An Integrated Mini Project on

TVS Motor Company Automobile Industry

Presented By, Monica.R Naveen Karthik Priya Dharshini Sruti Shabaritha

Introduction to TVS Motor Co.
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, and is the flagship company of the USD 4 billion TVS Group.

Mission & Vision
Mission Statement
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 and to provide fulfilment and
prosperity for employees, dealers and suppliers.

Vision Statement  Driven by the customer  The Industry Leader  Global Overview  At the Cutting Edge  Committed to Total Quality  The Human factor  Responsible Corporate citizen .

Their Products • Motor cycles  Apache RTR 180cc  Flame DS 125  TVS Jive  Star City • Variomatic Scooters  TVS Wego  Scooty Streak  Scooty Pep+  Scooty Teenz • Mopeds  TVS XL Super  TVS XL Heavy Duty .

Chennai TVS Energy Limited. Singapore PT. Amsterdam TVS Motor (Singapore) Pte. Chennai TVS Housing Limited. Jakarta . Chennai TVS Motor Company (Europe) B. TVS Motor Company Indonesia. Limited.V.. Chennai TVS Wind Power Limited.Brands of TVS • • • • • • • • Sundaram Auto Components Limited. Chennai TVS Wind Energy Limited.

2012.CEO/Managing Director • Mr. Chennai. Venu Srinivasan has been the Chairman since Feb 10. Srinivasan received an Honorary Doctorate Degree in Science from the University of Warwick . • Mr. • He also serves as an Honorary Consul General of Republic of Korea. since July 2007 and Managing Director since 1986. Srinivasan serves as Chairman of TVS Motor Co. • Mr.

Five Pillars are: Policy. daily management and Kaizen (Continuous improvement).Trust Value Service NPD-New Product Development Brand Image – TVS Training-adopting new technologies Standardization-Ensuring Quality .Management Philosophy-Total Quality Management The management philosophy is based on the foundation of Involvement.

Managing Director President Vice President Production Department Sales & Marketing R&D General Manager General Manager General Manager Deputy General Manager Deputy General Manager Deputy General Manager Assistant Deputy General Manager Assistant Deputy General Manager Assistant Deputy General Manager Senior Manager Manager Senior Manager Manager Senior Manager Manager Senior Engineer Senior Engineer Senior Engineer Assistant Engineer Assistant Engineer Assistant Engineer Engineer Engineer Engineer .

employee can straightaway contact the next-level superior • Employee-friendly superiors • Freedom of expressing employee’s thoughts .Communication Process • Both upward and downward communication possible • Incase of emergency and there is no proper response from superior.

Communication flow Internal Senior Manager Marketing Manager External Process Planning(Design) Senior Engineer Dealers Suppliers Assistant Engineer Engineer .

Ex: Hosur Fire Accident . They follow Just In Time principle. they rely on grapevine communication They have preplans for all the crisis situations and they have spokesperson to talk on their behalf during crisis. In case of emergency.Crisis communication Strategy TVS Company does Demand Forecast to avoid Market shutdown.

• Incase they get a foreign client. so they do not face cultural barrier.Cross cultural communication • Most of the workers are from India. the HOD or technical people communicate with them using a Translator .

Communication Barriers • TVS. • It is striving to be a more national company. • Non-tamil employees find it difficult to work with the others. So it has a majority of people from other states. . predominantly being a south-indian firm. • Hence. this kind of people leave the organization due to communication barriers. has a majority of employees from Tamilnadu.

• Comparing with their competitors and create a niche in customers’ minds . • TVS uses a brand ambassador who is a well known person in India which helps them communicate the product to the masses.Marketing and Selling strategies • Communication strategies used for marketingAdvertising through Television. print media.

Customer satisfaction & Retention Quick Service Product quality Service Quality Overall customer satisfaction Billing Clarity Affordable Price Feedback .

emotional intelligence. • Failing to attend the training is risky for their promotion . and leadership skills.Assessment Criteria during Recruitment • Prime importance to the language(English) • Regular training from external consultant to the employees in effective communication. time management.

Economic Analysis • Regression equation • Growth rate of the company • Forecasting .

6 PROFIT (CRORES) 128 138 138 117 67 32 31 88 REVENUE (CRORES) 2726 2856 2955 3306 3921 3310 3741 4485 EXPORT (CRORES) 24.6 79.2 180.68 258.1 334.19 11.Past 10 years Data YEAR 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 SALES (LAKHS) 11.97 69.11 532.48 122.8 133.9 104.19 .47 66 76 84.47 524.2 195 249 6324 7148 882.8 83.84 1130.22 2010-2011 2011-2012 153.

76% 1000 900 800 700 600 500 400 300 200 100 0 2002-03 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 .Growth rate for total sales 10.

