TVS Group Business Report FY ended Mar. 2017

Recent Years

Financial Overview (FY ended Mar. 2015)

Harita Seating Systems Limited
-In FY ended Mar. 2015, Harita Seating Systems grew 9.4% in sales from the previous year. The company's sales increased in the commercial vehicle segment and bus passenger seats by 17% and 7% respectively.

Sundaram Brake Linings Limited
-Sales in FY ended Mar. 2015 decreased by 3.6% from the previous year to INR 2,349.3 million.

Sundram Fasteners Limited
-In FY ended Mar. 2015, the company increased its sales by 18.0% year-on-year to INR 23,857.7 million.

  • Domestic sales: Sales increased by 17% due to the increase in sales of heavy and medium commercial vehicles, passenger vehicles and two/three wheelers.
  • Exports: Export sales grew by 18% from the previous year. The US market recovered modestly though not uniformly across all customers of the company. And European markets continued to be hit by recession and negative sentiments. However, the company achieved sales growth. Export sales remained around 38% of the overall sales revenue.

Sundaram-Clayton Limited
-Sales in FY ended March 2015 increased by 12.5% to INR 13,461.1 million. Export sales accounted for approximately 40% of its overall sales.

Turbo Energy Limited
-In FY ended March 2015, sales increased by 11.5% from previous year to INR 8,700 million.

Wheels India Limited
-Sales in FY ended March 2015 increased to INR 19,798.7 million, 8.6% higher than previous year. Export sales accounted for 20.3% of its overall sales.

Financial Overview (FY ended Mar. 2014)

Harita Seating Systems Limited
-In the FY ended March 31, 2014, Harita Seating Systems' profits before tax dropped from INR 131.4 million the previous year to INR 58.9 million. This was due to decreased sales stemming from a decline in demand in all of the company's markets except for the Indian tractor market.

Sundaram Brake Linings Limited
-Sundaram Brake Linings' sales grew 7.1% to INR 2,491.3 million in the FY ended March 31, 2014. The growth in sales was carried by a 27% growth in exports and was partially offset by year-over-year sales decreases of 12% in domestic OEMs and 5% in aftermarket sales.

-Approximately 35% of Sundaram Brake Lining's total sales are exported to over 54 countries across the world.

Sundram Fasteners Limited
-Sundram Fasteners' sales for the FY ended March 31, 2014 dropped 2.3% to INR 20,222.8 million from the previous year. The company's domestic sales declined 9.4% from INR 13,470 million to INR 12,200 million, though its exports increased by 12.2% from INR 6,780 million to INR 7,610 million.

Turbo Energy Limited
-Turbo Energy had a sales turnover of INR 7,800 million in the FY ended March 31, 2014.

Technological Alliance

Brakes India Limited
-In July 2010, TRW Automotive announced a technology partnership with Brakes India Limited (BI). TRW intends to license slip control systems (SCS) technology to BI to enable them to manufacture and provide development capabilities in India. At present TRW exports complete ABS and electronic stability control (ESC or VSC) units to India. BI was formed as a joint venture between TRW and the TVS Sundram Group in 1962. (From a press release on July 13, 2010)

Lucas-TVS Limited
-Usui Kokusai Sangyo signed a Technical Assistance Agreement for fan drives with Indian automotive supplier Lucas-TVS Limited in March 2010. Lucas-TVS is headquartered in Chennai and manufactures motors, alternators, engine cooling fans and ignitions. (From a press release on June 11, 2010)

Business Partnership

ZF Electronics TVS
-In August 2009, US-based CTS Corporation and ZF Electronics TVS (India) Private Limited - ZF Electronics TVS - entered into a marketing agreement. Under the agreement CTS will sell its products including rotary and linear position sensors and other electronic components in India, with an initial focus on 4- and 2-wheeler automotive markets. ZF Electronics TVS, a joint venture between the Group and ZF Electronics Corporation of Germany, manufactures switches, sensors and other components for several segments, such as automotive, in India. (From a press release on August 19, 2009)

Awards

Sundaram-Clayton Limited
-During FY ended March 2015, the company was recognized and rewarded by the following customers:

  • Cummins: Superior quality award
  • Hyundai: "4+ Star" quality rating
  • Visteon: Appreciation for VAVE in new product development

Wheels India Limited
-In January, 2014, Wheels India won the CV Auto Component of the Year sponsored by Apollo for its forged aluminum tube type wheel. (From a press release on January 15, 2014)

-In 2013, the company awarded Regional Contribution Award from Toyota.

Harita Seating Systems Limited

-In 2013, Harita Seating Systems received the CV Component of the Year award for its 3-point Emergency Locking Retractor (ELR) type seat belt assembly for bus seats.

R&D Activities for FY ended March 31, 2015

Harita Seating Systems Limited
-In the FY ended March 31, 2015, Harita Seating Systems had an R&D expenditure of INR 58.4 million.

-The following are specific R&D activities that Harita Seating Systems carried out in the FY ended March 31, 2015:

  • Development of deluxe seats under the platform concept for passenger buses
  • Development of plastic molded, semi deluxe and school bus seats under the platform concept
  • Completed designing and testing of single pan seats and sliding seats
  • Completed development of mechanical suspension system for commercial vehicles and tractor seats

Sundram Fasteners Limited
-R&D expenditure for FY ended March 2015 was INR 120.3 million. The company conducts R&D activities at Padi, Velappanchavadi and Hosur facilities.

