Hero Motors Ltd

COMPANY PROFILE

COMPANY HISTORY:

The Hero Honda Motors Ltd., was started out as a joint venture between Hero Group. The world’s largest bicycle manufactures and Honda Motors Japan Company.

The Hero Honda Motors Ltd., came into existence on January 19, 1984 Hero Honda Motors Ltd., the gave India nothing less than a revolution on two-wheelers, made even more famous by the “Fill it- shut it – forget it” campaign. Driven by the trust of over 5 million customers. The Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. Add to that technological excellence, on expensive dealer network and reliable after sales services and they have one of the most customer friendly companies.

Customer satisfaction, a high quality product the strength of Hero Honda technology and the Hero Groups dynamism have helped Hero Honda Motors Ltd. Scale new frontiers and exceed limits:

In other words of Mr. Brijmohan Lall Munjal the chairman and Managing Director. “We will continue to make every effort required for the development of the motorcycle industry through new product development technological innovation, investment in equipment and facilities and through efficient management”.

COMPANY PROFILE:

Hero, a name synonymous with two-wheelers in India , began its journey around four decades ago starting as a manufacturing of bicycle components. Hero has today grown into a multi unit, multi product, geographically diversified group of companies. Hero is also the largest manufacturer of 100 cc motorcycles in India and has a substantial presence in mopeds and auto ancillaries. The two-wheelers division of the Hero group has already networked more than 3500 dealer outlets, each with its complement of trained mechanics and workers.

Hero Honda Motors Ltd., is one of the leading companies in the two-wheeler industry. At present it is the around 50% the market share. The company has emerged as one of the most successful players, much ahead of its competitors an account of its superior and reliable product with quality complemented with excellent marketing techniques. The company has consistently addressing the growing demand for two-wheelers and has a cumulative customer base of over it million customers which is expected to reach 5 million mark with the rural and semi-urban segment being the new class of consumers. The Indian two-wheeler contributes the largest volumes amongst all the segments viz scooters, motorcycles, and mopeds. The market primarily comprises 5 players in the two-wheeler segment with most of the companies having foreign collaborations with well-known Japanese firm earlier. In the 21^st century the most of the companies are now planning 100% subsidiaries in India.

Hero Honda has been an early entrant in the 4-stoke segment of the two-wheeler industry, with a right mix of product styling and pricing the company. A shifting consumer preference towards two-wheelers also enabled the fast growth of the company in the last few years of the total two-wheelers sales. Hero Honda Motors Ltd., has a maximum of around 36.5% market share in the western zone and 28.6% in the southern zone which has remained more or less consistent from F.Y2010

Hero Honda Motors Ltd., a part of the Hero group is a reputed name in the two-wheeler sector and the management has a rich experience in the business. Hero Honda Motors Ltd., is a joint venture with Honda corporation, Japan and over the years has been most successful Indo-Japanese venture in two-wheelers. The company has been cash rich and has been effectively utilizing its surplus resources combined with prudent working capital management. Hero Honda has set a target 20% volume growth and 25% turnover growth for the fiscal year.

Hero Honda has a reputation of being the most fuel-efficient and the largest selling the two-wheelers in India. Its commitment of providing the customer with excellence is self-evident. A rich background of producing high value products of two-wheelers. It was this affinity in working cultures of Honda Motors Company Japan and the Hero Group that resulted Hero Honda Motors Ltd., A relationship so harmonious that Hero Honda has managed to achieve indigenization of over 10% a Honda record worldwide. Tactical promotions and excellent marketing help Hero Honda establish it self as an intelligent purchase. Its unique features like fuel, conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country. Finance services helped facilitate purchase, as did an efficient dealer network across the country well entrenched in the domestic market. Hero Honda Motors Ltd., turned its attention overseas and exports have been steadily an the rise over the years, the company has received its share of accolades including the National Productivity Council Award (1990-91) and the economic times Harvard Business School Association of India Award against 200 contenders.

India has finally got a world leader in manufacturing two-wheelers with no problem. Hero Honda Motors Ltd., has attained the distinction of being the largest two-wheeler company in the world in volume terms.

