COMPANY PROFILE

YAMAHA

About India Yamaha Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. Subsequently, it entered

into a 50:50 joint-venture with the Escorts Group in 1996. However, in

August 2001,Yamaha acquired its remaining stake becoming a 100%

subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co.,

Ltd. entered into an agreement with YMC to become a joint-investor in

the motorcycle manufacturing company "India Yamaha Motor Private

Limited (IYM)".IYM operates from its state-of-the-art manufacturing units at

Surajpur in Uttar Pradesh and Faridabad in Haryana and produces

motorcycles for both domestic and export markets. With a strong

workforce of more than 2,000 employees, IYM is highly customer-driven

and has a countrywide network of over 400 dealers. Presently, its product

portfolio includes VMAX (1,679cc), MT01 (1,670cc), YZF-R1 (998cc),

R(153cc), SZ & SZ-X (153cc), SS125 (123cc), YBR 125 (123cc), YBR 110

(106cc) and Crux (106cc).

FOUNDING HISTORY
Paving the Road to Yamaha Motor Corporation

"I want to carry out trial manufacture of motorcycle engines." It was from

these words spoken by Genichi Kawakami (Yamaha Motor's first

president) in 1953, that today's Yamaha Motor Company was born.

"If you're going to do something, be the best."

Genichi Kawakami
Genichi Kawakami was the first son of Kaichi Kawakami, the third-

generation president of Nippon Gakki (musical instruments and

electronics; presently Yamaha Corporation). Genichi studied and

graduated from Takachiho Higher Commercial School in March of 1934.

InJuly of 1937, he was the second Kawakami to join the Nippon Gakki
Company.He quickly rose to positions of manager of the company's
Tenryu Factory Company (musical instruments) and then Senior General
Manager, before assuming the position of fourth-generation President in
1950 at the young age of 38.In 1953, Genichi was looking for a way to
make use of idle machining equipment that had previously been used to
make aircraft propellers. Looking back on the founding of Yamaha Motor
Company, Genichi had this to say"While the company was performing
well and had some financial leeway, I felt the need to look for our next
area of business. So, I did some research." He explored producing many
products, including sewing machines, auto parts, scooters, three-wheeled
utility vehicles, and motorcycles. Market and competitive factors led him
to focus on the motorcycle market. Genichi actually visited the United
States many times during this period.When asked about this decision, he
said, "I had my research division chief and other managers visit leading
motorcycle factories around the country. They came back and told me
there was still plenty of opportunity, even if we were entering the market
late. I didn't want to be completely unprepared in this unfamiliar business
so we toured to German factories before setting out to build our first
125cc bike. I joined in this tour around Europe during which my chief
engineers learned how to build motorbikes. We did as much research as

possible to insure that we could build a bike as good as any out there.
Once we had that confidence, we started going.""If you are going to
make it, make it the very best there is." With these words as their motto,
the development team poured all their energies into building the first
prototype, and ten months later in August of 1954 the first model was
complete. It was the Yamaha YA-1. The bike was powered by an air-
cooled, 2-stroke, single cylinder 125cc engine. Once finished, it was put
through an unprecedented 10,000 km endurance test to ensure that its
quality was top-class. This was destined to be the first crystallization of
what has now become a long tradition of Yamaha creativity and an
inexhaustible spirit of challenge.

The firs
t Yamaha motorcycle... the YA-1.
Then, in January

of 1955 the Hamakita Factory of Nippon Gakki was built and production

began on the YA-1. With confidence in the new direction that Genichi

was taking, Yamaha Motor Co. Ltd. was founded on July 1, 1955. Staffed

by 24 enthusiastic employees, the new motorcycle manufacturer built

about 200 units per month.That same year, Yamaha entered its new YA-1

is the two biggest race events in Japan. They were the 3rd Mt. Fuji Ascent

Race and the 1st Asama Highlands Race. In these debut races Yamaha

won the 125cc class and the following year the YA-1 won again in both

the Light and Ultra-light classes of the Asama Highlands Race.By 1956, a

second model was ready for production. This was the YC1, a 175cc single

cylinder two-stroke. In 1957 Yamaha began production of its first 250cc,

two-stroke twin, the YD1.

