PRESENTED BY: CHETAN SINGHAL   IM XVI , SEC A   ROLL NO. 47 Driven By The Trust Of Our Customers HERO  HONDA  MOTORS  LTD ,  INDIA
Hero Honda Motors Limited, based in Delhi, is the world's  Largest manufacturer of motorcycles .  A joint venture that began in 1984 between the Hero Group of India and Honda of Japan.  Hero Honda's Splendor is the world's largest selling motorcycle.
Type :  Public company BSE:HEROHONDA M Founded:  January 19, 1984 in Gurgaon,Haryana, India Headquarters :  New Delhi, India Key people:  Brijmohan Lal Munjal (chairman & founder) Toshiaki Nakagawa (joint managing director) Pawan Munjal (CEO) Industry:  Automotive Products:  Motorcycles, Scooters Revenue:  U$ 2.8 billion Website:  www.Herohonda.com
Hero Honda is world’s third largest  2-wheeler maker.  “ THE LICENSE RAJ” : Customers in India were forced to wait 12 years to buy a scooter from Bajaj.  In the mid-1980s, Foreign companies permitted to enter the Indian market through minority joint ventures.  Four Indo-Japanese joint ventures:  Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda) The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. 
By 2002 Hero Group had sold  86 million  bicycles .  Today Hero Honda has an assembly line  of 9 different models of motorcycles .  Currently the largest producer of  Two Wheelers in the world.  Sold 3 million bikes in the year 2005-06.
Hero Honda Ambition 133,135 Hero Honda CD 100,CD SS, CD Dawn Hero Honda Splendor , Splendor+ , Super Splendor, Splendor NXG Hero Honda CBZ , CBZ Xtreme Hero Honda Passion , Passion+ , Passion Pro Hero Honda Karizma Hero Honda Hunk Hero Honda Pleasure Hero Honda Glamour
1983 : Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed 1984: Hero Honda Motors Ltd. incorporated 1985 :First motorcycle "CD 100" rolled out 1987:100,000th motorcycle produced 1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir  inaugurated - 1994 : New motorcycle model - "Splendor" introduced  2000: 4,000,000th motorcycle produced    Splendor declared 'World No. 1' - largest selling single two-  wheeler model  2001: One million production in a single year : 5,000,000th  motorcycle
2003: Becomes the 1st Indian Company to cross the 7 million sales    Splendor has emerged as the World's largest selling model for the  third  calendar year in a row (2000, 2001, 2002)   New motorcycle model - "Karizma" introduced 2005 : Hero Honda is the World No. 1 for the 4th year in a row   Super Splendor , CD Deluxe , Glamour ,Achiever  introduced First Scooter model from Hero Honda - "Pleasure" introduced 2006 : Hero Honda is the World No. 1  for the 5th year in a row
 
Management introduced new ideas coupled with improved terms of agreement for their joint venture Two primary goals in mind Continuing their success  Maintaining their existing market share
  Environment Policy Integrate environmental attributes and cleaner production in all business processes  Substitution of hazardous chemicals  where viable and strengthen the greening of supply chain.   Quality Policy Excellence in quality is the core value of Hero Honda's philosophy. Innovation in products, processes and services. Continuous improvement in total quality management systems.
  Safety Policy Committed to safety and health of its  employees and other persons. Ensuring compliance with all applicable  legislative requirements. Promoting safety and health awareness  amongst suppliers & contractors. Continuous improvements in safety  performance through precautions besides  participation and training of employees.
