Presentation1

Presentation on Hero MotoCorp ltd

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Prathima H.N

INDUSTRY PROFILE Hero MotoCorp Ltd. Formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at #108.

In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda.

Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On June 4, 2012,Hero MotoCorp approved a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split from Honda Motors.

Company profile “Hero” is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda.

CON…… Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016–17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built.

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., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena.

Mission Hero Monocarp's 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 Monocarp's 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.

Manufacturing

Hero MotoCorp two wheelers 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 the Company pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. 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.

Its plants use world class equipment and processes and have become a benchmark in leanness and productivity.

Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to innovate and develop cutting edge products and processes

Products

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.

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 Monocarp's 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.

Brand

The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground- level activation.

2010-11 Performance

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per centTotal net operating income of INR 19401.15 Crores, growth of 22.32 per centNet profit after tax at INR 1927.90 Crores Total dividend of 5250% or INR 105 per share including Interin Dividend of INR 70 per share on face value of each share of INR 2 eachEBIDTA margin for the year 13.49 per centEPS of INR 96.54

MILESTONES

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signedShareholders Agreement signed 1984 Hero Honda Motors Ltd. incorporated 1985 First motorcycle "CD 100" rolled out1987 100,000th motorcycle produced1989 New motorcycle model - "Sleek" introduced1991 New motorcycle model - "CD 100 SS" introduced500,000th motorcycle produced1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

Con………..

1998 2,000,000th motorcycle produced1999 New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV HollandRaman 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 launched2001 New motorcycle model - "Passion" introducedOne million production in one single yearNew motorcycle model - "Joy" introduced5,000,000th motorcycle produced

Con……..

2002 New motorcycle model - "Dawn" introducedNew motorcycle model - "Ambition" introducedAppointed 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 markSplendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002)New motorcycle model - "CD Dawn" introducedNew motorcycle model - "Splendor +" introducedNew motorcycle model - "Passion Plus" introducedNew motorcycle model - "Karizma" introduced 2004 New motorcycle model - "Ambition 135" introducedHero 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.

Con……

Splendor - World's largest selling motorcycle crossed the 5 million marksNew motorcycle model - "CBZ*" introducedJoint Technical Agreement renewed Total sales crossed a record of 10 million motorcycle

2005 Hero Honda is the World No. 1 for the 4th year in a rowNew motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introducedNew motorcycle model - "Glamour" introducedNew motorcycle model - "Achiever" introducedFirst Scooter model from Hero Honda - "Pleasure" introduced2006 Hero Honda is the World No. 1 for the 5th year in a row15 million production milestone achieved2007 Hero Honda is the World No. 1 for the 6th year in a row.

Con….

2008 Hero Honda Haridwar Plant inaugurationNew 'Pleasure' launchedSplendor NXG launched with power start featureNew motorcycle model 'Passion Pro' launchedNew 'CBZ Extreme' launched25 million production milestone achievedCD Deluxe launched with power start featureNew 'Glamour' launchedNew 'Glamour Fi' launched2009 Hero Honda Good Life Program launched Hunk' (Limited Edition) launchedSplendor completed 11 million production landmarkNew motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations

Con…..

2010 New model Splendor Pro launched Launch of new Super Splendor and New Hunk2011 New licensing arrangement signed between Hero and Honda (Hero Honda is renamed as Hero)Launch of new refreshed versions of Glamour, Glamour Fi, CBZ Xtreme, KarizmaCrosses the landmark figure of 5 million cumulative sales in a single year

CompetitorsHero MotoCorp Ltd. Atul Auto Ltd. Bajaj Auto Ltd. Kinetic Engineering Ltd.LML Ltd.Maharashtra Scooters Ltd. Majestic Auto Ltd. Scooters India Ltd. Sunku Auto Ltd. TVS Motor Company Ltd.

SalesNo matter how huge your order is, Hero MotoCorp shall certainly ensure that it is delivered efficiently.

Advantages of Corporate Sales at Hero: Single window processing for delivery at multiple locations No running around for documentation Attractive finance options Hero MotoCorp Passport - Unique CRM Program Bulk Incentive Schemes

Service and Maintenance Schedule Our constant endeavor is to support the company's mandate of providing highest level of customer satisfaction by taking good care of your two-wheeler service and maintenance through our vast network of more than 2100 committed dealers and service outlets spread across the country.

Our state-of-the-art authorized workshops have well laid out standards for two-wheeler servicing with fully equipped infrastructure having quality precision instruments, pneumatic tools and a team of highly trained service technicians. Having your two-wheeler serviced at an authorized workshop ensures highest standards of service quality and reliability.

Service Schedule

Hero MotoCorp offers free services on all its two-wheelers. You should avail these services within the stipulatedconditions of time period or km range, whichever condition gets satisfied earlier from the date of purchase. After the completion of free services or its validity period you must continue availing paid services as per the recommend.

Maintenance ScheduleProper care and maintenance are paramount for trouble free operation and optimum performance of your two-wheeler.

SWOT Analysis

Strength

1. Huge brand equity and one of the biggest players in the two wheelers Indian market2. Excellent R&D, and wide variety of products in every segment.3. Excellent distribution, over 3000 dealerships and service centers 4. Good advertising and excellent rebranding from Hero Honda to Hero Moto Corp

Weakness

1. Absence in the premium  bike segment2.High imports for its spare parts i.e. over 30% imports3. Most of the products have similar features and low on design and innovation

Opportunity

1.Two-wheeler segment is one of the most growing industries2.Export of bikes is limited i.e. untapped international markets

Threats

1. Strong competition from Indian as well as international brands2. Dependence on government policies and rising fuel prices3. Better public transport will affect two-wheeler sales

CONCLUSION Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 years because they prefer stylish looks and rest of the models of Hero Moto Corp , TVS and Bajaj are purchased more by daily users who needs more average of bikes than looks. Hero Moto Corp is considered to be most fuel-efficient bike on Indian roads.Service & Spare parts are available throughout India in local markets also.While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency.Majority of the respondent had bought their motorcycle more than 3 years.

Number of products is large in comparison to othersThe distribution policies are more efficient then any other company .Hero Moto Corp make more stress on advertisement on television and help there dealers for local advertisement.The pricing policy of Hero Moto Corp (previously Hero Honda) is for better than the pricing policy of the competitors.

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