Based on Genichi's firm belief that a product isn't a product until it can

hold it's own around the world, in 1958 Yamaha became the first

Japanese maker to venture into the international race arena. The result

was an impressive 6th place in the Catalina Grand Prix race in the USA.

News of this achievement won immediate recognition for the high level of

Yamaha technology not only in Japan but among American race fans, as

well. This was only the start, however.

The firs
t Yamaha to compete in Americ(1957).

Yamaha took qu

ick action using the momentum gained in the USA and began

marketing their motorcycles through an independent distributor in

California. In

1958, Cooper Motors began selling the YD-1 250 and the MF-1 (50cc, two-

stroke,
single cylinder, step through street bike). Then in 1960, Yamaha

International

Corporation began selling motorcycles in the USA through dealers.

With the overseas experiences under his belt, in 1960, Genichi then turned

his

attention to the Marine industry and the production of the first Yamaha

boats

and outboard motors. This was the beginning of an aggressive expansion

into

new fields utilizing the new engines and FRP (fiberglass reinforced plastic)

technologies. The first watercraft model was the CAT-21, followed by the

RUN-13

and the P-7 123cc outboard motor.

In 1963, Yamaha demonstrated its focus on cutting-edge, technological

innovations by developing the Auto lube System. This landmark solution

was a

separate oil injection system for two-stroke models, eliminating the

inconvenience of pre-mixing fuel and oil.

Yamaha was building a strong reputation as a superior manufacturer

which was

reflected in its first project carried out in the new Iwata, Japan Plant, built

in

1966. (The YMC headquarters was moved to Iwata in 1972.) Toyota and

Yamaha teamed up to produce the highly regarded Toyota 2000 GT sports car.

This very limited edition vehicle, still admired for its performance and

craftsmanship, created a sensation among enthusiast in Japan and abroad.

Genichi said, "I believe that the most important thing when building a product is

to always keep in mind the standpoint of the people who will use it." An

example of the commitment to "walking in the customers' shoes" was the move

in 1966 by Yamaha to continue its expansion. Overseas motorcycle

manufacturing was established in Thailand and Mexico. In 1968, the

globalization continued with Brazil and the Netherlands. With manufacturing

bases, distributors and R&D operations in a market, Yamaha could be involved

in grassroots efforts to build products that truly met the needs of each market by

respecting and valuing the distinct national sensibilities and customs of each
country. Yamaha continues that tradition, today.

By the late 1960s, Yamaha had quality products that had proven themselves in

the global marketplace based on superior performance and innovation.

Distribution and product diversity were on the right track. But Genichi knew that

beyond quality, success would demand more. He had this view on the power of

original ideas. "In the future, a company's future will hinge on ideas over and

above quality. Products that have no character, nothing unique about them,

will not sell no matter how well made or affordable ﾉ and that would spell doom

for any company."

He also knew that forward vision, walking hand in hand with original ideas,

would create an opportunity for the company and its customers that could

mean years of happiness and memorable experiences. Genichi said, "In the

business world today, so many people are obsessed with figures. They become

fixated on the numbers of the minute and without them are too afraid to do any

real work. But in fact, every situation is in flux from moment to moment,

developing with a natural flow. Unless one reads that flow, it is impossible to start

out in a new field of business."A real-world illustration of this belief is the Yamaha

DT-1. The world's first true off-road motorcycle debuted in 1968 to create an

entirely new genre we know today as trail bikes. The DT-1 made a huge impact

on motorcycling in the USA because it was truly dirt worthy. Yamaha definitely

"read the flow" when it produced the 250cc, single cylinder, 2-stroke, Endure

that put Yamaha On/Off-Road motorcycles on the map in the USA. The DT-1

exemplified the power of original ideas, forward vision, and quick action

coupled with keeping in mind the customers' desires.

In years to come Yamaha continued to grow (and continues to this day).

Diversity increased with the addition of products including snowmobiles, race

kart engines, generators, scooters, ATV's, personal watercraft and more.

Genichi Kawakami set the stage for Yamaha Motor Company's success with his

vision and philosophies. Total honesty towards the customer and making

products that hold their own enables the company that serves people in thirty-

three countries, to provide an improved lifestyle through exceptional quality,

high performance products.

