Evergreen Growth Of Hero Honda Motors

INTRODUCTION

INDUSTRY Automotive

FOUNDED January 19, 1984 in Gurgaon,

Haryana, India

HEADQUATERS New Delhi, India

KEY PEOPLE Brijmohan Lal Munjal (chair and founder)

Toshiaki Nakagawa (joint managing director)

Pawan Munjal (Managing Director & CEO)

PRODUCT Motorcycles, Scooters

REVENUE U$ 2.8 billion

TYPE Public company

BSE:HEROHONDA M

WEBSITE www.Herohonda.com

Hero Honda Motors Limited has been the largest two wheeler company in the world for eight consecutive years. The company had a

market share of 41.35% in the year 2008-2009 and over a 25 year span it has crossed the 15 million unit milestone. Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together

Hero Honda, based in Delhi, India. is a joint venture between the Hero Group of India and Honda of Japan. It has been referred to as the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. During the fiscal year 2008-09, the company has sold 3.28 million bikes and the net profit of the company stood at Rs. 1281.7 crore, up 32% from the previous fiscal year.

The company's most popular model is the Hero Honda's Splendor, which is the world's largest-selling motorcycle, selling more than one million units per year

“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda company,India.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception.

Hero Honda has three manufacturing facilities based at Dharuhera and Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3.9 million bikes per year. Hero Honda's has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda's customer loyalty program, the Hero Honda Passport Program, claims to be one of the largest programs of its kind in the world with over 3 million members.

The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.

OBJECTIVES-

to identify sales growth and progress of the company of its five years.

RESEARCH METHODOLOGY-The research of the data is based on secondary data and the necessary datas have been collected from various sources. And in order to find out the factors those have effect on the growth level of the company, have been tested by descriptive statistic, pie chart and bar chart as well.

ANALYSIS-   Mar '06 Mar '07 Mar '08 Mar '09 Mar '10Sales Turnover 10,097.17 11,553.47 12,048.30 13,553.23 16,792.62Total Expenses 7,352.20 8,707.19 8,963.10 10,594.45 13,102.26

Sales Turnover

Mean 12808.958Standard Error 1138.686713Median 12048.3Mode #N/A

Standard Deviation 2546.180895

Sample Variance 6483037.152

Kurtosis 1.191327491

Skewness 1.041736916Range 6695.45Minimum 10097.17Maximum 16792.62

Sum 64044.79Count 5

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

18,000.00

10,097.17 11,553.4712,048.30

13,553.23

16,792.62

Sales Turnover

Sales Turnover

7352.2; 15%

8707.19; 18%

8963.1; 18%

10594.45; 22%

13102.26; 27%

Total Expenses

Mar '06Mar '07Mar '08Mar '09Mar '10

To identify the process of growth of the company different factor have been used as total expenses, sales turnover etc. these data are calculated on pie chart, bar chart and by using descriptive statistic.

FINDINGS-After seeing the results of sales turnover and of other factors it can be concluded that company has to increase its revenue and sales to meet the profitable level. Drastic changes have been shown all over the years to maintain the level of profit company has to think innovatory and change its strategies.