Case Study of Hero Motorcop

7/29/2019 Case Study of Hero Motorcop

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INTRODUCTION

The Indian Two Wheeler Industry

The Indian two wheeler sector contributes the largest volumes amongst all the

segments in automobile Industry. Though the segment can be broadly categorized

in to 3-sub segments viz; scooters, motorcycles and mopeds; some categories

introduced in the market are a combination of two or more segments e.g. scooter

and stepthrus. The market primarily comprises five players in the two wheeler

segment with most of the companies having foreign collaborations with well

known Japanese firms earlier. But with most of the companies now planning 100%

subsidiaries in India.

In the last four to five years, the two-wheeler market has witnessed a market shift

towards motor cycles at the expense of scooters. In the rural areas, consumers have

come to prefer sturdier bikes to with stand the bad road conditions. In the process

of the share of motor cycle segment has grown from 48% to 58%, the share of

scooters declined drastically from 33% to 25%, while that of mopeds declined by

2% from 19% to 17% during the year 2009-10. All new vehicles are a now being

replaced by 4 stock motorcycles. Reduced excise duties and fierce competition has

led to a fall in prices of certain models.

Hero, a name synonymous with two wheelers in India, began its journey around

four decades ago. Starting as a manufacturer of by cycle components, hero has

today grown into a multiunit, multi-product, geographically diversified group of

companies.

The hero group began with simple Philosophy: to provide excellent transportation

to the common man, at a price he could easily afford. Even today the dream

providing the total satisfaction is all its sphere of activity. To consumers, in

excellent products at an affordable price; a thorough understanding the fast


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changing consumer understanding the fast changing consumer behaviour, new

market segment and opportunities, and marketing mix sensitive changing customer

needs from the core of Heros marketing strategy and philosophy.

Hero Moto Corp. is one of the leading companies in the two wheeler Industry. At

present, it is segment with around 47% the market share during financial yr. 2000-

01. The company ahs emerged one of the most of successful players, much ahead

of it competitors by it superior and reliable product quality complemented with

excellent marketing techniques.

Hero Moto Corp has been an early entrant in the 4-stroke segment of the two

wheeler industry. With a right mix of product styling and pricing the company has

graped the 4-stoke market as compared to Bajaj Auto and TVS.

TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent

as a low cost transportations and provide a tremendous potential is all parts of

India. However the company is likely to face threat Bajaj Auto Ltd (BAL) which

continued its price based competitions and Hero Moto Corp cycle and Scooter Ltd.

a new entrants in the 2 wheeler market.

Infact the company has achieved excelled the Industry growth rates by a huge

margin. From April to December 2008 while the motor cycle industry sales were

upto 38.68% TVS motors sales surged by a whooping 73.6% sat more importantly

it is the success of its model Victor.

Baja Auto has continued with its impressive performance witnessing significant

growth is the motor cycle and three wheeler segments. Based on the performance

fill data one can expect the company to meet it excellence by FY09.

Hero Moto Corp is the largest player is the motorcycle segment. Focused on

contemporary design and style, the company has a compare leusine ranges bikes

viz;

CD-100 DX


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CD-100 SS

Splendor

Street Smart

Steek

CBZ

Passion

It splendor model is an urban centric with its fuel efficiency which accounts to

over 60-70% of its sales. The passion launched in mid Jan. 2001 has a resending

success contributing to 26% of its sales.

TVS offers a wide ranges of two-wheelers motorcycles- Victor/Fiero/Max100/

max100R/Max DL.

Scooterette- TVS scooty

Moped- chap/XL/XL super/XL supper HD/sports.

TVS plans to launch 4 new models in the coming 15 months. A 4-stroke version of

Indias best selling scooterttes; TVS-scooty and 4-stroke version of the existing

moped line will be launched this year.

Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy their

needs. Its having 4-stroke single cylinder natural air cool the displacement of

engine is 111.6 CC having the engine power it 7-7 bhp at 7000 spm. The bike is

having a hydrometric disc brake in front wheel. Flash is an added future in the

bike.

In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-motorcycle

model, moped model, 3-three wheeler model.

But in the recent year Bajaj developed various model in the motorcycle segment

which providing good riding conditions is urban road as well as rater roads.

Scooter- cub/super/super FE/chetak/stride/Msl Priya.

Moped- Bajaj Sunny.