Genichi Kawakami's history with Yamaha was long and rich. He saw the new

corporate headquarters in Cypress, California and the 25th Anniversary of

Yamaha become a reality in 1980. He also watched bike #20 million roll off the

assembly line in 1982. Genichi passed away on May 25, 2002 yet his vision lives

on through the people and products of Yamaha, throughout the world.

The history of Yamaha is a history of unending “challenges”

 > 1955 - 1959
> 1960 - 1969
> 1970 - 1979
> 1980 - 1989
> 1990 - 1999
> 2000 - 2009

INFORMATION ABOUT THE COMPANY

Founded July 1, 1955

Capital 85,666 million yen(as of December 31, 2010)

President Hiroyuki Yanagi

Employees (Consolidated) 52,184 (as of December 31, 2010)

Parent :10,302 (as of December 31, 2010)
Sales (Consolidated) 1,294,131 million yen
(from January 1, 2010 to December 31, 2010)
Parent: 470,134 million yen
(from January 1, 2010 to December 31, 2010)

Sales Profile Sales (%) by product category (consolidated)

Sales (%) by region (consolidated)

Major Products & Manufacture and sales of motorcycles,

Services scooters, electrically power assisted bicycles,
boats, sail boats, personal watercrafts, pools,
utility boats, fishing boats, outboard motors,
diesel engines, 4-wheel ATVs, side-by-side
vehicles, racing karts, golf cars, multi-purpose
engines, generators, water pumps,
snowmobiles, small-sized snow throwers,
automobile engines, intelligent machinery,
industrial-use unmanned helicopters, electrical
power units for wheelchairs, helmets. Import
and sales of various types of products,
development of tourist businesses and
management of leisure, recreational facilities
and related services.
Headquarters 2500 Shingai, Iwata-shi, Shizuoka-ken, Japan

Affiliated Companies Consolidated subsidiaries: 104

Non-consolidated subsidiaries: 7 (by the equity
method)
Affiliates: 26 (by the equity method)

(as of December 31, 2010)

VISION
We will establish YAMAHA as the "exclusive & trusted brand" of customers by

"creating Kando" (touching their hearts) - the first time and every time with world

class products & services delivered by people having "passion for customers".

MISSION

We are committed to:

Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of

YAMAHA products, focusing on serving our customer where we can build long

term relationships by raising their lifestyle through performance excellence,

proactive design & innovative technology. Our innovative solutions will always

exceed the changing needs of our customers and provide value added

vehicles.

Build the Winning Team with capabilities for success, thriving in a climate for

action and delivering results. Our employees are the most valuable assets and

we intend to develop them to achieve international level of professionalism with

progressive career development. As a good corporate citizen, we will conduct

our business ethically and socially in a responsible manner with concerns for the

environment.

Grow through continuously innovating our business processes for creating value

and knowledge across our customers thereby earning the loyalty of our partners

& increasing our stakeholder value.

After post liberalization there have been radical changes that have taken place in

all sectors including biwheelers auto industry.

As two wheelers accounts for almost 80 percent of the total automobile output &

within two wheeler segment, Scooters forms a chunk of over 60 percent & bike

40 percent. Mostly bikes are liked by young generation, those have fast life. The
long term out look for India ‘two wheeler industry is bright. As the growing middle

classes of the country is fully based on the idea of a personal transportation

which is ideally meant by two wheelers.

Keeping on all the above factors in consideration Escorts Yamaha Motors Ltd

thought upon the ways to widen its after sales service network. It already has a

wide network of dealers, sub-dealers & service centers. But it was noted that it

still needed to widen it further.

Escorts are a creation of YUDI & HARI NANDA two brothers with

constructive visions. Committed & determined they planed to transform a small

agency house, which was established on 1994 to a 6000 million rupees group of

international ramifications.

Escorts today among the top ten Eng. Industrial giants in the country a

president annual growth rate of 18 percent of the past decade basis testimony to

this fact.

Escorts phenomenal growth & success stems from the fact that all its

products are geared to meet the people –agriculture. Transport industry. The

groups operations include 14 manufacturing plants & special led marketing

divisions a vast network of sales & services outlet in the country & representation
in some overseas market as well. They all satisfy demand that by their vary

nature are perennial & vital to the nations continues progress.

