ORGANISATION STUDY ON

TVS- BRIDGESTONE AGENCIES

Submitted by

NIKHIL V H

USN: 4SN18MBA45

Submitted to

DEPARTMENT OF MBA

SRINIVAS INSTITUTE OF TECHNOLOGY

In partial fulfilment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

PROF, STEEVAN ROBERT TELLIS, MR. SUDEEP
MBA DEPARTMENT, SALES MANAGER
SRINIVAS INSTITUTE OF TECHNOLOGY, TVS, BRIDGESTONE AGENCIES,
VALACHIL, MANGALURU RAJAJINAGAR, BENGALURU.

DEPARTMENT OF MBA

SRINIVAS INSTITUTE OF TECHNOLOGY

Approved by AICTE, New Delhi and Govt of Karnataka

And Affiliated to Visvesvaraya Technological University, Belagavi

2019
 SRINIVAS INSTITUTE OF TECHNOLOGY

Approved by AICTE, New Delhi and Govt of Karnataka

And affiliated to Visvesvaraya Technological University, Belagavi

DEPARTMENT OF MBA

CERTIFICATE

This is to certify that Nikhil V H bearing USN (4SN18MBA45) is a

bonafide student of Master of Business Administration course of Srinivas
Institute of Technology 2018-19, an affiliate to Visvesvaraya
Technological University, Belagavi. Organization Study on “TVS
Bridgestone Agencies” prepared by him/her under the guidance of Prof
Steevan Robert tellis, in partial fulfillment of the requirement for the
award of the degree of Master of Business Administration of Visvesvaraya
Technological University, Belagavi, Karnataka.

PROF. S TEEVAN R OBER T DR. AJOY S JOSEPH DR. SHRINIVASA

TELLIS MAYYA D
Internal Guide HOD Principal

Name of the Student : Nikhil V H

USN :4SN18MBA45

Viva

Name of Examiners

1.

2.
 DECLARATION

I, Nikhil V H, hereby declare that this report entitled an Organization

Study on TVS-Bridgestone Agencies is prepared by me under the
guidance of Prof Steevan Robert tellis, faculty of MBA Department,
Srinivas Institute of Technology and external assistant by Mr. Sudeep.

I also declare that this Organization Study is towards the partial fulfillment
of the university regulation for the award of degree of Master of Business
Administration by Visvesvaraya Technological University, Belagavi.

I further declare that this Organization Study is based on the original study
undertaken by me and has not been submitted for the award of any other
university or institute for the award of any other degree.

Place: Mangaluru Signature of the Student

Date: (Nikhil V H)
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude towards those who have
rendered their valuable guidance and have positively influenced my knowledge during
the course of organization study.

I would like to express my sincere gratitude to DR. SHRINIVASA MAYYA D,

Principal, Srinivas Institute of Technology, Valachil, Mangaluru, for his guidance and
support in caring out this organization study.

I thank to DR. AJOY S JOSEPH, HOD, Department of MBA, Srinivas Institute of

Technology, Valachil, Mangaluru for giving us support and guidance for our
organization Study.

I express my utmost gratitude to my Internal Guide Prof. Steevan Robert tellis,

faculty, MBA Department who has enthusiastically imparted relevant information
guided and support me carrying out this report.

I also express my heart full thanks to Mr. Sudeep, Sales Manager, TVS-Bridgestone
Agencies, for his valuable guidance and support.

Finally I would like to thank my Parents, dear and near ones and all my friends who
have helped me in the completion of the report.

Place: Mangaluru Signature of the Student

Date: (Nikhil V H)
 TABLE OF CONTENT

Chapter Title Page No.

Executive Summary

1 Introduction 1-3

2 Organization Profile

2.1 Back ground

2.2 Nature of Business

2.3 Vision, Mission, Quality Policy

2.4 Work Flow Model 4-39

2.5 Product/Service Profile

2.6 Ownership Pattern

2.7 Achievements/Awards if any

2.8 Future Growth and Prospects

3 Mckensy’s 7S framework and Porter's Five 40-49

Force Model

4 SWOT Analysis 50-52

5 Analysis of financial statements 53-58

6 Learning experience 59

Bibliography 60
 LIST OF TABLES

Table No. Title of the table Page No.

5.1 Profit and Loss Account 53-54

5.2 Balance Sheet 55-56

5.3 Cash flow Statement 56

5.4 Consolidated financial ratios 56-58

✓ Investment valuation ratios

✓ Profitability ratios
✓ Liquidity and solvency ratios
✓ Debt coverage ratios
✓ Management efficiency ratios
✓ Cash flow indicator ratios.
 EXECUTIVE SUMMARY

This report is about my Organization Study in TVS-Bridgestone Agencies, In this

comprehensive report, I have discussed about every major aspect of the company which
I observed and perceived during my internship program.

In this report you will find the details about the company right from its incorporation to
its current position. You will also see that the processes, policies and procedures of the
company are being discussed in detail.

During my internship program, I mainly worked with Accounting, Financial, Sales and
Reception Department. However, all the departments have been discussed in detail and
all the policies and procedures have been described thoroughly.

The main purpose of my organization study was to acquire some knowledge and skills
by working in a practical environment and later on apply the same in a real-world
scenario to tackle the problems. The Learning and Experiences section at the end of this
report consists of all the policies, processes, practices and procedures which I have
undergone through and learned during my organization study.

This internship report covers many important aspects which are basically related with
the operations and financial aspects of the company. In this report a detailed analysis
of the organization has been done and all the financial, technical, managerial and
strategic aspects have been evaluated to analyze the current position of the organization.

I have understood the many management technics regarding internal and external
environment, totally this organization study helped me face the actual organization
conditions and I would like to say that this organization study is very interesting
CHAPTER-1

Introduction about the Organisation and Industry

The TVS Group is one of India's largest industrial conglomerates. TVS Sundram
Iyengar and Sons Limited, established in 1911, is the parent and holding company of
the TVS Group

TVS Motor Company is the third largest two-wheeler manufacturer in India, with a
revenue of 15129 Cr INR (2017-18). The company has an annual production capacity
of 4 million 2 wheelers & 120,000 3 wheelers. TVS Motors is one of India’s leading
manufacturers of two-wheelers starting from mopeds to motorcycles and three-
wheelers like auto rickshaws. The company which holds the vision of a vehicle for
everyone has been popular for their economic models which exhibit robust
performance. TVS Motors through its plants in India and Indonesia produces around
3.2 million two-wheelers and 1.2 lakh three-wheelers.

The group which has diverse interests in domains like automobile, airlines, education,
consumer electronics, power, finance, housing, insurance, investment, logistics, service
and textiles registered an annual turnover of 13,363.43 Cr INR in the year 2016 out of
which the highest share of profits has been registered by TVS Motors which is around
40,000 crores INR. The company has always given stuff competition to foreign
multinationals in the two-wheeler and three-wheeler segments.

TVS and Sons also distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It
represents premier automotive companies like Ashok Leyland, Mahindra and Mahindra
Ltd., Fiat and Honda. It also distributes automotive spare parts for several leading
manufacturers. TVS & Sons has grown into a leading logistics solution provider and
has set up state-of-the-art warehouses all over the country. It has also diversified into
distributing Garage equipment that ranges from paint booths to engine analyser’s and
industrial equipment products.

TVS Bridgestone Agencies in Rajajinagar, an authorized dealer of TVS motorcycles

and Scooters in Bangalore. TVS motors is the third largest two-wheeler manufacturer
1
in India, and one of the most popular two-wheeler names in the country. The TVS 50
created a revolution in motorized two-wheelers in India. It is the second two-wheeler
in India to achieve this milestone, beaten only by the Hero Splendor. The affordable
pricing, ease of use and its ability to carry almost anything that could be loaded upon it
were the most prominent factors that made it such a raging success.

Manufacturing Locations
The company has four manufacturing plants, three located in India (Hosur in Tamil
Nadu, Mysore in Karnataka and Nalagarh in Himachal Pradesh) and one in Indonesia
at Karawang.
Innovation at the Helm
TVS Motor's strength lies in design and development of new products. 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 everchanging need
is our continuous source of inspiration. We have proved time and again that this sense
of responsiveness along with a penchant for quality is a winning formula. The company
has many firsts to its credit including the fact that we launched seven vehicles on the
same day - a rare feat in Automotive history.