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Motorcycle- M-80/kawasaki RTZ/Kawasaki45 by 1993 and latest model are.

Eliminator/Pulsor180/Pulsor 150/Boxer/Caliber Crowa/Caliber

Sales performance of the player:

Hero Moto Corp repeated a y-o-y growth of 6.3% is its motorcycle sales for the

month of Jan 2006 at 1,45,708 units. Export during the month have surged almost

64% y-o-y. On a monthon-month basis the sales growth has been even higher up

16.5%.

MOTORCYCLE APRIL TO DEC

2010

APRIL TO DEC 20 % CHAN

INDUSTRY SAL 2897842 2089637 38.68INDUSTRY SAL 1281342 1026102 24.85

MARKET SHAR 44.21 49.11

Bajaj Auto: Bajaj auto has reported y-o-y growth of 19.8% in motorcycle sales for

Jan 2006 at 75059 units. On a month-on-month basis the growth is 8.8%. Export

performance continues to be impressive with 10,089 two and three wheelers

exported in Jan 2006, a growth of 98.6% y-o-y.

Two wheeler sales for the current year are up 6.8%. The growth is driven sharply

in the motor cycle sales upto 37% in two wheeler segment, the share of motor

cycle has jumped from 52.8% to 67.8% during the current year. this sharp growth

in the motor cycle can be attributed to the positive response received by its need

products and the encouraging performance of select existing model.

ES (UNITS) JAN 10 JAN 09 % CHANG APR-JAN APR-JAN 0 % CHAN

OTERS (GEARED) 20211 30233 -33.15 235829 348700 -32.37

OTER- UNGEARE 4349 4333 0.37 56072 57686 2.80

PTHRUS 4563 5810 -21.46 47636 59576 -20.04

ORCYCLE 75059 62640 19.83 717397 523508 37.04

AL 2-WHEELER 104182 103016 1.13 1056934 989470 6.82


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EE WHEELERS 17426 14405 20.97 163359 132864 22.95

AL 121608 117421 3.57 1220293 1122334 8.73

India is the second largest manufacturer and producer of two wheelers in the

world. It stands next only to Japan and China in terms of the number of two-

wheelers produced and domestic sales respectively. This distinction was achieved

due to variety of reasons like restrictive policy followed by the Government of

India towards the passenger car industry, rising demand for personal transport,

inefficiency in the public transportation system etc.

The Indian two-wheeler industry made a small beginning in the early 50s when

Automobile Products of India (API) started manufacturing scooters in the country.

Until 1958, API and Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa Scooters and three-wheelers.

Finally, in 1960, it set up a shop to manufacture them in technical collaboration

with Piaggio of Italy. The agreement expired in 1971.

In the initial stages, the scooter segment was dominated by API, it was later

overtaken by Bajaj Auto. Although various government and private enterprises

entered the fray for scooters, the only new player that has lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate in

India. It was a complete seller market with the waiting period for getting a scooter

from Bajaj Auto being as high as 12 years.

The Motorcycles segment was no different, with only three manufacturers viz

Enfield, ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa

and the Rajdoot were two-stroke bikes. The motorcycle segment was initially

dominated by Enfield 350cc bikes and Escorts 175cc bike.

The two wheeler market was opened to foreign competition in the mid-80s. And

the then market leaders- Escorts and Enfield were caught unaware by the onslaught

of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of


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fuel efficient low power bikes, demand swelled, resulting in Hero Moto Corp then

the only producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki

and Hero Moto Corp brought in the first two-stroke and fourstroke engine

motorcycles respectively. These two players initially started with assembly of

CKD kits, and later on progressed to indigenous manufacturing. In the 90s the

major growth for motorcycle segment was brought in by Japanese motorcycles,

which grew at a rate of nearly 25% CAGR in the last five years.

The Industry had a smooth ride in the 50s, 60s and 70s when the Government

prohibited new entries and strictly controlled capacity expansion. The industry saw

a sudden growth in the 80s. the industry witnessed a steady growth of 14% leading

to a peak volume of 1.9mn vehicles in 1990.

The entry of Kinetic Hero in mid-eighties with a variometric scooter helped in

providing ease of use to the scooter owners. This helped in inducing youngsters

and working women, towards buying scooters, who were earlier inclined towards

moped purchases. In the 90s, this trend was reversed with the introduction of

scooterettes. In line with this, the scooter segment has consistently lost its part of

the market share in the two-wheeler market.

