hero overview nd products

8/13/2019 Hero Overview Nd Products

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MR. PAWAN MUNJAL

CEO OF HERO MOTOCORP Ltd.

B. HARISH KUMAR

Reg.no:1226113118


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CEO & Managing Director: MR. PAWAN MUNJAL

Mr. Munjal is the Managing Director and CEO of the Company. He is

responsible for growth and strategic planning for the entire Group. A graduate in Mechanical

Engineering, Mr. Munjal has been instrumental in bringing about technological and managerial

excellence in the Company's operations. He has been the Chairman of several Committees of

CII.

He is also on the board of Indian Institute of Management, Lucknow and Indian School ofBusiness. An avid golfer, Mr. Munjal is Past Chairman of the Asian PGA Tour Board of

Directors and the Past President of Professional Golfers Association of India (PGAI). Under his

guidance, Hero MotoCorp launched the Hero Indian Sports Academy (HISA) in collaboration

with Laureus Foundation to provide equal opportunities in sports to various communities and to

reward talent in the country

COMPANY PROFILE:

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 Motors Limited atDharuhera, India. Munjal family andHondagroup

both owned 26% stake in the Company. In 2010, it was reported that Hondaplanned to sell its

stakein the venture to the Munjal family.

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. The technology in the bikes of Hero Honda for almost 26 years

(19842010) has come from the Japanese counterpartHonda.
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Hero MotoCorp has three manufacturing facilities based atDharuhera,Gurgaonin Haryana and

atHaridwarin Uttarakhand. These plants together are capable of churning out 3 million bikes per

year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and

service points across India. Hero Honda has a customer loyalty program since 2000, called the

Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million

two-wheelers by 201617. This in conjunction with new countries where they can now market

their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve

10 per cent of their revenues from international markets, and they expected to launch sales

inNigeriaby end-2011 or early-2012. In addition, to cope with the new demand over the coming

half decade, the company is coming up with their fourth factory in Neemrana, Rajasthan while

their fifth factory is planned to be set up in Gujarat.

1956Formation ofHero Cyclesin Ludhiana(majestic auto limited) 1975Hero Cycles becomes largest bicycle manufacturer in India. 1983Joint Collaboration Agreement withHonda MotorCo. Ltd. Japan signed

Shareholders Agreement signed

1984Hero Honda Motors Ltd. incorporated 1985Hero Honda motorcycle CD 100 launched. 1989Hero Honda motorcycle Sleek launched. 1991Hero Honda motorcycle CD 100 SS launched. 1994Hero Honda motorcycle Splendorlaunched. 1997Hero Honda motorcycle Street launched. 1999Hero Honda motorcycle CBZlaunched. 2001Hero Honda motorcycle Passionand Hero Honda Joy launched. 2002Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched. 2003Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus, Hero

Honda motorcycle Passion Plus andHero Honda motorcycle Karizmalaunched.

2004Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched.
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2005Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe, HeroHonda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter

Pleasure.

2007New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Hondamotorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus andHero

Honda motorcycle Hunklaunched.

2008New Models of Hero Honda motorcycles Pleasure,CBZ Xtreme,Glamour, GlamourFi and Hero Honda motorcycle Passion Pro launched.

2009New Models ofHero Honda motorcycle Karizma:Karizma ZMR and limitededition ofHero Honda motorcycle Hunklaunched

2010New Models of Hero Honda motorcycle Splendor Pro and NewHero Hondamotorcycle Hunkand NewHero Honda Motorcycle Super Splendor launched.

2011New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme,Karizma launched. New licensing arrangement signed between Hero and Honda. In August

Hero and Honda parted company, thus forming Hero MotoCorp andHondamoving out of

the Hero Honda joint venture. In November, Hero launched its first ever Off Road Bike

Named Hero "Impulse".

2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the younggeneration bike are launched.
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Termination of Honda joint venture:

In December 2010, the board of directors of the Hero Honda Group have decided to terminate

the joint venture between Hero Group of India and Honda of Japan in a phased manner. The

Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. 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. So there are

concerns that the Hero Group might not be able to sustain the performance of the Joint Venture

alone.

The Japanese auto major will exit the joint venture through a series of offmarket transactions bygiving the Munjal familythat held a 26% stake in the companyan additional 26%. Honda,

which also has an independent fully owned two wheeler subsidiaryHonda Motorcycle and

Scooter India (HMSI)will exit Hero Honda at a discount and get over $1 billion for its stake.

