In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone Hero MotoCorp
The new brand identity and logo, Hero MotoCorp, was developed by the London firm The logo was revealed on 9 August 2011 in London, the day before the third Test match between England and India. Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use any vendors for its components instead of just Honda-approved vendors. Companys performance During the fiscal year 2008-09, the company sold 3. 7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market.
Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together. Hero Hondas bike Hero Honda Splendor sells more than one million units per year. Total unit sales of 54,02,444 two wheelers, growth of 17. 44 per cent Total net operating income of Rs. 19401. 15 Crores, growth of 22. 32 per cent Net profit after tax at Rs. 1927. 90 Crores Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per share on face value of each share of Rs. 2 each EBIDTA margin for the year 13. 49 per cent EPS of Rs. 96. 54 .
History Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd. 1956 ” Formation of Hero Cycles in Ludhiana(majestic auto limited) 1975 ” Hero Cycles becomes largest bicycle manufacturer in India. 1983 ” Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984 ” Hero Honda Motors Ltd. incorporated 1985 ” Hero Honda motorcycle CD 100 launched. 1989 ” Hero Honda motorcycle Sleek launched. 1991 ” Hero Honda motorcycle CD 100 SS launched. 1994 ” Hero Honda motorcycle Splendor launched. 1997 ” Hero Honda motorcycle Street launched.
1999 ” Hero Honda motorcycle CBZ launched. 2001 ” Hero Honda motorcycle Passion and Hero Honda Joy launched. 2002 ” Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched. 2003 ” Hero Honda , motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched. 2004 ” Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ launched. 2005 ” Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure.
2007 ” New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched. 2008 ” New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched. 2009 ” New Models of Hero Honda motorcycle Karizma:Karizma ZMR and limited edition of Hero Honda motorcycle Hunk launched 2010 ” New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.
2011 ” New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma launched. New licensing arrangement signed between Hero and Honda. August 2011 ” Hero and Honda part company, thus forming Hero MotoCorp and Honda moving out of the Hero Honda joint venture. November 2011 ” Hero launched its first ever Off Road Bike Named Hero Impulse CHAIRMANS PROFILE | | Dr. Brijmohan Lall Munjal Dont dream if you cant fulfill your dreams Brijmohan Lall Munjal is often fond of saying. The founder and patriarch of the $3. 2 billion Hero Group is your classic first generation entrepreneur.
He is a man who started small, dreamt big and used a combination of grit and perseverance to create one of the countrys largest corporate groups and the Worlds No. 1 Two Wheeler Company. | | | Instinctive from a young age, Brijmohan Lall made a rather unusual start in life. Around the time when the freedom movement in India was taking shape in the late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was only six years old then. Thus began an extraordinary tale of courage and perseverance.
Brijmohan began his business story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a company that provided poor people with basic transport (cycles). Three decades later, as India evolved, he added a second crucial chapter which visualized affordable and technologically superior transport to millions of middle class Indians. The rest is history. Building Relationships When Brijmohan and his brothers started out, there was no concept of organized dealer networks. Companies just produced, and most dealers functioned like traders.
Brijmohan changed the rules of the business by trusting his gut instincts; introducing business norms that were ahead of their time, and by investing in strategic relationships. Brijmohan built a series of bonds and networks with hundreds of family members, vendors, dealers and employees. Much like the Japanese keiretsu system, these networks are now the glue that holds the Hero Group together. Thanks to the relationships that we have nurtured so passionately in the Hero Family, the younger generations of some of our bicycle dealers have become dealers of Hero MotoCorp.
These relationships have survived through generations through bad times and good times the patriarch now reminiscences. Besides bonding with his vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of entrepreneurship amongst his employees, and today, 40 of his former employees are successful entrepreneurs. Staying Ahead Though not technically qualified in the conventional sense, few of his contemporaries have understood the dynamics of technology better than Brijmohan Lall has. He could always visualize the applicability of technology before others could.
