The table below enumerates the key risks, their impact on our capitals and the mitigation measures that we have adopted. For details of all risks, please refer to the Risk Factors in the Management Discussion & Analysis section.
Business Strategy and Operating Efficiencies
Volatile Global Economic and Geopolitical Environment
Environmental Regulations and Compliances
Intensifying Competition and Brand Positioning
Information and Cyber Security
Exchange Rate Volatility
Product Liability, Warranties and Recalls
Unethical and Prohibited Business Practices
International expansion exposes the Company and its subsidiaries to increased diversity and complexity of legal and ther frameworks in a variety of jurisdictions. Therefore, the Company and its subsidiaries become subject to maintaining legal and ethical standards globally.
Social & Relationship Capital
The Company's code of conduct sets out the behaviours that the Company expects of its staff, including conforming to the highest moral and ethical standards and complying with applicable laws, including anti-bribery, corruption and competition laws, sanctions and export controls.
Inability to Protect or Preserve the Company's Patents and Intellectual Property(IP)
The Company's and its subsidiaries' substantial R&D investment generates IP and the protection of this IP is necessary to prevent its unauthorised third-party use.
Conversely, the Company and its subsidiaries need to ensure that it does not infringe the IP of third parties.
TML and its subsidiaries have in-house specialists, who manage matters relating to IP and ensure that robust processes are followed by means of patents, registered designs, trademarks and copyrights.
Expansion in the Commercial Vehicles space
Huge opportunities lie in front of us to significantly expand our commercial vehicles market share by leveraging our leadership position in CVs, addressing the product gaps in white spaces, further strengthening our dealership and distribution network and expanding our international footprint with the new-generation products in commercial vehicles.
Regulations on Bus Body code, focus on fully built vehicles, government thrust on road infrastructure, 'Swachh Bharat' campaign and the big advantage through improved logistics/supply chain efficiencies under the new GST regime are some of the enablers to new opportunities. The Concept of 'Smart Cities' and programmes like NEMMP will ease the implementation of AMP vision and support mass electrification of public transport.
With the Government’s push for 'Make in India' initiative, TAFP (Technology Acquisition Fund Programme), enhanced focus on import substitution for Defence equipment and the opening of the defence sector for private sector participation, there is a huge opportunity to tap in the Defence sector. The Company aims to establish itself as a full range Defence solutions provider.
Expansion of the volumes and market share in the Passenger Vehicle segment
Considering the strong outlook for the Indian economy and resulting increase in the private consumption and per capita income, with the low penetration levels (~30 Cars per 1000 people), Indian passenger vehicle industry has a potential to show a significant jump in volumes in the medium to long-term. Given this background, there is a huge opportunity to increase market share on the back of new product launches and meeting regulations at par with global standards. Moreover, a large customer base will become addressable due to the changing trends and segmental shifts.
Substantial market changes (e.g. automation, connectivity and electrification) enable us to focus on launching industry leading products ahead of competition. We are also strengthening partnerships with global technological organisations and leading academic research teams.
We strengthen our brands by creating greater brand association through innovation and technological advancement into our expanding product portfolio and services.
Global economic growth in developed and emerging markets present opportunities to extend sales. Opportunities both in new and existing geographical markets as well as in new and existing segments.