In 1990, the entire automobile industry saw a drastic fall in demand. This resulted

in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4

mn vehicles. Barring Hero Moto Corp , all the major producers suffered from

recession in FY93 and FY94. Hero Moto Corp showed a marginal decline in 1992.

The reasons for recession in the sector were the incessant rise in fuel prices, high

input costs and reduced purchasing power due to significant rise in general price

level and credit crunch in consumer financing. Factors like increased production in

1992, due to new entrants coupled with the recession in the industry resulted in

companies either reporting looses or a fall in profits.


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India is one of the very few countries manufacturing three- wheelers in the world.

It is the worlds largest manufacturer and seller of three-wheelers. Bajaj Auto

commands a monopoly in the domestic market with a market share of above 80%,

the rest is shared by Bajaj Tempo, Greaves Ltd and Scooters India.

The total number of registered two wheelers and three-wheelers on road in India,

as on March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler

population has almost doubled in 1996 from a base of .6mn in 1990.

Automobile Industry in India TVS Centra crosses an astounding 20,000 sales mark

in 40 days Hosur, March 6, 2006: TVS Motor Company today announced that the

sales of TVS Centra, powered by the indigenously developed Variable Timing

Intelligent (VT-i) engine technology crossed 20,000 units in just 40 days since its

launch in mid January 2004, the best ever clocked by any new product from the

TVS Motor Company stable. This achievement is expected to spiral the overall

growth of TVS Motorcycles sales in the coming months.

The impressive sales figures reflect the customer's faith in the technological

capability of TVS Motor Company to fully live up to its promise of delivering a

world-class product at an affordable price. Due to excellent customer feedback

across the country, TVS dealers are being pressurised with enquiries on the new

100 CC 4 Stroke Centra and its revolutionary VT-i engine technology. Having

caught the public's imagination, TVS Centra has fully lived up to its promise of a

'Fill it Once a Month Bike' where a full tank of petrol lasts for a month based on

the average use of motorcycle customers.

A panel of leading auto experts in India, after having tested TVS Centra, have

endorsed the fact that it was the 'best in its class' and also commended TVS Motor

Company on its technology prowess and innovation.

TVS Centra is powered by VT-i engines which are designed to deliver superb

performance on fuel efficiency and torque delivery based on three fundamental


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actions namely variable ignition timing and superior combustion of fuel, friction

reduction and fuel wastage reduction.

Added to its technological edge are features that include attractive price, fuel

efficiency, low maintenance, contemporary style, ride comfort and backed by TVS

Motor Company's reliability, making it truly the preferred two-wheeler in its class.

Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor

Company's commitment to produce the best technology in its products for its

customers has led to the launch of TVS Centra with Variable Timing intelligent

engines

(VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment.

This revolutionary new VT-i engine technology, developed indigenously by TVS

Motor Company, inbuilt into TVS Centra will make it the most fuel-efficient

motorcycle in the Country. It will be rightfully called as the 'Fill it Once a Month

Bike' where a full tank of petrol will last for a month based on the average use of

motorcycle customers.

The VT-i Engines by TVS Motor Company will go down in the history of the

Automobile Industry in India as one of the most innovative technology

developed indigenously. The VT-i engines are designed to deliver superb

performance on fuel efficiency and torque delivery based on three fundamental

actions namely variable ignition timing and superior combustion of fuel, friction

reduction and fuel wastage reduction. This action facilitates deceleration fuel cut

off, faster warm up of the Engine and has four curve ignition mapping

Like all TVS Motor Company products, TVS Centra too has been engineered and

designed keeping in mind extensive customer feedback and changing customer

needs. TVS Centra will be the first motorcycle in India that will bundle price,

mileage, maintenance, style, reliability, power, ruggedness and ride comfort

making it truly a value for money personal transportation two-wheeler. Those who


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want all these performance attributes in a commuter motorcycle at a great price;

nothing will beat the TVS Centra for all the advantages it offers.

TVS Centra is built around to give a mileage that will offer atleast 10 per cent

more than any other motorcycle in the country, today. It will be powered by 7.5

Brake HorsePower (Bhp) at 7250 RPM making it the most powerful motorcycle in

its class. TVS Centra will also be known for its nimble handling and riding comfort

enabling easy maneuvering even in busy city traffic. Its contemporary style with

big muscular tank and well-rounded looks with a horizontal engine and superior

ergonomics will mark a new standard in the popular segment of two wheelers. It

will come with Econometer to keep a check on the mileage / power ratio, wide and

skid free seat and Utility space.

