Economic aspects of hero motocorp

1. Hum
Main Hai
Hero

2. No.
1) Introduction
2) History
3) Achievement
4) Company Policy
5) Demerger
6) Exports
7) Financial Data
8) Future Growth
Index

3. Introduction
• Hero Motocorp Ltd.,formerly Hero Honda, is an Indian motorcycle
and scooter manufacturer based in New Delhi, India.
• The company is the largest two wheeler manufacturer in India.
• It has three manufacturing facilities based at in Haryana and
Uttarakhand.
• It has a large sales and service network with over 3,000 dealerships
and service points across India.
• It accounts for 46% of all bikes sold in India. The company exports
to Africa, Asia, Eastern Europe and Latin America.

4. History
• 1947- Munjal family migrated to India and started a small business
of manufacturing bicycle components in Ludhiana
• 1956- Hero Cycles Limited started production in its Ludhiana plant to
manufacture bicycles.
• 1970- Hero Cycles was the worlds largest bicycle manufacturing
company.
• 1984- Hero MotoCorp Ltd. was formed as a joint venture between
Honda Japan and the Hero Group.
• Over the next two decades the Hero Group through Hero Corporate
Service Limited setup several companies to supply to Hero
MotoCorp, partly or wholly owned by the Hero Group.

5. Achievements
• Life achievement awards from TERI, E&Y, AIMA and ET.
• Indian Automotive Hall of Pride by Overdrive
• Forbes 200 ‘Most Respected’ companies
• The Brand Trust Report published by Trust Research Advisory
ranked Hero Honda in the 13th position.
• Green Pioneer award
• Best value for money bike maker

6. Environment Policy
Quality Policy
Safety Policy
Investing in Brand
building
Company Policies

7. CHANGED TO
Demerger

8. Dec.2010,Termination
of joint venture
Only 26% stake for
Hero Group in Hero
Honda JV.
Hero Group could not
export to international
but termination meant
export.
Heavy reliance on
Honda for Japanese
technology
Demerger

9. Reasons for the Split.
Actions Taken.
Issues that Arose after the
Demerger

10. Exports
• Hero MotoCorp as of now exports only to Latin and Central America
and Africa
• They aiming to sell one million units across the world by 2016-2017
• The Hero motorcycles to be sold in these markets include a mix of
models from the 100cc and 125cc range.
• For the fiscal 2013-14, Hero MotoCorp has earmarked Rs 1,100
crore as capital expenditure
• Exports grew 24% during the year 2011-2012, as we exported
164,570 two-wheelers

11. Financial Data

14. Net Profit

17. Per Share price

20. Current Investments
• Announced an investment of Rs 2,575 crore in expanding capacity
at its three existing plants
• The company will make initial investment of Rs.400 crore in the
Neemrana facility.
• Hero MotoCorp has also signed a state support agreement (SSA)
with the Gujarat government to set up a new plant in the state.

21. Reasons for Growth

22. Future Growth
• The company aims of achieving revenues of $10billion and volumes
of 10 million two-wheelers by 2016-17
• Hero MotoCorp hopes to achieve 10 per cent of their revenues from
international markets
• Hero Motocorp achieved a turnover of 24,000 crore in the last year
and it plans on achieving a turnover of 60,000 crores by 2020.
• Launching as many as 12 new products by April 2014.
• Entering new markets By 2050 the country is expected to top the
world with approximately 611million vehicles on the nation’s road.

23. Upcoming Projects
• Setting up a fourth plant at Neemrana in Rajasthan
• Setting up a fifth plant at Halol in Gujarat
• Setting up a new state-of-the-art integrated R&D centre at Kukas,
Rajasthan
• Setting up a Global Parts Centre (GPC) at Neemrana, Rajasthan

24. Bibliography
• http://autocarpro.in/contents/technologyDetails.aspx?TechnologyID=
122
• http://www.wheelsunplugged.com/news/hero-motocorp-plans-go-
abroad-new-models-year/1236
• http://en.wikipedia.org/wiki/Hero_MotoCorp#cite_note-livemint1-20
• http://www.thehindubusinessline.com/companies/hero-motocorp-q1-
net-down-11-at-rs-549-cr/article4948658.ece
• http://www.moneycontrol.com/india/stockpricequote/auto-23-
wheelers/hero-honda-motors/HHM
• http://www.heromotocorp.com/en-in/

25. • Imad Sirkhot 32
• Isha Aggarwal 33
• Ishan Khanna 34
• Jay Loliyania 35
• Karen D’souza 37
Group Members