The Hero Honda is one of the most successful join ventures within the Hero Group and that his company looks forward to an even more robust growth together. In last year the Hero Honda achieved a record sale of over 2million motorcycle, which is the largest production by a local company within the Honda group worldwide. One of its motorcycle models has already exceeded the cumulative production of 5 million and is the largest selling model in motorcycle category in the world. The Hero Honda Motors Ltd., has continued to grow, delivering superb performance in India’s two-wheeler market place. The company had come from now where to whiz past Bajaj Auto Ltd., the traditional leader of the pack in two-wheelers.

An environmentally and socially aware company. At Hero Honda companies goal is not only to sell bike, but also to help every step of the way in making your world a better place to live in. Besides its will to provide a high quality service to all of its customers. Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. “We must do something for the community from whose land we generate our wealth”. A famous quote of Mr. Brijmohan Lall Munjal of company’s chairman.

Finally it is the one of leading company in the two-wheeler industry. Using the latest technologies and producing new models.

PRODUCT PROFILE:

Hero Honda Motors Ltd., has introduced various models across different price segments. The company is the market leader in the executive segment that constitutes almost 54% of total motorcycle sales.

CD-100:

This model has introduced in the year 1985. The original : Fill it, shut it, forget it Bike.

Engine : 97.2CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1220 mm

Max. Speed : 80 KMPH

Max. Power : 7.2 ps @ 8000 rpm

Starting : Kick starter

Kerb weight : 107 kg.

Fuel tank capacity : 10.1 ltr.

Reserve : 2.8 ltr.

SPLENDOR:

This model was introduced in the year 1993. Designed to Excel :

Engine : 97.2CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1230 mm

Max. Speed : 80 KMPH

Max. Power : 7.5 ps @ 8000 rpm

Starting : Kick starter

Kerb weight : 19 kg.

Fuel tank capacity : 10.5 ltr.

Reserve : 1.4 ltr.

SPLENDOR+:

This model was introduced in the year 2000Designed to Excel:

Engine : 97.2CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1230 mm

Max. Speed : 85 KMPH

Max. Power : 7.5 ps @ 8000 rpm

Starting : Kick starter

Kerb weight : 109 kg.

Fuel tank capacity : 10.5 ltr.

Reserve : 1.4 ltr.

CD-DAWN :

This model was introduced in the year 2003. Value Nayae Zamane Ki.

Engine : 97.2CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1230 mm

Max. Speed : 85 KMPH

Max. Power : 7.4 ps @ 800 rpm

Starting : Kick starter

Kerb weight : 108 kg.

Fuel tank capacity : 10.5 ltr.

Reserve : 1.8 ltr.

CBZ :

This model was introduced in the year 1999-2000. Motorcycling unplugged, the original spirit of CBZ, Now with a cool, New look.

Engine : 156.8 CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1335 mm

Max. Speed : 90 KMPH

Max. Power : 12.8 ps @ 800 rpm

Starting : Kick starter / Self starter

Kerb weight : 138 kg.(Kick Starter), 142 kg.(Self Starter)

Fuel tank capacity : 13 Ltr.

Reserve : 2.5 Ltr.

PASSION:

This model was introduced in the year 2001

Engine : 97.2CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1235 mm

Max. Speed : 85 KMPH

Max. Power : 7.5 ps @ 800 rpm

Starting : Kick starter

Kerb weight : 116 kg.

Fuel tank capacity : 12.8 ltr.

Reserve : 1.1 ltr.

PASSION PLUS:

This model was introduced in the year 2002-2003:

Engine : 97.2CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1235 mm

Max. Speed : 85 KMPH

Max. Power : 7.5 ps @ 800 rpm

Starting : Kick starter

Kerb weight : 116 kg.

Fuel tank capacity : 12.8 ltr.

Reserve : 1.1 ltr.

KARIZMA :

Engine : 223 CC(4-stoke, air-cooled, single cylinder, OHC)

Wheel Base : 1355 mm

Max. Speed : 125 KMPH

Max. Power : 17 ps @ 800 rpm

Starting : Kick starter + Self starter

Kerb weight : 150 kg.

Fuel tank capacity : 15 ltr.

Reserve : 2 ltr.

