Hero Motocorp ltd.
Post Graduate Department of Management Studies
PES College of Engineering,
Mandya
1
Seminar: Hero motocorp ltd.
Submitted by:
Sachin B S
Tejus R
Vinay M
1stsem MBA
Under the Guidance:
Mrs. T D SUMAN RAJESH
Department of Management Studies
2
Hero Motocorp Ltd.
TYPE : Public
TRADED AS : BSE : 500182
NSC : HEROMOTOCO
BSE SENSEX Constituent
INDUSTRY : Automotive
FOUNDED : January 19, 1984; 33 years ago
FOUNDER : Dr. BrijmohanLallMunjal
HEADQUARTERS : Gurgaon, India
KEY PEOPLE : Dr. Brij Mohan
LallMunjal(Chairman)
PawanMunjal (Chairman, MD & CEO)
PRODUCT : Motorcycles, Scooters
REVENUE : 31,368 crore(US$4.9 billion)
(2017)
Parent : Hero Cycles
Website : www.heromotocorp.com 3
Introduction
 Hero MotoCorp Ltd. (formerly Hero Honda Motors Ltd) is the world’s largest
two wheeler manufacturer based in India. The company manufactures and
sells motorized two wheelers up to 350cubic centimeters(CC) engine
capacity, spare parts and related services. It offers over 20 products
comprising 100CC, 110CC, 125CC, 150CC, 225CC and scooter category.
4
Visio
n The story of Hero Honda began with a simple vision - the vision
of a mobile and an empowered India, powered by its two
wheelers. Hero MotoCorp Ltd., company's new identity, reflects
its commitment towards providing world class mobility solutions
with renewed focus on expanding company's footprint in the
global arena.Mission
Hero MotoCorp's mission is to become a global enterprise
fulfilling its customers' needs and aspirations for mobility, setting
benchmarks in technology, styling and quality so that it converts
its customers into its brand advocates. The company will provide
an engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and enduring
relationships with its partners.
HISTORY
 Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India.
 In 2001, the company achieved the coveted position of being the largest two-
wheeler manufacturing company in India and also, the 'World No.1' two-wheeler
company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd.
continues to maintain this position till date.
 Hero Honda started in 1984 as a joint venture between Hero Cycle of India and
Honda of Japan.
 Under the joint venture Hero Group could not export to international markets (except
Sri Lanka and Nepal) and the termination would mean that Hero Group can now
export.
 Since the beginning, the Hero Group relied on their Japanese partner Honda for the
technology in their bikes.
 Honda will continue to provide technology to Hero Honda motorbikes until 2014 for
existing as well as future models.
 In August 2011 the company was renamed Hero MotoCorp with a new corporate
identity.
5
PRODUCTS
6
7
STRUCTURE
8
SHARE HOLDINGS
Share Holding Pattern in (%)
Promoter 34.64
Public (FII + DII) 65.36
Others 0.00
Total 100.00
Promotor
Public
Share holdings in (%)
Promotor
Public
Others
Market Share
9
SWOT ANALYSIS
STRENGTHS :
•Ability to understand customer needs & wants.
•Recognized & established brand name.
•Strong distribution network & service centers.
•Due to the large range of products that are available, almost the entire customer
base is covered.
WEAKNESS :
•R & D is not close to the Hero manufacturing plant.
•Absence in the premium bike segment.
•High imports for its spare i.e.,over 30% imports.
•Most of the products have similar features and low on design and innovation.
OPPORTUNITIES :
•Global expansion into the Caribbean & Central America.
•Expansion of target market(including woman).
•To become India’s leader in the scooter market.
•Two wheeler segment is one of the most growing industries.
THREATS :
•Strong competition from Indian as well as International brands.
•Dependence on government policies and rising fuel prices.
•Better public transport will affect two wheeler sales.
10
Company
Analysis
Mar’17 Mar’16 Mar’15 Mar’14
Net sale 30,958.19 30,871.94 29,255.68 27,155.82
Operating profit 4,575.97 4,382.25 3,496.73 3,539.10
Net profit 3,229.29 3,050.21 2,348.51 2,105.93
EPS 169.12 158.26 119.46 105.61
Net sales is increasing from 2014 to 2017
Operating profit is increasing from 2014 to 2017
Net profit is increasing from 2014 to 2017
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
Mar’17 Mar’16 Mar’15 Mar’14
Net sale
Operating profit
Net profit
0
20
40
60
80
100
120
140
160
180
Mar’17 Mar’16 Mar’15 Mar’14
EPS
EPS
EPS increasing from increasing from 2014 to 2017
11
Share Price
In January stock price Rs.3043 very low
In September stock price is very high compare to Jan i.e, Rs. 4089.95
12
Peer Comparison
Name Last Price
Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
Bajaj Auto 3,289.25 95,180.05 21,766.68 3,827.56 17,034.13
Hero
Motocorp
3,749.10 74,872.16 28,474.99 3,377.12 9,646.24
TVS Motor 766.45 36,413.05 12,135.31 558.08 3,431.19
Endurance
Techn
1,362.50 19,165.31 3,865.67 221.50 1,691.79
Mah Scooters 2,781.10 3,178.40 8.50 12.56 324.55
Atul Auto 456.35 1,001.38 475.33 37.32 180.70
LML 10.75 88.13 41.94 -90.69 -662.45
•As per the Last Price, Bajaj Auto in 1st position and Hero Motocorp
is in 2nd position.
