TVS Motor Company, the country’s third largest two-wheeler brand by volumes, is drawing up ambitious growth plans for 2016-17 that includes a capex of ₹400 crore and market share growth, aided by its new and refreshed product portfolio.

“The amount for this fiscal will be spent on capacity expansion, R&D and marketing and branding programmes. With normal monsoon hopes, we need to invest in capacity increases. Our expansion plan across factories in Hosur, Mysuru and Himachal is not only to meet demand growth this year but also for next fiscal,” S G Murali, Chief Financial Officer, told BusinessLine .

The company plans to increase its two-wheeler capacity from 3.5 million units a year to about 4.4 million units by the end of this fiscal.

Also, it is looking at increasing the capacity of three wheelers to about 200,000 units from 120,000 units in due course.

He said that the company posted 19 per cent growth in scooters and 12 per cent increase in bike sales during Q4 of 2015-16.

K N Radhakrishnan, President and CEO, said TVS Motor was witnessing market share gains across segments and was hopeful of maintaining the growth momentum during this fiscal too.

He said TVS Motor’s new and refreshed product portfolio would help achieve increase in market share this fiscal.

The company clocked sales of 18,000 units during last month for its recently launched new commuter bike, 110cc Victor, and is aiming to ramp up volumes after the pan-India roll out by this month.

Also, pan-India launch of new 200 cc Apache will be done during this month.

“We are looking at increasing our market share by 2-2.5 per cent this fiscal,” he added.

During 2015-16, the company achieved 16 per cent growth in scooter sales and 7 per cent in bikes, while moped sales reported 3 per cent decline. Three-wheeler sales grew by 3 per cent.

The company is also lining up some new launches for this fiscal that will include its own two-wheelers and a super bike, which will be from TVS-BMW joint venture.

The company has announced a 30 per cent increase in its net profit at ₹118 crore for the quarter ended March 31, 2016, against ₹91 crore in a year-ago period, aided by better operating profits on the back of strong topline growth.

The company’s net sales grew by 15 per cent year-on-year to ₹2,776 crore from ₹2,395 crore.

For the year ended March 31, 2016, net profit grew by 24 per cent at ₹432 crore against ₹348 crore in the previous year.

Total revenue increased by 12 per cent to ₹11,244 crore from ₹10,042 crore in 2014-15.

Related Topics