For example, in the 1980s, when all two-wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a four-stroke engine a technology that dramatically increased fuel efficiency and reduced maintenance costs. This technology was one of the biggest reasons for Hero MotoCorps stupendous success. A Corporate Citizen A frugal upbringing and a value system modeled on the famous Gurukul system which stresses the sanctity of the teacher-pupil relationship imbibed in Brijmohan a strong sense of social commitment and responsibility.
There is a special place in his heart for Ludhiana, the city where he took roots. Today, Ludhiana is a modern, bustling city, but Brijmohan has played no mean role in its evolution. Several schools and educational institutions in Ludhiana owe their existence to the Munjal family. The Ludhiana Stock Exchange owes its existence to Brijmohans vision as does the Ludhiana Flying Club. Hes also set up the not-for-profit Dayanand Medical College and Hospital-an institute now rated as one of the best medical colleges in India, in terms of infrastructure, quality of staff and alumni profile.
In and around Dharuhera, near the first Hero MotoCorp plant, Brijmohan and his family have left their stamp of philanthropy. The Raman Kant Munjal Foundation which Brijmohan set up in memory of his eldest son, today runs a higher secondary school and a very modern and well-equipped 100-bed hospital at Dharuhera. The group has also adopted numerous villages and provides education, vocational training, drinking water, roads, streetlights and sewerage. Dr. Brijmohan Lall Munjal Chairman Message from Management What the caterpillar calls the end the rest of the world calls a butterfly.
~Lao Tzu~ Constant improvement has been the key fuel that has powered the engines of this company since inception. Happily, we are now building on that momentum to go further in our journey of market leadership and corporate excellence. After forging together one of the worlds most prolific and successful joint ventures for over two and a half decades, and becoming Desh ki Dhadkan we at Hero are now poised to prove ourselves on the global arena. We are pleased to announce that Hero Honda Motors Ltd. is now Hero MotoCorp Ltd.
The new name is reflective of our belief in ourselves and our focus on mobility and technology. In this endeavor, our domain knowledge of the market, our customer-centric approach, our world class manufacturing facilities & processes, our committed and skilled personnel, our seamless & integrated supply chain and our strong relationships with all stakeholders will hold us in good stead. On the technology front, our existing R & D facility is being rapidly upgraded with support, where required, from global experts and technology providers.
As we embark on this novel journey with a new identity, we shall continue to set new benchmarks for the industry. We shall develop new and cutting-edge products at a faster pace and aggressively expand our footprint outside India. Yes, a new day has dawned and a new Hero is rising. We know we can count on your blessings and continued endorsement of the Company and its products. Best, Pawan Munjal Dr. Brijmohan Lall Milestones 1983 Joint Collaboration Agreement with Honda Motor Co. Ltd.
Japan signed Shareholders Agreement signed 1984 Hero Honda Motors Ltd.incorporated 1985 First motorcycle CD 100 rolled out 1987 100,000th motorcycle produced 1989 New motorcycle model Sleek introduced 1991 New motorcycle model CD 100 SS introduced 500,000th motorcycle produced 1992 Raman Munjal Vidya Mandir inaugurated A School in the memory of founder Managing Director, Mr. Raman Kant Munjal 1994 New motorcycle model Splendor introduced 1,000,000th motorcycle produced 1997 .
New motorcycle model Street introduced Hero Hondas 2nd manufacturing plant at Gurgaon inaugurated 1998 2,000,000th motorcycle produced 1999 New motorcycle model CBZ introduced Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated.
A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal 2000 4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared World No. 1 largest selling single two-wheeler model Hero Honda Passport Programme CRM Programme launched 2001 New motorcycle model Passion introduced.
One million production in one single year New motorcycle model Joy introduced 5,000,000th motorcycle produced 2002 New motorcycle model Dawn introduced New motorcycle model Ambition introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors 2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the Worlds largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model CD Dawn introduced.
