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  • 1. Hero HondaIntroduction:The Indian two-wheeler industry is experiencing a major shift in its shape and structure.The established players in the industry are taking a hard look at their portfolio of productsand are in the process of reshuffling them to meet the expectations of customers. Thebeneficiary is of course the consumer, who has an increased array of products to choosefrom.The last four-five years have brought about a great change in the consumer preferencesfor two-wheelers. The market leaders of yesteryears are being driven to maintain theirleadership position in the forthcoming years. Those who have had a great going in the lastfew years are fighting hard to retain their new supremacy. The two-wheeler industry isperhaps the most happening place in terms of new models launched, upgraded productsand innovative marketing techniques. Gone are the days of regulation when theproduction of scooters and motorcycles was limited to two or three brands and the numberof products produced was decided by the Government; today the Indian two-wheelermarket is highly competitive with numerous players who offer anything and everything aconsumer demands and that too at affordable price. From a sellers market where one hadto wait for a scooter for 12 years to the days when you can just walk into any showroomand drive out in the vehicle of your choice, the market of two-wheelers in India has come along way. But this is only the beginning of the transformation. 1 (P.T.O)
  • 2. Hero HondaThe Industry:The Indian two-wheeler industry is dominated by three players, Bajaj, Hero Honda andTVS Suzuki, who account for 80 percent of the total two-wheeler market. The otherplayers including Kinetic Engineering, LML and others account for the remaining 20percent of the market. The industry can be divided into three broad segments: Scooters,motorcycles and mopeds. In the scooters segment Bajaj is the market leader, Hero Hondais the market leader in the motorcycles segment and in the segment of mopeds, TVScontrols the major chunk of the market.Most Indian players in the two-wheeler industry had been into some kind of strategicalliance, technical collaboration or joint venture with foreign players, mainly Japanesefirms. Hero-Honda, is a joint venture between the Munjal-promoted Hero Group andHonda Motor Co. of Japan; TVS-Suzuki was an alliance with TVS and Suzuki Motors (tillSeptember 2001); Bajaj-Kawasaki a joint venture between Bajaj Motors and Kawasaki;and Yamaha-Escorts, a joint venture between Escorts and Yamaha Motor Corp. (till June2001). 2 (P.T.O)
  • 3. Hero HondaHero HondaThe story of motorcycles in India is a good case study of how fortunes change overnight.Motorcycles in India were hardly popular and Hero Honda was the only player, which hadcarved a niche for motorcycles. Its market was small and limited while scooters ruled theroost but today, it is one of the biggest success stories. Its established presence in themotorcycle segment had stood it in good stead in this phase of boom in motorcycle sales.The fact that no other player commanded the brand name which Hero Honda enjoyed inmotorcycle segment also added up to its success. In addition most other players such asBajaj, TVS, LML etc., took time to assimilate the change in customer preferences andcome up with models to buck the trend. Meanwhile Hero-Hondas designs were ready onthe platter. Its R&D had been able to come up with models such as CBZ, Passion etc., inthe premium segment to capture the hot demand. Riding high on the expectations ofconsumers, Hero Honda has successfully crossed over the one million units mark inmotorcycle sales. Its popular model Splendor is the largest selling motorcycle in the world.To give a boost to its youthful image the company has chosen Saurav Ganguly and HrithikRoshan as brand ambassadors. The company has also embarked on in-film advertising ina forthcoming Hindi movie. In order to expand its reach to rural areas, the company hasrecently launched a marketing initiative in towns with a population of less than 50,000 inUttar Pradesh. As a part of this initiative, it started a mobile workshop and showroom,through which people will be able to gather knowledge about the companies vehicles andcan also buy them. These mobile marketing efforts are focused on Splendor and Joy. 3 (P.T.O)
  • 4. Hero HondaExecutive summaryHero Honda Motors Ltd is one of the leading companies in the two-wheeler industry. Atpresent, it is the market leader in the motorcycle segment with around 47% the marketshare during FY 2000-01.During the year, the company posted a 41.05% yoy rise inturnover to Rs.31,686.5mn in motorcycles which was driven by a 35.17% yoy rise inmotorcycle sales volumes. The company has emerged as one of the most successfulplayers, much ahead of its competitors an account of its superior and reliable productquality complemented with excellent marketing techniques . The company has beenconsistently addressing the growing demand for motorcycles and has a cumulativecustomer base of over 4 million customers which is expected to reach 5mln mark with therural and semi-urban segment being the new class of consumers.The Indian two wheeler contributes the largest volumes amongst all the segments inautomobile industry. Though the segment can be broadly categorized into 3 sub-segmentsviz; scooters, motorcycles and mopeds ; some categories introduced in the market are acombination of two or more segments e.g. scooterettes and step-thrus . The marketprimarily comprises five players in the two-wheeler segment with most of the companieshaving foreign collaborations with well-known Japanese firms earlier .But most of thecompanies are now planning 100% subsidiaries in India.In the last four to five years, the two-wheeler market has witnessed a marked shift towardsmotorcycles at the expense of scooters. In the rural areas, consumers have come toprefer sturdier bikes to withstand the bad road conditions. In the process the share ofmotorcycle segment has grown from 48% to 58% , the share of scooters declineddrastically from 33% to 25% , while that of mopeds declined by 2% from 19% to 17%during the year 2000-01. The Euro emission norms effective from April 2000 led to theexisting players in the two- stroke segment to install catalytic converters. All the newmodels are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles hasbeen reduced from 32% to 24% , resulting in price reduction, which has aided in propellingthe demand for motorcycles. Fierce competition has also forced players to cut prices ofcertain models. 4 (P.T.O)
