This company is a part of the TVS Auto ancillary Group, USD 6 billion turn over group founded by T.V. Sundaram Iyengar in 1911.
Image: company website
Headquartered in Chennai, it has state-of-the-art manufacturing facilities in Madurai (Tamil Nadu) and Rudrapur (Uttarakhand), and has a prominent name in the tyre industry. It manufactures a variety of products such as two and three wheeler tyres, farm equipment tyres, floatation tyres.
It is a leading supplier to many Original Equipment Manufacturers such as Bajaj Auto, Hero Motocorp, Yahama India, Mahindra two wheelers and its own TVS Motors. The recent growth in the sales of two wheelers has allowed it to expand its business and add more production capacity. It is facing increasing competitive pressure from the interest of large tyre manufacturers into the two wheeler tyres category as well as import of cheap tyre products from China.
Its sales growth in the domestic market is primarily driven by its increase share of business with the major tyre manufacturers and its increased penetration in the two wheelers premium segment tyre market. For increasing the sales it also focused on the tyre replacement market. This was done by increasing the brand visibility and top of the mind brand recall. To achieve this it participated in various international shows and increased spending on marketing efforts. It also hired skilled professionals to manage its sales promotions.
The operations of this company were adversely affected by the recent power situation in Tamil Nadu. Although the situation has improved it remains a cause of concern for the company.
It exports mainly to USA, Europe, South America, Africa and Australia. The company expects to use the export opportunities to improve the bottom line (net profit).