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Tuesday, March 8, 2011

HERO HONDA MOTOERS LTD

INTRODUCTION
Hero Honda is the World’s No.1 two-wheeler manufacturer company having the trust of more than 5 million customers. The company is a joint venture of Hero Cycles of India and Honda Motor of Japan. Achiever, CBZ, CD Dawn, Karizma, Passion, Pleasure and Splendor are its famous brands on Indian roads.

Year of Establishment in 1984 (The Hero Group was established in 1956) founder by Munjal Brothers: Mr.Satyanand Munjal, Mr.Brijmohan Lall Maunjal and Mr. O.P.Munjal. It is manufacturing two wheelers. Before the establishment of the Hero Group in 1956, Munjal Brothers use to manufacture bicycle components in the early 1940’s. Capitalization Ratio-Hero Group - 26%, Honda Motor Co. Ltd. 26%, other-48% (listing).

MISSION
Its our mission to strive to strive for synergy between technology
Systems and human resources to produce products and service that meet the quality
Performance and prize aspirations of our customers
While doing so, we maintain the highest standards of ethics and societal responsibilities

Mr. Brijmohan Lall Munjal, Chairman & MD

SEGMENT AND BRANDS
Major Brands
Two Wheelers :
Achiever, CBZ, CBZ Xtreme, CD Deluxe, CD100SS, CD Dwan, Glamour, Hunk, Karizma, Passion Plus, Pleasure, Spledor, Splendor+, Super Splendor.

GENERAL INFORMATION
Honda will continue to provide Hero Honda with full and latest technological support. Both of them will develop and expand the two-wheeler business in the country. They agree to strengthen model line up. Honda Motor Co. Ltd., Japan, renewed its Technical Collaboration Agreement for another 10 years, uptill 2014. the previous renewal was in 1994 after the establishment in 1984.

Honda has strengthened its R&D facilities in India and together with R&D in Japan, it will continue to provide Hero Honda with the Leading Edge Honda Technology. According to Mr.Brijmohan Lall, Chairman, Hero Honda Motors Limited, Hero Honda is a ‘Showcase’ of an ideal partnership where both the partners have combined their unique strengths and have successfully created the ‘World’s No.1’ two-wheeler Company.

GROWTH OF HERO HONDA
Two-wheelers in India is a synonymous to the Brand Hero Honda, a unit of Hero Group established in 1984 as a joint venture of The Hero Group (India) and Honda Motor Co. Ltd. (Japan), Hero Honda is the ‘world’s No.1 ‘two-wheeler company.

Driven by the trust of over 5 million customers, the product range of Hero Honda commands a market share of approximately 50% Starting with a scale figure of only 43,000 units in 1985-86, the company has reached a high of 26,21,400 units in 2004-05. According to Pawan Munjal, Managing Director and CEO of Hero Honda, the gap with its nearest rival, Bajaj Auto, is over a million units in 2007-08.

On a compound annual growth rate (CAGR) basis, the sales volume of the company have been growing at 33% for the last 6 years ( as stated in 2006-07) and the net sales value at 36% over the same period. Parallel to it, the profit of the company have been growing at 50% CAGR.

The company enjoys debt free status since March 01 and had zero level of contingent liabilities as of 31st March 03. The entire long term debt of Rs.116 Cr. As on 31st March 03 represents an interest free loan from the Government of Haryana on account of sales tax, deferment, and has no costs attached to it.

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