  • 5. Hero HondaHero Honda has been an early-entrant in the 4 – stroke segment of the two wheelerindustry. With a right mix of product styling and pricing the company helped garnera larger market chunk of the 4 – stroke market as compared to Bajaj Auto. A shiftingconsumer preference towards motorcycles also enabled the fast growth of thecompany in the last few years. Of the total motorcycle sales , HHML has a maximum ofaround 36.5% market share in the Western Zone and 28.6% in the Southern Zone whichhas remained more or less consistent from FY2000 levels. In the Eastern Zone HeroHonda has a market share 12%. The company has reported a fall in sales volume to3,29,900 units from 4,79,630 units in motorcycles for half-year ended September 2001accompanied by decline in net sales by 29.2% to Rs10.38 mln from Rs14.67mn.Competition has intensified over the last couple of years altering the dynamics in themotorcycle segment with various companies planning to cash in on this spurt in demandby calling off their JVs like Suzuki Motors planning to break- off with TVS. Recently,Honda Corporation of Japan announced its intentions to set up a 100% subsidiary tomanufacture scooters and motorcycles. Other players in the two wheeler industryinclude Bajaj Auto Ltd , Kinetic Motor Co Ltd , LML and Escorts Yamaha. Low –interest regime has helped in reducing cost of loans , which will help in boosting sales of2-wheelers, since 80% of the two- wheelers are credit – stimulated .HHML, a part of the Hero group, is a reputed name in the two-wheeler sector and themanagement has a rich experience in the business. HHML is a joint venture with HondaCorporation , Japan and over the years has been the most successful Indo-Japaneseventure in two-wheelers. The company has invested in capex, in the past three years tocater to the increasing demand. The company has been cash –rich and has beeneffectively utilizing its surplus resources combined with prudent working capitalmanagement. Hero Honda has set a target of 20% volume growth and 25% turnovergrowth for the fiscal 2001-02 . The company has also set a turnover target of Rs. 200 mlnfrom spare parts business in fiscal 2001-02 up from Rs.145 mln in 2000-01 and thebusiness is expected grow faster than bike sales for the next 5 yrs . It has planned to bringin operational efficiencies with special focus on distribution, dealerships and pricing and 5 (P.T.O)
  • 6. Hero Hondathe sucessful implementation of SAP R/3 ( ERP- Program-" Project Synergy " ) hasenabled proper planning and company wide efficiency 6 (P.T.O)
  • 7. Hero HondaThe legend of Hero HondaWhat started out as a Joint Venture between Hero Group, the worlds largest bicyclemanufacturers and the Honda Motor Company of Japan, has today become the Worldssingle largest two wheeler Company. Coming into existence on January 19, 1984, HeroHonda Motors Limited gave India nothing less than a revolution on two-wheels, madeeven more famous by the Fill it - Shut it - Forget it campaign. Driven by the trust of over 5million customers, the Hero Honda product range today commands a market share of48% making it a veritable giant in the industry. Add to that technological excellence, anexpansive dealer network, and reliable after sales service, and you have one of the mostcustomer- friendly companies.This is proved by the companys sales over the years : 1985-86 43,000 units 1989-90 96,200 units 1998-99 5,30,600 units 1999-00 7,61,210 units 2000-01 10,29,555 units 2001-02 14,25,195 unitsCustomer satisfaction, a high quality product, the strength of Honda technology and theHero groups dynamism have helped HHML scale new frontiers and exceed limits.In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We willcontinue to make every effort required for the development of the motorcycle industry,through new product development, technological innovation, investment in equipment andfacilities and through and through efficient management." 7 (P.T.O)
  • 8. Hero HondaHistory Of Company1984- The Company was Incorporated on 19th January, at New Delhi. The CompanyManufacture motor cycles upto 100 cc capacity. The Company was promoted by HeroCycles (P) Ltd. (HCPL).- The Company entered into a technical-cum-financial collaboration agreement withHonda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was tofurnish complete technical information and know-how and trade secrets and other relevantdata.- Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100ccrange. Its most attractive features are fuel efficiency and its light weight. CD-100 will beequipped with electronic ignition system, illuminated speedometer, 4 speed gear box,neutral and flasher indicators, etc.- 15 No. of equity shares subscribed for by the promoters, etc. In November, 119,99,985No. of equity shares issued at par of which 71,99,985 shares reserved for allotment asunder:- (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and BahadurChand Investments (P) Ltd.- (ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and- (iii) 9,59,987 shares to friends and association of promoters. Out of the balance48,00,000 shares, 2,40,000 shares were reserved for subscription by the employees ofthe Company and 96,000 shares by business associates. The remaining 44,64,000shares were offered at par for public subscription during November. 8 (P.T.O)
  • 9. Hero Honda1985- The Company embarked on its 2nd phase of expansion of increasing its installedcapacity from 1,20,000 to 1,50,000 vehicles per annum by the addition of several criticalaliminium and steel components.1986- 36,00,000 rights equity shares issued at par in prop. 3:10.1987- The Company offered 6,00,000 - 15% secured redeemable non-convertible debenturesof Rs 100 each for cash at par on rights basis in the proportion 1 debenture: 18 equityshares.- Another 3,00,000 - 15% debentures were allotted to retain oversubscription. Thedebentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of the7th year from the date of allotment of the debentures.- 3,75,000 rights equity shares issued at par in prop. 3:10.1989- The Company introduced a new model "Sleek" during July.- 850 No. of equity shares forfeited.1990- The Company was planning to launch a new model motor cycle-CD 100 SS sutiable tosemi-rural conditions. In the domestic market the Company was reported to have a marketshare of 46%.- 850 forfeited shares reissued. 9 (P.T.O)
  • 10. Hero Honda1994- The Company proposed to expand the capacity of existing plant at Dharuhera to2,40,000 nos. per annum. Another plant with an installed capacity of 1,50,000 nos. perannum at Gurgaon Industrial Estate was being set up.- The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of1:4. The Company also issued 28,557 number of fractional coupons representing 14,250shares against which shares shall be allotted to presenting the same for consolidation andallotment.- The Companys production and turnover increased to 1,83,490 motorcycles andRs.483.85 crores respectively due to growth in demand for two wheelers and declininginflation.1995- 14,420 bonus shares issued by way of consolidation of fractional coupons. - A newTechnical Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan forthe period upto the year 2004 which includes technology related to models of higherEngine displacement.- The Company alloted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shareson 7th February, by way of capitalisation of General Reserves.- The Company had issued 28557 No. of Fractional Coupons representing 14.250 sharesagainst which the Shares shall be alloted on presenting the same for consolidation andallotment.1997- Hero Honda Motors has launched its newest motorcycle, the Street, a 100 cc bikedesigned for use in congested urban traffic conditions.- Hero Honda Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon, nearDelhi for the manufacture of the Honda Super Cub 100 cc stepthro bike. 10 (P.T.O)
