INDUSTRY PROFILE
Around the turn of the 20th century, bicycle racing was big in the USA Bicycles would
race around big curved tracks called velodromes aided by pacing machines powered by
internal combustion engines. These pacers were made in Europe and often broke down. A
young designer named Oscar Hendee, who had his own American pacer. He met up with a
racer named George Hendee who had his own bicycle manufacturing plant in Springfield,
MA. The two combined forces and created a bicycle powered by an engine developed by
Hedstrom. Thus was born the Hendee Manufacturing Company and the Indian motorcycle.
They chose the name Indian since it would signify an American product. George Hendee
became known as the Big Chief (B.C.) and Oscar Hedstrom became known as the Medicine
Man. The factory was called the Wigwam and the dealer network was called the Tribe.
The company finally changed its name from the Hendee Manufacturing Company
to the Indian Motorcycle Company in 1923.The first V-twins from Indian were produced in
1907.Hedstorm left the company after a dispute in 1913, never to work in the motorcycle
industry again. In another dispute within the newly formed company, Hendee also left the
company in 1916.The company grew at a rapid rate but had many competitors, most notably
Harley-Davidson. Indian competed with Harley-Davidson in the showrooms, on the tracks,
and on the streets to determine which brand was better .The second part of this article gives
details about this war for bragging rights. The war continues to this day even though Indian
was to go out of business for all intents and purposes in 1954.
Indian began making motorcycle in 1901 as the Hendee Manufacturing Company.
The first production model was in 1902 and 143 units were produced.
In 1903, 376 motorcycles were sold. It continued production through 1953 when it
no longer made the classic Indian. In 1999 Indian motorcycle were again produced, this time
by the Indian Motorcycle Corporation. This was not the same company but it did have rights
to the Indian name and trademarks.
We present here a look at Indian models from the first prototype model in 1901 to
the present as provided by About.com members. A gallery called 58 years of Indian is
provided that gives a picture and description for each model year from 1901 to 2003.of this
article discusses the founding and early growth of the Indian Motorcycle Company .Note the
spelling here of motorcycle instead of motorcycle . The term motorcycle was an
archaic word used in the nineteenth century to denote any horseless carriage. Indian wanted
to distinguish itself from the competition by using the older word.
Historical Industry Development
India is the second largest manufacturer and producer of two-wheeler in the world. It
stands next only to japan and China in terms of the number of two-wheelers produced and
domestic sales respectively. This distinction was achieved due to variety of reasons like
restrictive policy followed by the Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the transportation system etc.
The Indian two-wheeler industry made a small beginning in the early 50s when
Automobile Products of India (API) starts manufacturing scooters in the country. Until
1958,API and Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers.
Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio
of Italy .The agreement expired in 1971.
In the initial stages , API dominated the scooters segment ;Bajaj Auto later overtook
it. Although various government and private enterprises entered the fry for scooters, the only
new player that has lasted till today is LML.
Under the regulated regime, foreign companies were not allowed to operate In India.
It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto
being as high as 12 years.
The motorcycles segment was no different, with only three manufactures viz Enfield,
Ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa and the Rajdoot
were two-stroke bikes. The motor cycle segment was initially dominated by Enfield 350cc
bike and Escorts 175cc bikes.
The two-wheeler market opened to foreign competition in the mid-80s, and the then
market leaders-Escorts and Enfield- were caught unaware by the onslaught of the 100cc bikes
of the Indo-Japanese joint ventures. With the availability of fuel-efficient low power bikes,
demand swelled, resulting in Hero Honda- then the only producer of four stroke bikes(100cc
category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two-players initially started with assembly of CKD kits, and later on progressed to
indigenous manufacturing. In the 90s the major growth of motorcycle segment was brought
in by bicycles, which grew at a rate of nearly 25 percent CAGR in the last five years.
The Industry had a smooth ride in the 50s, 60s, and 70s when the government
prohibited new entries and strictly controlled capacity expansion. The industry was a sudden
growth in the 80s. The industry witnessed a steady growth of 14 percent leading to a peak
volume of 1.9mn vehicles in 199.
The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in
providing ease of use to the sooter owners. This helped in including youngsters and working
women, towards buying scooters, who were earlier, inclined towards moped purchases. In the
90s, this trend was reversed with the introduction of scooterettes. In line with this the scooter
segment has consistently lost its part of the market share in the two-wheeler market.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.
The reasons for recession in the sector were in the incessant rise in fuel price, high input costs
and reduced purchasing power due to signify\cant rise in general price level and credit crunch
in consumer financing, Factors like increased production in 1992, due to new entrants couple
with the recession in the industry resulted in companies either reporting losses or fall in
profits.
