TVS Motor reports turnover of Rs. 3291 Cr, exports up 32% in fy '07-'08
The financial year 2007-08 was an eventful
year for TVS Motor Company. During the year, the company completed its product
portfolio with the launch of
TVS Flame in the executive segment. It also entered the three-wheeler segment
launch of TVS King. The year marked the commencement of commercial production
from its Nalagarh Plant located in Himachal Pradesh. The company also crossed
another important milestone with the commencement of commercial production at
its state-of-the-art plant located at Karawang near Jakarta, Indonesia and the
successful launch of TVS Neo, the bebek, (exclusively developed for the
Indonesian market) by its subsidiary PT TVS Motor Company.
With the various initiatives and a complete portfolio in two wheelers, the
company is now in a better position to reverse the declining trend in sales and
to report improved results.
The year witnessed a decline of 5% in the two-wheeler industry consequent to
restricted availability of retail finance, high interest rates and stringent
norms exercised by financiers. The economy segment of the motorcycle category
was severely hit and suffered maximum decline of 19%.
COMPANY FINANCIAL PERFORMANCE:
During the year ended March 2008, while the company recorded overall two wheeler
12.77 lakh units, motorcycles recorded sales of 6.10 lakh units compared to 9.23
lakh units over the previous period. Till the launch of the TVS Flame towards
the end of the year, the company was absent in the executive segment, which
accounts for over fifty percent of the motorcycle market. TVS Motor Company's
motorcycle portfolio was largely dependent on the entry level StaR range of
products and non-availability of retail finance had a severe impact on sales.
TVS Motor Company recorded total revenue of Rs. 3291 crores for the year ended
March 2008 compared to 3920 crores recorded during corresponding previous year.
Profit before tax during the year ended March 2008 stood at Rs. 35.37 crores as
against Rs. 90.85 crores recorded in the corresponding period last year. Profit
after tax stood at Rs. 31.77 crores as against Rs. 66.60 crores recorded last
NEW PRODUCTS LAUNCHED DURING 2007-08
During the year the company launched products in the economy, executive and
premium segments of the motorcycle market and improved its portfolio. The
company also launched the TVS King, making its debut in the three-wheeler
industry in India. Among the products launched are the 125cc TVS Flame, which is
one of the most stylishly designed products from the TVS stable. TVS also
launched the Star City with an enhanced engine capacity of 110cc, Apache RTR
with a 160cc engine.
FUTURE OUTLOOK - COMPANY PLANS AND PRODUCT LAUNCHES
The high inflation and restricted availability of retail finance will continue
to affect the prospects of the two-wheeler industry. However, the company will
have the benefit of all the new products launched towards the end of 2007 -08.
This will help the company to reverse the declining trend in sales and to report
improved results. The company can also leverage the capacity created at its HP
plant and its entry into the three-wheeler industry.
The Company continues its rigorous focus on its costs through an effective
deployment system. Value engineering and aggressive global sourcing projects are
being pursued to reduce material costs and also to partially neutralize input
material cost increases.
Total Productive Maintenance (TPM) is practiced in all the plants to ensure
significant improvement in productivity and reduction in manufacturing cost.
During 2007-08 Hosur Plant & Mysore plant were awarded the TPM excellence
certificate by the Japanese Institute of Plant Management (JIPM).
During the year 2008 - 2009, the company has planned a slew of new launches:
TVS Scooty Electric, Scooty Wimbledon Collection & All New Scooty Variant :
In April 2008, the company launched the TVS Scooty Electric, announcing its
entry into the electric two-wheeler market. The product has been well received
in the market.
As part of the agreement with the All England Lawn Tennis Club (AELTC), the
company launched two excitingly designed, limited edition scooters, inspired by
contemporary, classic and sporty imagery of 'the Spirit of Wimbledon'.
The company will further strengthen its presence in the scooters segment with
the introduction of an all-new variant of Scooty which will offer next
generation features and styling to customers.
Apache RTR Fuel Injection:
The company will launch an upgrade of Apache, a 160 cc motorcycle and introduce
fuel injection technology for the first time in the 160 cc category. This high
performance motorcycle offers superior performance of a fuel injected 160cc
engine and introduces data logging for the first time in the category.
Futuristic technology, contemporary styling and superior quality will continue
to be the focus for all new products.
Four Stroke Three Wheelers:
The company plans to introduce four-stroke versions of its three-wheeler in
Petrol, LPG and CNG versions for domestic and export markets during 2008-09.
Exports witnessed a steep growth of 32 % as compared to 28 % in the previous
year, recording sales of 136,000 units in comparison to 103,000 units in
2006-07. The company increased its export footprint to more than 50 countries
during the financial year. Exports will continue to be a major focus area of the
PT TVS INDONESIA:
PT TVS Motor Company, Indonesia, a subsidiary of TVS Motor Company developed the
TVS Neo 110cc, a product engineered exclusively for the Indonesian market that
has received extremely satisfactory response from customers. Apache RTR,
launched during the last fiscal year has also caught the fancy of Indonesian
customers. The company has already established a network of 25 dealers and plans
to add another 125 dealers during 2008 -09.
The company won several awards during the financial year '07-'08. The result of
continuous improvements in quality and engineering was evident in the company
winning five prestigious awards at the Auto Expo 2008. The Apache RTR 160 bagged
three awards including Performance Bike of the Year by NDTV Bike Awards, Bike of
the Year up to 160cc by Overdrive and Design of the year by NDTV Bike Awards.
The TVS Scooty Pep+ won the TNS Voice of the Customer Award as the No.1
Scooterette by Autocar CNBC Awards. TVS Motor Company's concept bike named 'Qube'
was chosen as the Concept Bike of the Year by Overdrive.