  • 11. Hero Honda- Hero Honda has set up a new state-of-the-art plant, heralding a new phase ofdevelopment of motorcycle industry in India, to provide the most modern andtechnologically advanced production facilities.- Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has setup a plant in Brazil for manufacturing hero winner scooters.- A new step thru model `Street-100 with unique feature was launched on 24th January.1998- The company proposes to increase the share capital to 5 crore equity shares of Rs. 10each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakhcumulative convertible preference shares of Rs. 100 each with power to increase orreduce it from time to time.- The company further proposes to capitalise Rs. 19,96,87,500 from general reserve toshare capital through issue and allotment of bonus shares. Altogether, 1,99,68,750 fullypaid bonus shares will be allotted and distributed to members of the company holdingequity shares of the company in the proportion of one bonus share for every fully paidequity shares of Rs.10 each.- Motorcycles major Hero Honda is considering entry into scooters in collaboration withpartners, Honda Motors, after the Japanese company decided to walk out of KineticHonda, their scooter venture with the Firodias of Pune.- Honda Motors recently pulled out of its joint venture with the Firodias in which it held a51 per cent equity stake.- Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) havesigned a five-year licence and technical assistance agreement under which KHML willcontinue to receive the technical knowhow, critical vehicle parts and access to Hondasmarkets even after the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL). 11 (P.T.O)
  • 12. Hero Honda- The Company changed the paradigm in two-wheelers by launching the most powerfuland fast bike- CBZ with a unique feature of Transient Power Fuel Control (TPEC) system.- 23,962,500 bonus shares issued in prop. 1:1.1999- Hero Honda Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signeda Memorandum of Understanding (MoU) for financing of Hero Honda motorcycles.- The company, a joint venture between Honda Motor Company of Japan and Hero groupof India to produce four-stroke motorcycles, also aims to increase its share by 1 per centto 38.6 per cent during the current fiscal.- Leading two-wheelers manufacturer Hero Motors has formed a joint venture with BriggsStratton of US to develop and manufacture four-stroke engines for mopeds and scootersin India, a top company.- Honda Motor Company of Japan has decided to re-enter the scooter market in India asalso foray into three-wheelers in a joint initiative with its existing joint venture companyHero Honda Motors Ltd.2000- Hero Honda Motors Ltd. and Tata Finance Ltd. have signed a national tie-up agreement.The Company is the largest manufacturer of motorcycles in the country.- The Company will relaunch its stepthru Stree Smart on Baisakhi 13th April.- Hero Honda Motors Ltd (HHML), has launched an upgraded version of the existing step-through motorcycle - the Hero Honda Street.- The Company was ranked as the 9th Highest Value Creator among 12 industry groupswithin the Bombay Stock Exchange top 100 companies over a five year period (1994-99). 12 (P.T.O)
  • 13. Hero Honda2001- Hero Honda Motors Ltd. has launched a new 100cc motorcycle named `Passion.- The Company has secured shareholders approval for splitting one equity share of Rs 10each into five equity shares of Rs 2 each in the ratio of 1:5.- Hero Honda Motors Ltd. has become the largest seller of motorcycles amongst all Hondacompanies and ventures in the world by selling one million motorcycles during the currentfinancial year.- Credit rating Agency Crisil has reaffirmed outstanding `AAA rating assigned to theproposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paperprogramme and fixed deposit programme of Hero Honda Motors.- Promoter-Chairman of the countrys largest motorcycle manufacturing company, HeroHonda Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst & Young Entrepreneurof the Year (EOY) award here on September 27. 13 (P.T.O)
  • 14. Hero HondaBusinessHero Honda is the largest player in the motorcycle segment. Focused on contemporarydesign and style, the company has a comprehensive range of bikes in its stable viz; CD-100DX , CD-100SS , Splendor , Street Smart , Sleek , CBZ , Passion . However ‘ Street ‘failed to evoke market fancy while sporty ‘ CBZ ‘ dropped down the popularity chart.Hence the company continues to rely on urban – centric ‘ Splendor ‘; its primary revenuespinner with the USP of fuel – efficiency, which accounts for over 60-70%of its sales. The" Passion " launched in mid -Jan 2001has had a resounding success contributing to 26%of total volumes and has not cannibalized the volumes of ‘ Splendor ‘. With the sale ofover 1mn motorcycles in 2000-01 , the company has also become the largest volumeseller among all Honda Companies and ventures in the world .The company has now shifted its focus towards launch of new products. HHML launcheda 100cc motorcycle ‘ Joy ‘ in FY2001delivering 65 to 70 km per litre in city drivingconditions. The company hopes to achieve a sales of 8,000 to 10,000 units of Joy permonth. The company is also planning to launch motorcycles in 200cc –300 cc categoryand is looking at the possibility of introducing a " luxury motorcycle " in the same category.HHML has planned an additional capacity of 1.5mln units pa at Dharuhera plant byinvesting Rs3bn ($65mn) to meet the huge and increasing demand for motorcycles.The Honda Motor Corporation of Japan has set the annual sales target of 1.75 mln 2-wheelers (25% of worldwide target) for 2003 in India, to be contributed to the extent of 1.5mln by HHML and the balance by its wholly owned subsidiary Honda Motorcycles &Scooters India Pvt. Ltd. HMSI launched ‘ Activa ‘ the 4 stroke automatic medium-sized ,102-cc scooter in July 2001 and is looking at volumes of about 50,000 from its firstproduct. It also plans to launch another scooter next year are also in the offing in order toincrease the sales volumes to 1 lakh units .The current mix of Hero Honda’s urban to rural sales is about 40:60 and is estimated toremain at the same level in the future too.SWOT Analysis 14 (P.T.O)
