In a bid to double its turnover to Rs 2,000 crore from the present Rs 1,000 crore, TVS Suzuki Ltd (TSL) will roll out a new vehicle every six months over the next three years, company president C P Raman said yesterday.
Besides, the company will also go ahead full stream with its plans to enter the lucrative scooter segment and will introduce two international design scooters in the market by August, Raman said in a statement issued here. "Our estimates indicate that TSL will notch up around ten per cent marketshare by the end of the year 2001."
TSL, he said, has crossed the Rs 1,000-crore turnover mark in 1997-98. This shows a more than 500 per cent growth in turnover from a modest Rs 189 crore in 1992-93.
The company's marketshare in the categories of mopeds, motorcycles and scooterettes is 48 per cent, 25 per cent and 5.5 per cent respectively.
This translates into an all-India market share of 19 per cent of the two-wheeler market in the country. The company, he said, has invested Rs 170 crore in the greenfield scooter project at Nanjangud near Mysore in Karnataka. TSL will be the first automobile major in the country to introduce the four-stroke technology for scooters.
The scooter, trial run for which is scheduled for August, will first be launched in the north and will go national in phases.
The market capitalisation of TSL as on March 18 this year was Rs 1,096 crore p/e of the company is at 18.1 against the industry p/e of 15.5.
The company has been consistently declaring dividends at an average rate of 30 per cent, which translates to an earning per share of Rs 23.5 in 1996-97.
The firm, in which Japan's Suzuki Motor Corp holds a 25.9 per cent stake, reported a net profit of Rs 54.36 crore in 1996/97.
Raman said TVS Suzuki had experienced an 11% growth rate this year against an industry average of three percent. Turnover in the last five years had risen 500 per cent at a compounded annual growth rate of around 40 per cent, he said.
Raman said earnings per share, going by the half-year results, had been growing at a compounded annual growth rate of 80 per cent in the last five years.
