Force motors ltd jeganathan.g

Presentation on

Company details of Force motors limited

Presented by Jeganathan.G

COMPANY LOCATION The company has two plants:- The company has established several sales departments for distribution and sale of

the Company's products.

Akurdi, Pune, MaharashtraPithampur, District Dhar, Madhya Pradesh

ABHAY FIRODIA-CHAIRMAN / CHAIRPERSON

PRASAN FIRODIA - MANAGING DIRECTOR

REGISTERED OFFICE

Address Mumbai-Pune Road, Akurdi, City Pune State Maharashtra Pin Code411035 Tel. No 020-27476381 Fax No 020-27473017 Email compliance-

officer@forcemotors.com Internet http://www.forcemotors.com

REGISTRARS

Name Link Intime India Pvt. Ltd. Address Block 202, 2nd Floor, Akshya

Complex, Off Dhole Patil Road City Pune - 411001 State Maharashtra Tel. No. 020-26051629, 26050084 Fax No. 020-26053503 Email: pune@linkintime.co.in Internet http://www.linkintime.co.in

PROFILE Force motors is an Indian manufacturer of three-wheelers, multi-utility and cross

country vehicles, light commercial vehicles, tractors, buses and now heavy commercial vehicles. It was originally named Firodia Tempo ltd. and later after partial acquisition by Bajaj auto as Bajaj tempo ltd.

The company was founded in 1958 by N.K.Firodia. Abhay n. Firodia is the chairman and Prasan Firodia is managing director.

Force motors started production of the hanseat three-wheeler in collaboration with German Vidal & Sohn tempo werke and went on to establish a presence in the light commercial vehicles field with the matador, the proverbial LCV (light commercial vehicle) in India. Through the 1980S and 1990S, and especially in the last five years with a major product development effort, force motors has introduced new light commercial vehicles, a facelifted series of tempo trax utility vehicles, new state-of-the-art tractors, and a new range of three-wheelers.

The company which mainly operates in commercial vehicle segment, entered into personal vehicle segment on 19/08/2011 and launched its first SUV (Sports Utility vehicles) named force-one. Amitabh Bachhan, the Indian film industry icon, is the brand ambassador for this product.

HISTORYYEAR DEVELOPMENTS

1958 The Company manufactured and assembled 3 & 4 wheeler light commercial vehicles and diesel engines.

1961 The Company was converted into Public Limited Company on 12th May.

1965 2,90,000 shares offered to the public

1966 1,69,078 shares allotted to the foreign collaborators.

1970 The Company's collaborators M/s. Honomag Henschal Fahrazeuquarrke GmbH discontinued the production of the diesel engine

1972 3,500 shares forfeited.

1975 Allotted 13,800 `A' Equity shares at par to permanent employees of the company.

1977 15,78,326 No. of Equity and 13,800 `A' Equity shares issued as Bonus on prop. 1:1 for the respective classes.

1982 The transfer line for the cylinder block of the new OM 616 engine was commissioned. - A Research & Development workshop was set up in addition to new Research & Development laboratories.

YEAR HISTORY1990 During the year, rear wheel driven Matador Max R 307 vehicle

was introduced along with the rear wheel driven bus platform R-407W.

1996 During the year fully indigenously designed, developed and manufactured Tempo `OX-45' Tractor was successfully launched.

1997 The Company has launched new products in all four segments in LCV - `Tempo Excel', utility vehicle-`Trax', Minidor-Auto Rickshaw and pick-up, Tractors, the `Tempoox' range of tractors.

2000 The Workers go on strike from May 26th. Work at the factory has been affected following a tool down strike by the union which is affiliated to the Bharatiya Kamgaar Sena.

2001 The Company will be launching its Minidor three-wheelers running on CNG during next month.

2004 Automobile manufacturer, Bajaj Tempo Ltd, on January 16, 2004 announced that it would enter the heavy commercial vehicles (HCV) segment in the next 12 months following its technology tie-up with MAN of Germany. -Bajaj Tempo inks pact with Andhra Bank

2006 Force Motors signs MoU with Man to set up unit in MP.

2010 Force Motors Ltd has appointed Mr. Atul Chordia of Pune as an Additional Director of the Company.

OVERSEAS PRESENCE Force Motors is a highly flexible, vertically integrated automotive company that can

cater to all types of markets, including niche markets, by providing customized 'country specific' modifications.

Force Motors has a formidable product range in all segments, be it small commercial vehicles, light commercial vehicles, multi utility vehicles and agricultural vehicles.

Over the last five decades it has partnered with leading global automotive names like Daimler, ZF, Ricardo, Bosch and MAN. Through these associations it has developed necessary expertise in-house for design, development and manufacture of automobiles, sub-systems, components and aggregates.

The company exports its complete range of world class products to various countries in Middle East, Asia, Latin America and Africa

PRODUCTS

Bajaj Tempo Minidor Tempo Bajaj Matador

Force Motors Trax Judo Traveller as an Ambulance

PASSENGER CARRIER VEHICLES

Trax GAMA Trax Cruiser

Traveller Traveller School Bus

SMALL COMMERCIAL VEHICLES

TRUMP 40 Trump 40 Hi-Deck

Traveller Delivery Van

PERSONAL VEHICLES

FORCE ONE

FORCE MOTORS- KEY FUNDAMENTALS

Market Cap (Rs Cr.) : 620.67 EPS - TTM (Rs) : 630.12 P/E Ratio (x) : 0.75 Face Value (Rs) : 10.00 Latest Div. (%) : 100.00 Div. Yield (%) : 2.12 Book Value / sh. (Rs) : 867.69 P/C Ratio (x) : 0.70

INDUSTRY COMPETITORS

Company Name Last Price %

Change52 wk High

52 wk Low Market Cap

Tata Motors 328.10 -0.15 337.05 213.90 104,657.54

Eicher Motors 2707.55 -0.86 3240.00 1630.00 7,310.65

Ashok Leyland

26.25 -1.50 32.90 20.95 6,984.28

Tata Motors (D)

186.80 1.08 189.90 110.05 5,994.01

SML Isuzu 434.90 0.07 501.00 398.00 629.37

FORCE MOTORS- FINANCIALS

(Sep '12)Quarterly

(Mar '12)Yearly

Net Sales 504.06 2085.01

Other Income 12.73 24.60

PBDIT 43.61 146.11

Net Profit 19.15 824.33

FORCE MOTORS- SHAREHOLDING PATTERN

No. of Shares % Holding

Promoters 0.68 Cr. 51.75%

Other Companies 0.33 Cr. 25.04%

General Public 0.23 Cr. 17.17%

BALANCE SHEET

Balance Sheet (Mar '12)(In Rs Cr)

Total Share Capital 13.18

Net Worth 1143.30

Total Debt 59.69

Net Block 450.72

Investments 0.95

Net Current Assets 657.95

Total Assets 1202.99

BSE - LIVE STOCK PRICE AND VOLUME AS ON JANUARY 13

SWOT ANALYSIS

STRENGTHS

Well known brand with good reputation Strong engineering capability Global presence Safest Drive in class

WEAKNESSES

Force Motors wants to set up more units to expand LCV range

They had a target of selling 4,000 units but they have reached only 50 per cent of that due to more competitors.

Low market share.

EXTERNAL OPPORTUNITIES

Opportunities in India and China Launch of new models Hybrid vehicles Increasing demand for dual fuel vehicles

THREATS

Sluggish light vehicle production in developed markets

Economic slowdown in the US and Eurozone