India is one of the very few countries manufacturing three-wheelers in the world. It is
the worlds largest manufacturer and seller of three-wheelers, Bajaj Auto Commands a
monopoly in the domestic market with a market share of above 80% the rest is shared by
Bajaj Tempo, Greaves Ltd and scooters India.
The total number of registered two-wheelers and three-wheelers on road India, as on
March 31, 1998 was 27.9mn and 1.7mn respectively. The two-wheeler population has almost
doubled in 1996 from base of 12.6mn in 1990.
COMPANY PROFILE
TVS Group
The TVS Group was established in 1911 by Sri. T V Sundaram Iyengar. As one of
Indias largest industrial entities. It epitomizes Trust, Value and Service.
TVS Motor Company
TVS Motor Company Limited is the Third largest two wheeler manufacturer in India
and amongst the top ten in the world.
Milestones
The company has been in the fore front in the Indian two wheeler market right from
the launch of the first moped on Indian roads to many new products launched this year.
Leadership
At the helm of the company is Mr. Venu Srinivasan, Chairman and Managing director
of the Company.
Awards
TVS is the only 2 wheeler company in the world to have received the coveted Deming
prize. All our processes are Deming Certified.
Net Work
TVS Motor Company has one of the most extensive net works with over 500 dealers
and 2500 customers touch points.
R&D
The TVS Motor company R & D team has a strong pool of technical talent supported
by state of the art infrastructure capable of developing new and innovative designs.
Quality
At TVS Motor Company Quality is a Way of Life.
Information Technology
TVS Motor Company has established an e-business system, which maximizes
company values and profits through transformation.
Social Responsibility
To give back to society, TVS Motor Company has formed and funded the Srinivasan
Services trust to undertake all activities relating to community development.
THE TVS Group
The TVS Group was established in 1911 by Shri. T V Sundram Iyenger. As one of
the Indias largest industrial entities it epitomizes Trust, Value and Service.
Today, there are over thirty companies in the TVS Group, employing more than 40,
000 people worldwide and with a turnover in excess of USD 2.2 billion. With steady growth,
expansion and diversification, TVS commands a strong presence in manufacturing of two-
wheelers, auto components and computer peripherals. We also have vibrant businesses in
the distribution of heavy commercial vehicles passengers cars, finance and insurance.
TVS Suzuki, a joint venture between the TVS group and Suzuki Motors of Japan, was
the first Indo-Japanese motorcycle venture in India. The TVS Group has been in the business
of auto components since the 70s.
It started manufacturing mopeds in the early 80 as a part of Sundram Clayton Ltd, a
group of company. The moped business was transferred to TVS in 1987 at a consiradation of
Rs 320 mn. The company passed through a host of problems such as cost escalations,
teething problems with new product, labor problems(100 day lockout in 1990), marketing
short comings etc., the problems were compounded by a severe recession in 1991-92. The
company made one of the most remarkable turnaround with the help of a management
consultant. The restructuring involved pruning of labor force, major cuts in fixed overheads,
value engineering dealer network revamp and a number of new models. It started
manufacturing Suzuki 100cc motorcycles in 1984. The TVS employees around 1800 workers.
The JV with Suzuki has been called off in FY02.
Group
TVS belongs to Madras based TVS Group founded by T V Sundram. Sundram
Clayton, the flagship company of the group is in the business of auto components and owned
a controlling stake of 32.47 percent in TVS. The Suzuki Motor Company held 25.97 percent
stake. TVS has acquired Suzukis 25.97 percent stake after the fall off of the JV at a price of
Rs 15 per share for Rs 90mn. TVS Group now holds about 58 percent of the Rs 230mn equity
of TVS Motor Company.
Subsidiary
TVS has one subsidiary Lakshmi Auto Components Ltd. Which has facilities for
matching and manufacture of some parts like crankshaft, Connecting rods and gears? LAC
manufactures mainly for the parent company. TVS has a 65 percent stake in the company.
Plant Locations
TVS first plant is located at Hosur, in the state of Tamilandu. Recently after parting
ways with SMC The Company has planned to enhance the production of Victor. Its first
indigenous motorbike at its Hosur plant. TVS has setup a second plant at Byathahalli village
near Mysore about 70kms from Bangalore (Karnataka) for manufacture of scooters. The
facility is equipped to produce 5, 00,000 scooters but with the sales hovering at 1.45 lakh
units a year, the consiradable spare capacity at the plant is being used for the production of
scooters.
TVS MOTOR COMPANY
World Class Facilities
TVS Motor Company Ltd, the flagship company of the USD 2.2 billion TVS
Group, is the third largest two wheeler manufacturer in India and among the top ten in
the world, with an annual turnover of over USD 650 million.