The discount will be between 30% and 50% to the current value of Honda's stake as per the price

of the stock after the market closed on Wednesday

The rising differences between the two partners gradually emerged as an irritant. Differences had

been brewing for a few years before the split over a variety of issues, ranging fromHonda'sreluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up

that expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to the

Japanese company. Another major irritant for Honda was the refusal ofHero Honda(mainly

managed by the Munjal family) to merge the company's spare parts business withHonda's new

fully owned subsidiaryHonda Motorcycle and Scooter India(HMSI)

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by

Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle (SPV)

to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would

eventually be thrown open for private equity participation and those in the fray includeWarburg

Pincus,Kohlberg Kravis Roberts(KKR),TPG,Bain Capital,andCarlyle Group.
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Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as

well as future models.

Hero MotoCorp Ltd.

The new brand identity and logo of Hero MotoCorp were developed by the British firmWolff

Olins.The logo was revealed on 9 August 2011 in London, to coincide with the thirdtest

matchbetween England and India.

Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use any

vendor for its components instead of just Honda-approved vendors

NEW PRODUCTS

Hero Honda Karizma R

The Hero Honda Karizma R is amotorcycle manufactured byHero Motocorp.It was launched in

May 2003and was given a cosmetic upgrade Karizma R in 2007. In September 2009, it was

supplemented by another variantKarimza ZMR.

Karizma is a type of bike which has been developed, keeping in mind the class of people who

want more and more power and who do'nt give a damn about mileage or price figures. A

Premium Segmented bike, exclusively. Believe it or not, Hero Honda Motors are planning to sell

20,000 models of this Sports marvel, during the first year which is a very ambitious target .The

high pricing low mileage and heavy maintenance costs will prove as major negative factors in

the sales of Karizma.

Hero Honda Karizma ZMR

The Hero Karizma ZMR is a motorcycle manufactured byHero MotoCorpLtd.inIndia.It was

a launched as a cosmetic upgrade toKarizma R in September 2009. There is no difference

between its engine and that of its predecessor Karizma R. The minor differences lie in the design

offairing,headlights, addition of digitalspeedometer, reardisc brake and rear swing-arm

suspension and the Fuel-injection system instead of the carburetor.The all new Karizma ZMR
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has finally arrived. Hero Honda has carried out substantial upgrades to its 7 year old flagship

model. This time around the upgrade is far more than just new stickers and coloured dials.

The Karizma ZMR gets the much awaited Fuel Injection system. It comes with the tested PGM-

Fi (Programmed Fuel Injection) which was first seen on Glamour and the recently launched

Honda CBF Stunner. The 223cc oil cooled PGM-Fi engine has a slight increase in power output.

Hero CBZ Xtreme..

Hero Honda revealed the new version of the CBZ Xtreme. Compared to the previous generation

the new model features fresh headlights which are based on the ones found at the new CBR

model.

The bike is also offered with a sporty dashboard which has 3 dials, one for the speedometer, one

for the rpm indicator and another for the fuel indicator.

At the heart of the Hero Honda CBZ Xtreme lies an air cooled, 4-stroke single cylinder, OHC,

149.2 cc engine which delivers a maximum output of 14.4 hp at 8500 rpm and 12.8 Nm of torque

at 6500 rpm. The ride quality is assured by front telescopic hydraulic suspensions and a rear

rectangular swing arm with 5 step adjustable gas reservoir suspension. On the other hand, the

stopping power is assured by front 240 mm and rear 220 mm discs.

Hero Hunk

The Hero Hunk is a motorcycle manufactured by Hero MotoCorp Ltd. in India. It was launched

as an upgrade to Hero Honda Hunk in 2013. There is no difference between its engine and that of

its predecessor Hero Honda Hunk. The minor differences lie in the design of muscle edged visor,

red hot LED tail light, addition of digital speedometer, ridged muffler cover, front & rear disc

brakes, flared fenders and tubeless tyres.

Hero Passion


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The Hero Passion is a motorcycle manufactured in India byHero Honda.It is one of the world's

largest sellingmotorcycles,second only to HeroPassion debuted in the year 2001.

Its graphics and colours were first refreshed in the year 2003 and it was rechristened Passion

Plus. Its graphics were again updated in the year 2008 and now black alloy wheels are standard

with an all black engine.

The engine is a 97.2 ccair-cooled,four-strokesingle-cylinder.The chassis is a tubular double cradle

type. Although it is under 100 cc, it is marketed as an executive class bike due to its styling and price.

Hero Honda Splendor

The Hero Honda Splendoris amotorcyclemanufactured in India byHero Honda. It has anelectronic ignition and a tubular double cradle type frame with a 97.2 cc engine. As of 2009,

Splendor models were selling at a rate of one million per year.

In 2004, Hero Honda launched the upgraded version of the Splendor, the Splendor+. This

version features multi-reflector headlight, tail light and turn signal lights, and new graphics.