  • 15. Hero HondaStrengths:Technological support from Honda Motors, Japan.The company has a deeply penetrated dealer network.The company provides good after sales service through its well established dealernetwork.The company enjoys a huge market share and well established brands like Splendor,CD100, CBZ, etc.Weaknesses:Hero Honda depends on Honda for new products and this is a big weakness considering itfrom the post 2005 point of view. The reason being that the technological tie-up betweenHero Honda and Honda Motors of Japan will cease to exist.The company doesnt have a product catering to Rs. 25,000 - Rs. 30,000 segment, andthe company might suffer on account of this as the imported motorcycles and foreignplayers motorcycles are expected to cater to this particular segment of the market. Thiscan result in fall in the market share of the company.The company imports about 31% of its spares requirements. This makes the companyvulnerable to the import policies of the government. it also exposes them to the exchangerate risk.Opportunities: 15 (P.T.O)
  • 16. Hero HondaThe motorcycle segment is growing at the rate of 33%, which provides a great opportunityfor the company to cash on. Also it is experiencing a shift in the customer preference from4-stroke mobikes to 2-stroke mobikes. This again provides an excellent opportunity toHero Honda to leverage its market share and market leadership for sustained profitability.Threats:The technical collaboration with Honda is valid only till 2005 and this is a serious threat asthey have been dependant on Honda for technology. Also Honda has set up its 100%subsidiary in India which shall start producing motorcycles from 2004. This will furtherincrease the competition.The company has plans to foray into the scooter segment, which can also be a majorthreat for the future prospects of the company. The reason being that the consumers areshifting from scooters to motorcycles and at this hour moving from motorcycles to scootersdoesnt sound logical. 16 (P.T.O)
  • 17. Hero HondaMission StatementIN PURSUIT OF EXCELLENCE "We, at Hero Honda, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we 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". 17 (P.T.O)
  • 18. Hero HondaHero Honda PoliciesSome of the policies followed by Hero Honda are: -Environment Policy :“We at Hero Honda are committed to demonstrate excellence in our environmentalperformance on a continual basis, as an intrinsic element of our corporate philosophy.To achieve this we commit ourselves to: x 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; x Continue product innovations to improve environmental compatibility; x Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable); x Institutionalise resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals; x Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management;We shall communicate this policy to all our employees and would make it available tointerested parties.” 18 (P.T.O)
  • 19. Hero HondaQuality PolicyExcellence in quality is the core value of Hero Hondas philosophy. We arecommitted at all levels to achieve high quality in whatever we do, particularly in ourproducts and services which will meet and exceed customers growing aspirationsthrough: x Innovation in products, processes and services. x Continuous improvement in our total quality management systems. x Teamwork & responsibility.The policy shall be applied equally, fairly & without exception. 19 (P.T.O)
  • 20. Hero HondaBoard of DirectorsThe Board of Directors of The Hero Honda Group Comprises of : -Mr. Brijmohan Lall Munjal ChairmanMr. Pawan Munjal Managing DirectorMr. Akio Kazausa Joint Managing DirectorMr. Kazumi Yanagida DirectorMr. Satyanand Munjal DirectorMr. Om Prakash Munjal DirectorMr. M P Wadhawan DirectorMr. S P Virmani DirectorMr. O P Gupta DirectorMr. M. Sudo DirectorMr. S Toshida DirectorMr. N N Vohara DirectorMr. Pradeep Dinodia DirectorGen. ( Retd.) V P Malik Director 20 (P.T.O)
  • 21. Hero HondaThe Hero Honda Stable:Hero Honda company has a comprehensive range of bikes in its stable viz; CD-100, CD-100SS , Splendor , Street Smart , Sleek , CBZ , Passion. CD100Features:The Original Fill it, Shut it, Forget itBikeIndias first 4-Stroke bike is still Indiasforemost. And the reasons for itspopularity are apparent. Economy.Reliability. And the capability to go onand on, year after year.The 4-Stroke Engine : The CD100s 4-stroke engine is derived from Hondas toughEcono series range of engines, which have proved their mettle for the last 35 years.Worldwide.Phenomenal Fuel Efficiency : A marvel of 4-stroke technology, ensuring completecombustion of fuel. Giving you an unbelievable average of 80 kms/litre.Economical & Easy to Maintain : Optimal oil utilization of 50 ml for every 1000 kms. Andseparate oil circulation in the engine, instead of it being burnt with petrol. Hence, nocarbon deposits on piston rings, spark plug and silencer to worry about.Built For Strength and Endurance : The CD100 is the only Indian bike using a T-boneframe of high quality pressed tensile steel. Moreover, having less welded joints and fewerstress points, it emerges unrivalled in terms of strength, durability and safety. 21 (P.T.O)
  • 22. Hero HondaSmokeless Exhaust : CD100 is the only 100cc bike, which satisfies pollution limits and iswell within the stipulated carbon monoxide emission levels.Nationwide Service Support : Backing the technological excellence of the CD 100 is anextensive and well-equipped sales and service network, well spread out across thecountry.Other Thoughtful Features : An improved, easy-to-read, illuminated speedometer. Witha colour-marked Economy Zone indicating cruising range. Pillion-step mounted onchassis frame for pillion riders comfort. Double tube rear shock absorbers for better ridingcomfort. A range of exciting colours. 22 (P.T.O)
  • 23. Hero HondaCD100SSFeatures:Tough And RuggedWider tyres. Higher ground clearance. A specialengine guard. This bike any way you look at itrepresents toughness. And the ability to handle evenoff road, dirt track conditions with ease. All this withthe economy and comfort you have alwaysassociated Hero Honda with.Extra Strength. Matchless Fuel Economy: Say goodbye to your commuting troubles.And get ready to take on the toughest riding conditions, while continuing to enjoy thelegendary fuel economy. The CDlOOSS adds a new dimension of strength to HeroHondas world famous 4-stroke technology, the CD100 SS adds a new dimension ofstrength. Special modifications have been incorporated to prepare the bike for the roughand the tough.Larger reinforced shock absorbers: To soak up bumps on unkind roads. To protectyour bike, and insulate you from discomfort.Wider tyres: To grip the road, no matter in what condition. Improved cornering stabilityand safety.Heavier body weight: To ensure balance and strength. The 103 kilo dry weight makesthe ride exceptionally stable.Engine guard: To protect your engines from the assault of sand, mud and stones.Therefore improving performance. 23 (P.T.O)