BOARD OF DIRECTORS:

The Board of Directors (BOD) of the HHML:

Chairman : Brijmohan Lall Mohan

Managing Director : Pawankant Munjal

Join Managing Director : Akio Kazusa

Whole time Director : Shinichi Nakayama

Director : Satyanand Munjal

Director : Om Praksha

Director : O. P. Virmani

Director : M. P. Wadhawan

Director : O. P. Gupta

Director : S. T. Toshida

Director : Yakihiro Aoshima

Director : N. N. Vohra

Director : Pradeep Dinodia

Director : V. P. Malik

COMPANY MISSION STATEMENT:

“The Hero Honda Motors Ltd., Company is continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance and price aspirations of the customer. While doing so, they maintain the highest standards of ethics and societal responsibilities. Constantly innovate products and processes and develop teams that keep the momentum going to take the company to excellence in the new millennium”.

PLANT LOCATIONS:

The Hero Honda Motors Ltd., company its plants located in Dharuhera and Gurgaon in Haryana having a total installed capacity of 1.8 mn motorcycles per year.

COMPANY OBJECTIVES:

The company having some objectives. They are:

The main objective of the company is to satisfy their consumers.

To expand their market share.

To produce the new models of Bike in the basis of consumers needs, tastes, wants, etc.

Expand their business.

To achieve their goals.

To expand their plant locations and produce a more number of Bikes

To increase their sales turnover.

To increase their profit.

To ensure delivery on time all the time.

To aim towards achieving the ‘Zero Defect’

To be responsive to customers needs.

KEY POLICIES

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY.

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a high-quality service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind.

"We must do something for the community from whose land we generate our wealth."

A famous quote from our Worthy Chairman Mr. Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental performance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable).

Institutionalize resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customer's growing aspirations through:

Innovation in products, processes and services.

Continuous improvement in our total quality management systems.

Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may be affected by its operations. We believe that the safe work practices lead to better business performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers and contractors.

Continuous improvements in safety performance through precautions besides participation and training of employees.

CORPORATE PROFILE

Hero Honda Motors Ltd. is the world's largest manufacturer of two – wheelers, based in India. The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in 1984.

In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the ‘World No.1’ two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling motorcycle – Splendor.

Vision
The Hero Honda story began with a simple vision – the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s commitment to customer, quality and excellence, and while doing so, maintaining the highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that dream into a reality is by remaining focused on that vision.

Strategy
Hero Honda’s key strategy has been driven by innovation in every sphere of activity – building a robust product portfolio across categories, exploring new markets, aggressively expanding the network and continuing to invest in brand building activities.

Manufacturing

Hero Honda bikes are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.

Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.

Products
Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. The company also started manufacturing scooter in 2006. Hero Honda offers large no. of products and caters to wide variety of requirements across all the segments.

Distribution
The company's 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 Honda's extensive sales and service network now spans close to 4500 customer touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the country.

Brand
The company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010.

2009-10 Performance

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent
Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs.2 EBIDTA margin for the year 17.4 per cent EPS of Rs. 111.77, growth of 74.1 per cent

EXECUTIVE SEGMENT:

Under this segment capacity of Bike exists between 100 CC and 125 CC and the Bike is priced between Rs.35,000 and Rs.45,000. Splendor and Passion are the two models under this category. This category constitutes 54% of the total Bikes sales and company has leadership position in this category, Company sells around 1,00,000 units per month under this segment.

ECONOMY SEGMENT:

This is entry level segment where the products are priced below Rs.35,000 and the capacity of the two-wheeler or Bike is under 100 CC company has different models like CD-100, CD-Dawn.

PREMIUM SEGMENT:

Bike priced above Rs.45,000/- are categorized in the premium segment. The Company launched CBZ Bike under this category. Other Hero Honda Brands in this segment are Ambition and Karizma.

ACHIEVEMENTS:

The Hero Honda Company has achieved their goal. The company achieved their expected sales in the year January 2010-11. In the recent years it is the leading company in the two-wheeler industry in the world in volume terms. It is gearing itself for operation one Billion targeting $1 billion revenues in 2009-2010 next years the company will enter the ($) billionaires club (in revenues). In the year 2001achived OM- one million productions in one single year.

The Hero Honda Motors Ltd., company has give a 2crore amount to prime-minister relief fund for the Tsunami Victims.

Now in 2011 Hero Honda Company is divided. The New Name is HERO. In my knowledge it is very best vehicle to poor people, because best mileage, no maintenance and completely best vehicle to all generation.