•As per the Market Capital, Bajaj Auto in 1st position and Hero
Motocorp is in 2nd position.
•As per the Sales Turnover, Bajaj Auto in 2nd position and Hero
Motocorp is in 1st position.
•As per the Net Profit, Bajaj Auto in 1st position and Hero Motocorp is
in 2nd position
•As per the Total Assets, Bajaj Auto in 1st position and Hero Motocorp
is in 2nd position.
13
Achievements
•Overdrive - Scooter of the Year - Hero Maestro Edge
•Overdrive - 'Viewers' Choice Scooter of the Year - Hero Maestro Edge
•Overdrive - Manufacturer of the Year (Two-wheeler) Award - Hero
MotoCorp
•''Hero GoodLife'' has been declared as the winner in the Category "Best
Loyalty Program in Automobile Sector"
•TIME India Awards - Manufacturing Innovator of the Year Award
•60 Million cumulative 2 wheelers production
•Neemrana Plant Inauguration
•Global Parts Centre Inauguration
Future outlook
 To build a strong product portfolio
 Explore growth opportunities globally
 Improve its operational efficiency continuously
 Aggressively expand its reach to customers
 Continue to invest in brand building activities
 Ensure customer and shareholder delight
14
Conclusio
nHero Motocorp is one of the leading automobile company in
India. It provides low cost vehicles and they targeted middle class
families.
Hero Motocorpadvertise in a manner to attract population with
emotional and cultural attachments.
Hero Motocorp is considered to be most fuel efficient bike on
Indian roads. The company has announced its intention to expand
globally, with plans to sell vehicles on three continents i.e. Africa,
Latin America and South-East Asia and nearly double its unit sales
within five years, to strengthen their network in rural areas , the
company started sales, servicing and spare part outlets in small
towns and villages across India.
In order to retain its 1st position in the market , it is expanding its
R&D. They have hired engineers from its competitors like BAJAJ
AUTO, YAMAHA and MAHINDRA two wheeler.Source
https://www.heromotocorp.com/en-in/
http://www.moneycontrol.com/india/stockpricequote/auto-
2-3-wheelers/heromotocorp/HHM
15
Thank you…
16

Hero Motocorp

  • 1.
    Hero Motocorp ltd. PostGraduate Department of Management Studies PES College of Engineering, Mandya 1
  • 2.
    Seminar: Hero motocorpltd. Submitted by: Sachin B S Tejus R Vinay M 1stsem MBA Under the Guidance: Mrs. T D SUMAN RAJESH Department of Management Studies 2
  • 3.
    Hero Motocorp Ltd. TYPE: Public TRADED AS : BSE : 500182 NSC : HEROMOTOCO BSE SENSEX Constituent INDUSTRY : Automotive FOUNDED : January 19, 1984; 33 years ago FOUNDER : Dr. BrijmohanLallMunjal HEADQUARTERS : Gurgaon, India KEY PEOPLE : Dr. Brij Mohan LallMunjal(Chairman) PawanMunjal (Chairman, MD & CEO) PRODUCT : Motorcycles, Scooters REVENUE : 31,368 crore(US$4.9 billion) (2017) Parent : Hero Cycles Website : www.heromotocorp.com 3
  • 4.
    Introduction  Hero MotoCorpLtd. (formerly Hero Honda Motors Ltd) is the world’s largest two wheeler manufacturer based in India. The company manufactures and sells motorized two wheelers up to 350cubic centimeters(CC) engine capacity, spare parts and related services. It offers over 20 products comprising 100CC, 110CC, 125CC, 150CC, 225CC and scooter category. 4 Visio n The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena.Mission Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.
  • 5.
    HISTORY  Hero MotoCorpLtd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in India.  In 2001, the company achieved the coveted position of being the largest two- wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.  Hero Honda started in 1984 as a joint venture between Hero Cycle of India and Honda of Japan.  Under the joint venture Hero Group could not export to international markets (except Sri Lanka and Nepal) and the termination would mean that Hero Group can now export.  Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes.  Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future models.  In August 2011 the company was renamed Hero MotoCorp with a new corporate identity. 5
  • 6.
  • 7.
  • 8.
  • 9.