  • 24. Hero Honda Splendor:Features:Designed to ExcelThe Hero Honda Splendor is an excellent example of the term. Designed with yourcomfort in mind, with a contoured low-slung seat, specially designed handle-bar and astrong double-cradled tubular frame. This bike epitomises riding pleasure. Truly, thelimousine of Indian two Wheelers.The 4-stroke, 100 cc driving machine from Hero Honda. A bike that will stop you right inyour tracks. Both by its look and performance. True to its Honda lineage. Consider itsnewly designed engine that gives you unprecedented fuel efficiency. While still deliveringa punchy 7.5 PS. Next, feel the ergonomics of it as you cruise along. A well-cushionedlow-slung seat helps you rest and ride at the same time. Not to mention the suspension,that works so well that probably youll never find out what happens between the tyres andthat bumpy road. Needless to add, owning a Splendor means a lot of other things too. Likegetting all the admiring looks. Or the pride you feel in riding a bike that meets the pollutioncontrol standards of the next decade, today.Thats Splendor, a bike that will be called a turning point in motorcycling. So check it out.Tomorrow has arrived, in style! 24 (P.T.O)
  • 25. Hero Honda STREET SMARTFeatures of Street Smart:City Riding Made EasyAnother example of technology coming up with brilliantsolutions to frustrating, everyday problems. The Street Smartis the ideal city bike. With a unique City Clutch and RotaryGears, it is specially equipped to let you handle stop-start city traffic with ease.Presenting Hero Honda Street Smart. A bike from the worlds favourite Honda Cub family.This 4-stroke, 100cc bike from Hero Honda delivers great pick-up, with remarkableeconomy. Rotary gears and Auto-clutch make it amazingly maneuverable. So you cansmile your way in and out of crowded traffic. From zipping down to the bazaar, to going onpicnics, the sheer convenience of riding makes Street Smart the smartest choice for theentire family. Choose one today, and join the worlds largest and happiest family of riders.Stylish Front Shield: The Street Smart comes with trendy front shield, making it sturdier,safer and smarter.Storage Box: Theres enough space in here for whatever youll need to carry. FromSunday shopping to office lunch.Rotary Gears: Specially designed to take you from the fourth to neutral by simplyavoiding the third, second and the first. Perfect for todays stop-and-go traffic.Unique City Clutch: A unique in-built auto-clutch. Hence, no clutch levers making gearchanging a simple foot-tapping affair.Automatic Decompression: Easy start is yet another unique feature. One gentle nudgeand the engine comes alive. Self-start model also available, which helps reduce load onthe battery and enhances its life. Dawn 25 (P.T.O)
  • 26. Hero HondaFeatures of dawn:Hero Honda Dawn comes witha special Rough Road PackageControl (TPFC) system: Tough track suspension : Dawn is provided with a uniquedouble-acting suspension that soaks up bumps on rough roads. This gives much betterriding comfort.Double tubular frame : Its tubular double-cradle frame imparts extra stability and strengthto the bike.Broad rear tyre: Dawn has a broad rear tyre, which gives you better grip and stability onall kind of roads. Whatever the terrain, it is always ready for the rough. 26 (P.T.O)
  • 27. Hero Honda CBZFeatures:Transient Power Fuel Control (TPFC) system:For quick acceleration, providing a sudden surgewhen required. A feature which is used in some ofthe most advanced cars.Tachometer and Tripmeter: Tachometer displaysthe engine rotation speed. And a first time featurethe Tripmeter measures the distance traveled in a trip.Dynamic vibration dampers: The dampers incorporated in the handlebar, ensurethat your ride is smooth and easy.Air injection system: Injects fresh air into the exhaust port, to meet the emissionnorms.Gear Box: Equipped with five gears and a 156cc engine that generates 12.5 bhppower. Enough to take it from 0 - 60kmph in just five seconds and touch the topspeed of 100kmph.Unique Trapezoidal Headlight: Gives the CBZ a distinctly stylish look. Providedwith 35 watts of power these headlights help give you a clear view of the road, evenin the darkest of nights.Zero Crank Case Evaporative Emission: An advanced pollution control featurewhich is the first of its kind in India. Keeping alive the Hero Honda tradition ofenvironment friendly bikes.Multi Lever Locking Seat: Provides storage space It also doubles as an anti theftmechanism for the CDI unit, RR unit and the battery, by allowing the side covers tobe opened only after unlocking the seat. 27 (P.T.O)
  • 28. Hero HondaAdjustable Rear-Shock absorbers: They have been provided for extra comfort,and can be easily adjusted into five positions.Hydraulic Vibration Dampers: The hydraulic dampers have been incorporated intothe handlebars to ensure that your ride is smooth and steady. 28 (P.T.O)
  • 29. Hero HondaPASSIONFeatures of Passion:DESIGN x Contoured Fuel Tank x Multi- reflector Trapezoidal Headlight and Tail- light x Streamlined Side CowlSAFETY x Position Lamp x Side Reflector x Wider Wheel BaseCOMFORT x Adjustable Rear Cushion x Wide & Comfortable Seat x Broad Rear Tyre x Double Cradle Tubular frameCONVENIENCE x Large Storage Space with Locking Facility x Helmet Holder x Lockable Seat 29 (P.T.O)
  • 30. Hero Honda RURAL MARKETING- CHALLENGES AND OPPORTUNITIESThe Indian rural market with its vast size and demand base offers great opportunities tomarketers. Two-thirds of countries consumers live in rural areas and almost half of thenational income is generated here. It is only natural that rural markets form an importantpart of the total market of India. Our nation is classified in around 450 districts, andapproximately 630000 villages which can be sorted in different parameters such asliteracy levels, accessibility, income levels, penetration, distances from nearest towns, etc.The success of a brand in the Indian rural market is as unpredictable as rain. It has alwaysbeen difficult to gauge the rural market. Many brands, which should have been successful,have failed miserably. More often than not, people attribute rural market success to luck.Therefore, marketers need to understand the social dynamics and attitude variationswithin each village though nationally it follows a consistent pattern.While the rural market certainly offers a big attraction to marketers, it would be naive tothink that any company can easily enter the market and walk away with sizable share.Actually the market bristles with variety of problems. The main problems in rural marketingare: A Physical Distribution A Channel Management A Promotion and Marketing CommunicationThe problems of physical distribution and channel management adversely affect theservice as well as the cost aspect. The existent market structure consists of primary ruralmarket and retail sales outlet. The structure involves stock points in feeder towns toservice these retail outlets at the village levels. But it becomes difficult maintaining therequired service level in the delivery of the product at retail level. 30 (P.T.O)
