friendly, lifetime personal
transportation products under the TVS brand, for customers predominantly in Asian
markets and to provide fulfillment and prosperity for employees, dealers and suppliers.

Interpretation:-

 They want to do the business for high profit with respect to social responsibility.
 They want to make the quality products which are eco-friendly.
 They want to give the satisfaction of all the people like; customers, employees,
dealers and suppliers by the providing their respective facilities.
 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.

Interpretation:-

 They want to give the better facility of the customer and want the customer
satisfaction by providing the good quality products.

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.

Interpretation:-

 They want to be leader of manufacturing two-wheeler in Indian and Asian market.

 In Indian market they want to be one among the top two.
 In Asian market they want to be one among the top five.

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. 
Interpretation:-

 They want to development of their company in the overall Asian market.

 Areas of development are manufacturing, technology and marketing.
 They want to achieve a significant share for international business.

TVS Motor - At the cutting edge 

TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking
against international leaders.

 Interpretation:-

 By using its cutting edge of technology (manufacturing all the parts of products)
they want to give the constant benchmark against international leader.

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. 

Interpretation:-

 They want to adopt TQM (Total Quality Method)

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 employee’s 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.

Interpretation:-

 They want to give the importance of employees.

 By giving training.
 By the providing job appraisal and job satisfaction.
 By the support and encouragement.

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.

Interpretation:-

 They believe in social responsibility and good relationship with the people.
 Protection of employees and environment.
 Good relationship with its customers, employees, dealers and suppliers.
 COMPANY PROFILE

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 2008-2009,
and is the flagship company of the USD 4 billion TVS Group.

A bike for anyone

TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing
inspired motorcycles.

Motorcycles (Apache RTR 180, Flame DS 125, Flame, TVS Jive, Star City, Sports)

Variomatic Scooters (TVS Wego, Scooty Streak, Scooty Pep+, Scooty Teenz) 

Mopeds (TVS XL Super, TVS XL Heavy Duty)

Penchant for Quality

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.

Innovation at the helm

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. We at TVS deliver total
customer satisfaction by anticipating customer need and presenting quality vehicles at the
right time and at the right price. The customer and his ever changing need is our
continuous source of inspiration.

15 million smiles on the Road

TVS has always stood for innovative, easy to handle, environment friendly products, backed
by reliable customer service. 

No wonder, then, that our 15 million customers on the road have a reason to smile. 
 AWARDS

 TVS Motor won the Deming Application Prize in 2002, becoming the first and only
Indian two-wheeler company to win the award given to companies that do
outstanding work in the field of Quality Management. It is considered to be one of
the world's most prestigious quality awards.

 The same year, the work done for the TVS Victor motorcycle won TVS Motor the
National Award for successful commercialization of indigenous technology from the
Technology Development Board, Ministry of Science & Technology, Government of
India.

 In 2004, TVS Scooty Pep won the 'Outstanding Design Excellence Award' from
Business World magazine and the National Institute of Design, Ahmadabad.

 The effective implementation of Total Productivity Maintenance practices won TVS

Motor the TPM Excellence Award given by the Japan Institute of Plant Maintenance
in 2008.

 TVS Motor has won several management awards, notable among them being the
Emerging Corporate Giant in the Private Sector awarded by The Economic Times and
the Harvard Business School Association of India. Business Today magazine awarded
TVS Motor the Best Managed Company and the Most Investor Friendly Company
awards. Its advertising practices won it the Good Advertising award by Auto India
Best Brand Awards 2009.

 Company Chairman Venu Srinivasan is a recipient of several awards for corporate

excellence such as the Star of Asia Award by Bloomberg Business Week and the JRD
Tata Corporate Leadership Award.

 The University of Warwick, United Kingdom gave him an honorary Doctorate of

Science degree while the Government of India honoured him with the Padma Shri,
one of India's highest civilian distinctions.
  Innovative implementation of Information Technology has won TVS Motor the Ace
Award for Most Innovative NetWeaver Implementation in 2007 awarded by
technology major SAP AG and the Team Tech 2007 Award of Excellence for
Integrated use of Computer-aided engineering Technologies.