Inspiring Millions of Smiles

TVS has always stood for innovative, easy-to-handle, and environment-friendly
products, backed by reliable customer service.
More than 33.5 million customers have bought a TVS product to date. TVS products
give you only reasons to smile!
In early 2015, TVS Racing became the first Indian factory team to take part in the Dakar
rally, which is one of the longest and most dangerous rallies in the world. TVS Racing
partnered with French motorcycle manufacturer Sherco for the Dakar rally, and named
the team Sherco TVS Rally Factory Team.

The company has four manufacturing plants - three located in India (Hosur, Tamil
Nadu; Mysore, Karnataka and Nalagarh, Himachal Pradesh) and one in Indonesia
(Karawang).

2
The company has come a long way from starting off with the humble TVS XL 100 to
gracing the sub-400cc segment with the Apache RR 310. Its rich history with racing
and its partnership with the premium German marque BMW has helped the company
grow considerably in numerous markets abroad. TVS has also been actively researching
and developing two-wheelers running on alternative sources of fuel. The TVS Apache
RTR 200 with ethanol compatibility and the Zeppelin with a hybrid powertrain (both
showcased at the 2018 Auto Expo) are perfect examples of the brand’s efforts towards
a better, greener future without compromising on the racing genes TVS is always
known about.
TVS bikes price starts at Rs. 29,990 for the cheapest bike XL100 and goes up to Rs.
2.27 lakh for the top model TVS Apache RR 310. TVS offers 16 new bike models in
India. Apache RTR 160 (Rs. 79,718), Apache RTR 160 4V (Rs. 83,145) and Apache
RTR 180 (Rs. 85,261) are among the popular bikes from TVS. In the year 2019/2020,
TVS is going to launch 3 new models in India. Select a TVS bike to know the latest
offers in your city, prices, variants, specifications, pictures, mileage and reviews.
TVS is expected to launch 4 bikes in the year 2019/2020. Zeppelin, ,
Creon and Apache RTR 310 are launching soon in India at an estimated price of Rs.
1.20 lakh, Rs. 70,000 and Rs. 1.99 lakh, respectively. Sustainability is a business
approach that creates longterm stakeholder value managing risks and embracing
opportunities through optimisation of the economic, environmental and social bottom
lines.
Green manufacturing was coined to reflect new manufacturing paradigm that employs
strategies and techniques to become more eco-efficient.
Green manufacturing deals with maintaining sustainability’s environmental,
economical and social objectives in the manufacturing domain.
Sustainability is a concept & Green manufacturing is a methodology.
Green Manufacturing Strategies include…..
Creating products and systems that consumes less Resource (e.g., energy, material
and water)
Substituting input materials (e.g., non-toxic for toxic, renewable for non-renewable),
Reducing unintended outputs and converting output into inputs (recycling).

3
CHAPTER 2
ORGANISATION PROFILE

2.1 .Company Background - TVS Motor Company

Industry Name Auto - 2 & 3 Wheelers

House Name TVS Group
Collaborative Country Name N.A.
Joint Sector Name N.A.
Year Of Incorporation 1992
Y ear Of Commercial Production N.A.

Regd. Office
Address '''Jayalakshmi Estates'',', 29, Haddows Road,
District Chennai (Madras)
State Tamil Nadu
Pin Code 600006
Tel. No. 044-28272233
Fax No. 044-28257121
Email : investorscomplaintssta@scl.co.in Internet : http://www.tvsmotor.com

Auditors Company-Status
V Sankar Aiyar & Co. N.A.

Registrars
Name Sundaram Clayton Ltd.
Address "Jayalakshmi Estates", 29 (Old No.8), Haddows Road, Chennai (Madras) - 600006,
Tamil Nadu

Tel. No. : 044-28272233, 28284959 Fax No. : 044-28257121

Email : scl@scl.co.in Internet : http://www.sundaram-clayton.com

4
Bridgestone Agencies | Dr Rajkumar Road Rajajinagar
Inspiration in Motion
+91 80 4357 8000 www.tvsmotor.com
Started in : October 1987 ( 3 partners )
Successfully completed 32 years in TVS vehicles sales & service
In sales counter volume around 250 to 300 numbers and having 6 sub dealer

1) VVK Motors
2) Speed motors
3) Narasimha Enterprises
4) Solar mobikes
5) Fast bikers
6) Namana Motors

Ad authorised Sub dealers sales would be 400 to 450 numbers

Total sales in a month would be 600 to 650 vehicles
Working hours : 9.00 AM to 7.00 PM
Lunch time: 1.00 PM to 2.00 PM

2.2 Nature of business :

TVS was the first Indian company to deploy a catalytic converter in a 100 cc motorcycle
and the first to indigenously produce a four stroke 150cc motorcycle. The list of firsts
from the firm include: India’s first 2-seater moped – TVS 50, India’s first indigenous
scooterette - TVS Scooty, India’s first Digital Ignition - TVS Champ, India’s first fully
indigenous motorcycle - Victor, First Indian company to launch ABS in a motorcycle -
Apache RTR Series, The first scooter with Body-Balance Technology – TVS
Wego,The clutchless motorcycle=Jive, Indonesia’s first dual-tone exhaust noise
technology – Tormax and India's first oil-cooled chamber construct with Ram-Air
assist- TVS Apache RTR 200 4V. And a recent launch - India's first connected scooter
TVS NTORQ which claims to be India's first Bluetooth Connected Scooter with
features like Call Assistance, Navigation etc.
5
TVS Motor Company is the third largest two-wheeler manufacturer in India, with a
revenue of 15129 Cr INR (2017-18). The company has an annual production capacity
of 4 million 2 wheelers & 120,000 3 wheelers.

TVS Bridgestone Agencies in Rajajinagar, an authorized dealer of TVS motorcycles

and Scooters in Bangalore. TVS motors is the third largest two-wheeler manufacturer
in India, and one of the most popular two-wheeler names in the country. The TVS 50
created a revolution in motorized two-wheelers in India. It is the second two-wheeler
in India to achieve this milestone, beaten only by the Hero Splendor. The affordable
pricing, ease of use and its ability to carry almost anything that could be loaded upon it
were the most prominent factors that made it such a raging success.

In sales counter volume around 250 to 300 numbers and having 6 sub dealer Ad
authorised Sub dealers sales would be 400 to 450 numbers ,Total sales in a month would
be 600 to 650 vehicles

Vehicles
MOPED
1) XL 100 HD
2) XL 100 HD (Self start with battery )
3) XL 100 HD Comfort
Motorcycles
1) Sport
2) Star city +
3) Victor
4) Radeon
5) RTR 160 4V ABS
6) RTR 180 2CH ABS
7) RTR 200 2.0 ABS
8) RTR RR 310
Scooters
1) TVS scooty Pep
2) Zest
3) Wego
6
 4) Jupiter – ZX Normal /Classic
5) NTORQ

Marketing Activities
Sales in counter / Outside Activities /leaflets insertion / mela’s /Mall activity
TVS Group spans across industries like Automobile, Aviation, Education, Electronics,
Energy, Finance, Housing, Insurance, Investment, Logistics, Service and Textiles.

Manufacturing Locations
The company has four manufacturing plants, three located in India (Hosur in Tamil
Nadu, Mysore in Karnataka and Nalagarh in Himachal Pradesh) and one in Indonesia
at Karawang.

Innovation at the Helm

TVS Motor's strength lies in design and development of new products. 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 everchanging need
is our continuous source of inspiration. We have proved time and again that this sense
of responsiveness along with a penchant for quality is a winning formula. The company
has many firsts to its credit including the fact that we launched seven vehicles on the
same day - a rare feat in Automotive history.

Inspiring Millions of Smiles

TVS has always stood for innovative, easy-to-handle, and environment-friendly
products, backed by reliable customer service.
More than 33.5 million customers have bought a TVS product to date. TVS products
give you only reasons to smile!

Customer Targets
90% Of local customers
10% Out said customers
Strategy: Attractive finance Schemes , discounts and offers.