  • 31. Hero HondaOne of the way could be using company delivery vans which can serve two purposes- itcan take the products to the customers in every nook and corner of the market and it alsoenables the firm to establish direct contact with them and thereby facilitate salespromotion. However, only the bigwigs can adopt this channel. The companies withrelatively fewer resources can go in for syndicated distribution where a tie-up betweennon-competitive marketers can be established to facilitate distribution.As a general rule, rural marketing involves more intensive personal selling effortscompared to urban marketing. Marketers need to understand the psyche of the ruralconsumers and then act accordingly. To effectively tap the rural market a brand mustassociate itself with the same things the rural folks do. This can be done by utilizing thevarious rural folk media to reach them in their own language and in large numbers so thatthe brand can be associated with the myriad rituals, celebrations, festivals, melas andother activities where they assemble.One very fine example can be quoted of Escorts where they focussed on deeperpenetration .In September-98 they established rural marketing sales. They did not rely onT.V or press advertisements rather concentrated on focussed approach depending ongeographical and market parameters like fares, melas etc. Looking at the ‘kuchha’ roadsof village they positioned their mobike as tough vehicle. Their advertisements showedDharmendra riding Escort with the punchline ‘Jandar Sawari, Shandar Sawari’. Thus, theyachieved whopping sales of 95000 vehicles annually.One more example, which can be quoted in this regard, is of HLL. A year back HLLstarted ‘Operation Bharat’ to tap the rural markets. Under this operation it passed out low–priced sample packets of its toothpaste, fairness cream, Clinic plus shampoo, and Pondscream to twenty million households.Thus looking at the challenges and the opportunities which rural markets offer to themarketers it can be said that the future is very promising for those who can understand thedynamics of rural markets and exploit them to their best advantage. 31 (P.T.O)
  • 32. Hero HondaMarketing In Rural India:The Indian society is a complex social system with different castes, classes, creeds andtribes. The high rate of illiteracy added to the inadequacy of mass media impedes reachalmost to 80% of Indias population who reside in village. Mass media is too glamorous,interpersonal and unreliable in contrast with the familiar performance of traditional artistwhom the villager could not only see and hear, but even touch. Besides this villagers aremore conservative buyers then their urban counterparts. Their desire to innovate with newproduct is restricted.Traditional media can be used to reach these people in the marketing of new concept. Thetraditional media with its effective reach, powerful input and personalized communicationsystem will help in realizing the goal. Besides this when the advertisement is couched inentertainment it goes down easily with the villager.Advantages of traditional media:-The accessibility is high.Involves more then one sense.Interest arousal capability is high.Less operational liability ¨ Minimum cost.Disadvantages of traditional media:-Range of mode choice is narrow.Potential for cognitive gain retention is possible but restricted.Depends on the skill of the performer But for optimum effect all elements in the ruralcommunication system will have to be orcheastered into a united whole.Companies like Bajaj, Rajdoot, HLL, Nirma are the few companies which have used thesemethods to the fullest extent. 32 (P.T.O)
  • 33. Hero HondaFew companies which have used traditional media effectively & the strategy behind it are:-The Strategy: Dabur address the rural marketing for its Gripewater to both men andwomen.The Lesson: Rural women make the decisions .Its the men who buy.The Strategy: Reckitt and Colemen uses NGOs in rural areas to educate customersabout product benefits.The Lesson: Establishes one to one communication channels.The Strategy: BBLIL markets its rural brands through magic shows and skits.The Lesson: Use local idioms to convey your message in a meaningful context.The Strategy: Hero Honda has established mobile service centers to take careof rural customers.The Lesson: Reinforce product quality through service indicators. 33 (P.T.O)
  • 34. Hero HondaTypes of Traditional Media:Some of the available options in the traditional media are Puppetry, Folk Theater & Song,Wall Painting, Demonstration, Posters, Agricultural Games, Post Cards etc.A Puppetry:Puppetry is the indigenous theatre of India. From time immortal it has been the mostpopular form and well-appreciated form of entertainment available to the village people. Itis an inexpensive activity. The manipulator uses the puppets as a medium to express andcommunicate ideas, values and social messages.Puppet theaters in India:-1. String puppets or Kathputlis of Rajasthan -Contents - Heroic deeds of Vikramaditya, Prithviraj Chouhan, Amar Singh Rathore2. String puppets of Orissa -Contents - Radha-Krishna3. Rod puppets from Bengal:-Contents -Mahabharat, Manas , Radha-Krishna4. String and Rod puppets of the south (Tanjavur, Madras and Andhra):-Contents - Kathakali5. Shadow puppets of (a)Orissa (b) Kerala (c)Andhra (d) Karnataka:-Contents - Ramayana.Thus in rural India puppetry is a source of livelihood, avenue for entertainment andcreative expression which is ritually sacred and meaningful as a means of socialcommunication and vehicle of social transformation. 34 (P.T.O)
  • 35. Hero HondaSong and Drama Division of the Government Of India makes wide use of puppets in itscampaigns to promote various government projects. Several other organizations,government, semi-government and private, have also used puppets in support ofindividual schemes.Life Insurance Corporation of India used puppets to educate rural masses about LifeInsurance; enlisting the help of the literacy house in Lucknow. These plays were shown tothe audience in villages in UP, Bihar, & MP. The number of inquires at local Life InsuranceCompanies during the period immediately following the performance was compared withnormal frequency and found to be considerable higher. The field staff of the corporationalso reported a definite impact on the business.Indian Institute of mass communication, New Delhi made a study of comparative impact ofpuppetry and documentary films, in two villages near Delhi. People in both the villagesresponded more favorably to the puppet shows then the films.Folk Theater:Folk theaters are mainly short and rhythmic in form. The simple tunes help in informingand educating the people in informal and interesting manner. It has been used as aneffective medium for social protest against injustice, exploitation and oppression.Folk Theater / Songs Forms In India:Andhra Pradesh : Veethi Natakam, Kuchupudi, BurratathaBihar: Bidesia, Serikela Chhau, Jat-Jatni Bidpada, RamkheliaHaryana : Swang, NaqqalAssam : Ankiya Nat, Kirtania Natak, OjapaliGujarat : BhavaiJammu & Kashmir: Bhand Pathar or Bhand Jashna, Vetal DhamaliHimachal Pradesh: Kariyala, Bhagat, Ras, Jhanki, Harnatra Haran or Harin. 35 (P.T.O)
