TVS Motor lines up Rs 250-crore capex

TVS Motor Company has said it has lined up a capital expenditure (capex) of around Rs 250 crore and is set to launch new products, including an economy-category motorcycle and a scooter, in the next three months. The company is upbeat about FY15 and expects to improve its market share in the two-wheeler industry from 12.5 per cent to 14-14.5 per cent.

"I am happy about the fourth-quarter results and the cash flow was good. The company has generated around Rs 270 crore. Jupiter vehicle is doing very well. I am positive about 2014-15 and want to gain market share," K N Radhakrishnan, president and chief executive of TVS Motor, said while addressing analysts after releasing the fourth-quarter results.

He added that the two-wheeler industry in India would report a moderate growth of 8-10 per cent in 2014-15. According to him, the country's economy will do well in the second half, and, if there is reasonable monsoon, the industry can grow better. Considering these factors, the company hopes for a "great year in 2015-16".

BIG PLANS

• The company is betting big on the TVS Jupiter and TVS Wego
• About 100,000 units of TVS Jupiter have been sold since its launch in September 2013
• In the three-wheeler industry, the firm hopes to increase the market share to 20-25 per cent
• The company's overall capacity is 2.8 million- 3 million two-wheelers

FY15 is going to be a busy year for the company as it has lined up several launches. The new launches - Star City and Scooty - are not variants, but entirely new vehicles. These will be launched within the next three months, followed by an executive motorcycle and a bigger motorcycle by the end of the year. The Wego refreshment will be launched this month, said Radhakrishnan.

S G Murali, chief financial officer at TVS Motor, said: "The new launches will increase the top line of the company, which in turn will increase the margins."

The company is betting big on the TVS Jupiter and TVS Wego. It may be noted that the company sold about 100,000 units of TVS Jupiter since its launch in September 2013. In the three-wheeler industry, the firm hopes to increase the market share to 20-25 per cent.