INSTITUTE FOR TECHNOLOGY AND MANAGEMENT

TVS Group

Strategic Management Assignment

SUBMITTED TO: - MR. MOHAN P. IYER

BATCH: - M3
SUBMITTED BY - Abhishek Kumawat

Institute for Technology and Management

Plot No. 25 / 26, Institutional Area,
Sector – 4, Kharghar, Navi Mumbai
TVS

TVS motors which originates from Trichur Vengaram Sundaram Iyengar motors is one among the
leading motorcycle company in India .it is the third largest two-wheeler manufacturer company in
India and among the top ten in the world. It holds annual revenue of more than $ 1 billion.
It’s a flagship company with TVS group USA with 4$ billion. It strives and thrives in
manufacturing innovative and pioneer products. TVS emphasizes on launching new products with
its new product introduction (NPI) team of approximately 300 engineers who stand at forefront in
executing strategic visions for the organization for its new products. Though these products are
developed domestically it collaborates with globally technical renowned partners. It aims to
introduce six to ten products every year to address broad-based requirements of the market.

Global collaboration
Lucas TVS in talks with e-bikes maker for supply of motors

Automotive components manufacturer Lucas TVS is in talks with an electric two-wheeler maker
for supply of motors, according to a top executive, as the company looks to expand its electric
portfolio in the face of a global push towards e-mobility.

Acquisition
TVS Realty arm buys Chennai plot for Rs 150 cr

TVS Emerald Housing, the real estate arm of TVS group, has bought a 6.5-acre land parcel in
Chennai’s IT corridor for Rs 150 crore from SNP Infrastructure, according to people aware of
the matter.
The land was bought at Rs 20 crore per acre, in line with the market rate. “The company will
develop a residential project on this land,” said one person, who did not wish to be identified.
Strategic Partnership
AZB, Trilegal act on Mitsubishi’s 25% buy into TVS for around $35m
Japan’s Mitsubishi Corp. is set to increase its 3% stake in TVS Automobile Solutions Pvt. Ltd
(TASL) to 25%, the companies announced on Monday in Chennai.

TVS Automobile Solutions Private Limited (TASL), one of India’s leading independent
aftermarket players and part of the $8.5 bn TVS group, has announced strategic partnership with
Mitsubishi Corporation (MC), Japan. Mitsubishi will take a substantial minority stake in the
company.

Global Expansion
TVS Motor strengthens Central America presence through tie-up with Cadisa Group

Chennai-based TVS Motor Company has announced partnership with Cadisa, one of the largest
business groups across Guatemala and El Salvador, for the opening of 15 flagship outlets for
TVS Motor in a phased manner.

The $8.5-billion TVS Group exports to over 60 countries.

TVS Motor Company will also be present in 17 multi-brand outlets and over 150 retail stores
across Guatemala.

The company will operate over 25 service outlets to ensure complete service and spare support.
The range of two-wheeler and three-wheeler offerings will be supplemented with attractive retail
finance schemes.

New Product Development

TVS Housing Limited (TVSH) / Emerald Haven RealtyLimited (EHRL)

TVS Housing Limited is a 100% subsidiary of the Company. EHRL has till date completed
construction of 1.3 Mn Sq ft of residential development and the total area underdevelopment as
on date is 5.0 Mn Sqft. During the year, EHRL launched new projects at Salamangalam, Radial
Road, Porur and Kolapakkam in Chennai. During the year, EHRL through its subsidiaries has
acquired lands in Radial Road, Karapakkam and Manapakkam, and has also been appointed as a
manager for residential development at Vengai vasal, Chennai and further geographically
expanded to Bengaluru through a joint development. During the year, EHRL earned a Profit
before tax of $ 7.97 Cr as against $ 6.56 Cr in the previous year on a consolidated basis.

Steps taken for utilizing alternate sources of energy for the year 2018-19

The Company has utilized renewable energy to an extent of 626 lakh units out of 1109 lakh units
of annual consumption during FY 2018-19.The overall Company's renewable power share
was56% during 2018-19 as against the planned target of50% by the year 2019-20.Towards its
continual commitment of utilizing renewable energy, the Company has installed 780KW roof-
top solar plant during 2018-19, with an estimated annual generation of 12 lakh units / annum.
The Company has invested in 'Group Captive Mode of wind power purchase for drawal of 100
Lakh units/annum.

During 2018-19, the Company had invested $8.79 Cr towards optimization of compressor, fuel
conversion from HSD to Propane for paint process application and in implementation of various
energy saving projects for energy efficiency as well as for reduction of carbon footprint. The
Company is planning to invest around $6 Cr during 2019-20 to enhance solar, wind power under
Group Captive Mode' and for implementing other planned energy efficient measures.
Future plan of action:

i. Meeting BSVI regulatory norms in the year 2020.

ii. Development of new technologies for reduction of emission and reduction of CO2 to
meet future emission norms.
iii. Development and adoption of new technologies for enhanced safety.
iv. Development of new technologies, materials and processes for enhanced
environmental sustainability.
v. Development of new technologies and new features to achieve sustained customer
attraction and enhanced satisfaction.
vi. Development of technologies including alternative materials, weight reduction, cost
reduction and improvement of fuel economy.
vii. Development of new technologies in the areas of Hybrid/ Electric power trains.