7
Turnover and Profit: Turnover of TVS-Bridgestone Agencies expected 45 crores in
the financial year 1/April/2018- 31/March/2019 (Profit expected on the same year is
More than 5000000)
Has over 90 Companies under the umbrella.
TVS Group turnover including all key subsidiaries and associates is Rs. 59400 Cr for
FY 2017-18, approximately USD 8.5 Billion.
A Vehicle for Everyone TVS Motor currently manufactures a wide range of two-
wheelers. Take your pick from mopeds to racing inspired motorcycles.
Motorcycles: (Apache Series, Radeon, Victor, StaR City+, Sport)
Scooters : (Ntorq, Jupiter, Wego, Scooty Zest 110, Scooty Pep +)
Mopeds: (XL 100, XL 100 Comfort and XL 100 Heavy Duty, XL100 HD i-Touch
start)

2.3 Vision, mission, quality policy

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 fulfilment and prosperity for employees, dealers, and suppliers.

Vision Statement
Driven by the customer, TVS Motor will be responsive to customer requirements
consonant with its core competence and profitability. TVS Motor will provide total

8
customer satisfaction by giving the customer the right product, at the right price, at the
right time.
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.
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.
At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.
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.
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.
Responsible Corporate Citizen
TVS Motor firmly believes in the integration of Safety, Health and Environmental
aspects with all business activities and ensures the 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.

9
 2.4 Work flow model

2.5 Product / service profile :

Around the turn of the 20th century, bicycle racing was big in the USA Bicycles would
race around big curved tracks called velodromes aided by pacing machines powered
by internal combustion engines. These pacers were made in Europe and often broke
down. A young designer named Oscar Hendee, who had his own American pacer. He
met up with a racer named George Hendee who had his own bicycle manufacturing
plant in Springfield, MA. The two combined forces and created a bicycle powered by
an engine developed by Hedstrom. Thus was born the Hendee Manufacturing Company
and the Indian motorcycle. They chose the name Indian since it would signify an
American product. George Hendee became known as the Big Chief (B.C.) and Oscar
Hedstrom became known as the Medicine Man. The factory was called the Wigwam
and the dealer network was called the Tribe.

10
 The company finally changed its name from the Hendee Manufacturing
Company to the Indian Motorcycle Company in 1923.The first V-twins from Indian
were produced in 1907.Hedstorm left the company after a dispute in 1913, never to
work in the motorcycle industry again. In another dispute within the newly formed
company, Hendee also left the company in 1916.The company grew at a rapid rate but
had many competitors, most notably Harley-Davidson. Indian competed with Harley-
Davidson in the showrooms, on the tracks, and on the streets to determine which brand
was better .The second part of this article gives details about this war for bragging
rights. The war continues to this day even though Indian was to go out of business for
all intents and purposes in 1954.

Indian began making motorcycle in 1901 as the Hendee Manufacturing

Company. The first production model was in 1902 and 143 units were produced. In
1903, 376 motorcycles were sold. It continued production through 1953 when it no
longer made the classic Indian. In 1999 Indian motorcycle were again produced, this
time by the Indian Motorcycle Corporation. This was not the same company but it did
have rights to the Indian name and trademarks.

We present here a look at Indian models from the first prototype model in
1901 to the present as provided by About.com members. A gallery called “58 years of
Indian “ is provided that gives a picture and description for each model year from 1901
to 2003.of this article discusses the founding and early growth of the Indian Motorcycle
Company .Note the spelling here of “motorcycle “ instead of “motorcycle “. The term
“motorcycle “ was an archaic word used in the nineteenth century to denote any
horseless carriage. Indian wanted to distinguish itself from the competition by using the
older word. TVS Motor Company’s customer inspired engineering approach, has
enabled it to introduce the widest product range that caters to all segments of the two
and three wheeler industry in India. Total customer satisfaction is achieved through
excellence in quality that stems from the company’s management philosophy which is
based on the five pillars of TQM (Total Quality Management). Quality awareness
therefore percolates through the entire organisation from new product development to
after sales services.

11
Products: TVS Motor Company’s products straddle all industry segments with TVS
Sport and TVS StaR City+ in the economy segment, TVS Phoenix 125 in the executive
segment and TVS Apache series RTR in the performance segment. The company also
manufactures TVS Max4R, a product dedicated to rural commuters. The scooter
segment of the company comprises of TVS Scooty Pep+, TVS Scooty Streak, TVS
WEGO, TVS Jupiter and TVS Scooty Zest while TVS XL Super and Heavy Duty
comprise the mopeds segment. The company’s three-wheeler TVS King is India’s first
200 cc auto rickshaw with electric start and elegant styling, available in Petrol, LPG,
CNG and Diesel versions.

1980

Great milestone in Indian automobile history.

Country's first2 seater 50cc moped TVS 50
launched.

1984
First mover. TVS becomes the first Indian Company
to introduce 100cc Indo-Japanese motorcycles.

1994

Pioneer of mobility for women. Launched India's

first indigenous Scooterette (sub-100 cc
variomatic scooter), TVS Scooty.

12 [Cite your source here.]

1996 - 1997

Bringing in green technology before it became a norm.

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

[CITE YOUR SOURCE HERE.]

Great ride. Greater speed. Launched India's first 5-speed

motorcycle, the Shaolin.

2000 - 2001

Indigenous technology. Launched TVS Victor, 4-stroke

110 cc motorcycle India's first fully indigenously
designed and manufactured motorcycle.

[CITE YOUR SOURCE HERE.]

Hiking speed limits. Launched TVS Fiero, india's first 150

cc, 4 stroke motorcycle.

13
2002

TVS becomes world's first two wheeler company to win

world's most prestigious recognition in Total Quality
Management- the Deming Award

TVS wins Technology Award from Ministry of Science,

Government of India for successful commercialization of
indigenous technology.

2004 [Cite your source here.]

Setting benchmarks in mileage. Launched TVS Centra, a

world-class 4-stroke 100cc motorcycle with the
revolutionary VT-i Engine for best-in-class mileage.

All terrain performance. Launched TVS Star, a 100 cc

motorcycle ideal for rough terrain.

TVS wins Outstanding Design Excellence Award for TVS

Scooty Pep.

14
 TVS wins TPM Excellence Award from Japan Institute of
Plant Maintenance (JIPM).

2005 - 2006

Spreading its roots. TVS launches its Indonesian

plant.

Making a style statement. Launched TVS Apache, which set

the youth's imagination on fire. Apache went on to win 6
prestigious awards

2007

Never before in automobile history. TVS Motor

Company rolls out seven new products.Yet another first.
TVS launches its Himachal Pradesh Plant at Nalagarh.

15
2008

Apache RTR Fi launched in Jun-2008

TVS Motor Company bags two coveted IT awards SAP

ACE 2008 and 2008 Symantec South Asia Visionary Award

Scooty Pep + launched with balancing wheels in Aug-2008

Scooty Wimbeldon collection launched in Jun-2008

Apache Refresh with rear disc brakes launched in Dec-2008

16
 TVS Motor Company launches the revolutionary 125cc FLAME
in Mar-2008

TVS makes its foray into the three-wheeler market with TVS
KING in Mar-2008

2009 - 2010

TVS unveils the Apache RTR 180 ABS

Jive : The Auto - Clutch bike launched

Wego : First scooter with Body Balance Technology

17
2012 – 2013

TVS is India's most trusted brand in the 2 wheeler category.

Source : Economic Times Most Trusted Brands Survey

2012

TVS Motor Company launched Its premium

executive 125cc motorcycle, TVS Phoenix

TVS Jupiter launched on Sep 2013

2014 – 2015

TVS Motor Company launched a bike in the popular

commuter segment, all the StaR city+

TVS launches its all new premium commuter scooter, the

TVS Wego 110cc.

18
 TVS launches its award winning scooter, the TVS Scooty
Zest 110 with best in class features.

To celebrate the 1st year anniversary of the Jupiter, TVS

launches the special edition of the Jupiter with a new colour
and additional features, to be sold in limited numbers.

Launched All New Phoenix 125

J.D Power Asia Pacific India Automotive Awards

The most Appealing Executive Scooter - TVS Wego

The most Appealing Premium Motorcycle - TVS Apache

The most Appealing Economy Motorcycle - TVS Sport

2016

After decades of conquering the track, 2016 saw the

launch of the new TVS Apache RTR 200 4V. The
most powerful Apache yet.