Collaboration with international organizations of technological excellence

constant research to adopt the emerging technology to the specific requirements

of the market & belief in the psychology of industrial interdependence have made

Escorts today one of the leading lined-cities in India’s new industrial culture

Escorts has emerged as a fraternity of above 50000 share holder.22000

employers 4000 ancillary suppliers 1600 dealers & stockiest all engaged in a

large-scale involvement & sustained efforts to meet the ever widening market

horizons of technological competence appropriate to India unique & changing

needs.

Escorts believe in incorporating the world’s finest existing technology to meet

the Indian consumers demands by collaborating with internationally renewed

companies.

DPMC is the largest franchised automobile distributor in Sri Lanka for Yamaha

Motorcycles, Yamaha Three Wheelers, Ford Vehicles and CHERY Cars. While

making a significant impact on the progress of the nation, the Yamaha Three
Wheelers have also promoted self employment, and enabled a means of support

for over a million people.

DPMC’s wide range of Motorcycles such as the Pulsar DTS-i, Discover

DTS-i, CT 100 has enabled hundreds of Sri Lankans to own vehicles with  high

performance and a low maintenance cost.

MRF Tires and Yamaha genuine spare parts are the other products that

have been launched by our Company.

CORE COMPETENCIES

Customer #1

We put customers first in everything we do. We take decisions keeping the

customer in mind.

Challenging Spirit

We strive for excellence in everything we do and in the quality of goods &

services we provide. We work hard to achieve what we commit & achieve

results faster than our competitors and we never give up.

Team-work

We work cohesively with our colleagues as a multi-cultural team built on trust,

respect, understanding & mutual co-operation. Everyone's contribution is

equally important for our success.

Frank & Fair Organization

We are honest, sincere, open minded, fair & transparent in our dealings. We

actively listen to others and participate in healthy & frank discussions to ach

ieve the organization's goals.

India Yamaha Motor inaugurated New Plant at Surajpur (Greater Noida)

The new Surajpur plant has been inaugurated by Mr. T.Kazikawa C.E.O & MD

Yamaha Global on 6th July 2009, which have capacity to produce 6 lakh

motorcycles annually including Fazer followed by FZ-16, FZ-S, YZF-R15 and other

models. The plant capacity can be augmented up to 1 million units.

This fully integrated assembly plant is built on the lines of Yamaha’s globally tried,

tested and successfully implemented standards and meets the global quality

benchmarks. At the core are the 5-S and TPM activities that fuel its

Manufacturing Processes. The plant has 3 vehicle assembly lines and 4 engine

assembly lines including one dedicated for export engines. The engine and

vehicle assembly lines are synchronized and incorporate concepts of Unit

Assurance i.e. Complete Product Assurance, Parts Assurance through 100% kit

supply on lines and synchronization of parts storage, supply and production. The

innovative production processes along with high tech final assurance processes

are aimed to achieve Zero Claims at our dealers and thus, a highly satisfied

customer base.

MANUFACTURING PROCESS
IYM's Manufacturing facilities comprises of 2 state-of-the-art Plants at –
Faridabad (Haryana) and Surajpur (Uttar Pradesh). Currently 10 models roll out

of the two Yamaha Plants.

The infrastructure at both the plants supports production of motorcycles and it's

parts for the domestic as well as oversees market. At the core are the 5-S and

TPM activities that fuel our agile Manufacturing Processes. We have In-house

facility for Machining, Welding processes as well as finishing processes of

Electroplating and Painting till the assembly line.

The stringent Quality Assurance norms ensure that our motorcycles meet the

reputed International standards of excellence in every sphere.

As an Environmentally sensitive organization we have the concept of

"Environment-friendly technology" ingrained in our Corporate Philosophy. The

Company boasts of effluent Treatment plant, Rain water - Harvesting

mechanism, a motivated forestation drive. The IS0-14001 certification is on the

anvil - early next year. All our endeavors give us reason to believe that

sustainable development for Yamaha will not remain merely an idea in pipeline.

We believe in taking care of not only Your Motoring Needs but also the needs of

Future Generations to come.

Corporate Philosophy
For over 50 years, Yamaha Motor group has endeavored to create diverse
value

through products and services since its founding.

We have worked based on three ideas which constitute our “Corporate

Philosophy”. One is our “Corporate Mission”, that is our core identity,

values,

purpose and visionary goals. The second is “Management Principles” - the

guiding management principles for achieving our corporate mission. The

third is

“Action Guidelines”, the guidelines each individual should follow to realize

our

corporate mission.