HISTORY

TVS Motor Company Ltd.: History

1982

- The company was incorporated as Indian motorcycle Pvt. Ltd. On 15 th July. Its name
was changed to Indo Suzuki Motorcycles Pvt. Ltd. and it was converted into a public
limited company on 12th January, 1984. It was promoted by Mr. N. Krishnan in
collaboration with Suzuki Motor Co. Ltd. Japan; Sundaram-Clayton, Ltd., a member
of the Company to the extent of Rs 70 lakhs.
- The company entered into a technical know-how and assistance agreement with
Suzuki Motor Co. Ltd., of Japan on 22nd September. As per the terms of the
Colloboration, Suzuki agreed to furnish complete technical information and know-
how, trade secrets and other data.
- All shares taken up by promoters etc.
1984
- The company received a letter of intent for the manufacture of 20,000 spark ignition
operated out board motors and 30,000 internal combustion spark ignition engines
upto 500cc per annum.
- 59,40,000 shares issued at par in 1984. 7,00,000 shares allotted to Sundaram
Clayton, Ltd. Chennai, 70,000 shares allotted to Anusha Investments (P) Ltd.
Chennai, 20,00,000 shares allotted to Suzuki Motor Co., Ltd., Japan; 2,20,000 shares
allotted to employees and business associates and 29,70,000 shares offered to the
public.
1985
- A new company "Lakshmi Auto Components Pvt Ltd." was incorporated for the
manufacture of critical engines and transmission parts.
1986
- The company acquired the assets of the moped division from Sundaram Clayton Ltd.
The cost of acquisition was met partly by rights issue of equity shares. The company
subscribed to 39,20,000 equity shares of Rs.10 each of Lakshmi Auto Components
Pvt Ltd, whereupon it became a subsidiary of the company. 
- The name of the company was changed from Indo Suzuki Motorcycles Ltd. to TVS
Suzuki Ltd with effect from 18th august.
- 154,00,000 rights equity shares issued at par in prop. 2:1.
1988
- The company obtained a letter of intent for expanding the capacity to 4,00,000 Nos.
two wheelers.

1989

- The working was adversely affected due to labour unrest which resulted in a lock-
out from 28th February 1990. The lock out was lifted in the second week of June
1990.
1990
- The company launched a 34cc miniped to take advantage of the Motor Vehicle Act
that exempts such vehicles from the payment of road tax. The Company worked for
only 10 months due to lock out.

1991

- The technical aid agreement entered into with Suzuki Motor Co., Japan which
expired in August 1991 was extended for three more years with the approval of the
Government of India.

1992
 - The company launched two new models of motor cycles viz. ‘sumurai’ and ‘shogan’.

1993

- The company launched a new model of moped viz. ‘TVS scooty’.

1995

- The Company was studying the feasibility of opening a second plant at a different
location to meet the growth in demand for two wheelers in the near future. It also
proposed to introduce upgraded version of mopeds. In addition, during the year, the
Company undertook to develop new models of motorcycles.

1996

- The company is taking steps to meet the increase in demand for its products and
improve the market share.
- A statement relating to the subsidiary, M/s Lakshmi Auto Components Limited,
Chennai, and a copy of its annual accounts for the year ended 31st March, 1996 are
attached to the balance sheet pursuant to section 212 of the companies Act, 1956.
- As per the requirements of section 217(1)(e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,
1988, the information regarding conservation of energy, technology absorption and
foreign exchange earnings and outgo are given in annexure I to this report.

1997

- TVS-Suzuki plans to set up an auto ancillary estate through joint venture with some
of its existing components suppliers. The proposed project is to come up at a new 57
- acre site near TVS-suzuki’s existing plan at hour.
- Leading two-wheeler manufacturer in the country, TVS Suzuki, will soon set up a
new 2.5 lakh capacity scooter plant in mysore.
- TVS-Suzuki (TSL) - a joint venture between the TVS group and Suzuki Motor
Corporation, Japan – was the first company to launch a 100-cc motorcyclein the
Indian market.
 - Credit Analysis & Research Ltd (Care) has assigned the credit rating of CARE AA+
(double A plus) to the proposed non-convertible debenture issue of Rs.100 crore by
TVS-Suzuki Ltd (TSL).
- TVS Suzuki is a joint venture between Saundaram Clayton Ltd. of the TVS group and
Suzuki motor corporation, Japan.
- The company proposes to introduce kick start facility.
- TVS Suzuki Ltd (TSL), the second largest two-wheeler manufacturer in the country,
will be restructuring its entire vendor-base in the next five years with the objective
of creating robust vendors to meet its future expansion plans.
- TVS Suzuki Ltd is officially launching its new moped model, the XL super.
- The Rs. 100 crores non-convertible debentures of TVS-Suzuki Limited rating of AA +
(high safety with higher standing) has been retained by CARE.

1998

- TVS Suzuki Ltd, one of the leading two-wheeler manufacturers in the country, has
crossed the RS. 1,000-crore turnover mark in 1997-98.
- TVS will be the first company in the country to introduce the 4 stroke scooter in the
Indian market.
- TVS' new-generation state-of-the-art four-stroke scooter Spectra, of which we gave
you an exclusive preview last month, was launched in spectacular fashion at the TVS
Millennium show on October 1 in New Delhi.
- TVS Suzuki Ltd on October 1 launched its new generation 4-stroke scooter `TVS
Spectra' in Delhi.