13 STOCK HISTORY * Equity Shares of Rs. 2 each. Date of  Approval Date of Issue Particulars of Issue No. of Shares   19.01.84 Subscription shares 150 09.08.1984 19.03.85 Public Issue 11999985 09.08.1984 29.04.87 Issue of Rights Shares in the ratio of 15:50 3975000 09.08.1984 07.02.1995 Issue of Bonus Shares in the ratio of 1:4 3993750 09.08.1984 28.09.1998 Issue of Bonus Shares in the ratio of 1:1 19968750 09.08.1984 26.03.2001 Sub-division of Equity Shares of Rs. 10 each  Into 5 Equity Shares of Rs. 2 each 199687500*    Details of issue of Equity Shares since beginning
SALES  RECORDS
PROFITS ANALYSIS
Strengths Ability to understand customer’s needs and wants Recognized and established brand name Effective advertising capability Weaknesses R&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda Motor Company has so much power
Opportunities Global expansion into the Caribbean and Central America Expansion of target market (include women) Become India’s leader in the scooter market Threats Honda Motorcycles and Scooters India can take away market share and cause joint venture to go sour Bajaj Motors is a strong competitor
NDTV Profit Business Leadership Award 2008   TopGear Design Awards 2008  - Hunk: Bike of the Year Award Asian Retail Congress Award for Retail Excellence   - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards  - Bike Manufacturer of the year Overdrive Magazine  - Bike Manufacturer of the year TNS Voice of the Customer Awards: No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Xtreme
25-year old joint venture with Japan’s Honda Motor , deadline in 2014 The Munjals of the Hero group and Honda Motors are equal partners in Hero Honda, India’s largest motorcycle company.  Honda decided to establish its 100% subsidiary in India and produce scooters and motorcycles. The two partners have also not agreed on the issue like Honda’s desire that the JV firm join its umbrella parts company Honda Motor India. 
Yes ! Established name and  dominant market position Strong Marketing Department Local Knowledge Technological Advancements Introduction of scooter
JOURNEY  OF  HERO HONDA 1985  CD-100  1989  SLEEK 1994  SPLENDOR 1999  CBZ 2001  PASSION 2002  AMBITION 2003  KARIZMA 2005 : GLAMOUR 2005: ACHIEVER 2005: PLEASURE 2007:  HUNK
Thank you!

Hero Honda Rn 47

  • 1.
    PRESENTED BY: CHETANSINGHAL IM XVI , SEC A ROLL NO. 47 Driven By The Trust Of Our Customers HERO HONDA MOTORS LTD , INDIA
  • 2.
    Hero Honda MotorsLimited, based in Delhi, is the world's Largest manufacturer of motorcycles . A joint venture that began in 1984 between the Hero Group of India and Honda of Japan. Hero Honda's Splendor is the world's largest selling motorcycle.
  • 3.
    Type : Public company BSE:HEROHONDA M Founded: January 19, 1984 in Gurgaon,Haryana, India Headquarters : New Delhi, India Key people: Brijmohan Lal Munjal (chairman & founder) Toshiaki Nakagawa (joint managing director) Pawan Munjal (CEO) Industry: Automotive Products: Motorcycles, Scooters Revenue: U$ 2.8 billion Website: www.Herohonda.com
  • 4.
    Hero Honda isworld’s third largest 2-wheeler maker. “ THE LICENSE RAJ” : Customers in India were forced to wait 12 years to buy a scooter from Bajaj. In the mid-1980s, Foreign companies permitted to enter the Indian market through minority joint ventures. Four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda) The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. 
  • 5.
    By 2002 HeroGroup had sold 86 million bicycles . Today Hero Honda has an assembly line of 9 different models of motorcycles . Currently the largest producer of Two Wheelers in the world. Sold 3 million bikes in the year 2005-06.
  • 6.
    Hero Honda Ambition133,135 Hero Honda CD 100,CD SS, CD Dawn Hero Honda Splendor , Splendor+ , Super Splendor, Splendor NXG Hero Honda CBZ , CBZ Xtreme Hero Honda Passion , Passion+ , Passion Pro Hero Honda Karizma Hero Honda Hunk Hero Honda Pleasure Hero Honda Glamour
  • 7.