Sundaram-Clayton Limited
-In FY ended March 2015, the company invested INR 44.6 million as R&D expenditure.

-The following are R&D activities that Sundaram-Clayton completed during the FY ended March 31, 2015:

  • Establishment of heat treatment process for structural High Pressure Die-Casting parts
  • Establishment of surface coating process for aluminum die cast parts to withstand stringent requirements for automotive exterior applications
  • Development of 25 new aluminum die cast products for automotive applications

Wheels India Limited
-In the FY ended March 31, 2015, Wheels India spent a total of INR 165.3 million on research and development.

-Wheels India filed 3 patent applications and developed 242 new products in the FY ended March 31, 2015.

-The following are R&D activities that Wheels India was engaged in during the FY ended March 31, 2015:

  • Development of lightweight wheels and air suspension products to meet OEM customer requirements in quality and durability
  • Development of new generation light weighting wheels to meet emerging OEM customer requirements
  • Development of electronically controlled air suspension systems in the van segment
  • Introduction of air suspension system for the Intermediate Commercial Vehicles segment with GVW of 8 to 10 ton and lift axle systems for trailers

R&D Activities for FY ended March 31, 2014

Harita Seating Systems Limited
-In the FY ended March 31, 2014, Harita Seating Systems had an R&D expenditure of INR 46.1 million.

-The following are specific R&D activities that Harita Seating Systems carried out in the FY ended March 31, 2014:

  • Development of deluxe seats under the platform concept for passenger buses
  • Development of plastic molded, semi deluxe and school bus seats under the platform concept
  • Design and testing of single pan seats and sliding seats
  • Development of mechanical suspension system for CV and tractor seats

Wheels India Limited
-In the FY ended March 31, 2014, Wheels India spent a total of INR 155.9 million on research and development.

-Wheels India filed 10 patent applications and developed 216 new products in the FY ended March 31, 2014.

-The following are R&D activities that Wheels India was engaged in during the FY ended March 31, 2014:

  • Development of a new generation of lightweight wheels to meet OEM customer requirements in quality and durability
  • Development of alternate manufacturing processes with improved yields
  • Development of air suspension systems for new vehicle segments such as vans

Sundaram Brake Linings Limited
-Total R&D expenditure for Sundaram Brake Linings in the FY ended March 31, 2014 was INR 78.9 million.

-The following are R&D activities that Sundaram Brake Linings was engaged in during the FY ended March 31, 2014:

  • Development of MCV disc pads for domestic OEMs
  • Development of hydraulic brake linings for next generation light commercial vehicles
  • Development of new grade commercial vehicle linings for the North American market

-In the future, Sundaram Brake Linings plans to continue development of disc pads and linings for various new vehicle applications for domestic OEMs and the Export market.

Sundaram-Clayton Limited
-In the FY ended March 31, 2014, Sundaram Clayton spent a total of INR 61.4 million on research and development.

-The following are R&D activities that Sundaram-Clayton completed during the FY ended March 31, 2014:

  • Development of product redesign capabilities for magnesium pressure die cast parts
  • Establishment of a crack detection process for structural high pressure die casting parts
  • Development of magnesium transmission housing prototype parts for passenger cars
  • Performed technical evaluations of high ductile pressure die cast alloys for automotive structural parts
  • Development of 30 new aluminum die cast products

Sundram Fasteners Limited
-For the FY ended March 31, 2014, Sundram Fasteners had a total R&D expenditure of INR 145.1 million.

-The following are R&D activities that Sundram Fasteners had accomplished in the FY ended March 31, 2014:

  • Development of heat resistant steel fasteners for exhaust applications
  • Development of lightweight steel bolts
  • Development of a steam oxidation process for chromium components

R&D Activities for FY ended March 31, 2013

Harita Seating Systems Limited
-The following are specific R&D activities that Harita Seating Systems carried out in the FY ended March 31, 2013:

  • Developed three point seat belt for bus seats to improve passenger safety
  • Started development for high-backed seats for LCV and MCV buses

Sundaram Brake Linings Limited
-Sundaram Brake Linings developed and started production of brake linings for heavy commercial vehicles for domestic markets in the FY ended March 31, 2013.

Sundaram-Clayton Limited
-The following are specific R&D activities that Sundaram-Clayton carried out in the FY ended March 31, 2013:

  • Developed surface coating processes for magnesium casting
  • Developed surface treatment capabilities for magnesium die cast parts
  • Developed machining processes for magnesium die cast parts
  • Developed one prototype aluminum part through investment casting
  • Developed 44 new aluminum die cast parts

Sundram Fasteners Limited
-Sundram Fasteners continued development of fasteners with cold worked super alloys in the FY ended March 31, 2013.

Investment in India for FY ended March 31, 2015

Sundram Fasteners Limited
-Capital expenditure for FY ended March 2015 was INR 1,180 million.

Investment in India for FY ended March 31, 2014

Sundram Fasteners Limited
-Sundram Fasteners had capital expenditures of INR 1,508.2 million in the FY ended March 31, 2014.

-Sundram Fasteners opened a new factory at Mahindra World City to develop and manufacture various types of shafts. Operations at the plant began in early 2014.

India Japan Lighting Private Limited
-In 2013, the company established the second plant in Chennai in order to meet