  • 36. Hero HondaKerala: Kodiyattam,Mudiattam,Therayattam,Chavittu Natakam, Chakiyar Kooth, KathakaliKarnataka: Yakshagan, Sanata, Doddata-Bayalata, Tala Maddle or Prasang,Dasarata, Radhna.Madhya Pradesh : Maanch, NachaOrissa: Pala Jatra, Daskathia, Chhau Mayurbhanj, Mangal Ras, Sowang,Rajasthan: Khyal, Rasdhari, Rammat, Turra Kilangi, Gauri, Nautanki, JhamtaraUttar Pradesh : Ram Leela, Ras Leela, Nautanki, Bhagat, Sang-Swang, NaqqualMaharashtra : Tamasha, Lalit Bharud, Gondha, DashavatarPunjab: Nautanki, Naqaal, Swang.Tamilnadu : Therukuttu, Veethi Natakam, Bhagwat Mela Natakam, Kurvaanji, Pagal Vasham, Kavadi ChinduGoa, Daman & Diu: Dashavatar, Tiyatra.Folk songs have been effectively used during revolts of Telangana and Naxalbari and nowa days its best exploiters are Political Parties.Government has used this media for popularizing improved variety of seeds, agriculturalimplements, fertilizer etc. Punjab Agricultural University produced Two Audio Cassettes.A) Balliye Kanak Biye - Wheat Cultivation.B) Khiran Kepah Narme - Cotton Cultivation.Both were well received by farmers. 36 (P.T.O)
  • 37. Hero HondaDemonstration:"Direct Contact" is a face to face relationship with people individually and with groups suchas the Panchayats and other village groups. Such contact helps in arousing the villagersinterest in their own problem and motivating them towards self-development.Demonstration may be:A. i. Method demonstration ii. Result demonstrationB. i. Simple Demonstration ii. Composite DemonstrationThe five steps to make any demonstration effective are below: A Information about people A Objectives to be accomplished A Demonstration plan & Execution of the plan A Evaluation of the demonstration A Reconsideration after evaluation.In result demonstration, help of audio -visual media can add value. Asian Paints launchedUtsav range by painting Mukhiyas house or Post office to demonstrate that paint does notpeel off.Haats & Melas:The countries oldest tradition holds the key to solving these problems. The mobilesupermarkets of rural India. 37 (P.T.O)
  • 38. Hero HondaFacts & Figures:- A Over 47,000 haats and 25,000 melas are held annually. A The average daily sale at a Haat is about Rs.2.25 Lacs. A Annual sales at melas amount to Rs.3,500 crore. A Over half the shoppers at haats have shopping lists. A More than 10,000 melas draw visitors from all over India. A Nearly half the outlets at melas are for manufactured goods. A Haats is a better opportunity for promotion after brand building has been done at Mela. A Melas are organized after harvest season,so the villager has enough money which he will be ready to spend.Demonstration at Haat is essential to convert customers at haats since their atitude is farmore utilitarian than that of visitors to a fair.Wall Paintings:Wall Paintings are an effective and economical medium for advertising in rural areas.They are silent unlike traditional theatre .A speech or film comes to an end, but wallpainting stays as long as the weather allows it to.Retailer normally welcomes paintings of their shops, walls, name boards. Since it makesthe shop look cleaner and better. Their shops look alluring and stand out among otheroutlets. Besides rural households shopkeepers and panchayats do not except anypayment, for their wall to be painted with product messages. To get ones wall painted with 38 (P.T.O)
  • 39. Hero Hondathe product messages is seemed as a status symbol. The greatest advantage of themedium is the power of the picture completed with its local touch. The images used havea strong emotional association with the surrounding, a feat impossible for even a movingvisual medium like television which must use general image to cater to greatest number ofviewers.A good wall painting must meet some criteria to generate awareness and remindconsumer about the brand. The wall should: A The most frequented shops can be painted from inside also one feet above the ground level. A It is courteous to take the verbal permission of owner .The permission is normally given. However by taking the permission of the rural retailers or house owners, one gets the owner morally committed to taking care of wall painting. A The message should be simple, direct and clear . A definite way of arresting is to use bright colors and these do not fade away easily. A good paint will survive the ravages of dust, sand and rainstorms for about three years. A Paintings must be taken after rainfall. A It should be peaked up during the festival and post harvest season. To derive maximum mileage their usage needs to be planned meticulously. 39 (P.T.O)
  • 40. Hero HondaHero Honda in the Rural Market.In the rural market, consumers prefer motorcycles for their sturdiness and ability to sustainbad road conditions. The stricter environment norms such as the euro emission norms areforcing companies to install catalytic converters in the existing vehicles or go in for four-stroke engines to reduce pollution. This has added up to the costs of scooters while mostmotorcycles are in tandem with these new norms.The success of the motorcycle is more of a rural phenomenon. According to analysts, theentire age profile of the consumer has undergone a change and the buyers / targetconsumers are now younger. ``So, in effect, the entire demographics now are in favour ofthe motorcycle segment. It is not unusual that a large chunk of motorcycle sales are fromthe rural areas. Hero Honda, derives 60 per cent of its sales from the rural segment.”In order to promote its brand in the rural market, Hero Honda has recently launched amarketing initiative in towns with a population of less than 50,000 in Uttar Pradesh. Theinitiative would involve a mobile showroom and workshop, through which people will beable to gather knowledge about the vehicles and also buy them. The concentration will bemainly on promoting the companys two major brands: Splendor and Joy.With these initiatives, Hero Honda is targeting sales of 1.3 million two-wheelers this fiscal.The festival season has also showed an improvement in sales for Hero Honda despite thecurrent downtrend. A factor driving sales could be the companys offering of a two-yearwarranty (for which it claims to spend approximately Rs 10-15 crore annually) and itshugely successful consumer loyalty programme.Hero Honda, makes practically nothing at its plant. The only operation done at itsDharuhera works other than the assembly of motorcycles is engine assembly.Hero Honda has an enormous advantage as in it has a product for each of the marketsegments. The CD 100 is the basic no-frills model with fuel efficiency and reliability asUSP; the CD 100 SS is the upgraded durable model positioned in the rural market; Sleekthe glamorous bike for the urban youth and the Splendor is the premium product withbetter features and targeted at the urban market. 40 (P.T.O)