19
 A new Victor to make you smile with every ride. The new
TVS Victor launched.

2017 – 2018

Celebrating 35 years of TVS Racing, 2018 witnessed the

launch of the TVS Apache RR310. This motorcycle has
been born out TVS Racing’s 35 year heritage in the Racing
world.

2018 was special for TVS Motor Company as we launched

TVS Ntorq 125, India’s first scooter with Bluetooth and
smart connectivity.

Sherco TVS Factory Rally Team achieved the best ever

finish at Dakar Rally 2018 in 11th position.

20
Services :
5 Years warranty
Vehicle warranty for TVS all Models 5 years

▪ Service should be on time

▪ Authorised TVS service centre
▪ Free service 1 year 4 free service
▪ Applicable to all TVS two-wheeler
▪ Peace of 5mind up to 5 years
▪ Trouble free ownership experience
▪ Valid at all India TVS motor authorised network
▪ TVS GENUINE Parts Guaranteed
▪ Higher resale value of vehicle

To increase Customer Mobility, TVS Motor Company is introducing ROADSIDE

ASSISTANCE (RSA) Program in India. We have tied up with TVS Auto Assist (India)
Limited, to ensure that you get quick and hassle-free service in the event of any
unexpected breakdown of your vehicle.
In the event of any mechanical or electrical breakdown/traffic accident of your vehicle,
all you have to do is call our Toll-free number 1800 258 7111 to avail this Roadside
Assistance Service- 24X7, 365 days.
Indicative Reach Time*
21
 Breakdown distance (One way) Reach Time*

0-25 Kms Upto 45 mins

above 25 kms Upto 60 mins+

This service will be provided to all TVS Motor 2 Wheelers either free of cost or at a
reasonable cost to customers, depending on date of sale of vehicle & models covered.

• Free of Cost(FOC):
All Motorcycles & Scooters sold before or after the date of launch of the program in
the town shall be covered for first two years from the date of sale.
• Chargeable Basis :
For Moped & Vehicles out of primary warranty, customers can avail the facility by
paying a service charge at the time of availing the service. No separate membership
fee required.

Services under RSA

TVS AA will assign one authorized technician (Executive) who will be in touch with
the customer to provide the following support :

• Onsite Repair - Support regarding Minor Mechanical/ Electrical will be provided to

get the vehicle road-worthy*
• Flat Tyre Support - In case of a puncture or tyre burst, the assigned executive shall
support the Customer in getting it repaired from the nearest Tyre Repair Shop.
• Fuel Delivery - In the event of the vehicle running out of fuel while traveling, the
assigned executive will provide support by arranging up to 2 liters of fuel. The supply
of fuel will be based on availability and fuel charges shall have to be borne by
Customer.
• Key Loss Support - Customers can also avail the pick-up of replacement key from the
house of customer in case the key is lost.

22
• Assistance in Case of Accident - In the undesired event of an accident, the customer
will be provided information related to medical facilities available nearby. The vehicle
will be towed to the nearest workshop on completion of legal formalities if any.
• Towing Assistance - In the unlikely event where the vehicle could not be made
roadworthy on the site, customers can still avail the service of towing the vehicle to the
nearest TVSM Authorized Dealership.

2.6 OWNERSHIP PATTERN

TVS was established by Thirukkurungudi Sundaram Iyengar. He began with Madurai's

first bus service in 1911 and founded T.V. Sundaram Iyengar and Sons Limited, a
company in the transportation business with a large fleet of trucks and buses under the
name of Southern Roadways Limited. When he died in 1955, his sons took the company
ahead with several forays in the automobile sector, including finance, insurance, two-
wheelers/ three wheelers, tyres and components, housing, aviation, logistics etc. The
group has operated 97 companies that account for a combined turnover of nearly US$6
billion.

Key Executives for TVS Motor Company Limited

Board
Name Title Age
Relationships

Venu 58 Chairman & MD 67

Srinivasan Relationships

K. N. 17 President, CEO & Additional Whole- 56

Radhakrishnan Relationships Time Director

Arvind No Head of Racing Team 74

Pangaonkar Relationships
D.M.E.,
A.M.I.E

23
 Board
Name Title Age
Relationships

Puthenvittil No Executive Vice President 69

Chandapillai Relationships
Mathew ICS
(Retd.)

Subramaniam No Senior Vice President of Production 61

Devarajan Relationships Engineering
B.E.,
P.G.D.B.A.,
M.B.A

M. N. No Senior Vice President 60

Varadarajan Relationships
B.Com.,
M.B.A.,
A.C.A.,
A.I.C.W.A

Suryanarayana No President of Sundaram Auto Components 51

Talavane Relationships Limited
Hebbar

R. Dilip No Senior Vice President of International 55

Relationships Business

K. Gopala No Chief Financial Officer 55

Desikan Relationships

V. Sudarshan 24 Joint MD & Whole Time Director 30

Venu Relationships

A. Rajan Babu No Chief Medical Officer 62

Relationships

24
 Board
Name Title Age
Relationships

Manu Saxena No BR Head and Vice President of DT & --

Relationships Future Mobility

TVS Motor company is owned by the TVS Group which has 60 companies under its
umbrella. TVS Motor company is headed by Mr.Venu Srinivasan, as Chairman and
Managing Director.

Hard work, persistence and self belief makes the man Venu Srinivasan.
With the success of TVS, he has shown the nation how an Indian company can grow to
be a company of global quality and recognition and manufacture products that can
match or even exceed the best in the world by adopting the right work ethos and a
successful work culture.
Despite being the grandson of the TVS founder T.V.Sundaram lyengar, Venu
Srinivasan began his career as a mechanic in his own garage during vacations and put
in long gruelling hours of preparation for his task ahead. In 1979 Venu Srinivasan an
engineer and an MBA from Purdue University (USA) took over as the CEO of
Sundaram-Clayton. The same year TVS Motor Company was born and under Venu
Srinivasan's persistent and diligent work grew to be the third largest two -wheeler
manufacturing unit in India.

A perfectionist and a visionary, Venu Srinivasan pioneered the TQM (Total Quality
Management) concept based on the Japanese model, long before most enterprises in

25
India did. His obsession with excellence and quality bore rich dividends with Sundaram
Clayton and TVS Motor Company winning the global quality benchmark - the Deming
Application Prize in 2002. Soon more awards and honors followed.

Awards
Mr Venu Srinivasan conferred Padma Shri Award
New Delhi 25 January 2010 : Mr Venu Srinivasan, Chairman of the TVS Motor
Company, has been conferred with the Padma Shri award.
President of Republic of Korea honours Mr. Venu Srinivasan
Chennai 24 January 2010: Mr. Venu Srinivasan, Honorary Consul General of the
Republic of Korea, Chennai and Chairman, TVS Motor Company was today felicitated
by the President of the Republic of Korea, His Excellency Lee Myung-Bak with a
distinguished civilian honour 'Order of Diplomatic Service Merit' in recognition of his
valuable contribution in promoting Korea-India bilateral relations. This award is
conferred for meritorious service to the extension of national prestige overseas and to
the promotion of friendship with other nations.

Other Board Members on Board Members

Type of
Name
Relationships Board Primary Company Age
(Connections)
Members

T. Kannan 22 Member of Sundaram Brake Linings 66

Relationships the Board Limited
of
Directors

R. 19 Member of TVS Motor Company 73

Ramakrishnan Relationships the Board Limited
of
Directors

Harihara 40 Member of Harita Seating Systems 86

Lakshmanan Relationships the Board Limited

26
 Type of
Name
Relationships Board Primary Company Age
(Connections)
Members

of
Directors

Chittranjan 41 Member of Gillette India Limited 68

Dua Relationships the Board
of
Directors

Prince 12 Member of TVS Motor Company 70

Asirvatham Relationships the Board Limited
of
Directors

Hemant Singh 12 Member of TVS Motor Company 69

Relationships the Board Limited
of
Directors

Lakshmi Venu 28 Member of Sundaram-Clayton Limited 36

Relationships the Board
of
Directors

Rajesh 12 Member of TVS Motor Company 53

Narasimhan Relationships the Board Limited
of
Directors

Lalita Gupte 110 Member of Bharat Forge Limited 71

Relationships the Board
of
Directors

27
 Type of
Name
Relationships Board Primary Company Age
(Connections)
Members

R. Gopalan 12 Member of TVS Motor Company 67

Relationships the Board Limited
of
Directors

Audit Committee of TVS Motor Company Limited

Name Board Key

Title
(Connections) Relationships Developments

T. Kannan 22 Relationships Independent Non-

Executive Director

R. Ramakrishnan 19 Relationships Independent Non-

Executive Director

Chittranjan Dua 41 Relationships Independent Non-

Executive Director

Prince 12 Relationships Independent Non-

Asirvatham Executive Director

Compensation Committee*

Board
Name (Connections) Title
Relationships

Chittranjan Dua 41 Independent

Relationships Non-Executive
Director

28
 Board
Name (Connections) Title
Relationships

T. Kannan 22 Independent
Relationships Non-Executive
Director

Harihara Lakshmanan 40 Non-Executive

Relationships & Non-
Independent
Director

TVS Motor Company Limited

Compensation vs. Industry

Not meaningful
Chief Executive Officer

TVS Motor Company Limited

Industry Average

Nominating Committee*
Name Board Key
Title
(Connections) Relationships Developments