In 2007, Hero Honda launched the Splendor plus with changes in body fairings and including

alloy wheels and other improvements.

In 2011, Hero Honda launched the Splendor Pro with changes in body fairings, self start features,

alloy wheels and other improvements.

Hero Honda Achiever

The Hero Honda Achiever is a 149.00cc,sports tourer bikemanufactured in India byHero

Honda.The Achiever production started in 2006.

The Achiever engine is the same 149.1 cc (borexstroke: 57.3 by 57.8 millimetres (2.26 in

2.28 in))Honda Unicornengine, with a minuscule difference in power. Production of the bike

started in early 2006 but stopped in the same year. Hero Honda has recently restarted the

production of the model, with some graphic variations & also sporting a black alloy wheel.
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Hero Honda Pleasure

Why should boys have all the fun has been one of the most popular taglines for a two

wheeler brand in recent times and Hero Honda got it absolutely right in positioning when they

did this back when the Pleasure was launched. Hero Pleasure, as it is known today, is a 102cc 4

stroke single cylinder scooter targeted at the female riders that can deliver a maximum power of

5.03 kw (6.8 PS) and max. torque of 7.85 Nm. Hero has ensured the scooter doesnt get too

heavy with the kerb weight hovering around 104 kg with a max fuel tank capacity of 5 liters. The

Hero Pleasure is available at a price of Rs. 42,100 ex-showroom at Delhi.

Hero Impluse

The Impulselooks the piece. Its long, black mudguard juts out like a beak, above which sits a

high headlamp. Wide handlebars come with knuckle-guards to keep mud off your hands when

riding in the rough, while just behind, the fuel tank comes clad with large scoops. As every go-

anywhere motorcycle must be, the Impulse is tall with a high seat that purposefully pulls over the

tank. The Impulse comes with a big LED tail light.

A highlight to the Impulse is the sense of confidence that you can take on any terrain astride this

bike. A nice upright riding position and wide handlebars give the motorcycle a comfortable

seating position, and make it easy to steer. The double-cradle frame is robust and aids handling.

Capable suspension and meaty tyres tackle our roads well. On a smooth test track the Impulse

feels sure-footed, quickly changing direction with a forgiving feel that soon gives you enough

confidence to start sliding the bike.

Hero Maestro

The Hero Maestros appearance includes a well thought-out front apron, mudguard and vast

side panels, all showing conservative lines. The headlamp works well, and adding some style are

the dual tone rear-view mirrors, which work well but are cumbersome to adjust. A modern touch

on the latest Hero is an LCD-equipped multi-pod instruments bay, with an analogue speedometer
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that highlights the economy riding zone between 30kph to 50kph. The instruments also get a

trip meter along with the standard odometer. The soft palm grips, standard quality switch gear

and brake levers feel good, while the flimsy feeling brake-lock clamp is painful to operate. A

shuttered ignition-key system is another useful safety feature on the Maestro. Utility space comes

in the form of an ample lockable bay under the seat. The scooters broad warning light cluster

and large grab-bar gives a sense of masculinity. The Hero Maestros fit-and-finish quality is at

par with its rivals.

Hero Ignitor 125cc

Hero Motocorp launched the Ignitor 125cc motorbike around July 2012. The Hero Ignitor

comes in two variantsthe lower variant is priced around Rs.55,900 (ex-showroom) and comes

with drum brakes and a self start system while the higher end model comes with features like

disc brakes and is priced at Rs. 57,900 (ex-showroom). Both these models have alloy wheels.

According to the manufacturers, the official mileage of the Ignitor is around 60 kilometers per

liter. Do note that these are under standard test conditions which does not include your traffic,

pot holes or bumps on the roads. This is the maximum you can ever hope to achieve on the bike

Organization Structure:

Organization Structure of Hero Moto Crops is divided into 5 categories. They were as follows

1. R & D2. Planning Department3. Administration Department4. Technological Department5. Product Department
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Leadership Strategies:

Hero MotoCorpskey strategies are to build a robust product portfolio across categories, explore

growth opportunities globally, continuously improve its operational efficiency, aggressively

expand its reach to customers, continue to invest in brand building activities and ensure customer

and shareholder delight.

Turnover (2010-11)

Total cumulative sales for Q2 FY10-11 stands at 12,85,944 units, growth of 9%

-25 lakh plusunit sales in H1 of FY11, growth of 9.4%

-Total turnover (Net Sales & Other Operating income) Rs 4551.95 crores

-Net profit after tax at Rs. 505.60crores. EBIDTA margin for the quarter 13.36 per cent

Riding on its record quarterly sales of12,85,944two-wheeler units in the second quarter (July-

September) of this fiscal,Hero Honda Motors Ltd (HHML),the worlds largest two-wheeler

manufacturer, today reported its best-ever quarterly turnover.