  • 41. Hero HondaAnalysts believe that the biggest advantage Hero Honda enjoys is its brand image as afuel-efficient bike. The company expects to leverage on the strong brand image when itsearliest customers start looking for replacements.A recent research report says that on the back of large volumes, Hero Honda hasdeveloped strong vendors like Munjal Showa, Hi-Tech Gears, International Instrumentsand others from whom it sources more than 80 per cent of its components. This has alsohelped the company to lower its import content.Hero Honda, makes practically nothing at its plant. The only operation done at itsDharuhera works other than the assembly of motorcycles is engine assembly. 41 (P.T.O)
  • 42. Hero HondaA Dream Turned into Reality“Quote”We must do something for the community from whoseland we generate our wealth.“Unquote”This famous quote of Hero Honda’s CMD, Mr.Brijmohan Lall Munjal set the ballrolling for the Rural Development of the area around Dharuhera (Haryana) in theyear 1990 and 10 years later, the dream, the vision has turned into reality.It can be said with all the humility & modesty that Hero Honda Motors Ltd is perhaps theonly Corporate House who have genuinely contributed to its share of Social Service &Community Development of a backward region in almost all the spheres, be itInfrastructure (Roads, Water Supply Scheme, Community Hall, School Buildings),Education, Health ,Sports, Adult Education and Vocational Training and turned ininto a Vibrant, Educated and Healthy community with all the modern amenitiesavailable to it in a modern society.Setting up of an Integrated Rural Development Centre called “Raman Kant MunjalFoundation” in 40 acres land along Delhi Jaipur Highway (NH-5) near Dharuhera. ThisNodal Agency was set up in 1992 and is responsible for initiating and undertaking all theactivities & project related to Rural Development & for the Uplift of the Community.Some of the salient features of their Social & Community Development Projects whichhave been undertaken since the last seven years are listed below :-Raman Munjal Vidya Mandir : Raman Munjal Vidya Mandir of Raman Kant Munjalfoundation was started in 1992 with three classes (UKG,I& II) and 55 students with theaim to impart education that is holistic in approach especially to the students of rural area. 42 (P.T.O)
  • 43. Hero HondaToday it has grown into a Senior Secondary, CBSE affiliated co-educational, EnglishMedium School with 1050 students and 51 teachers having complete & most moderninfrastructure. The school provides a confluence of modern educational facilities like fullfledged ultra-modern laboratory, well equipped Audio Visual Room, Indoor Games,Activity Room, well stocked Library and ultra modern Computer LaboratoryThe platform is one of interaction amongst the teachers and the taught thereby fostering aconducive education environment. The school aims to involve parents as prime factors inthe child’s learning process. No stone is left unturned to encourage the students todevelop well integrated personalities. Self learning is a part of our curriculum. Varied co-curricular activities make our students receptive to art, culture and language skills. Theschool has a large spacious playground and sports is encouraged to the core.Raman Munjal Memorial Hospital : A multi specialty 30 bed hospital, to be upgraded to100 bed unit having state of the art equipment providing quality health care to the ruralpopulation of the catchment area of 20 KM around Dharuhera, apart from providingimmediate life saving medical aid to the Accident & Trauma victims of National highwayNo-8 .Raman Munjal Sports Complex : A modern sports complex primarily to promote ruralsports is likely to be planned in near future with sports academies in Volley ball andBasket ball, in collaboration with National Sports Authority of India. Out door Basketball & Volley ball courts in addition to Hockey & Football playgrounds are already beingutilized by the local population. 43 (P.T.O)
  • 44. Hero HondaVocational Training Centre : In order to help local rural people, specially women, theCompany has set up a Vocational Training Centre. So far 13 batches comprising ofnearly 150 women have been trained in tailoring, embroidery and knitting. The Companyhas helped women trained at this center to set up a production unit to stitch uniforms forits employees thus creating income generation opportunities for them. Most of the womenare now self employed.Adult Literacy Mission : This Scheme was launched on 21st September, 1999covering the nearby villages of Malpura, Kapriwas & Sidhrawali wherein 36 adultswere enrolled. We are now in the process of imparting Adult Literacy Capsules toanother 100 adults by involving Village Heads and other prominent villagers tomotivate the illiterate adults. The program is a regular feature, only village keepschanging.Marriages of Under Privileged Girls, particularly from backward classes have beenorganized as per the local customs from time to time by providing financial help and othersupport to the respective families.Rural Health Care : Besides setting up a modern hospital as mentioned above, thecompany has provided extensive health care services to the local community at their doorstep. A series of Free Health Care & Medical Camps have been organized in the last 7years or so and has now become a regular feature.Adoption of Village for Integrated Development : The Company has adopted 10villages located within 10 km radius of our factory for integrated rural development. Someof the developmental activities undertaken in these villages are as under :Drinking Water : Southern Haryana being water scarce area, the Company has installed75 deep bore hand pumps in the adjoining villages to provide clean drinking water. 44 (P.T.O)
  • 45. Hero HondaConstruction of Roads : The Company has constructed approx. 5 km of metalled roadsand connected these villages to the National Highway (NH –8).Renovation of Govt. School Building : Four Primary School Buildings have beenrenovated including provision of Sulabh toilets and drinking water.Construction of Drainage : Most of these villages do not have proper drainage causingwater logging in the heart of these villages. The Company has constructed properdrainage system in these villages.Promotion of Non-Conventional Energy : In order to promote non-conventionalsources of energy the Company has been subsidizing installation of bio-gas plantsby 50 percent. 15 such plants are currently operational. 45 (P.T.O)

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