T. Kannan 22 Relationships Independent Non-

Executive Director

Harihara 40 Relationships Non-Executive & TVS Motor

Lakshmanan Non-Independent Company Appoints
Director R Gopalan as
Independent
Director

Chittranjan Dua 41 Relationships Independent Non-

Executive Director

Corporate Governance Committee*

29
 Board
Name (Connections) Title
Relationships

R. Ramakrishnan 19 Relationships Independent Non-

Executive Director

Venu Srinivasan 58 Relationships Independent Non-

Executive Director

V. Venu 24 Relationships Non-Executive &

Non-Independent
Director

and Competitor
Insiders vs. External
Board

TVS Motor Company

Limited

23%
77%

Ownership pattern of Bridgestone Agencies

Owner – Sharath Reddy

General Manager (or AM) -Sudeep

Accounts Manager – Anil

Service Manager – Shivananda

30
2.7 Awards/ Achievements

Highest in Customer Satisfaction

TVS Motor has been awarded Highest in

Customer Satisfaction by J.D. Power Asia
Pacific Awards for 2018

Most Appealing Premium Motorcycle

TVS Apache RTR180 is the Most Appealing

Premium Motorcycle as awarded by
J.D.Power Asia Pacific Awards for 2018.

Highest Ranked Economy Motorcycle in

Initial Quality

TVS StaR City + is awarded the highest

ranked Economy Motorcycle by J.D.Power
Asia Pacific Awards for 2018.

31
 Most Appealing Economy Motorcycle

TVS StaR City + is awarded the Most Appealing Economy Motorcycle by J.D.Power
Asia Pacific Awards for 2018.

Most Appealing Executive Scooter: TVS Jupiter is awarded the Most Appealing
Executive Scooter by J.D.Power Asia Pacific Awards for 2018.

32
 Highest in Customer Satisfaction

TVS Motor has been awarded Highest in Customer Satisfaction by J.D. Power Asia
Pacific Awards for 2016.

Most Appealing Premium Motorcycle

TVS Apache RTR180 is the Most Appealing

Premium Motorcycle as awarded by J.D.Power
Asia

Most Appealing Economy Motorcycle

TVS StaR City + is awarded the Most

Appealing Economy Motorcycle by J.D.Power
Asia Pacific Awards for 2016.

33
 Most Appealing Executive Scooter

TVS Scooty Zest 110 is awarded the Most

Appealing Executive Scooter by J.D.Power
Asia Pacific Awards for 2016.

Two Wheeler Manufacturer of the Year

TVS Motor Company was named the Two

Wheeler Manufacturer of the Year by NDTV
Car and Bike Awards 2015.

Most Trusted Brand

TVS is India's Most Trusted Brand in the Two

Wheeler Category

Source: Economic Times Most Trusted Brand

Survey, 2012. CII ITC Sustainability Awards

2012

TVS Motor Company Ltd is a winner of the CII ITC Sustainability Awards, 2012,
Certificate of Commendation for Significant Achievement.

Exports

34
TVS Motor Company has been awarded 'Star Performer - Silver Shield' in two/three
wheeler category, by EEPC India, for excellent export performance for the year 2007-
08.

Engineering

The Deming Prize - TVS Motor Company is the only two-wheeler company in the
world to be awarded the world's most prestigious and coveted recognition in Total
Quality Management

Technology Award 2002 from Ministry of Science, Government of India for the
successful commercialization of indigenous technology for TVS Victor

Asian Network for Quality Award 2004 - TVS Scooty Pep won the prestigious
'Outstanding Design Excellence Award' from Business World and National Institute of
Design

Progressive Manufacturer 100 Award - TVS wins coveted 2009 Progressive

Manufacturer 100 Award for end-to-end automation of the entire business process of
its lubricant brand, TVS TRU4

TPM Excellence Award 2008 - First category by Japan Institute of Plant Maintenance
(JiPm)

Management

Emerging Corporate Giant in the Private Sector awarded by The Economic Times and
the Harvard Business School Association of India.

Best Managed Company Award from Business Today, one of India's leading business
magazines.

35
Most Investor Friendly company by Business Today, one of India's leading business

The 'Good Advertising' Award by Auto India Best Brand Awards 2009.

SAP ACE AWARD 2007 - The company won the SAP ACE 2007 Award for Customer
Excellence in the Most Innovative NetWeaver Category.

TEAM TECH 2007 Award - TVS Motor Company bags TEAM TECH 2007 Award of
Excellence for Integrated use of Computer Aided Engineering Technologies

Personal Awards of bridge stone agencies :

FY 2003-4
2nd Prize In Achievement award of victor targets Bengaluru
2006
South zone no 3 two wheeler sales award
FY 2008-9
2nd Prize In Achievement award of victor targets Bengaluru.
FY 2009- 10
2nd Prize In Achievement award of victor targets Bengaluru .
FY 2010-11
2nd Prize In Achievement award of victor targets Bengaluru .
FY 2011-12
2nd Prize In Achievement award of victor targets Bengaluru.
FY 2012-13

1) Highest volume of two wheeler sale

2) 2nd Prize In Achievement award of victor targets Bengaluru
3) Best performance in oil sales .

FY 2013-14
1) League of legends Hong Kong

36
 2) Performance achievement award
FY 2014-15
1) 2nd Prize In Achievement award of victor targets Bengaluru.

FY 2015 -16

1) 2nd Prize In Bengaluru BY ICICI

2) 2ND Award of excellence in Bengaluru
FY 2016 -17
1) NO 1 Dealer of Bengaluru Area (TVS credit award of excellence )
2) 2ND Award of excellence in Bengaluru
3) Aditya Birla Insurance policy introduced to Bridgestone agencies in
appreciation of outstanding performance in TVS insurance program for new
issuance .
4) League of legends Amsterdam 2017
5) Awarded for significant performance and o/s achievement in two wheeler
business bu ICICI Lam-Board
6) NPS -Net Promotor Score championship Trophy , Karnataka (like a feedback
by head of departments or like a performance grading scale like excellent or v
good etc ) Annual sales 8000 vehicles
7) O/S Contribution as a member of Presidents antenna club
FY 2017-18
1) No 2 position in Oil sales kar1
2) NPS -Net Promotor Score championship Trophy , Karnataka (like a feedback
by head of departments or like a performance grading scale like excellent or v
good etc )
2018
1) League of legends in Europe cruise , Awarded for significant performance and
o/s achievement in two wheeler business
2) League of legends in Russia . Awarded for significant performance and o/s
achievement in two wheeler business
2019
1) Indico Capital Pvt ltd certification of 2nd position .
2) Centurion (bank of Punjab) appreciation award
37
 3) 29/may Maha Login day excellence award ( 2nd place )
4) TVS excellence award
5) Certificate of excellence – all India no1 dealer award of TVS on road 100000.

2.8 Future growth and prospects

With technology and innovation as its key drivers, TVS Motor has invested
significantly
in research and development and is committed to bringing out new generation products
which would redefine segments, while consolidating and strengthening the existing
position of TVS Motor Company in the two and there wheeler segments, worldwide,
The global financial crisis, the consequent serious liquidity issues and higher financing
costs are likely to impact the growth prospects of the two-wheeler industry. Retail
finance has become even more difficult. The tight liquidity will affect the ability of
dealers to stock 35 two-wheelers. The drop in the commodity prices, however, is a
welcome break.
The company will continue the vigorous implementation of its improved value-
engineering program to reduce costs. The company continues to maintain the highest
quality standards of all its products.