    SHARE HOLDINGS Share HoldingPattern in (%) Promoter 34.64 Public (FII + DII) 65.36 Others 0.00 Total 100.00 Promotor Public Share holdings in (%) Promotor Public Others Market Share 9
  • 10.
    SWOT ANALYSIS STRENGTHS : •Abilityto understand customer needs & wants. •Recognized & established brand name. •Strong distribution network & service centers. •Due to the large range of products that are available, almost the entire customer base is covered. WEAKNESS : •R & D is not close to the Hero manufacturing plant. •Absence in the premium bike segment. •High imports for its spare i.e.,over 30% imports. •Most of the products have similar features and low on design and innovation. OPPORTUNITIES : •Global expansion into the Caribbean & Central America. •Expansion of target market(including woman). •To become India’s leader in the scooter market. •Two wheeler segment is one of the most growing industries. THREATS : •Strong competition from Indian as well as International brands. •Dependence on government policies and rising fuel prices. •Better public transport will affect two wheeler sales. 10
  • 11.
    Company Analysis Mar’17 Mar’16 Mar’15Mar’14 Net sale 30,958.19 30,871.94 29,255.68 27,155.82 Operating profit 4,575.97 4,382.25 3,496.73 3,539.10 Net profit 3,229.29 3,050.21 2,348.51 2,105.93 EPS 169.12 158.26 119.46 105.61 Net sales is increasing from 2014 to 2017 Operating profit is increasing from 2014 to 2017 Net profit is increasing from 2014 to 2017 0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 Mar’17 Mar’16 Mar’15 Mar’14 Net sale Operating profit Net profit 0 20 40 60 80 100 120 140 160 180 Mar’17 Mar’16 Mar’15 Mar’14 EPS EPS EPS increasing from increasing from 2014 to 2017 11
  • 12.
    Share Price In Januarystock price Rs.3043 very low In September stock price is very high compare to Jan i.e, Rs. 4089.95 12
  • 13.
    Peer Comparison Name LastPrice Market Cap. (Rs. cr.) Sales Turnover Net Profit Total Assets Bajaj Auto 3,289.25 95,180.05 21,766.68 3,827.56 17,034.13 Hero Motocorp 3,749.10 74,872.16 28,474.99 3,377.12 9,646.24 TVS Motor 766.45 36,413.05 12,135.31 558.08 3,431.19 Endurance Techn 1,362.50 19,165.31 3,865.67 221.50 1,691.79 Mah Scooters 2,781.10 3,178.40 8.50 12.56 324.55 Atul Auto 456.35 1,001.38 475.33 37.32 180.70 LML 10.75 88.13 41.94 -90.69 -662.45 •As per the Last Price, Bajaj Auto in 1st position and Hero Motocorp is in 2nd position. •As per the Market Capital, Bajaj Auto in 1st position and Hero Motocorp is in 2nd position. •As per the Sales Turnover, Bajaj Auto in 2nd position and Hero Motocorp is in 1st position. •As per the Net Profit, Bajaj Auto in 1st position and Hero Motocorp is in 2nd position •As per the Total Assets, Bajaj Auto in 1st position and Hero Motocorp is in 2nd position. 13
  • 14.
    Achievements •Overdrive - Scooterof the Year - Hero Maestro Edge •Overdrive - 'Viewers' Choice Scooter of the Year - Hero Maestro Edge •Overdrive - Manufacturer of the Year (Two-wheeler) Award - Hero MotoCorp •''Hero GoodLife'' has been declared as the winner in the Category "Best Loyalty Program in Automobile Sector" •TIME India Awards - Manufacturing Innovator of the Year Award •60 Million cumulative 2 wheelers production •Neemrana Plant Inauguration •Global Parts Centre Inauguration Future outlook  To build a strong product portfolio  Explore growth opportunities globally  Improve its operational efficiency continuously  Aggressively expand its reach to customers  Continue to invest in brand building activities  Ensure customer and shareholder delight 14
  • 15.
    Conclusio nHero Motocorp isone of the leading automobile company in India. It provides low cost vehicles and they targeted middle class families. Hero Motocorpadvertise in a manner to attract population with emotional and cultural attachments. Hero Motocorp is considered to be most fuel efficient bike on Indian roads. The company has announced its intention to expand globally, with plans to sell vehicles on three continents i.e. Africa, Latin America and South-East Asia and nearly double its unit sales within five years, to strengthen their network in rural areas , the company started sales, servicing and spare part outlets in small towns and villages across India. In order to retain its 1st position in the market , it is expanding its R&D. They have hired engineers from its competitors like BAJAJ AUTO, YAMAHA and MAHINDRA two wheeler.Source https://www.heromotocorp.com/en-in/ http://www.moneycontrol.com/india/stockpricequote/auto- 2-3-wheelers/heromotocorp/HHM 15
  • 16.