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TVS Motor traces its origins back to 1911 when its founder began Madurai's first bus service. It has since expanded into automobile manufacturing. In 1962, it founded Sundaram Clayton to produce automotive parts. In 1978, it began moped manufacturing. It had a 19-year partnership with Suzuki from 1982-2001 to produce motorcycles. Currently, it has four manufacturing plants and produces a variety of scooters and motorcycles, maintaining its position as one of India's largest motorcycle companies.
![History
TVS Motor traces its origins back to the entrepreneurial spirit of Trichur Vengaram Sundaram
Iyengar who gave up lucrative careers in the Indian Railways and in banking to set up his own
business. He began with Madurai's first bus service in 1911 and founded T.V.Sundaram Iyengar
and Sons Limited, a company that consolidated its presence in the transportation business with a
large fleet of trucks and buses under the name of Southern Roadways Limited.[2] When he died
in 1955 his sons took the company ahead with several forays in the automobile sector, including
finance, insurance, manufacture of two-wheelers, tyres and components. The group has managed
to run 33 companies that account for a combined turnover of nearly $3 billion.
Early years
Sundaram Clayton, then the flagship company, was founded in 1962 in collaboration with
Clayton Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts, compressors
and various other automotive parts. The company set up a plant at Hosur in 1978 to manufacture
mopeds as part of a new division.[3] A technical collaboration with the Japanese auto giant
resulted in the joint-venture Ind Suzuki Limited in 1982 between Sundaram Clayton Ltd and
Suzuki Motor Corporation. Commercial production of motorcycles began in 1984.
Suzuki relationship
TVS and Suzuki shared a 19 year long relationship that was aimed at technology transfer to
enable design and manufacture of two-wheelers specifically for the Indian market. Rechristened
TVS-Suzuki, the company brought out several models such as the Suzuki Samurai, Suzuki
Shogun and Suzuki Fiero. Differences in opinion on how to run the join venture eventually led to
the partners going their separate ways in 2001 with the company being renamed TVS Motor,
relinquishing rights to use the Suzuki name. There was also a 30 month moratorium period
during which Suzuki promised not to enter the Indian market with competing two-wheelers.[4]
The company also got over a period of labour unrest that required Chairman Venu Srinivasan to
take tough measures to resurrect a company that was in a state of turmoil. He would go on to
invest in new technology, nurture in-house design, and implement Toyota-style quality
programs.[5]
Recent
Over the years TVS Motor has grown to be the largest in the group, both in terms of size and
turnover, with four state of the art[6] manufacturing plants in Hosur, Mysore and Nalagarh in
India and Karawang in Indonesia. TVS Motor is credited with many innovations in the Indian
automobile industry, notable among them being the introduction of India's first two-seater
moped, the TVS 50cc. The company became the leader in its category of sub 100 cc mopeds,
having sold 7 million units. It also introduced the TVS Scooty, which is India's second largest
brand in the scooterette segment.[7] The TVS Jive launched in November 2009 became India's
first clutch-free motorbike aimed at a stress-free rider experience[8] while the unisex scooter TVS
Wego is targeted at urban couples, featuring body-balance technology for easier handling.[9] On](https://image.slidesharecdn.com/harpreet-130324041303-phpapp02/85/Harpreet-1-320.jpg)
![1 June 2012, TVS Motors reported a dip of 5% in its total sales for May 2012.[10] In July 2012,
TVS Motors and BMW Motorrad were reported to be in talks for technology sharing.[11]
Balance Sheet of TVS Motor ------------------- in Rs. Cr. -------------------
Company
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 47.51 47.51 23.75 23.75 23.75
Equity Share Capital 47.51 47.51 23.75 23.75 23.75