1999

- TVS Suzuki is all set to launch a scaled-down version of Spectra -- the recently
launched four stroke scooter.
- The company is set to launch spectra on a nation-wide basis in April.
- Suzuki has indicated to the TVS group that if it did not agree to the Japanese
company's acquiring a majority stake, it should allow Suzuki to set up a 100 percent
subsidiary.
2000

- The Company, pioneers of Indo-Japanese motorcycles in the country, has launched

its latest offering, Suzuki Fiero, in the Kerala market.
- The Tamil Nadu based TVS-Suzuki has launched the 150 CC four-stroke powerhouse
Suzuki Fiero in Tamil Nadu, close on the heels of its launch in Rajasthan, Karnataka
and Kerala.
- Two-Wheeler major, TVS-Suzuki Limited is set to create a special cell to tap the
institutional segment.
- The company proposes to relaunch its four-stroke scooter, spectra, in July.
- Two-wheeler major TVS Suzuki is all set to cross the magic one million mark during
the current fiscal with 12 new models lined up over the next 18 months.
- Motocycle giant, TVS Suzuki, has forged an alliance with Brand Dotcom to leverage
the latter’s online expertise brand building on the net.
- TVS-Suzuki Ltd on August 30th, formally launched its indigenously developed 4-
stroke motorcycle, TVS Victor, here. The price has been fixed at Rs 41,187, (ex-
showroom, Chennai).
- The TVS group and Suzuki Motor Corporation September 27 parted ways from their
15-year-old joint venture with the former buying out the 25.97 per cent stake of the
Japanese company for Rs 9 crore.

2002

- TVS Motor Company Ltd has informed that the Board declared an interim dividend
of Rs 9.00 per share on 2,31,00,070 equity shares of Rs 10/- each fully paid up,
aggregating to Rs 231.00 million.

2003

- TVS motor company has recorded a market share of 35% from motor cycle division.
- K.S.Bajpai has been appointed as an Additional director on the board.
- TVS, Bajaj Auto and Yamaha have grabbed the market share from the country's
largest motor cycle maker hero Honda.
 - The TVS voctor sales have crossed 4 lakh unit mark in less than 18 months of its
launch.
- TVS motor has recorded a 31% growth in its sales.
- C V R Panikar has been appointed as Additional Director on the Board of TVS Motor
company Ltd.
- TVS motor company has introduced Fiero, inorder to compete with Bajaj pulsar.
- TVS Motor Company Ltd has introduced its own racing bikes which Team TVS will
test on the tracks in Asian circuit.
- TVS Motor launched 4 new mobikes including a new brand 100-cc mobike called the
centra.
- TVS Motor Chairman and MD Venu Srinivasan has been selected in Business Week's
Stars of Asia which covers the top 25 achievers in the continent.
- TVS motor company adds two new models in two-wheeler segment.
- TVS motor ties up with state bank of India for scooter and motorcycle financing.
- Launches Fiero F2 and scooty Pep models.
- Board of approves the merger of engine components division of its subsidiary,
Lakshmi Auto components (LAC) with TVS motors effective from April 2, 2003.

2004

- TVS Motor, on Jan 5 launched Centra, a 100 cc four-stroke motor cycle, with variable
timing intelligent (VTI) engines, claiming to give more mileage to consumers. The
Centra has bundled price, style, power along with fuel efficiency making it a fill-
once-a-month bike, and it's priced at Rs.36, 990. Nearly Rs 100 crore investments
had gone into the launch of ‘centra’, including R&D plant and machinery.
- TVS motor company unveil TVS centra with ‘VT-I engines’, a 100cc 4 stroke
motorcycle.
- TVS Motor Company launched its new bike - TVS Centra - here on February 9, 2004,
for the first time in the State. It is a 100-cc four-stroke motorcycle targeted at the
popular segment and a Fill-it-once-a-month bike, competitively priced at Rs. 36,990.
The vehicle has been launched in January in the metros and other cities and so far
8,000 vehicles had been sold in the country.
 - TVS Motor Company and Union Bank of India (UBI) have announced the launch of
`Union Miles Scheme’, an exclusive two-wheeler finance scheme.
- TVS Motor Company (TVS) launches new 125cc, 4-stroke Victor GLX motorcycle in
Chennai on May 02, 2004.
- TVS vice president resigns.
- TVS motors forge alliance with Andhra bank.
- Canara bank, TVS motor rolls out TVS conmobile.
- TVS pick up Asian Network for quality award.
- TVS unveils new version of ‘victor GX’.

2005

- TVS Motor Company introduced its entry-level 4-stroke motorcycle - TVS Star - in
the Kerala market.
- TVS rolls out star bike in Andhra Pradesh.
- TVS Motor Company launches TVS Centra VT-i, a variant of its four-stroke 100cc
model TVS centra on May 06.
- TVS Motor rolls out two motorcycle variants named Victor EDGE, Star City and
Scooty Pep plus.