The year 1980 is one to be remembered for the Indian two wheeler industry, with the
roll out of TVS 50, Indian first two seater Moped that ushered in an era of affordable
personal transportation. For the Indian Auto mobile sector, it was a break through to be
etched in history.
TVS Motor Company is the first two wheeler manufacturer in the world to be
honored with the hallmark of Japanese Quality The Deming Prize for total quality
management.
In the future, TVS Motors Company will be one among the top two 2-wheeler
companies in India and one among the top five 2-wheeler companies in Asia. We will have
profitable operations overseas, especially in Asian markets, capitalizing on our expertise in
the areas of manufacturing, technology and marketing. The company will hone and sustain its
cutting edge of technology by constant benchmarking against international leaders.
TQM will be a way of life and guide all our endeavors.
Amalgamation:
The erstwhile TSL (transferor company), under a scheme of amalgamation,
amalgamated with Sundaram Auto Engineers (India) Limited (transferee company).
The scheme of amalgamation was approved by the shareholders of both the
companies. The scheme was approved by the High Court of Madras by its order dated 10 th
December 1999. As per the scheme, all these assets and liabilities of erstwhile TSL together
with all obligations and contingent liabilities were vested in Sundaram Auto Engineers Ltd
with effect from 22nd April 1999. The transferor company also dissolved by an order of High
court of Madras dated 16th March 2000.
The scheme has become effective from 24 th April 2000, the day on which the order
dissolving the transferor company was filed with the register of companies, Tamil Nadu.
As per the order of the High Court, the company has also changed its name from
Sundaram Auto Engineers (India) Ltd to TVS-Suzuki Ltd by a special resolution passed by
the shareholders of the company on 24th April 2000 which was approved by the register of
companies and a certificate of name change was issued by the Register of companies,
Tamilnadu on 25th April 2000.
As per the scheme of amalgamation, the entire business of the transferor company
namely, erstwhile TSL was vested in the transferee company with effect from 22nd April 1999.
During the period from 22nd April 1999 to 31st March 2000, the business was carried on by
the transferor company as agents and trustees of the transferee company. The operations of
the transferor company for the period 1st April 1999 to 21st April 1999 which resulted in a net
profit of Rs 193.8mn has been separately shown in the head, Profit and Loss Account.
The record date for issue and allotment of equity shares of the company to the
shareholders of transferor Company viz, erstwhile TVS-Suzuki Ltd in the ratio of one equity
share for every one share held by them in the company was fixed as 6 th June2000. The new
share certificates were issued for those who surrendered their old certificates.
Milestones:
Indias first 2 seater 50cc Moped TVS50, launched in Aug 1980.
First Indian company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.
Launched Indias first introduce Scooterette (sub 100cc variomatic scooters), TVS Scooty in
June 1994.
Introduced Indias first catalytic converter enabled motorcycle, the 110cc Shogun in Dec
1996.
Launched Indias first 5-speed motorcycle, the Shaolin in Oct 1997.
Launched TVS Fiero, Indias first 150cc, 4 stroke motorcycles in April 2000.
Launched TVS Victor , 4 stroke 110cc motorcycle, in August 2001, Indias first fully
indigenously designed and manufactured motorcycle.
Launched TVS Centra in January 2004, a world class 4-stroke 100cc motorcycle with the
revolutionary VT-I Engines for best-in-class mileage.
Launched TVS Star in Sept 2004, a 100cc motorcycle which is ideal for rough terrain.
TVS Motor Company (TVS) launches new 125cc, 4-stroke Victor GLX motorcycle in
Chennai on May 02, 2004
TVS Motor Company introduced its entry-level 4-stroke motorcycle - TVS Star - in the
Kerala market on 2005
TVS Motor Company launches TVS Centra VT-i, a variant of its four-stroke 100cc model
TVS Centra on May 6,2005
TVS Motor rolls out two motorcycle variants named Victor EDGE, StaR City and Scooty Pep
plus on 2006.
TVS Motor Company launched a new version of 125 cc Victor GLX with an electric start
option on 2007.
TVS launched TVS APACHE 160 on 2007.
TVS Motor Co has rolled out seven new vehicles, including its first three-wheeler and a new
125 cc bike, aimed at gaining lost share in a highly competitive market on 2007.
TVS launched TVS FLAME 125 on 2008
TVS Motor Company launched Scooty Streak, which is its latest scooterette targeted at girls
of 16 to 20 age group on 2008.
