The Presentation focused on what really led to the de-merger, most of the intricacies associated with the decision were a part of the verbal presentation, although the PPT displays major bullets which can facilitate understanding of the same.

1. DHAK DHAK GO
to
DHAK DHAK “GONE”

2. HERO HONDA MERGER
TVS
BAJAJ
SUZUKI
KINETIC
ACCESS TO INDIAN
MARKET
LATEST
TECHNOLOGY
ACCESS TO
INDIAN MARKET
LATEST
TECHNOLOGY
HONDA

3. SWOT ANALYSIS OF HERO HONDA
STRENGTHS
WEAKNESSES
Retained the coveted position of World No 1 Two-
Less promotion
wheeler Company for several consecutive years.
High maintenance
High sales growth
Lack of recycling scrap
Fuel economy
Labor relations
Quality policy
Service schedule
High financial performance
OPPORTUNITIES
THREATS
High GDP and increasing income level of
Finance assistance
consumer.
Inflation
Good will of the company
Technical renovation aspect

4. DIFFERENCES
Honda's reluctance to fully and
freely share technology with Hero
Refusal of Hero Honda to merge its
spare parts business with HMSI
Non – union model
Management activity as coercive and
repressive
Incompetent people management
Indian management blocking direct access to
top company executive
3 joys of Honda as means of control
cross – cultural management
Managing Indian people
Complacency on the part of Indian managers

5. THE
DEMERGER

10. RATIONALE OF DEMERGER
Honda Representatives
On the Board
Honda’s Subsidiary HMSI
Hero Honda wanting
to do its independent
R&D and manufacturing
its own products…
DEMERGER
Conflict of
Interest (Exports)
Launch of HMSI’s
110cc Motorcycle

11. DECEMBER 16’ 2010, 1600 HOURS

12. VISION OF HERO MOTOCORP POST SPLIT
10 million volume company
10% of volume from exports
Cumulative sales of 100 million two-wheelers by
2020

13. VISION OF HONDA POST-SPLIT
Honda aimed at becoming market leader in India by 2020 and sell no less than 10
million two wheelers in India alone. (Prashanth, 2013)
With the impending Honda threat, Hero Motocorp had begun looking outward for growth
even as things got hot under the collar in its home market, India!

14. CHALLENGES FOR HERO MOTOCORP
Transition of the brand
Change of name on the bikes
Launching products
Exports
Managing our costs
Managing costs
Philosophical shift

15. POSITIVE ANTICIPATIONS
(IMMEDIATELY AFTER SPLIT)
Continued
technical
support till
2014
Higher
exports
Positives
Three years
to develop its
R&D
capabilities
No royalty
after 2014

16. NEGATIVE ANTICIPATIONS
(IMMEDIATELY AFTER SPLIT)
Reserving good
models for
HMSI
HMSI is likely
to turn more
aggressive in
its plans
Negatives
Exports may
not rise as fast
as expected
R&D spend for
Hero Honda will
rise

17. Thank you