2006

- TVS motor appoints new president.

- TVS launches Apache in Vizag.
- TVS Motor Company launched a new version of 125 cc Victor GLX with an electric
start option.

2007

- TVS Motor Co has rolled out seven new vehicles, including its first three-wheeler
and a new 125cc bike, aimed at gaining lost share in a highly competitive market.

2009
 - TVS Motor Company launched Scooty Streak, which is its latest scooterette targeted
at girls of 16 to 20 age group.
- TVS Motor Company Limited has appointed Mr. Prince Asirvatham as an additional
and independent director of the board of director of the company effective April 21,
2009.
- TVS Motor Company entered the 110 cc segment by unveiling 2 brand new
products, an auto-clutch motorcycle and an automatic scooter.

2010

- TVS Motor Company has launched India's first auto-clutch motorcycle- TVS Jive, in
Chandigarh.

MANY FIRSTS (NOTIFICATIONS)

Many firsts to the Automotive Industry in India

TVS has been at the forefront in bringing a revolution in the way personal commutation
was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use
moped for the middle class in India in the 1980s to launching 7 new bikes in a single day
(first time in the history of the automotive industry in the world), TVS has often taken the
unbeaten path to innovation.

Ushering in the personal transportation revolution

1980-Launched TVS 50, India's first 2 seater 50 cc moped.

1984- First Indian company to introduce 100 cc Indo - Japanese motorcycles.

1994- Launched India's First indigenous scooterette (sub - 100 cc variomatic) - TVS Scooty.

1996- Introduced India's first catalytic converter enabled motorcycle, the 110 cc Shogun.

1197- Introduced India's first 5 speed motorcycle, Shaolin.

2000- Launched India's first 150 cc, 4 stroke motorcycle - The Fiero.

2001- Launched India's first fully indigenously designed and manufactured motorcycle.
2004- Launched the revolutionary VT-I engine for the best in class mileage in TVS Centra.

2006- Launched TVS Apache - first bike to win 6 awards in a row.

2007- Apache RTR - first two wheeler in India to have racing inspired engine and features.

2008- TVS Flame, TVS Scooty Electric Vehicle and Three wheeler TVS King launched.

2009- TVS Apache RTR 180 and TVS Streak launched.

STRATEGIES

Growth strategy

TVS motors start in 1982 and its adopting growth strategy and it was a Pvt. Ltd. Company
the name was Indian motorcycle pvt. Ltd. It was converted into a public limited company in
1984 the name was Indo Suzuki motorcycle Pvt. Ltd. with the collabration of suzuki motors
co. ltd. Japan; sundraram clayton ltd. After the collaboration TVS motors issuing their share.
And increasing the manufacturing of two-wheeler. In 1988 expanding the capacity to 4,
00,000 Nos. two-wheelers. And growth strategy is stop in 1989.

Retrenchment strategy

TVS motors adopt retrenchment strategy in 1989 because due to the work load and unrest
of the employees the company is lock out. After the adopting retrenchment strategy they
were starting their company in 1990 and start the work on launching the 34cc miniped.
And after the some period of time they adopt growth strategy.

Growth strategy

TVS motors adopt growth strategy in 1992 with launching of two new models. From the
1992 to till today they are with growth strategy.

The TVS Suzuki Relationship

TVS and Suzuki shared a 19 year long relationship that was aimed at technology
transfer to enable design and manufacture of two-wheelers specifically for the Indian
market. Rechristened TVS-Suzuki, the company brought out several models such as the
Suzuki Samurai, Suzuki Shogun and Suzuki Fiero. Differences in opinion on how to run the
join venture eventually led to the partners going their separate ways in 2001 with the
company being renamed TVS Motor, relinquishing rights to use the Suzuki name. There
was also a 30 month moratorium period during which Suzuki promised not to enter the
Indian market with competing two-wheelers. The company also got over a period of labour
unrest that required Chairman Venu Srinivasan to take tough measures to resurrect a
company that was in a state of turmoil. He would go on to invest in new technology,
nurture in-house design, and implement Toyota-style quality programs.

Rise to Present Prominence

Over the years TVS Motor has grown to be the largest in the group, both in terms of size
and turnover, with four state of the art manufacturing plants in Hosur, Mysore and
Nalagarh in India and Karawang in Indonesia. TVS Motor is credited with many innovations
in the Indian automobile industry, notable among them being the introduction of India's
first two-seater moped, the TVS 50cc. The company became the leader in its category of sub
100 cc mopeds, having sold 7 million units. It also introduced the TVS Scooty, which is
India's second largest brand in the scooterette segment. The TVS Jive launched in
November 2009 became India's first clutch-free motorbike aimed at a stress-free rider
experience. While the unisex scooter Wego is targeted at urban couples, featuring body-
balance technology for easier handling.