HERO MOTO CROPCompany ProfileHero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the worlds largest manufacturer oftwo – wheelers, based in India. In 2001, the Company achieved the coveted position of being thelargest two-wheeler manufacturing Company in India and also, the ‘World No.1’ two-wheelerCompany in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues tomaintain this position till date.Registered and corporate office - 34, Community Centre, BasantLok , VasantVihar , New DelhiZonal and regional office north South zone East zone West zoneZonal office New Delhi Bangalore Kolkata puneRegional office Chandigarh , Chennai , cochin , Bhubaneswar, Baroda , Bhopal , dehradun , jaipur , Coimbatore , hubli Ranchi ,Patna Mumbai , Nagpur , lucknow , varanasi , Hyderabad , Raipur , Rajkot vijayawadaManufacturing plantHero Honda bikes are manufactured across three globally benchmarked manufacturing facilities. Two ofthese 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 UttarakhandTotal no of employee- 6106Vision & MissionVisionThe story began with a simple vision – the vision of a mobile and an empowered India, poweredby its bikes. Hero MotoCorp Ltd., company’s new identity, reflects its commitment towardsproviding world class mobility solutions with renewed focus on expanding company’s footprintin the global arena.MissionHero MotoCorp’s mission is to become a global enterprise fulfilling its customers’ needs andaspirations for mobility, setting benchmarks in technology, styling and quality so that it convertsits customers into its brand advocates. The Company will provide an engaging environment forits people to perform to their true potential. It will continue its focus on value creation andenduring relationships with its partnersHero Group aspires to deliver the best and the most cost-effective products & solutionsempowered by superior technologies. The Group is committed to ensure value for money bydeveloping high-quality, environment-friendly and efficient solutions that fulfill the diverseneeds of customers.
“At Hero Motors, we are committed to give our best and achieve the highest standards inPerformance, Quality, Systems, Care and Relationships. And then we want to beat these highstandards and go further…because anything that can be done, can be done better.”-PankajMunjal- Managing Director, Hero Motors Ltd.Group PhilosophyHero Group’s philosophy is laid on foundations of responsibility, transparency, accountability,professionalism and code of ethics, which are the indispensable principles of corporategovernance. The philosophy is to strive to be a Group that society wants to exist by. The Groupfocuses on building mutually beneficial relationships with customers, suppliers, partners andemployees. Customers are at the center of everything the Group plans. Hence, the Group strivesto offer cost-effective solutions to customers without compromising on highest degree ofprofessionalism, quality, accountability and relevance.Suppliers who work with Hero Group are greatly benefited from its professionalism. The groupbelieves in maintaining long-term partnerships based on trust and values.Hero Group’s joint ventures are running smoothly and reporting unprecedented success andprofitability. The Group ensures transparency and collaborative approach to grow mutually andpromises to maintain a productive and progressive work environment.In short, Hero Group believes that only an ethical business can contribute towards thedevelopment of society. And the company leaves no stone unturned to uphold ethical values.EvolutionWith a modest start in 1956 as a small manufacturer of cycle parts, Hero Group steadily evolvedinto an integrated manufacturing engineering solutions provider, with a family of more than30,000 employees, as many as 7,500 outlets and a total number of 23 companies around theglobe. Progressing by leaps and bounds, the company went on adding more and more feathers toits cap. Soon after starting as a manufacturer of cycle parts, the company started producingcomplete cycles. Currently, Hero Cycles is the world’ leading cycle producer, with more than100 million bicycles running on Indian roads alone. In 1978, the company forayed into themoped market. Hero Motors was set up in 1988, when the company joined hands with SteyrDaimler Puch of Austria. In the subsequent years, Hero started a joint venture with acclaimedautomaker Honda to produce Hero Honda motorcycles.The saga of success, whose foundation was laid by Late Mr. DayanandMunjal, Mr.SatyanandMunjal, Mr. BrijmohanLallMunjal and Mr. O. P. Munjal, is being continued with thesame zeal & passion by the second and third generations of the family that is internationallyacclaimed for its business acumen and entrepreneurial spirit.International financial body - World Bank has applauded Hero Cycles, describing the companyas a role model in vendor development. The huge Hero Group now boasts of a number of