Fuelled by its four lakh-plus sales in each month of Q2 of Financial Year (FY) 2010-11, Hero

Honda registered a total turnover (Net Sales & Other Operating income) of Rs. 4551.95 crores.

The companys turnover in the corresponding period last fiscal (July-September 2009-10) was

Rs 4069.60 crores.

The H1 (April-September) of FY 10-11 also witnessed another milestone in the onward march

of Hero Honda as the company for the first time crossed the 25 lakh plus units of sales in one

half of a fiscal year.

The company reported profit after tax (PAT) of Rs 505.60 crores and EBIDTA margin of 13.36

per cent. This was despite rising input costs, primarily steel and aluminum, as well as BS-III-

linked product up-gradation costs. The companys PAT for the corresponding period last fiscal

was Rs. 597.14 crores.

HIRING AND FIRING SYSTEM:


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Hiring system:

They believe in Talent Acquisition strategy aims to strike a balance amongst fresh &lateral hires and growth opportunities for their employees. Hero Motocorp Ltd is an equal

opportunity employer. Selection is based strictly on individual merit.

They prefer on-campus hiring at reputed engineering institutions like NITs, IITs. They recruit candidates laterally, from various organizational cultures to bring in diverse

perspectives.

We believe in building a Distinctly Ahead organization by developing competent andengaged employees.

Firing System:

Firing of an employee at Hero Motocorp Ltd. takes place by comparing their needs to theexpected number of qualified candidates in the labor market.

Firing system is very negligible at at Hero Motocorp Ltd when compared with the othercompetitors

Image of the product in social context

1.Green Technology

introduction of Acrylic Cathodic Electro Deposition (ACED) painting process (water soluble paint)

developed primer from waste paint sludge2. Safe Manufacturing

Has stopped using harmful chemicals such as Asbestos, Hexavalent Chromium,Phenolic


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3. Conserving Energy and Green IT

Heat recovery unit installed in the incinerator Use of tfts in place of crts for displays Reduction of printers, use of video conferencing Replacing old inefficient equipment Usage of e-learning to reduce trainee or trainer travel Converting our paper based customer loyalty program to an online card based

program

Using e-fund transfer, cutting down on printing of cheques Digitization of workflows needing approvals, e-fax , email

4. Rain Water Harvesting

Has implemented Rooftop Harvesting, Storm water Harvesting & Open area Harvesting.5. The Green Supply Chain

Has started Green Vendor Development Program for the front end and a Green DealerDevelopment Program for the back end of the supply chain where partners' are expected

to manage their environment involving material resources, industrial wastes, energy

resource, pollution

6.Stakeholder Ties at the Grassroots

Rural development centre has been set up on 40 acres of land along the delhi-jaipur highway

With wide approach roads, clean water and education facilities for both adults andchildren-now nurtures a vibrant, educated and healthy community

Raman Munjal Vidya Mandir


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A modern senior secondary, CBSE affiliated co-educational school with over1200 students and 61 teachers.

Raman Munjal Memorial Hospital

Multi-specialty hospital equipped with latest diagnostic and surgical technology, Provides healthcare to the rural population in and around Dharuhera

Raman Munjal Sports Complex

Has basketball courts, volleyball courts, and hockey and football grounds, used bythe local villagers

Adult Literacy Mission

Launched on 21st September, 1999, covering the nearby villages of Malpura,Kapriwas And Sidhrawali.

Marriages Of Underprivileged Girls

Marriages are organized from time to time, Particularly for girls from backward classes, providing financial help and other

support to the families.

Rural Health Care

Provides doorstep health care services to the local community, free health careand medical camps are now a regular feature in the hero group's community

outreach program

Vocational Training Centre

26 batches comprising of nearly 625 women have been trained in tailoring,embroidery and knitting.

Promotes self- employment in women.


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Safe Ride Program

Educating individuals in order to promote road safety Conduct timely safe ride programs. Developed a product information safety module BE A HERO HONDA GOOD RIDER focuses on Bike Education

OUTREACH PROGRAM:

Dharuhera , Haryana - National Economic Mainstream Barkot , Haridwar - Industrial Traning Institute - Learning Centre Surjanwas village - Technical Centre Gurgaon- Haryana Belt Collaborations:

Ignou Microsoft & Udyan Care

HAMARI ASHA

An educational program for village children who are first generation learners andattend govt. Schools

Objective is to provide these children with additional support to improve theireducational standard and to achieve their overall development.

Started three years ago and currently, 10 centres are being managed across 8villages, and more than 385 children have enrolled.

hero overview nd products

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