National Institute of Technology 2009-1st Sem M.B.A International Business IV Sem - - Question Paper

The macro view: Although CEO TKM came from a hardcore finance background, he easily adjusted to his new role at Toyota, which is known for its production systems.

“After all there are several finance professionals heading automobile companies. Take Toyota itself for example, the chairman is an accounting professional Similarly General Motors India’s (President and MD) Aditya Vij is also a chartered accountant,” says CEO TKM. “ What is needed at the top management level is not engineering detail but a broad business outlook to set the direction and strategies.”

The Qualis story: When TKM decided to launch the 15 year old breadbox, the Kijang Model, under the Qualis brand, the Indian auto industry was stumped. Why the Kijang of all the models in Toyota’s portfolio? But Toyota was just subsequent its usual procedure of testing the waters before plunging in.

“Toyota’s philosophy is very basic minimize the initial risk and then improve step by step,” explains CEO TKM. More ever, when TKM entered the market, all the global auto majors had a presence in all the segments

So it was logical for Toyota to decide that the Indian arm should 1st build its tech. capability while looking for vulnerable points in the Multi Utility Vehicle (MUV) segment. “We need time to learn and understand the market, the vendors and dealers,” Says CEO TKM. To cut the initial investments, the company decided to import engines from Thailand and gearboxes from the Philippines.

The company till date has sold 65, 000 units of the Qualis and recently came out with an upgraded version at an additional capital expenditure of Rs 44 crore. “The initial target was to capture 33 percent of the MUV market. We exceeded that to touch 42 percent,” says CEO TKM. Simultaneously, TKM broke even at the end of the 3rd year, which was again as planned. “In the 6th year we will recover all our accumulated losses,” says CEO TKM.

Changing lanes: But the man now steering TKM started his career in a completely various lane. After clearing the chartered accountancy final examinations with flying colors in 1978, CEO TKM joined the Karnataka State Industries Department as an advisor.

For the 7th and last child of CV Krishna CEO TKM, an ICS officer, going into the government service seemed the logical thing to do. 2 of his elder brothers were also in the central government service at that time. “During the seventies, the Indian private sector was not vibrant and a government job was prized,” says the 47 year old Mysorean.

Earning:   Approval pending.