TVS Motor announces Future Business Outlook

TVS Motor Company Ltd has announced about the following future Outlook:

The Company has just launched an upgrade of Apache, a 160 cc motorcycle with 15.2 bhp. This high performance motorcycle is targeted at the youth looking for both style as well as latest features, normally seen on international high-end motorcycles. This motorcycle has already won positive reviews from leading automobile magazines.

The Company, in order to increase its presence in the executive segment, has developed a motorcycle, which will be launched in the second half of this year. The Company is confident that this motorcycle will redefine the segment by setting a new benchmark in the industry in terms of its technology, performance and style.

Apart from the above, the Company will also launch a new variant under the TVS StaR brand. The launch of this product is expected during the coming festival season.

The Company has already started operations at its Himachal Pradesh Plant. The Plant has an annual capacity of 400,000 units scalable upto 6,00,000 units. This will help the Company to improve its service level to the vast dealer network in North India thereby increasing sales and leverage on the fiscal benefits.

The three-wheeler project is on schedule and will have a capacity of 90,000 units per annum. The proposed three-wheeler products after various tests undertaken have provided very encouraging results and are expected to be launched shortly.

The Indonesian project is on schedule and the new product 'TVS Neo', a high tech innovation packed Bebek exclusively developed for the Indonesian market, will be launched in July 2007 by PT TVS Motor Indonesia, subsidiary of TVS Motor Company Ltd.

The Company has taken up the above three large projects. Of these, one project has already gone into production and the other two are expected to commence production shortly. Once these projects achieve full production levels and stabilize their operations, they will contribute significantly to the overall turnover and profits of the Company.

The Company undertook several cost saving measures like value engineering and global sourcing etc. TPM is practiced in all the plants to ensure significant improvement in productivity reduction in manufacturing cost.

The Company expects the pressure on the margin to continue in the first half of 2007-08 due to high cost of raw material and intense competitive activity. However, in the second half of the year, the company expects the pressure on margin to ease with the launch of new products and the other initiatives as mentioned above.

Source : Equity Bulls

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