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 1,121.79 951.90 841.63 789.38 797.83
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 1,169.30 999.41 865.38 813.13 821.58
Secured Loans 356.70 565.93 829.98 622.42 452.68
Unsecured Loans 358.76 219.49 173.31 283.56 213.66
Total Debt 715.46 785.42 1,003.29 905.98 666.34
Total Liabilities 1,884.76 1,784.83 1,868.67 1,719.11 1,487.92
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 2,142.43 1,972.25 1,909.14 1,865.36 1,790.97
Less: Accum. Depreciation 1,116.86 1,034.66 953.41 869.42 774.49
Net Block 1,025.57 937.59 955.73 995.94 1,016.48
Capital Work in Progress 52.51 57.39 27.05 40.43 26.57
Investments 930.92 661.13 739.26 477.71 338.96
Inventories 584.56 527.92 289.73 320.55 405.38
Sundry Debtors 234.07 270.62 220.31 181.56 87.86
Cash and Bank Balance 13.03 5.94 39.74 42.00 3.44
Total Current Assets 831.66 804.48 549.78 544.11 496.68
Loans and Advances 299.84 464.09 410.98 427.11 342.87
Fixed Deposits 0.00 0.07 61.27 0.05 0.29
Total CA, Loans & Advances 1,131.50 1,268.64 1,022.03 971.27 839.84
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 1,149.47 1,047.94 838.62 776.08 725.71
Provisions 106.27 91.98 66.87 65.49 60.99
Total CL & Provisions 1,255.74 1,139.92 905.49 841.57 786.70
Net Current Assets -124.24 128.72 116.54 129.70 53.14
Miscellaneous Expenses 0.00 0.00 30.09 75.33 52.77
Total Assets 1,884.76 1,784.83 1,868.67 1,719.11 1,487.92](https://image.slidesharecdn.com/harpreet-130324041303-phpapp02/85/Harpreet-2-320.jpg)
Harpreet
- 1. History TVS Motor traces its origins back to the entrepreneurial spirit of Trichur Vengaram Sundaram Iyengar who gave up lucrative careers in the Indian Railways and in banking to set up his own business. He began with Madurai's first bus service in 1911 and founded T.V.Sundaram Iyengar and Sons Limited, a company that consolidated its presence in the transportation business with a large fleet of trucks and buses under the name of Southern Roadways Limited.[2] When he died in 1955 his sons took the company ahead with several forays in the automobile sector, including finance, insurance, manufacture of two-wheelers, tyres and components. The group has managed to run 33 companies that account for a combined turnover of nearly $3 billion. Early years Sundaram Clayton, then the flagship company, was founded in 1962 in collaboration with Clayton Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts, compressors and various other automotive parts. The company set up a plant at Hosur in 1978 to manufacture mopeds as part of a new division.[3] A technical collaboration with the Japanese auto giant resulted in the joint-venture Ind Suzuki Limited in 1982 between Sundaram Clayton Ltd and Suzuki Motor Corporation. Commercial production of motorcycles began in 1984. Suzuki relationship TVS and Suzuki shared a 19 year long relationship that was aimed at technology transfer to enable design and manufacture of two-wheelers specifically for the Indian market. Rechristened TVS-Suzuki, the company brought out several models such as the Suzuki Samurai, Suzuki Shogun and Suzuki Fiero. Differences in opinion on how to run the join venture eventually led to the partners going their separate ways in 2001 with the company being renamed TVS Motor, relinquishing rights to use the Suzuki name. There was also a 30 month moratorium period during which Suzuki promised not to enter the Indian market with competing two-wheelers.[4] The company also got over a period of labour unrest that required Chairman Venu Srinivasan to take tough measures to resurrect a company that was in a state of turmoil. He would go on to invest in new technology, nurture in-house design, and implement Toyota-style quality programs.[5] Recent Over the years TVS Motor has grown to be the largest in the group, both in terms of size and turnover, with four state of the art[6] manufacturing plants in Hosur, Mysore and Nalagarh in India and Karawang in Indonesia. TVS Motor is credited with many innovations in the Indian automobile industry, notable among them being the introduction of India's first two-seater moped, the TVS 50cc. The company became the leader in its category of sub 100 cc mopeds, having sold 7 million units. It also introduced the TVS Scooty, which is India's second largest brand in the scooterette segment.[7] The TVS Jive launched in November 2009 became India's first clutch-free motorbike aimed at a stress-free rider experience[8] while the unisex scooter TVS Wego is targeted at urban couples, featuring body-balance technology for easier handling.[9] On