Being the “Kando* creating company” is our goal to “offer new excitement
and a

more fulfilling life for people all over the world”. We strive to use our
ingenuity

and passion to realize peoples' dreams and always be the ones they look
up to

for “the next Kando*.”

Offering new excitement and a more fulfilling life for
people all over the world
Yamaha Motor strives to realize peoples' dreams with

ingenuity and passion, and to always be a company

people

look to for the next exciting product or concept that

provides

exceptional value and deep satisfaction.

1. Creating value that surpasses customer expectations

To continue to produce value that moves people, we
must

remain keenly aware of the customer's evolving needs.

We must strive to find success by always surpassing

customer
 expectations with safe, high-quality products and
services.
2. Establishing a corporate environment that fosters self-
esteem
We must build a corporate culture that encourages
enterprise

and enhances corporate vitality. The focus will be on

nurturing the creativity and ability of our employees,

with an equitable system of evaluation and rewards.
3. Fulfilling social responsibilities globally
As a good corporate citizen, we act from a worldwide

perspective and in accordance with global standards.

We must

conduct our corporate activities with concern for the

environment and communities and fulfill our social

responsibility with honesty and sincerity.

“Acting with Speed”

Meeting change with swift and informed action
“Spirit of Challenge”
Courage to set higher goals without fear of failure
“Persistence”
Working with tenacity to achieve desired results, and
then
 evaluating them

*Kando is a Japanese word for the simultaneous feelings of

deep satisfaction and intense excitement that we experience
when we encounter something of exceptional value.

List of Directors

Title Name

President and Representative

Hiroyuki Yanagi
Director

Representative Director Takaaki Kimura

Director Toyoo Ohtsubo

Yoshiteru
Director
Takahashi

Director Hiroyuki Suzuki

 Director Kozo Shinozaki

Director Nobuya Hideshima

Director Masahiro Takizawa

Director (Outside) Yuko Kawamoto

Director (Outside) Masamitsu Sakurai

Director (Outside) Mitsuru Umemura

Standing Corporate Auditor Yutaka Kume

Standing Corporate Auditor Shigeki Hirasawa

Corporate Auditor (Outside) Norihiko Shimizu

Corporate Auditor (Outside) Tetsuo Kawawa

As of March 24, 2011

IN INDIA
Management Profile

Rahul Yamaha Chairman

Madhur Yamaha Vice Chairman

Rajiv Yamaha Managing Director

Sanjiv Yamaha Executive Director

Ranjit Gupta Vice President (Insurance)

C P Tripathi Vice President (Operations)

N H Hingorani Vice President (Materials)

Kevin D'sa Vice President (Finance)

Pradeep Vice President (Engineering)

Shrivastava

S Sridhar Vice President (Mktg & Sales - 2Wh.)

V S Raghavan Vice President (Corporate Finance)

S Ravikumar Vice President (Business Development)

K Srinivas Vice President (Human Resources)

Abraham Joseph General Manager (Research & Development)

 Business Operations

The growing world of Yamaha products, for the water, for the land, in town and into the
future

Motorcycles
Commuter Vehicles
Sports bikes, Trail bikes,
Road racers, Motocrossers, Scooters, Business-use bikes
etc.

Recreational Vehicles Boats

All-terrain vehicles, Side by Powerboats, Sailboats,
side vehicles, Snowmobiles Utility boats, Custom boats

Marine Engines Personal Watercraft

Outboard motors, Electric Personal Watercraft
marine motors, Marine diesel
engines, Stern drives

Electrically Power Assisted

Bicycles Automobile Engines

Electrically Power Assisted Automobile Engines

Bicycles

Unmanned Aerial Vehicle Golf Cars

Industrial-use unmanned Golf cars, Land cars
helicopters

Power Products Pools

Generators, Multipurpose Pools, Watersliders, Pool-
engines, Water pumps, Snow related equipment
throwers, etc.
Intelligent Machinery Wheelchairs
Surface mounters, Compact Wheelchair electric drive
industrial robots, etc. units, Electric wheelchairs,
etc.

Parts (accessories)
Parts, Accessories, Apparel,
Helmets, Engine oil, etc.