TVS expects break even of its Indonesian arm in FY 15

Leading two wheeler maker TVS Motor Company Ltd expects to make operations of its Indonesian subsidiary, PT TVS Motor, profitable during the current fiscal, a senior executive of the company said today.
J S Srinivasan, Vice President (Sales), TVS Motors, said the company would take a call on the expansion of its manufacturing plants during the current year as the capacity utilisation of the plants has reached 90 per cent.
"It (Indonesian subsidiary) is doing well. This year there has been an improvement in sales. It is just 3-4 years we are there. So I think this year we should be able to make some good growth over there. I think operational profits we should be able to do this year," Srinivasan told PTI.

During 2013-14, PT TVS sold 19,200 vehicles registering a growth of 3 per cent as against 18,600 vehicles sold in the earlier year. While its domestic sales grew by 12 per cent, the exports were down 3 per cent.
During the year, PT TVS exported 10,300 two wheelers, according to TVS annual report.
During the period, PT TVS successfully made an entry into Myanmar market and plans to expand its presence in new markets like Laos, Cambodia, Malaysia and Turkey.

Srinivasan said currently the manufacturing capacity of all the three plants of TVS Motors put together is at 2.8 million vehicles annually with 85 to 90 per cent capacity utilisation.

"As far as expansion is concerned, the company will take a call on how it should be expanded. If everything goes well, as far as by the end of this fiscal we should take a decision as far as capacity is concerned. The expansion would be in the existing plants only", he said.
Srinivasan said currently exports of two wheelers from TVS stood at 3.5 to 4 lakh units per annum to around 55 countries of which majority constitutes Asian and African nations.
He said the exports witnessed a growth of 30 per cent during the first five months of the current year and expects similar trend for the rest of the year.

The automaker today launched its 'Scooty Zest 110' two wheeler in Telangana and Andhra Pradesh markets.