New motorcycle model Splendor + introduced New motorcycle model Passion Plus introduced New motorcycle model Karizma introduced 2004 New motorcycle model Ambition 135 introduced Hero Honda became the World No. 1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor Worlds largest selling motorcycle crossed the 5 million mark New motorcycle model CBZ* introduced Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles 2005 Hero Honda is the World No.
1 for the 4th year in a row New motorcycle model Super Splendor introduced New motorcycle model CD Deluxe introduced New motorcycle model Glamour introduced New motorcycle model Achiever introduced First Scooter model from Hero Honda Pleasure introduced 2006 Hero Honda is the World No. 1 for the 5th year in a row 15 million production milestone achieved 2006 Hero Honda is the World No. 1 for the 5th year in a row 15 million production milestone achieved 2007 Hero Honda is the World No. 1 for the 6th year in a row New Splendor NXG launched.
New CD Deluxe launched New Passion Plus launched New motorcycle model Hunk launched 20 million production milestone achieved 2008 Hero Honda Haridwar Plant inauguration New Pleasure launched Splendor NXG lauched with power start feature New motorcycle model Passion Pro launched New CBZ Xtreme launched 25 million production milestone achieved CD Deluxe lauched with power start feature New Glamour launched New Glamour Fi launched 2009 Hero Honda GoodLife Program launched Hunk (Limited Edition) launched Splendor completed 11 million production landmark.
New motorcycle model Karizma ZMR launched Silver jubilee celebrations 2010 New model Splendor Pro launched Launch of new Super Splendor and New Hunk 2011 New licensing arrangement signed between Hero and Honda Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma Crosses the landmark figure of 5 million cumulative sales in a single year AWARDS AND ACHIEVEMENTS 2011 Two-wheeler Manufacturer of the Year award by Bike India magazine. Adjudged the Bike Manufacturer of the Year at the Economic Times ZigWheels Car and Bike Awards.
CNBC Awaaz Storyboard special commendation for Effective rebranding of a new corporate entity by CNBC Awaaz Consumer Awards Most Recommended Two-Wheeler Brand of the Year award by CNBC Awaaz Consumer Awards Colloquy Loyalty Awards Innovation in Loyalty Marketing International 2011 for Hero GoodLife Best Activity Generating Short or Long-Term Brand Loyalty by the Promotion Marketing Award of Asia Order of Merit for Hero GoodLife Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity Most Trusted Brand2011 survey
2010 Rated as Top Indian Company in Automobile Two Wheelers sector by Dun & Bradstreet Rolta Corporate Awards 2009 Most Preferred Brand of Two-Wheelers award at the CNBC Awaaz Consumer Awards. Adjudged at top of the two-wheeler category in the Brand Equity Most Trusted Brands 2010 Survey. Ranked No.
3 Most Trusted Brand across categories amongst Young Adult Males Company of the Year awarded by Economic Times Awards for Corporate Excellence 2008-09. CNBC TV18 Overdrive Awards 2010 Hall of Fame to Splendor NDTV Profit Car & Bike Awards 2010 Two-wheeler Manufacturer of the Year * CnB Viewers Choice Two-wheeler of the Year (Karizma ZMR) Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009³ 2009.
Two-wheeler Manufacturer of the Year by NDTV Profit Car & Bike Awards 2009 and Passion Pro adjudged as CNB Viewers Choice two-wheeler Top Indian Company under the Automobile Two-wheelers sector bythe Dun & Bradstreet-Rolta Corporate Awards Won Gold in the Readers Digest Trusted Brand 2009 in the Motorcycles category NDTV Profit Business Leadership Awards 2009 two-wheeler category 2008 NDTV Profit Business Leadership Award 2008 Hero Honda Wins the Coveted NDTV Profit Business Leadership Award 2008 TopGear Design Awards 2008 Hunk Bike of the Year Award.
NDTV Profit Car India & Bike India Awards NDTV Viewers Choice Award to Hunk in Bike categoryIndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards Customer and Brand Loyalty Award in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards Bike Manufacturer of the year Overdrive Magazine Bike Manufacturer of the year TNS Voice of the Customer Awards: * No. 1 executive motorcycle Splendor NXG No.