TVS Motor Company entered the 110 cc segment by unveiling 2 brand new products, an
auto-clutch motorcycle and an automatic scooter on 2009.
TVS launched TVS APACHE 180 In the year of 2009
TVS Motor Company has launched India's first auto-clutch motorcycle- TVS Jive, in
Chandigarh 2010.
TVS Motor Company has developed an engine that is 20 per cent more fuel efficient and is
usable both in scooters and motorcycles in 2014.
TVS introduced for TVS MAX4R in the year of 2015.
TVS launched JUPITER and WEGO on 2015, these models for the purpose of the laddies
under the year of 16 to 25.
Launched STAR CITY, SPORT is introduced year of 2016.
Launched SKOOTY PEP +, XL HD-STROKE on 2016.
Awards
Mr. Venu Srinivasan, was conferred with the prestigious JRD Tata Corporate
Leadership Award for the year 2004.
The Deming Prize
TVS Motor Company is the only two-wheeler company in the world to be awarded
the worlds
Technology Award 2002 from Ministry of Science, Government of India for the
successful commercialization of indigenous technology for TVS Victor.
TPM Excellence Award-First Category by Japan Institute of Plant Maintenance
Star of Asia Award to Mr. Venu Srinivasan , CMD TVS Motors Company bu
Business Week International.
Venu Srinivasan, Chairman and Managing Director, TVS Motor Company was
Honored with Doctorate in Science by University of Warwick, United Kingdom.
Asia Network For Quality Award 2004
TVS Scooty Pep won the Prestigious Outstanding Design Excellence Award from
Business world and National Institute of Design.
TEAM TECH 2007 Award - TVS Motor Company bags TEAM TECH 2007 Award of
Excellence for Integrated use of Computer Aided Engineering technologies.
SAP ACE AWARD 2007 - The company won the SAP ACE 2007 Award for Customer
Excellence in the Most Innovative Netweaver Category.
The 'Good Advertising' award by Auto India Best Brand Awards 2009.
TPM Excellence Award 2008 - First category by Japan Institute of Plant Maintenance (JiPm) .
Progressive Manufacturer 100 Award - TVS wins coveted 2009 Progressive Manufacturer 100
Award for end-to-end automation of the entire business process of its lubricant brand, TVS TRU4.
TVS Motor Company Ltd is a winner of the CII ITC Sustainability Awards 2015, Certificate
of Commendation for Significant Achievement.
Management:
Emerging Corporate Giant in the Private Sector awarded by The Economic Times
and The Harvard Business School Association of India.
Best Managed Company Award from Business today, one of the Indias leading
business magazines.
Most Investor Friendly Company from Business today, one of the Indias leading
business magazines.
COMPANY PROFILE
1. Name and Address of the company : SRI SAI AUTO MOBILES
2. Name and status of the Contact person : JAYA SIMHA RDDY
3. Year of Establish : 1996
4. Our Banker : State Bank of India
5. No of Workers : 70
6. Raw Material: Spare parts
The company was started in the year 1996. The company has used modern techniques in
marketing like financial loans with help of Ashok Leyland, TATA, Cholamandalam etc., At
the same time the company had the motto of achieving the optimum quality.
Under the leadership of present Marketing Director, Sri G. Jaya Simha Reddy and his
committed staff, the companys business was progressed and a new marketing strategy was
introduced such a promotion of products in creating good will on quality.
OBJECTIVE: To sell quality products at responsible price.
LIST OF MAJOR SPARE PARTS SUPPLIED
1. Set full Tank
2. Meter Assy combination
3. Puller Assy magneto
4. Battery Assy
5. Frame Assy AT
6. Wheel Rim Plated
7. Fender FR Black
8. Set Front RR Visor
9. Light Assy Head
10. Wheel Hab front
11. Key Set
12. Cushion Assy
13. Rim wheel
14. Shok Absorbers
15. Pump Assy oil
16. Needle Jet
17. Tool set
18. Plate Clutch
19. Pipe Steering Handle
20. Shoe Comp Brake
21. Gear Compressor Speedometer
22. Cable Camp
23. Clu Chain
24. Seal Value Steam
25. Mirror Assy Rear Back
26. Lever Left Strong Handle
27. Boot FR Fork
28. Cable Camp. Throttle
29. Key Black Type 1
30. Contact Assy Natural
31. Spring Break Pedal
32. Front Fork Oil seal
33. Tool Bag
Organization Chart of SRI SAI TVS
MANAGING DIRECTOR
GENERAL MANAGER
SERVICE ACCOUNTS SPARES CLERK PRODUCTS
SUPERVISOR SALES EXECUTIVE SALES EXECTUIVE
TECHNICANS