TVS Motor Company is trading with a positive bias on the back of future growth plans.
According to media reports, the company plans to launch three new models - a new
four-stroke Moped, a new TVS Victor and Apache 200cc, in the next six months.
The stock so far in the day has touched a high of Rs. 239, and is now up a percent at
Rs. 237. Around 62,000 shares have changed hands at the counter so far on the BSE.
Meanwhile, the Sensex has rallied 232 points to 27,795.

TVS Electric Scooter Spied

TVS Motor Co seems to be busy readying a handful of new products for launch in near
future. Yes, the much awaited TVS Apache RR 310S isn’t the only upcoming TVS bike
in India. Other than a new flagship, the Hosur-based bike manufacturer has also been
busy readying the new Apache RTR 160 and RTR 180 motorcycles. But wait, that’s
not all. Thanks to the spy images you see here, we’ve got to know that the South India-

38
based company is also working on an electric scooter that could be based on the Jupiter.
The upcoming TVS Electric scooter you see here will be the second electric vehicle
(ev) from TVS. THe manufacturer earlier launched TVS Scooty Teenz Electric. It
seems like the new e scooter is in penultimate stage of testing. An Auto Expo 2018
launch doesn’t seem too unlikely. Expect this electric scooter from TVS to have a price
of roughly Rs 60,000.

TVS to invest Rs 7 bn in 2018-19 towards product development and new tech

It was expected that the company will close the Fiscal 2017-18 with double-digit
margin, but it stood at 7.5 per cent end of the fourth quarter. Two-wheeler major TVS
Motor is planning to invest around Rs 6-7 billion in 2018-19. The proposed capex will
be towards product development and on new technologies. K Gopala Desikan, Group
Chief Financial Officer (CFO), TVS Motor Company Ltd said that the proposed capex
of around Rs 6-7 billion includes investment in technologies, maintenance capex, new
products and for BS-VI.

He refused to comment on upcoming products. The company said its current capacity
of 4.8 million units, for two-wheelers, would be sufficient to take care of next one year's
growth.

39
CHAPTER 3

McKinsey 7-S framework with special reference to Organization

under study

McKinney’s 7s framework was developed in the late 70‟s by McKinsey company

reputed management consultancy firm in United States. The framework rest on the
preposition that effective organizational change is best understood in terms of the
complex relationship between strategy, structure, systems, style, skills, staff and shared
value

Hard Soft
Elements Elements

Shared
Values

Strategy Skills

Structure Style

Systems Staff

System

The system integrates the various activities of HR or GM , purchase, materials,

maintenance department. The procedures, process, and routines characterise how the
work should be done. The flow of activities involved in the daily operation of a business
including its core process and its supports systems. The system represents the flow of
communication and management of information system in the organization. The work
flow statement and also a flow of communication already explained with the help of
organisation hierarchy .

40
Staff

Staffing is process of acquaint human resource for the operation assuring that they have
the potential combination to the achievement of the organisation goals. 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. Bridgestone agencies generally prefer to have qualified and dedicated
management professionals in case of staffing process at TVS motor company
,Rajajinagar Bengaluru

They are following all organisation values and essentials relating to professionalism in
business, it is the key success factor of the company it is also helpful to bring attention
about the company by the public.

No of Staff :
In sales department
Sales manager -1
Sales executives -6
Spares executive-4
Accounts executives -2
RTO-2
Invoice -1
Insurance-1
Delivery in charge -3
PDI-3
Office boys -4
Fittings -3
Total 30 members

41
In Service department:
35 employees -
Service manager
Service advisor
Service mechanics
Washing boys
Deliver executives
Style
Participative Leadership Style: Participative leadership, also known as democratic
leadership, is one of the four participative decision-making styles where employers
invite employees to take a part in organizational decision-making. In TVS-Bridgestone
Agencies the General Manager following this participative decision Making Style,
While this leadership style is not as common in the corporate world, so me professions
require this type of attitude, e.g., social workers, arbitrators, group therapists, and
facilitators. Some of the most famous examples of participative leaders in the corporate
world include Donald Trump, Bill Gates etc.
Shared Values
Shared value of the organisation can be characterised as the norms, views and culture
shared by the people working in the organisation. The values are the things that you
have save for even if they were demonstrably not profitable. 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 company is 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
fulfilment and prosperity for employees, dealers, and suppliers.

Shared values in companies are

➢ Satisfying the customer in the first and foremost.
➢ Encouraging employees who enjoy their work.

➢ Living up to our shared values.

42
➢ Innovation ideation throughout the company and continues improvement in
everything we do.
➢ Honouring commitments whether made orally nor written.
➢ Technology, as it continues its advances, will be in the company’s plan operation.

Skill
Skills are the abilities that firm’s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises
of what skills the company will really need to reinforce its strategy or new structure.
Training policies and programs are suitably designed modified and updated on a
continuous basis to upgrade the knowledge levels and skills of its Executives, labours
and workmen on par with the best in the industry. While several new programs are
introduced in tune with the corporate goals the existing programs are made more
interactive and learner friendly. Since many manufacturing positions now require
knowledge of a wide variety of processes and procedures, workers must also have a
willingness to learn and be flexible about job tasks in this field. It will provide a certain
opportunity to improve themselves.

Strategy’s
The strategies of the company are developed on the basis of an analysis of external and
internal environment. Consequently, the values, preference, attitude towards risk have
been carefully examined while formulating strategies.
➢ Marketing Strategies:
The plan devised to maintain and build competitive advantage over the competition.
Strategy refers to the determination of the purpose and the basis long term objectives
of an enterprise and the adoption of course of action and allocation of resources
necessary to achieve these aims. 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 inter- dependence with its
customers, employees, dealers and suppliers.

43
➢ Product Strategies:
At TVS Motor Company Quality is a Way of Life. TVS Motor Company has
established an e-business system, the respondents in the factors, which they consider
while purchasing a bike, have done the ranking. MILEAGE is the first factor following
with POWER and STYLE and also with an adaptable PRICE which maximizes
company values and profits through transformation.
➢Price Strategies:
The respondents in the factors, which they consider while purchasing a bike, have
done the ranking. MILEAGE is the first factor following with POWER and STYLE
and also with an adaptable PRICE. The company has to make efforts for making a
product that should have all these three factors with considerable price.
➢ Promotion Strategies:
Company promotes products through advertisement, personnel selling and also using
online sites. And also, Sales in counter / Outside Activities /leaflets insertion / mela’s
/Mall activity.

➢ Structure
The structure typically heretical arrangement of lines of authority, communication,
rights and duties of an organisation. Organisational structure determines how the roles,
power and responsibilities are assigned, controlled and coordinated and how
information flows between the different levels of management.
Bridgestone Agencies, Rajajinagar is engaged in the business of TVS vehicle sales and
service, in Bengaluru city, The Management Representative controls the functions of
the whole company. He has grouped the activities in accordance with the functions of
the company. Company is having a well defined hierarchical organizational structure
both at corporate level, production units, and marketing division. In spite of that the
horizontal level interaction between different disciplines makes the company smooth
working at all defined levels. In any organization there will be set of employees working
for the development of and in the process in order to achieve the goal act, they
contribute a lot. For the effective functioning of the organization there should be
different categories of the jobs and the relation of one to another should be made clear
so as to introduce case in daily routine. It also says who is responsible to whom and
defines their responsibility.

44
Management Structure

45
Porter's Five Force model with special reference to Organization
under study

46
Competitive Rivalries:
The key players in two-wheeler industries are Hero Honda motor ltd. (HHML), Bajaj
Auto ltd and TVS motor Company ltd. The other players are Kinetic, Lml, Yamaha,
Majestic auto ltd, Royal Enfield ltd and Honda motorcycle & scooter India. Two-
wheelers domestic market growth rate for 2008-09 is 76.49% which is very high when
compared to that of three wheelers, Passenger and commercial vehicles. The
standardized product used in manufacturing of two-wheelers is steel, aluminium and
rubber, because there are many industries in India for manufacturing those standardized
products the production is going smooth. Sales of two wheelers are very high when
compared to that of three wheelers, Passenger and commercial vehicles. Indian Auto
policy 2002 gives added advantage to two-wheeler manufacturers to enter even other
countries outside India. Since big manufacturer plant with high technology and good
R&D team needed many of them dose not enter in two two-wheeler Industries. Only
the companies which are in automobile line will expand their product line like
Mahindra.
• Price, quality of the products plays an important role for rivalry among the
competitors
• Methods adopted to attract customers- Discounts, availability of loans, low
rate of interest and long- term warranties to attract customers.
• Each company in industry change the model on going basis to show
differentiation in their competitors.