    1983 : JointCollaboration Agreement with Honda Motor Co. Ltd. Japan signed 1984: Hero Honda Motors Ltd. incorporated 1985 :First motorcycle "CD 100" rolled out 1987:100,000th motorcycle produced 1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir inaugurated - 1994 : New motorcycle model - "Splendor" introduced  2000: 4,000,000th motorcycle produced  Splendor declared 'World No. 1' - largest selling single two- wheeler model  2001: One million production in a single year : 5,000,000th motorcycle
  • 8.
    2003: Becomes the1st Indian Company to cross the 7 million sales Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "Karizma" introduced 2005 : Hero Honda is the World No. 1 for the 4th year in a row Super Splendor , CD Deluxe , Glamour ,Achiever introduced First Scooter model from Hero Honda - "Pleasure" introduced 2006 : Hero Honda is the World No. 1 for the 5th year in a row
  • 9.
  • 10.
    Management introduced newideas coupled with improved terms of agreement for their joint venture Two primary goals in mind Continuing their success Maintaining their existing market share
  • 11.
      Environment PolicyIntegrate environmental attributes and cleaner production in all business processes Substitution of hazardous chemicals where viable and strengthen the greening of supply chain.   Quality Policy Excellence in quality is the core value of Hero Honda's philosophy. Innovation in products, processes and services. Continuous improvement in total quality management systems.
  • 12.
      Safety PolicyCommitted to safety and health of its employees and other persons. Ensuring compliance with all applicable legislative requirements. Promoting safety and health awareness amongst suppliers & contractors. Continuous improvements in safety performance through precautions besides participation and training of employees.
  • 13.
    13 STOCK HISTORY* Equity Shares of Rs. 2 each. Date of  Approval Date of Issue Particulars of Issue No. of Shares   19.01.84 Subscription shares 150 09.08.1984 19.03.85 Public Issue 11999985 09.08.1984 29.04.87 Issue of Rights Shares in the ratio of 15:50 3975000 09.08.1984 07.02.1995 Issue of Bonus Shares in the ratio of 1:4 3993750 09.08.1984 28.09.1998 Issue of Bonus Shares in the ratio of 1:1 19968750 09.08.1984 26.03.2001 Sub-division of Equity Shares of Rs. 10 each  Into 5 Equity Shares of Rs. 2 each 199687500*    Details of issue of Equity Shares since beginning
  • 14.
  • 15.
  • 16.
    Strengths Ability tounderstand customer’s needs and wants Recognized and established brand name Effective advertising capability Weaknesses R&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda Motor Company has so much power
  • 17.
    Opportunities Global expansioninto the Caribbean and Central America Expansion of target market (include women) Become India’s leader in the scooter market Threats Honda Motorcycles and Scooters India can take away market share and cause joint venture to go sour Bajaj Motors is a strong competitor
  • 18.
    NDTV Profit BusinessLeadership Award 2008   TopGear Design Awards 2008  - Hunk: Bike of the Year Award Asian Retail Congress Award for Retail Excellence   - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards  - Bike Manufacturer of the year Overdrive Magazine  - Bike Manufacturer of the year TNS Voice of the Customer Awards: No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Xtreme
  • 19.
    25-year old jointventure with Japan’s Honda Motor , deadline in 2014 The Munjals of the Hero group and Honda Motors are equal partners in Hero Honda, India’s largest motorcycle company. Honda decided to establish its 100% subsidiary in India and produce scooters and motorcycles. The two partners have also not agreed on the issue like Honda’s desire that the JV firm join its umbrella parts company Honda Motor India. 
  • 20.
    Yes ! Establishedname and dominant market position Strong Marketing Department Local Knowledge Technological Advancements Introduction of scooter
  • 21.
    JOURNEY OF HERO HONDA 1985 CD-100 1989 SLEEK 1994 SPLENDOR 1999 CBZ 2001 PASSION 2002 AMBITION 2003 KARIZMA 2005 : GLAMOUR 2005: ACHIEVER 2005: PLEASURE 2007: HUNK
  • 22.