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TVS Motor Company Ltd.

BSE: 532343 Sector: Auto
NSE: TVSMOTOR ISIN Code: INE494B01023
BSE 00:00 | 26 Mar 460.50 -2.60
(-0.56%)
OPEN

464.35

HIGH

466.25

LOW

458.15

NSE 00:00 | 26 Mar 460.45 -2.55
(-0.55%)
OPEN

465.50

HIGH

466.75

LOW

458.10

OPEN 464.35
PREVIOUS CLOSE 463.10
VOLUME 49868
52-Week high 693.40
52-Week low 448.50
P/E 31.18
Mkt Cap.(Rs cr) 21,878
Buy Price 460.50
Buy Qty 301.00
Sell Price 460.50
Sell Qty 199.00
OPEN 464.35
CLOSE 463.10
VOLUME 49868
52-Week high 693.40
52-Week low 448.50
P/E 31.18
Mkt Cap.(Rs cr) 21,878
Buy Price 460.50
Buy Qty 301.00
Sell Price 460.50
Sell Qty 199.00

TVS Motor Company Ltd. (TVSMOTOR) - Chairman Speech

Company chairman speech

TVS MOTOR COMPANY LIMITED ANNUAL REPORT 2002-2003 CHAIRMAN'S REPORT Chairman's Speech Speech delivered by Mr Venu Srinivasan, Chairman at the 11TH Annual General Meeting of TVS Motor Company Limited, held on 12TH September 2003, at Chennai Good morning, ladies and gentlemen, I have great pleasure in welcoming you to the eleventh annual general meeting of the company. Year 2002-03 was the first full year of operation as a truly independent company and I am happy to inform you that TVS Motor company has recorded excellent results last year. Highlights of the last year * TVS Motor recorded its highest ever sales, both in terms of number of vehicles and sales value. * The company crossed the magic million mark by selling 1.12 million vehicles during the year 2002-03, compared to 0.87 million vehicles in the previous year. The company registered an overall volume growth of 29% led by motorcycle volume growth of 60%. * The company's turnover for the year increased to Rs.2726 crores from Rs.1944 crores last year, recording a growth of 40%. * Exports turnover increased by 47% to Rs.25 crores (10,152 vehicles) in 2002-03 as compared to Rs.17 crores (7,752 vehicles) previous year * Profit before tax increased to Rs.201 crores in the year 2002-03, a growth of over 140%. * TVS Motor Company won the prestigious Deming prize for its outstanding performance through company-wide implementation of Total Quality Management (TQM). We are the first powered two wheeler company in the world to get this honour. Review of Performance - 2002- 03 The two-wheeler industry has grown by 17% during 2002-03 despite the slow growth in the economy. The growth was largely due to 31% growth in motorcycles and 29% growth in the ungeared scooter category. India continues to remain the second largest player in the global two-wheeler market, with over 5 million units, which is next only to China. TVS Motor Company has out performed rest of the industry in growth terms - increasing by 144% in profits, 40% in turnover and 29% in unit sales. Sale of motorcycles has, in particular increased from 4.5 lakhs in 2001-02 to 7.2 Lakhs in 2002-03, thus registering an exceptional increase of 60%, Current Economic Scenario Indian economy is expected to grow faster than 5% during 2003-04. So far most parts of the country except Tamilnadu, Karnataka & Kerala have experienced good monsoons. The improvement in rainfall is likely to assist revival of farm sector and provide the much-needed boost to rural income. Industrial sector, which has posted a strong growth rate in the first quarter of the current fiscal year, is projected to grow at 4.5%. Barring the electricity sector, infrastructure growth has also been higher with rising cement and steel output consequent to the growth in construction and housing activities. On the global front, end of Iraq war and stabilization of oil prices have provided an added impetus. This is good news for the software & services industry. The two-wheeler industry, which is closely linked with the general level of economic activity, is expected to grow over 6%. Current year performance The turnover of the company for the first quarter of the current year is Rs.671 crores as against Rs.632 crores last year same period, registering a growth of 6%. During the same period of this year, the profit before tax grew by 18% to Rs.50 crores as against Rs.42 crores in the corresponding period of last year. In this year, we have achieved exports of Rs 11.2 crores, an impressive growth of 120% over the corresponding period in 2002- 03. TVS Victor, our first 4-stroke motorcycle in the executive segment, has been a spectacular success with cumulative sales of 6.5 lakh units so far since launch. We have introduced New Victor GL incorporating improvements based on market feedback. During first quarter 2003-04, company has introduced two new products, Scooty Pep and Fiero F2. The market response is excellent for both these products. We are planning to launch a new motorcycle in the second half of this year. The company's performance is expected to improve further with ramping up of all new product volumes. New product development and technology New products are the lifeblood of this industry. So, keeping the long term interest in view, the company has increased its investments in new product development and technology. TVS Victor has helped to establish ourselves in the fast growing executive segment. With launch of a new bike, this position will be further strengthened. Superior performance in the market place is possible only through constant focus on understanding customer requirements and delivering environment- friendly, high performance products. Investments will continue in product and technology development in the future also. Cost reduction The company has a rigorous system of cost deployment, which is monitored on a continuous basis and owned by everyone across the organization. In 2002- 03 the Company achieved a total cost saving of Rs.104 crores. ERP system facilitates in an effective cost monitoring and control. The activity will be intensified this year. Cost reduction programs will cover both fixed and variable costs. Sub-system-wise material cost reduction, "Just in Time" (JIT) and Total Productive Maintenance (TPM) will be the main focus areas of 2003-04. The company has accelerated "e-buying" and "global sourcing" as new initiatives to further reduce cost. Focus on quality and total employee involvement The company believes that its employees are the foundation of a successful organization and strives to continuously improve employee participation in developing higher levels of performance. 100% participation of employees in TOM has been achieved. The employees have completed more than 1134 projects through QC Circles in 2002-03. 44 suggestions per employee were received during the year which saved Rs.16 crores through various employee involvement activities. Environment The company is aligning its environment system in line with ISO 14001 and OHSA 18001 for environment, health and safety. Tree plantation is continued this year also by planting another 9,000 saplings during this year bringing the total number of trees in the campus to 25,000. Adoption of "Clean Technology" is given highest priority during expansion of facilities at both Mysore and Hosur Plants. TVS Motor is facilitating important suppliers to initiate environment management systems at their workplaces. Community development The company believes in its social responsibility and is involved in several community development activities in the villages adopted. An earthquake hit village "Goyersama" in Bhuj district of Gujarat has been adopted for relief & development. Dental care camps, eye camps, besides Leprosy eradication programs have been started in about 200 villages surrounding Hosur. In addition infrastructure in schools, hospitals and sanitation facilities are being developed for the benefit of residents of the villages. Acknowledgement The board of directors join me in thanking the shareholders for the confidence reposed in the company. I would also like to express our grateful thanks to our customers, bankers, financial institutions, dealers and suppliers for their continued co-operation and invaluable support. I thank all the employees of our company for their sincere and hard work in achieving this good performance. But for the team spirit demonstrated at all levels, this considerably improved performance of the company would not have been possible. Thank You