herohonda history

8/14/2019 herohonda history

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brijmohan lal Munjal built

Hero Honda


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He was born in 1923 Lalpur district ofundivided Punjab.

He was from a simple middle-class

Hindufamily. He has 3 brothersDayanand, Satyanand, and Om. After completing his formal education

he worked at the Army OrdnanceFactory

Their familys traditional business wasvegetable trading.

He decided to set up their new business-- trading in bicycle components.
http://en.wikipedia.org/wiki/Hinduhttp://en.wikipedia.org/wiki/Hindu


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There were no spare parts ofbicycles(1940s) at that time.Theyhave to simply replace the bicycle

with the new ones. . With the help of some artisans in

Sialkot, Amritsar and Lahore, BMMunjal started the business of making

cycle spare components in a verycrude way.

In 1943, due to partition of India and itsfrightening consequences,made his

business shift from Lahore to


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Four years after the business shiftedto Amritsar political climate in

Amritsar made them to shift thebusiness again -- this time toLudhiana.

In Ludhiana, there is this communitycalled Ramgarhias. They are bornartisans.

There they had already started

manufacturing certain parts andwhen some munjal bought themthe samples and the possibility of

selling them -- it became a very


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India at that moment in time, a countryracked by famines and droughts, nofriends in the world, no foreign

exchange, no reserves. Nehru the prime minister invited

entrepreneurs to build the economy

of the country. Many entrepreneurs took the

opportunity, amongst them werebicycle makers, bicycles were in big

demand at that time. . . groups like


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There were plenty of challenges, theforemost among which was to procurea manufacturing licence.

Manubhai Shah was the industry and

commence minister between 1950and 1954. He somehow got convincedwith the proposal made by munjal.

What set the Munjal brothers apart fromtheir contemporaries like the Birlaswith Hind Cycles was theirgumption(determination ) and the

ability to swing tides in their favour.


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Brijmohan Lal started travelling

across the length and breadth ofIndia, scouting for new possibilities.It was during one such trip that hegot the idea to manufacture

bicycles. It was during one such trip that he

got the idea to manufacturebicycles. He went to Germany,

Japan and started bringing in themodern equipment formanufacturing bicycle components.

He bought a complete chain-making


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It seemed that the good times had finallyarrived; tragedy struck munjal brothers.

In 1968, the eldest of the Munjals brothers,Dayanand, died

He was person who had guided and protected

his brothers from all the evils of the big badworld of business.

This loss left a vacuum that would be verydifficult to fill, but the brothers weredetermined not to let his dreams die.

The Munjals bounced back from the tragedywith a more focussed look at their long-term

expansion strategy.


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In 1971 the Munjals had set up a rim-making division forHero Cycles

They have also launched another company called HighwayCycles that would make freewheels.

Within a span of 6-7 years, production at the Hero Cyclesplant doubled and in 1975 it became the largestmanufacturer of bicycles in India.

Despite a long drawn track record of multiple tie-ups andexpansion, the Hero Group has always relied ontechnologies developed by international companies.

A strategy that has held the Munjals in good stead for 50


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In the late 70s, the indian governmentgave licenses for Indian companies toventure into mopeds .

Brijmohan Lal, who had seen mopedson the roads in Western countries,quickly snapped up the opportunity.

He has released the first moped intothe market by the name MajesticAuto and it has had captured almost35% of the Indian moped market.

The business began to expand and todiversify -- they went into textile

spinning, they went into financialservices.Although all were notsuccessful.


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http://www.heromajestic.com/hero_stallion.htmhttp://www.heromajestic.com/HERO_PANTHER_4SDLX.htmhttp://www.heromajestic.com/hero_gizmo.htmhttp://www.heromajestic.com/hero_panther.htmhttp://www.heromajestic.com/http://www.herogroup.com/


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(1980s) The mopeds first megamilestone of the hero was thedecision to join hands with the

Japanese automobile giant, Honda.And thus Hero Honda was born.

At that time bajaj is the monopoly inscooters. At that time the order ofthe scooter has taken 12-15 yearsto reach the customer.

In April 1985 ,the first 100 cc Hero

Honda motorcycle with the sloganFill it, shut it, forget it .

As the world's biggest single bicyclemaker hero group went intoGuinness Book of World Record


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Hero Honda had already emerged asthe number one manufacturer in Indiaand compelled competitors like Bajaj

Auto to reinvent their strategy fromscooters to motorcycles.

In 1990, Hero Honda Motors made Rs1,000 for every bike it sold and that

lead to an annual profit of $10 million. But silver clouds are often followed by

dark ones. Raman Kant Munjal,Brijmohan's elder son "When he diedsuddenly it was a massive shock toBM Munjal.

Though he lost his brother and his son

he didnt loose his determination.


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83-year-old Brijmohan Munjal is

steady in his dedication towards hiswork. He built it hero honda empire,all with his hard work.

Now hero honda has 5,000 dealersacross the country with an annualturnover of Rs 10,000 crore.

Highs and lows, rewards andbacklashes have all been a part ofthe Hero Group's corporatestory.Downfalls didn't discourage,

nor did losses kill the spirit of


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Conclusion

what we can conclude by seeingmunjal is

Not all dreams come true, not alldecisions lead to profit nor allopportunities to success, but inbusiness, what matters is the

ability to have the courage to thinkbig.

herohonda history

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