More than 1,500 auto ancillary units in Hosur industrial town were literally over the moon following the healthy financial results of Hosur-based two-wheeler major TVS Motor.
TVS Motor is one of the top two-wheeler makers in India and has its manufacturing facility functioning here. It assembles most of its two-wheeler and three-wheeler models, and auto rickshaws.
Though financial year 2013-14 was seen as a negative period for the overall Indian auto industry, TVS has posted higher top-line and bottom-line growth, beating market sentiments.
While TVS annual results created a buzz in the stock market in the auto sector, it in turn boosted the sentiments of tiny and micro auto ancillary units in Hosur industrial town.
During past fiscal, the overall two-wheeler sales of TVS stood 19.93 lakh units as compared to 19.95 lakh units recorded in the previous year. Motorcycle sales alone increased from 7.56 lakh units to 7.86 lakh units in the current financial year.
The company has also given positive outlook for the current financial year 2014-15 that gave a fillip to its ancillary units and the later believes that their order book position will improve in coming months.
A cross-section of industrialists in Hosur said, TVS unit in Hosur has been procuring many parts for carrier plates, number plates, frame brackets, mudguard, stand, chassis fitments, seat fitments, muffler coupling, engine mounting and seat mounting assemblies.
TVS alone is procuring 4,064 tonnes of steel per month through the parts procured from its ancillary units. According to an industry expert J Manjunath, TVS and Ashok Leyland are two major automotive production units in Hosur. More than 1,500 auto units are depending on these two auto giants. The positive results of TVS has cheered up the overall employee and small scale industrial sector in Hosur industrial estate.