companies that rule the roost in their respective fields. It proudly stands among the top 10Business Houses in India. The strength and massiveness of the Group can be determined fromthe fact that it has annual revenue of around US$5.2 billion.The Hero Group has been evolving with the passage of time. The best quality and competitiveprices of the products have empowered the group to have an edge over its competitors and winthe trust of the customs. With local stocking and logistical hubs in all the main markets, theGroup is in a position to cater to the needs of the customers from around the world. Customizedservice part as well as customized documentation has enabled it to efficiently meet the diverseneeds of the customers.Effective use of skilled labor and cutting-edge technologies has resulted in the unprecedentedgrowth of the Group. Keeping abreast of the trends in the automotive industry and the changingneeds of the customers, Hero Group is continuously launching innovative products in the market.The Group is advancing, building long-term relationship with the clients and expanding itsbusiness empire.Time line1956- Set as a bicycle company- Hero Cycles LTD1978- Moped manufacturing company- majestic auto ltd was formed.1984- JV with Honda of Japan1985-Munjal Showa Ltd established to manufacture shock absorbers1988- Hero puch mini motorcycle was established by hero motors ltd.1993- Became largest exporter of 2-wheeler2003- Entered into agreement with Rotax for Engine and parts development & plantupgradation2006- Ferrous casting plant at manesar2007- Formation of JV Munjal- Kiriu Industries Pvt Ltd. For manufacture of automotivebrake discs, brake drums and knuckles2010- Formation of JV with ZF Lemforder of Germany for Chassis systemConstitution of Board of DirectorMr. BrijmohanLallMunjalChairmanMr. PawanMunjal
Managing Director & CEOMr. Suman Kant MunjalNon-Executive DirectorGen. (Retd.) V. P. MalikNon-Executive and Independent DirectorMr. M. DamodaranNon-Executive and Independent DirectorMr. Analjit SinghNon-Executive and Independent DirectorMr. Ravi NathNon-Executive and Independent DirectorMr. Paul EdgerleyNon-Executive and independent DirectorMr.ToshiyunkiInumaNon-Executive DirectorProduct of the companyNEW Product Launches 2011-12Launched Impulse — the first Hero branded bikes — an entirely new segment in the Indian two-wheelermarket, the ‘off-road on-road’ segment. Moreover the Company launched a new 110cc scooter Maestro,further strengthening its steadily growing presence in the gearless scooter segment. The Company alsolaunched Ignitor — a thrilling new 125cc bike.100cc Bike categoryPLEASURE, CD DOWN, CD DELUXE, SPLENDOR PLUS, SPLENDORPRO, PASSIONPRO,SPLENDORNXG, MAESTRO125cc Bike categoryGLAMOUR, SUPER SPLENDOR, IGNITOR, GLAMOUR FI135cc Bike categoryACHIEVER
150cc Bike categoryHUNK, CBZ –X TREME, IMPULSE225cc Bike categoryKARIZMA, KARIZMA ZMRMarket Share of the company (Last 3 years) 2009-10 2010-11 2011-12Two wheeler industry 48% 44.5% 45%Motorcycle segment 59% 54.6% 56%Scooter segment nil 15.5% 17%PERFORMANCE ScorecardIn its first full year of operation under its new avatar, Hero MotoCorp’s two-wheeler sales grew15% to 6.23 million, from 5.4 million sold a year earlier. Rising sales translated into a highermarket share for the Company, which rose from 55% to 56%. In the domestic scooter market,Hero MotoCorp sold over 0.41 million units of its popular brand Pleasure — a 22% year-on-yeargrowth, with a market share of 16%.SALESThe Company clocked total sales of 6.23 million units during the year 2011-12, recording a growth of15.4%. In the previous year, the Company registered total sales of 5.4 million units. In value terms, totalsales (net of excise duty) rose 21.4% to ` 23,368 crores, when compared with total sales worth ` 19,245crores recorded in the previous fiscal year.PROFITABILITYThe Company’s Earnings before Interest Depreciation and Taxes (EBITDA) margins increased to15.35%, up from 13.47% a year earlier, due to discontinuation of royalty payments on some models.Operating Profit (PBT before Other Income) increased from 2,210crores to ` 2,521 crores. Despitehealthy growth in sales, Operating Margin decelerated from 11.39% to 10.69% on account of higher inputcosts for raw materials and components.FDI/FII (Nature Of Investment)Holders Name % Share HoldingPromoters 52.21ForeignInstitutions 33.21GeneralPublic 6.94FinancialInstitutions 4.52OtherCompanies 1.46NBanksMutualFunds 1.42Others 0.13
ForeignNRI 0.11Future investmentJoint Venture & strategic allianceHero moto crop have tied up with US-based Erik Buell Racing (EBR) and Austria based AVL forquicklyscaling- up and supplementing the own in-house R&D capabilities andengine technologies.Source1. Annual report 2011-122. Annual report 2010-113. Annual report 2009 -104. CMIE database5 Company official website