TVS Motor Company Ltd was incorporated as Indian Motorcycle Pvt. Ltd. on 15th July 1982 and it was converted into a public limited company on 12th January 1984. Mr. N. Krishnan promoted it in collaboration with Suzuki Motor Co. Ltd. Japan. Company entered into a technical know-how and assistance agreement with Suzuki Motor Co. Ltd., of Japan. As per the terms of the Collaboration, Suzuki agreed to furnish complete technical information and know-how, trade secrets and other data. In 1992 company launched two new models of motorcycles "Samurai" and "Shogun". In 1993 company launched a new model of moped viz. "TVS Scooty".

TVS-Suzuki, a joint venture between the TVS group and Suzuki Motor Corporation, Japan was the first company to launch a 100-cc motorcycle in the Indian market. Company also launched its new moped model, the XL Super. Its new generation state-of-the-art four-stroke scooter "Spectra" was launched in spectacular fashion at the TVS Millennium Show on October 1 in New Delhi. In 2000, Company launched Suzuki Fiero and later it launched its indigenously developed 4-stroke motorcycle, TVS Victor 125 cc. Company launched 4 new mobikes including a new brand 100-cc mobike called the Centra and Fiero F2 and Scooty Pep models. Company has tie up with SBI, UBI, Andhra bank and other banks for scooter and Motorcycle financing. The subsidiaries of the company are namely Sundaram Auto Components, TVS Motor Singapore, TVS Motor Company (Europe), PT TVS Motor Company, Indonesia.

Products & Services:

Company is one of the largest two-wheeler manufacturers in India. TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. In Motorcycles it has various brands like Apache RTR, Fiero, Metro, Victor, Flame SR 125, StaR City, Sport etc. In Variomatic Scooters it has Scooty Streak, Scooty Pep+, Scooty Teenz etc. and in Mopeds it has TVS XL Super, TVS XL Heavy Duty. Company also provides various variants of these models for different class of consumers. Company has two state-of-the-art manufacturing plants in Mysore and Hosur.

Company has achieved world class levels in quality as well as improvements in design and processes; the company has formed special task forces to monitor quality related performance. The basic tenets of TQM, including Daily work management, Policy management, Kaizen (continuous improvement), Training and standardization are followed across the organization. TVS Motor Company awarded the prestigious and coveted Deming Prize, instituted by JUSE (Union of Japanese Scientists and Engineers). Company was also awarded the prestigious "TPM Excellence award - First category" by Japan Institute of Plant Maintenance
(JiPm), rated as the benchmark in TPM excellence in India.

Company has one of the most extensive networks with over 541 dealers, 2500 Customer touch points and 1500 authorized service centers. Currently, more than 400 engineers work on developing radically new products and cutting edge engine technologies. R&D team has developed the revolutionary Variable Timing Intelligent (VT-i) Engines, one of the most innovative technologies developed in the two-wheeler industry.

Recent Development:

TVS Motor is planning to launch the country's first motorcycle with automatic clutch by the end of this calendar year. It is learnt that this motorcycle will spare the rider of constantly having to engage the clutch to shift gears, which would be a welcome relief in choked traffic conditions. Only the gears need to be changed and there would not be any compromise on pickup or speed so that thrill and joy of biking are intact. Sources say that the company has been working over the last 18 months on this motorcycle.

Valuation:

At current market price, stock is trading at 12.4 P/E multiple of its FY2010 Estimated earnings. We recommend investors to buy "TVS Motor" with medium to long term investment horizon.