Threats of New Entry:

Capital investment is very huge in two-wheeler industries since large plant and large
machineries needed with skilled labours and good R&D team needed for producing
two-wheelers. Since high technology and raw material resources are abundant to
produce the production cost is less in producing two-wheelers. Since each company in
industry. change the model on-going basis to show differentiation among their
competitors because of this there is more learning and experience in this field. Each
company in industry not only makes differentiation in their product strategy but also
makes differentiation in the promotional strategy to create” brand preference and

47
loyalty”. Because of low cost production, this industry enjoys good growth rate and
profitability.
• Entry barriers are high.
• Huge investment.
• Capital investment is very huge in two-wheeler industry
• The biggest challenge is setting up sales & service centre, which is very hard
for a new entrant.
• Well established players are already existing.
• Industry is consolidated.

Threats of Substitute Product:

Substitute products for two-wheeler industries are bus transportation, Auto

transportation and even low-end cars, but people using two-wheelers can only use the
service of buses and auto as a substitute product. Sometimes low-end car is a substitute
product for the people using high-end motor cycles. Because nowadays there is lot of
segment in buses in urban areas and the private companies also influenced very much,
buses are available from normal buses to hi-tech ac buses which is threat to two-wheeler
industry. Since only two people can travel in a bike most of them uses auto when they
go out with their family and if they are affordable to buy car will use car instead of auto.
Since bus service has increased when compared to five years back people who are aged
above 45 years uses buses because of their health condition. These are the substitute
product available to two-wheelers.

• Faces direct competition from the automobile sector.

• Substitute products for two-wheeler industries ore:
-bus, auto, car and other public transports.
• Reasons for choosing substitutes may
– Relative quality of substitutes is higher
-Switching cost is lower

48
Bargaining power of seller:
Since their selling units are very high in two-wheeler industry and because of many
competitor’s supplier are very high. Since they change their models on going basis, they
create good relationship between their suppliers. Some of the components in two-
wheeler industry are very common for all the two-wheeler industries like steel,
aluminium, tyres and tubes, these materials are available in abundant. This makes them
to drive a smooth production of their finished products.
• Since they change their model on-going basis, they create good relationship
between their suppliers
• Some of the components in two-wheeler industry sellers have bargaining
power:
• Steel
• Batteries
• Tyres & tube etc.
• The automobile supply is quite fragmented.

Bargaining power of Buyer:

Buyer has added advantage than seller because there are five to six big popular brands
of two-wheelers are available in India, so that they can switch brand from one another.
Since full information is available to the buyers about their product details and their
prices buyers are fully aware of seller costs and products. Buyers are very conscious in
spending their money to purchase two-wheeler, because it attracts most of the middle-
income group’s seller cannot price their product very high. Nowadays people go to
unique brand because of the good service they provide after purchase. Because service
centres and spare parts shop available to their customer very near to their place buyer
sometimes do not mind spending little money extra. These factors create good
relationship between them.
• There are 5 to 6 big popular two wheelers are available.
• Good price and quality of other brands.
• Nowadays people go to unique brands because of good service they provide
after purchase.

49
 Chapter 4

SWOT analysis of TVS Bridgestone Agencies

Strengths in The SWOT analysis of TVS Motors

Strengths are defined as what each business does best in its gamut of operations which
can give it an upper hand over its competitors.
The following are the strengths of TVS :
Differentiation: In comparison to competition TVS Motors has always maintained a
price differentiation strategy choosing to offer economy two-wheelers which are also
high on performance and fuel efficiency.
Focus on local market: TVS Motors won the trust and confidence of the customer
through their mopeds which primarily targeted the local population. Even today the
company relies primarily on the local population for their business.
Positioning: TVS Motors has always positioned their vehicles as reliable and easy to
use vehicles which can run on Indian terrain. They are also well known for their string
regional connect.
Emotional Value: TVS has been able to connect emotionally with the Indian audience
primarily through their association with moped which during the early days used to be
the most popular mode of transport in villages.

50
Innovation: TVS Motors has been high on innovation and has a lot of firsts to its credit.
The company has always tried to stay in tune with the latest trends in styling,
performance and fuel efficiency, while also being conscious about developing
environmentally friendly vehicles that strictly adhere to compliance norms.

Weaknesses in The SWOT analysis of TVS Motors

Weaknesses are used to refer to areas where the business or the brand needs
improvement. Some of the key weaknesses of TVS Motors are:
Low profitability: The company for the past few years have been consistently
registering low profitability and showing single-digit margins in comparison to its
competitors who are showing double-digit margins.
Launch time: TVS Motors has faced criticism for the longer time it takes to launch
new vehicles. The company takes more time than their competitors to introduce
products into the market with the result that the competitors get an upper hand over
them giving them less time to react.
Limited Global Reach: TVS Motors in comparison to competitors like Honda have
limited global reach and most of their focus is on domestic markets.
Poor advertisements: TVS Motors have never been aggressive in advertising their
products with the result that their products do not have the brans recall or recognition
enjoyed by market leaders like Bajaj which are household names in India.

Opportunities in The SWOT analysis of TVS Motors

Opportunities refer to those avenues in the environment that surrounds the business on
which it can capitalize to increase its returns. Some of the opportunities include:
Market potential: Research indicates that India is going to be the biggest market in
the world for two-wheelers, with a market size of 48,000 units per day. This is going to
be a huge opportunity for two-wheeler companies.
Improved roads: The central government in India has a plan for the massive
development of roads and related infrastructure in rural India which will increase the
demand for two-wheelers in villages. TVS Motors which is already a popular brand due
to their mopeds will find it simple to capture this market.

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Change of trends: The growing number of dual-income households, the increase in
the need for smarter vehicle options to beat the crowded city roads, and growth in rural
infrastructure are all trends that will result in a surge in two-wheeler sales.

Threats in The SWOT analysis of TVS Motors

Threats are those factors in the environment which can be detrimental to the growth of
the business. Some of the threats include:

Technology: Some of the emerging technology areas like robot-driven cars, alternate
energy vehicles, interconnected traffic and safety systems may affect the sale of two-
wheelers since these are more adapted towards bigger vehicles. Moreover, people may
start preferring four-wheelers due to safety reasons as well.

Competition: TVS Motors in spite of continuous attempts have not been able to beat
their two nearest rivals Bajaj Auto and Honda Motor Corp for the past many years and
continues to retain its third spot only. This can be a threat to the business in the long
run as more new players make a foray into the lucrative two-wheeler market.

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CHAPTER 5

Analysis of Financial Statement of TVS motor company

TVS Motor Company

5.1 Profit & Loss

------------------- in Rs. Cr. -------------------
account
Mar 19 Mar 18 Mar 17
12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 17,912.51 15,310.00 13,063.82
Less: Excise/Service Tax/Other Levies 0.00 343.22 1,054.75
Revenue From Operations [Net] 17,912.51 14,966.78 12,009.07
Other Operating Revenues 297.41 162.88 126.24
Total Operating Revenues 18,209.92 15,129.66 12,135.31
Other Income 7.54 144.78 173.37
Total Revenue 18,217.46 15,274.44 12,308.68
EXPENSES
Cost Of Materials Consumed 13,672.80 10,909.92 8,620.88
Purchase Of Stock-In Trade 244.84 254.41 291.22
Changes In Inventories Of FG,WIP And Stock-In Trade -75.37 -31.34 -58.73
Employee Benefit Expenses 922.63 868.01 745.64
Finance Costs 80.56 56.62 43.95
Depreciation And Amortisation Expenses 399.27 338.73 287.81
Other Expenses 2,011.77 1,999.45 1,679.23
Total Expenses 17,256.50 14,395.80 11,610.00
Mar 19 Mar 18 Mar 17
12 mths 12 mths 12 mths
Profit/Loss Before Exceptional, Extraordinary Items
960.96 878.64 698.68
And Tax
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Profit/Loss Before Tax 960.96 878.64 698.68
Tax Expenses-Continued Operations
Current Tax 276.76 197.06 159.78
Less: MAT Credit Entitlement 0.00 0.00 0.00
Deferred Tax 14.06 18.99 -19.18
Tax For Earlier Years 0.00 0.00 0.00
Total Tax Expenses 290.82 216.05 140.60
Profit/Loss After Tax And Before Extraordinary Items 670.14 662.59 558.08
Profit/Loss From Continuing Operations 670.14 662.59 558.08
Profit/Loss For The Period 670.14 662.59 558.08