- 2. 1 June 2012, TVS Motors reported a dip of 5% in its total sales for May 2012.[10] In July 2012, TVS Motors and BMW Motorrad were reported to be in talks for technology sharing.[11] Balance Sheet of TVS Motor ------------------- in Rs. Cr. ------------------- Company Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital 47.51 47.51 23.75 23.75 23.75 Equity Share Capital 47.51 47.51 23.75 23.75 23.75 Share Application Money 0.00 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 1,121.79 951.90 841.63 789.38 797.83 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00 Networth 1,169.30 999.41 865.38 813.13 821.58 Secured Loans 356.70 565.93 829.98 622.42 452.68 Unsecured Loans 358.76 219.49 173.31 283.56 213.66 Total Debt 715.46 785.42 1,003.29 905.98 666.34 Total Liabilities 1,884.76 1,784.83 1,868.67 1,719.11 1,487.92 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block 2,142.43 1,972.25 1,909.14 1,865.36 1,790.97 Less: Accum. Depreciation 1,116.86 1,034.66 953.41 869.42 774.49 Net Block 1,025.57 937.59 955.73 995.94 1,016.48 Capital Work in Progress 52.51 57.39 27.05 40.43 26.57 Investments 930.92 661.13 739.26 477.71 338.96 Inventories 584.56 527.92 289.73 320.55 405.38 Sundry Debtors 234.07 270.62 220.31 181.56 87.86 Cash and Bank Balance 13.03 5.94 39.74 42.00 3.44 Total Current Assets 831.66 804.48 549.78 544.11 496.68 Loans and Advances 299.84 464.09 410.98 427.11 342.87 Fixed Deposits 0.00 0.07 61.27 0.05 0.29 Total CA, Loans & Advances 1,131.50 1,268.64 1,022.03 971.27 839.84 Deffered Credit 0.00 0.00 0.00 0.00 0.00 Current Liabilities 1,149.47 1,047.94 838.62 776.08 725.71 Provisions 106.27 91.98 66.87 65.49 60.99 Total CL & Provisions 1,255.74 1,139.92 905.49 841.57 786.70 Net Current Assets -124.24 128.72 116.54 129.70 53.14 Miscellaneous Expenses 0.00 0.00 30.09 75.33 52.77 Total Assets 1,884.76 1,784.83 1,868.67 1,719.11 1,487.92
- 3. Contingent Liabilities 212.51 204.19 121.27 170.10 135.65 Book Value (Rs) 24.61 21.04 36.43 34.23 34.59 TVS Motor Company Previous Years » Profit & Loss account ------------------- in Rs. Cr. ------------------- Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover 7,712.33 6,712.53 4,679.59 4,008.91 3,683.53 Excise Duty 586.13 533.05 316.48 337.99 464.03 Net Sales 7,126.20 6,179.48 4,363.11 3,670.92 3,219.50 Other Income 21.71 121.64 46.65 79.47 98.07 Stock Adjustments 15.14 143.88 -1.95 -60.56 26.07 Total Income 7,163.05 6,445.00 4,407.81 3,689.83 3,343.64 Expenditure Raw Materials 5,292.29 4,806.50 3,169.76 2,753.53 2,502.45 Power & Fuel Cost 127.91 68.10 49.74 46.25 40.72 Employee Cost 370.11 328.69 251.39 204.69 176.55 Other Manufacturing Expenses 49.84 48.12 41.25 28.16 25.18 Selling and Admin Expenses 0.00 734.94 617.81 444.16 443.91 Miscellaneous Expenses 831.82 32.65 21.85 12.49 11.45 Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00 Total Expenses 6,671.97 6,019.00 4,151.80 3,489.28 3,200.26 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit 469.37 304.36 209.36 121.08 45.31 PBDIT 491.08 426.00 256.01 200.55 143.38 Interest 57.09 70.30 75.36 64.61 11.47 PBDT 433.99 355.70 180.65 135.94 131.91 Depreciation 117.53 107.25 102.53 102.89 94.59 Other Written Off 0.00 0.36 1.95 1.95 1.95 Profit Before Tax 316.46 248.09 76.17 31.10 35.37 Extra-ordinary items -2.86 0.00 0.00 0.00 0.00 PBT (Post Extra-ord Items) 313.60 248.09 76.17 31.10 35.37 Tax 67.39 53.51 -11.84 0.02 3.60 Reported Net Profit 249.07 194.58 88.01 31.08 31.77 Total Value Addition 1,379.68 1,212.50 982.04 735.75 697.81 Preference Dividend 0.00 0.00 0.00 0.00 0.00 Equity Dividend 61.77 52.27 28.51 16.63 16.63 Corporate Dividend Tax 10.01 8.21 4.36 2.83 2.83 Per share data (annualised) Shares in issue (lakhs) 4,750.87 4,750.87 2,375.44 2,375.44 2,375.44