9% 1000 900 800 700 600 500 400 300 200 100 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 .Growth rate for total profit 54.

22. – The estimated sales for the year 2013-2014 will be Rs.336L . The equation is given by. Y=a+bX • Sales Forecast: Y=20.23.119L.Forecasting • Forecasting is estimated by the Ordinary Least Square regression method. – The estimated sales for the year 2014 -2015 will be Rs.902 L.515+0.217X – The estimated sales for the year 2012 -2013 will be Rs.23.

38 Cr. • The estimated revenue for the year 2013-2014 will be Rs.7330.235.526Cr .932 Cr.761X • The estimated profit for the year 2012 -2013 will be Rs.183+83. Revenue forecast: Y=6491.Profit forecast: Y=149.171 Cr.7417.7246.693 Cr.927X • The estimated revenue for the year 2012 -2013 will be Rs.8+7. • The estimated profit for the year 2014 -2015 will be Rs.242. • The estimated profit for the year 2013-2014 will be Rs.250.453Cr • The estimated revenue for the year 2014 -2015 will be Rs.

1157. • The estimated export earnings for the year 2013-2014 will be Rs. .1171.911X • The estimated export earnings for the year 2012 -2013 will be Rs. • The estimated export earnings for the year 2014 -2015 will be Rs.1185.Forecasting of Export earnings: Y=1032.611 Cr.501+13.7 Cr.522 Cr.

. To examine the operating cycles. issue. To study the liquidity status of the companies in automobile sector. XI. pp. No. 2012 Title Journal.To study the trend of working capital management in automobile sector. To study the working capital financing approach. objectives 1. and 5. 2. 2.Literature Review Author name Swati Modi A Study on the Adequacy and Efficacy of Working Capital in Automobile Industry in India The IUP Journal of Accounting Research & Audit Practices. Vol. 4. 3. To study the efficacy and effectiveness of working capital management.

H4: The null hypothesis is that all the companies are having consistent performance. operating cycles and turnover ratios. H2: The working capital management is efficient in all the selected companies. The companies are having similar performances in liquidity. current liabilities Working capital nil nil H1: The trend of the working capital is uniform in all the selected companies of automobile industry. Hypotheses used .Independent variables Dependent variables Moderating variable (if any) Mediating variable (if any) Current assets. H3: The average working capital is the same for all the companies in this industry.

55. Tata Motors and Bajaj Auto are managing with negative working capital and are aggressive in their approach.297 Tata motors 12.Hypotheses Supported Qualitative or Quantitative Sampling method and sample size No.37.as it was observed that some companies like Maruti Udyog and Tata Motors H2:The hypothesis was rejected.32 Maruthi Udyog .0 bajaj . and it is found that Hero Honda. while TVS and Maruti Udyog have adopted a conservative approach towards financing and investing in current assets and maintenance of working capital and have positive working capital H3: It was found that all companies do not have same position as per liquidity hero honda .448 H4 : are working with positive working capital. Quantitative no 12 nil nil Exploratory .26 TVS 20. of literatures referred in that paper Managerial implication (if any) Context Research design-exploratory/conclusive H1: The hypothesis was rejected.

Basic or Applied research Statistical tools used Software used Style of referencing Limitations revealed Scope for further research Basic ANOVA and correlation matrix nil APA nil yes .

0.Accounting-TVS During the past 5 years.7 to Rs. 5. 1.3 . • Net worth of the company has projected from 769 crores to 1170 crores. 0. • Sales has increased from 3310 crores to 7148 crores.67 to Rs. • Net profit has increased in a steadfast manner from 32 crores to 249 crores. • Earnings per share has surged from Rs. • Sales has increased from 3310 crores to 7148 crores.24 • Dividend per share has increased from Rs.

Calculated by dividing the profit attributable to the shareholders by the number of equity shares .Accounting.Indirect method Depreciation.Straight Line method Accounting for government grants.The Company received capital subsidy and the same has been credited to Capital reserve • Earnings per share.Contd… • • • • • Accounting policies.Accrual basis Inventories.ICAI Cash flow.

Changes in Policy • The Company has adopted Accounting Standard 30 . • Due to this move. • The hedge accounting principles has been applied to the foreign currency forward contracts. the company’s profit increased 4.84 crores last year ."Financial Instruments: Recognition and Measurement".

• Strong accounting record helps stakeholders and new investors gain trust. . • The literature reviews favours the future of automobile industry. • We hereby conclude that TVS Motor Company is excelling in the automobile industry with strong foundation in the key areas.Conclusion • Their principles in management helps them move towards a common objective • Effective communication strategies they follow makes the work effective. • Their prolific growth rate and good numbers in forecasting paves way for long term growth.