OTHER ADDITIONAL INFORMATION

Mar 19 Mar 18 Mar 17
EARNINGS PER SHARE
12 mths 12 mths 12 mths

Basic EPS (Rs.) 14.11 13.95 11.75

Diluted EPS (Rs.) 14.11 13.95 11.75

VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS
Imported Raw Materials 0.00 0.00 0.00
Indigenous Raw Materials 0.00 0.00 0.00
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 166.28 156.78 118.78
Tax On Dividend 33.70 30.85 22.51
Equity Dividend Rate (%) 350.00 330.00 250.00

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5.2 Balance Sheet of TVS Motor Company
Mar '19 Mar '18 Mar '17
12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 47.51 47.51 47.51
Equity Share Capital 47.51 47.51 47.51
Reserves 3,299.81 2,832.91 2,360.82
Networth 3,347.32 2,880.42 2,408.33
Secured Loans 1,377.94 183.40 422.32
Unsecured Loans 0.00 853.57 662.82
Total Debt 1,377.94 1,036.97 1,085.14
Total Liabilities 4,725.26 3,917.39 3,493.47
Mar '19 Mar '18 Mar '17
12 mths 12 mths 12 mths
Application Of Funds
Gross Block 4,922.33 4,441.01 3,851.62
Less: Accum. Depreciation 2,343.02 2,069.14 1,867.75
Net Block 2,579.31 2,371.87 1,983.87
Capital Work in Progress 257.23 131.13 62.28
Investments 2,300.67 2,035.38 1,587.90
Inventories 1,175.94 964.39 966.95
Sundry Debtors 1,414.14 968.37 723.77
Cash and Bank Balance 43.86 10.90 8.51
Total Current Assets 2,633.94 1,943.66 1,699.23
Loans and Advances 598.21 697.43 571.39
Total CA, Loans & Advances 3,232.15 2,641.09 2,270.62
Current Liabilities 3,525.84 3,146.30 2,297.53
Provisions 118.26 115.78 113.67
Total CL & Provisions 3,644.10 3,262.08 2,411.20
Net Current Assets -411.95 -620.99 -140.58
Total Assets 4,725.26 3,917.39 3,493.47
Contingent Liabilities 568.44 500.84 622.69

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Book Value (Rs) 70.46 60.63 50.69

TVS Motor Company

5.3 Cash Flow ------------------- in Rs. Cr. ----------------

Statement ---
Mar 19 Mar 19 Mar 18
12 mths 12 mths 12 mths
Net Profit/Loss Before Extraordinary
960.96 0.00 878.64
Items And Tax
Net CashFlow From Operating Activities 1,097.78 0.00 1,251.57
Net Cash Used In Investing Activities -1,002.28 0.00 -1,085.61
Net Cash Used From Financing Activities 81.13 0.00 -74.74
Net Inc/Dec In Cash And Cash
176.63 0.00 91.22
Equivalents
Cash And Cash Equivalents Begin of Year -137.62 0.00 -228.84
Cash And Cash Equivalents End Of Year 39.01 0.00 -137.62

TVS Motor Company

Consolidated Key
------------------- in Rs. Cr. -------------------
Financial Ratios
Mar '19 Mar '18 Mar '17
Investment Valuation Ratios
Face Value 1.00 1.00 1.00

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Dividend Per Share -- -- --
Operating Profit Per Share (Rs) 45.48 31.50 18.29
Net Operating Profit Per Share (Rs) 424.34 342.98 262.32
Free Reserves Per Share (Rs) -- -- --
Bonus in Equity Capital 49.98 49.98 49.98
Profitability Ratios
Operating Profit Margin(%) 10.71 9.18 6.97

Profit Before Interest And Tax Margin(%) 8.51 6.83 4.37

Gross Profit Margin(%) 8.52 6.89 4.42
Cash Profit Margin(%) 5.77 6.31 6.54
Adjusted Cash Margin(%) 5.77 6.31 6.54
Net Profit Margin(%) 3.49 4.00 4.10
Adjusted Net Profit Margin(%) 3.49 3.96 4.04
Return On Capital Employed(%) 15.39 15.41 20.74
Return On Net Worth(%) 22.22 24.36 23.06
Adjusted Return on Net Worth(%) 22.82 24.80 22.97
Return on Assets Excluding Revaluations 71.90 60.16 46.83
Return on Assets Including Revaluations 71.90 60.16 46.83
Return on Long Term Funds(%) 21.59 25.17 26.40
Liquidity And Solvency Ratios
Current Ratio 1.04 0.93 0.69
Quick Ratio 2.12 1.73 0.52
Debt Equity Ratio 2.57 2.07 0.56
Long Term Debt Equity Ratio 1.55 0.88 0.23
Debt Coverage Ratios
Interest Cover 2.63 3.75 12.03
Total Debt to Owners Fund 2.57 2.07 0.56
Financial Charges Coverage Ratio 3.30 4.86 17.35

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Financial Charges Coverage Ratio Post
2.73 4.03 14.89
Tax
Management Efficiency Ratios
Inventory Turnover Ratio
Debtors Turnover Ratio
Investments Turnover Ratio 15.61 15.77 11.68
Fixed Assets Turnover Ratio 3.49 3.14 2.84
Total Assets Turnover Ratio 1.78 2.00 3.65
Asset Turnover Ratio 2.02 2.74 4.03
Average Raw Material Holding -- -- --
Average Finished Goods Held -- -- --
Number of Days In Working Capital 113.11 82.53 -18.07
Profit & Loss Account Ratios
Material Cost Composition 69.98 69.55 72.59
Imported Composition of Raw Materials
-- -- --
Consumed
Selling Distribution Cost Composition 1.97 1.88 2.37
Expenses as Composition of Total Sales -- -- --
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 28.44 28.92 27.96
Dividend Payout Ratio Cash Profit 17.48 18.39 17.26
Earning Retention Ratio 72.31 71.60 71.92
Cash Earning Retention Ratio 82.80 81.82 82.70
AdjustedCash Flow Times 7.00 5.35 1.50

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CHAPTER 6

LEARNING EXPERIENCE

TVS Bridgestone Agencies, has provided an opportunity for the study and to understand
the automobile sector profile and its nature of business. It is also helpful to improve
knowledge on act and rules applicable to automobile sector and how automobile sector
works, as a great experience to study an organization at TVS – Bridgestone Agencies,
It has improved practically knowledge by learning industries profile. This study
highlighted the management principles and how the company gets progressed by
employee’s progress. Learned companies working culture also how company makes
strategy to achieve its vision and mission and workflow model of TVS – Bridgestone
Agencies and what are the future growth prospectus of TVS – Bridgestone Agencies.
McKensy’s 7’s framework and porters five force model also implemented in TVS –
Bridgestone Agencies, were it is implemented in management planning, strategy
marking process in decision making of company. In this management practice, there
are various departments and they have unique functions.

Conducted SWOT analysis of the company and got to know the strength, weakness,
opportunities and threats of the organization is analyzed by research and applied this
model in TVS – Bridgestone Agencies.

A financial statement is the mirror for every business unit. It shows the health condition
of business. A company may choose to utilize financial statement of this type to present
a quick snapshot of how much of the companies collected or generated revenue is going
towards each operational function within the organization.

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BIBLIOGRAPHY
Books:

▪ Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas

Publication 2012
▪ I M Pandey, Financial Management , 11th Edition, Vikas Publishing
House. (1979).

WEBLIOGRAPHY:
1. www. tvs motors.com
2. Wikipedia
3. Websites of TVS (Bridge stone agencies)
4. www.google.com

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