1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Xtreme 2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category: * Overall Bike of the Year CBZ X-treme * Bike of the Year CBZ X-treme (up to 150 cc category) * Bike Technology of the Year Glamout PGM FI Auto Tech of the Year Glamout PGM FI by Overdrive Magazine. Bike of the Year CBZ X-treme by Overdrive Magazine. Ranked CBZ X-treme Bike of the Year by B S Motoring Magazine Most Trusted Company , by TNS Voice of the Customer Awards 2006. CD Deluxe rated as No 1 standard motorcycle by TNS Voice of the Customer Awards 2006.
2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed companies. No. 1 in automobile industry by TNS Corporate Social Responsibility Award. Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006: Splendor Plus (Executive) * CD Deluxe (Entry) Pleasure (Gearless Scooters) Splendor & Passion Top two models in two wheeler category by ET Brand Equity Survey 2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company).
Top Indian company in the Automobile Two Wheeler sector by Dun & Bradstreet American Express Corporate Awards 2006. Hero Honda Splendor rated as Indias most preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate of Export Excellence for outstanding export performance during 2003-04 for two-wheeler & three- wheelers Complete (Non SSI) by Engineering Export Promotion Council. The NDTV Profit Car India & Bike India Awards 2006 in the following category: Bike Maker of the Year Bike of the Year Achiever Bike of the Year Achiever (up to 150 cc category)
Bike of the Year Glamour (up to 125 cc category) NDTV Viewers Choice Award to Glamour in the bike category 2005 Awaaz Consumer Awards 2005 Indias most preferred two-wheeler brand by CNBC in the Automobiles category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005. 2004 Winner of the Review 200 Asias Leading Companies Award (3rd Rank amongst the top 10 Indian companies).
GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India. 2003 Winner of the Review 200 Asia s Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World.
Bike Maker of the Year by Overdrive Magazine. 2002 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 Asia s Leading Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in Overall Best Managed Company category, ranked 3rd in Best Financial Management and Best Operational Efficiency category, ranked 6th in Overall Best Investor Relations category, by Asiamoney. Highest Wealth Creating Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.
2001 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 Asia s Leading Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment. 1999 National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India. 1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India.
National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award Presented by President of India). 1991 Economic Times-Harvard Business School Award for Corporate Performance to Hero Honda Motors Ltd. 4 Ps of Hero Moto Corp 1. Product 2. Price 3. Place 4. Promotion 1. Product: Hero MotoCorp offers wide range of two wheeler products that include motorcycles and scooters, and has set the industry standards across all the market segments. 2. Price: Hero MotoCorp offers wide range of two wheeler products that include from low cost bikes to high end bikes.
They create bikes for all segment of the society. 3. Place: The Companys growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero MotoCorps extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, service & spare parts outlets, and dealer-appointed outlets across the country. with termination of contract with Honda motors Hero MotoCorp can go to international market like Latin America and Sri-lanka. 4.
Promotion:Hero Honda event sponsorship, Fill it-Shut it-Forgot It campaign,Dhak Dhak Go campaign, Celebrity Endorsement,Why Should boys Have All the fun and the latest one Hum Mein Hai Hero Are few Promotional strategies of HeroMotoCorp Fill it-Shut it-Forget it Dhak Dhak Go Celebrity endorsement Why should boys have all the fun Hum Mein Hai Hero these were the few Advertising strategy of HeroMotoCorp. Appart from these strategy HeroMotoCorp also have Promotion schemes like Test Rides on Products, Easy Finance, Sponsorship, Quick Availability of product which makes them unique in the market.
VISION The story of Hero Honda began with a simple vision the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd. , companys new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding companys footprint in the global arena. MISSION Hero MotoCorps mission is to become a global enterprise fulfilling its customers needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates.
The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners STRATEGY Hero MotoCorps key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight. Product Information And Product Mix Achiever Ambition 133, Ambition 135 CBZ, CBZ Star, CBZ Xtreme.