Working Capital Management

Only available on StudyMode
  • Download(s) : 117
  • Published : March 18, 2011
Open Document
Text Preview
WORKING CAPITAL MANAGEMENT IN HERO HONDA - December 18th, 2008 This project tries to look into the WORKING CAPITAL MANAGEMENT IN HERO HONDA

INDEX
PARTICULARS

1. Company profile

2. Analysis & Comparison

A. Working capital style in India

B. Working capital style Abroad

C. Working capital style in Automobile industry

D. Working capital constituents

E. Operating cycle 

F. Ratios

G. Qualitative Analysis

COMPANY PROFILE 
(COMPETITORS)

TVS Motor
Company’s two wheeler sales in August 07 at 102,734 units

TVS Motor Company reported total two wheeler sales of 102,734 units in August 2007 compared to 135,533 units in August 2006. The overall industry slowdown witnessed by the motorcycle segment continued in August 2007 resulting in high levels of trade stock for most players. During the month the company’s motorcycle sales recorded 46,235 units compared to 83,014 units recorded in August 2006. The company is consciously reducing the stock of motorcycles in trade, even as it witnessed a 4% increase in motorcycle sales over last month. TVS trade stocks will be lower than most players in the industry.

The company has rolled out a new 110 cc StaR City, which will be available for the forthcoming festival season. Among the other models that were simultaneously rolled out, the new 125cc Flame and Apache EFI will hit the market in the coming months and is expected to provide impetus to sales. With the other products that were rolled out expected to hit the market in the coming months, TVS would have significant presence in the economy, executive and premium segments. The company will also enter the three wheeler market, having already rolled out three variants Petrol, LPG and CNG in the two stroke version. Four stroke three wheelers are also expected to be launched in the coming months. The company hopes to capitalize on growth of the three wheeler market, which has witnessed a 21% compounded annual growth rate in the last five years.

TVS Scooty sales clocked 24,645 units in August 2007 compared to 23,118 units recorded during the same period last year. This segment witnessed a 7% growth over the same period last year. The company will also foray into the electric scooter market with the roll out of its Scooty Teenz Electric that has been designed to address all the performance issues that plague the current electric vehicles. 

On the export front, TVS Motor Company exported 12,006 units of two wheelers in August 2007 recording a growth of 9% over August 2006. 

TVS Motor Co. records highest ever two wheeler sales of 15, 28,214 units in 2006-07 Total motorcycle sales for the year record 15% growth records highest ever exports, crosses 1 lakh mark in 2006-07 TVS Motor Company has closed the financial year 2006-07 with 15% growth in the sale of motorcycles. The motorcycles sales recorded 9,24,813 units in the financial year 2006-07 compared to 8,06,708 units 2005-06. The total two wheeler sales witnessed 14% growth by clocking 15, 28,214 units compared to 13,42,204 units recorded in the previous financial year. This represents the highest volumes ever in the history of TVS Motor Company both in motorcycles as well as in the overall two-wheeler segment. The Company’s scooter sales recorded 2,58,888 units in the financial year 2006-07 compared to 2,45,276 units in 2005-06, recording a growth of 6%.On the export front too, TVS Motor Company registered its highest ever sales, clocking 1,03,013 units in the financial year 2006-07 compared to 79,679 units last year, at a growth of 29%. 

In the month of March 2007, the motorcycle sales recorded 73,239 units compared to 83,896 in March 2006. The total two wheelers units sold in March 2007 were at 1, 28,207 units compared to 1, 28,857 units recorded last year. The company’s March 2007 total two wheelers sales saw an increase of 7% over its February 2007 performance. 

The company, during March 07, launched StaR Sport, a new and...
tracking img