- 4. Earning Per Share (Rs) 5.24 4.10 3.71 1.31 1.34 Equity Dividend (%) 130.00 110.00 120.00 70.00 70.00 Book Value (Rs) 24.61 21.04 36.43 34.23 34.59 TVS Motor Company Capital Structure Period Instrument --- CAPITAL (Rs. cr) --- -PAIDUP- From To Authorised Issued Shares (nos) Face Value Capital 2011 2012 Equity Share 50 47.51 475087114 1 47.51 2010 2011 Equity Share 50 47.51 475087114 1 47.51 2009 2010 Equity Share 25 23.75 237543557 1 23.75 2008 2009 Equity Share 25 23.75 237543557 1 23.75 2007 2008 Equity Share 25 23.75 237543557 1 23.75 2006 2007 Equity Share 25 23.75 237543557 1 23.75 2005 2006 Equity Share 25 23.75 237543557 1 23.75 2004 2005 Equity Share 25 23.75 237543557 1 23.75 2003 2004 Equity Share 25 23.1 231000700 1 23.1 2002 2003 Equity Share 25 23.1 23100070 10 23.1 2001 2002 Equity Share 25 23.1 23100070 10 23.1 2000 2001 Equity Share 25 23.1 23100070 10 23.1 1999 2000 Equity Share 25 23.1 23100070 10 23.1 1986 1999 Equity Share 25 23.1 23100000 10 23.1 1984 1985 Equity Share 10 7.7 7700000 10 7.7 1982 1984 Equity Share 10 1.76 1760000 10 1.7 Key Financial Ratios of TVS Motor Company Mar Mar '11 Mar '10 Mar '09 Mar '08 '12 Investment Valuation Ratios Face Value 1.00 1.00 1.00 1.00 1.00 Dividend Per Share 1.30 1.10 1.20 0.70 0.70 Operating Profit Per Share (Rs) 9.88 6.41 8.81 5.10 1.91 Net Operating Profit Per Share (Rs) 150.00 130.07 183.68 154.54 135.53 Free Reserves Per Share (Rs) -- 19.90 33.89 29.79 31.09 Bonus in Equity Capital 49.98 49.98 -- -- -- Profitability Ratios Operating Profit Margin(%) 6.58 4.92 4.79 3.29 1.40 Profit Before Interest And Tax Margin(%) 4.92 3.12 2.40 0.48 -1.49 Gross Profit Margin(%) 4.93 3.18 2.44 0.49 -1.53 Cash Profit Margin(%) 5.12 4.94 5.06 3.53 2.96
- 5. Adjusted Cash Margin(%) 5.12 4.94 5.06 3.53 2.96 Net Profit Margin(%) 3.48 3.08 1.98 0.82 0.96 Adjusted Net Profit Margin(%) 3.48 3.08 1.98 0.82 0.96 Return On Capital Employed(%) 19.81 18.38 9.85 5.37 1.08 Return On Net Worth(%) 21.30 19.46 10.53 4.21 4.13 Adjusted Return on Net Worth(%) 21.30 20.45 14.45 3.76 0.13 Return on Assets Excluding Revaluations 24.61 21.04 35.16 31.06 32.37 Return on Assets Including Revaluations 24.61 21.04 35.16 31.06 32.37 Return on Long Term Funds(%) 22.64 19.08 9.85 5.37 1.08 Liquidity And Solvency Ratios Current Ratio 0.71 1.00 1.13 1.15 1.07 Quick Ratio 0.44 0.59 0.75 0.68 0.47 Debt Equity Ratio 0.61 0.79 1.16 1.11 0.81 Long Term Debt Equity Ratio 0.41 0.72 1.16 1.11 0.81 Debt Coverage Ratios Interest Cover 6.54 4.67 2.44 1.43 1.40 Total Debt to Owners Fund 0.61 0.79 1.16 1.11 0.81 Financial Charges Coverage Ratio 8.60 6.20 3.83 3.05 9.82 Financial Charges Coverage Ratio Post Tax 7.42 5.30 3.55 3.10 12.19 Management Efficiency Ratios Inventory Turnover Ratio 13.19 13.27 17.12 13.31 9.61 Debtors Turnover Ratio 28.24 25.17 21.71 27.25 32.31 Investments Turnover Ratio 13.19 13.27 17.12 13.31 9.61 Fixed Assets Turnover Ratio 3.34 3.13 2.29 1.97 1.80 Total Assets Turnover Ratio 3.79 3.46 2.33 2.14 2.16 Asset Turnover Ratio 3.88 3.38 2.43 2.29 1.80 Average Raw Material Holding -- 13.97 11.36 15.11 14.00 Average Finished Goods Held -- 15.53 9.06 11.12 23.92 Number of Days In Working Capital -6.28 7.50 9.62 12.72 5.94 Profit & Loss Account Ratios Material Cost Composition 74.26 77.78 72.64 75.00 77.72 Imported Composition of Raw Materials 12.90 11.04 10.20 12.17 7.80 Consumed Selling Distribution Cost Composition -- 9.63 11.49 9.34 11.02 Expenses as Composition of Total Sales 15.85 14.28 12.19 14.27 10.38 Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 28.81 31.08 37.34 62.61 61.25 Dividend Payout Ratio Cash Profit 19.57 20.01 17.07 14.31 15.16 Earning Retention Ratio 71.19 70.42 72.78 29.93 -1,846.00 Cash Earning Retention Ratio 80.43 80.62 85.41 85.33 80.05 AdjustedCash Flow Times 1.95 2.52 4.46 6.83 6.83 Mar Mar '11 Mar '10 Mar '09 Mar '08 '12 Earnings Per Share 5.24 4.10 3.71 1.31 1.34 Book Value 24.61 21.04 36.43 34.23 34.59