Victor the Saviour

TVS launched Victor 110 cc model in September 2001, with leading cricketer

Sachin Tendulkar as the brand ambassador the model has proved to be a big

success. The success of TVS Victor is especially significant because it was

developed with indigenous technology.


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Two stroke Max RangeOn the way out

The company is currently looking forward to phase out its two stroke Max range,

which is perceived to be less fuel efficient with a new four stroke range. The

change over is expected to take place by the end of June 2010.

Two new launches could out TVS on a high growth trajectory

TVS Centra

TVS Centra a new 100 cc model has recently been launched and the company has

set ambitions targets of achieving monthly sales in the range of 15000-20000 bikes

per month.

Also, a new upgraded 125 cc TVS Victor has been launched which will improve

the trajectory of the company.

Three Wheeler Project- Entering A New Market

TVS Motor has set the stage for entry into the three-wheeler markets with the

setting up of a new plant at Nanjangud, near Mysore in Karnataka. We understand

that the company would be targeting the sub-one ton passenger and goods carriers

segment of the market.

With an investment of about Rs 50 crore in phase-1, it will cater to both passenger

and cargo segments. The total investments for the three wheeler and four-wheeler

quardricycle project are expected to be in the range of Rs 500 crore in the next

two-three years. It plans to go with petrol version of three wheelers and expects

higher demand to come from B class towns. The company expects higher margin

and low competition in three-wheeler business as compared to its two-wheeler

business. Three wheeler sales have grown at a CAGR of 7% over the last 9 years to

2.26 lakh units FY 03, and are expected to grow at the same rate for the next five

years. TVS is expected to roll out its first three-wheeler by the end of FY05 to

garner a 30% market share with around 100,000 unit sales by the end of FY08.

Three-Wheeler Market Scenario


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These are two main segments in the Indian passenger three -wheeler markets are:

Number of seats including driver not exceeding 4 and maximum max not

exceeding 1 tonne.

Number of seats including driver excluding 4 but not exceeding 7 max mass not

exceeding 1.5 tonnes.

The three-wheeler goods carrier segments are:

Maximum mass not exceeding 1 tonne Others.

Around 95% of the three-wheeler sold in India belong to the smaller vehicles

category in which Bajaj Auto is the major player and has around 90% market

share. The other players in the segment are Atul Auto and Piaggio group, Italy.

Similarly, in the three-wheeler segment, domestic sales of the goods carrying

variety grew a whopping 46.95%. This growth in 2008-09 could have possibly

come from two factors.

1) The increasing number of cities whose corporations have legislated that larger

goods carrier, like trucks be kept out for logistics purpose.

2)The increase in the number of offerings in this category, especially from

companies such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.

Quardricycle-A new introduction in the Indian market

There is a new challenger emerging in the Quardricycle segment. These new

vehicles could impact on the entry level sales. These new vehicle could impact on

the entry level sales. Quardricycles are three wheelers converted into four wheelers

by using, a column axle. All the major three-wheeler units have prepared

Quardricycles prototypes.

Plans setting up manufacturing units in Indonesia / Vietnam

TVS motor is actively looking to set up a foothold in the south east Asian markets

and has made top level visits to Indonesia & Vietnam. Indonesia is the third largest

two-wheeler market in the world with an estimated size this year of two million


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units. Presently in Indonesia there is one motorcycle for every 15 people, in

Vietnam one for every seven people. Further in Indonesia forty million households,

representing 86% of the total not having a motorcycle.

Merger of engine components Division of Lakshmi Auto components with TVS

Motor:

TVS motor would merge engine component division of Lakshmi Auto Component

Ltd. (LAC) and investments and other assests with itself and the dwap ratio has

been fixed at once phase of TVS motor for every seven share held as consideration

for the merger. Presently TVS motor holds 66.5% of equity capital of LAC, which

would be cancelled. Around 66% of LACs sales come from the engine

components division, mode of which is currently being sold to TVS motor. LACs

total net sales in HI FY 09 were Rs. 69 crore and made anet profit of Rs. 10.5

crore..

The Plastics and Rubber components division of LAC will be transferred to the

wholly owned subsidiary company, Sundaram Auto Components Ltd. The total

consideration on slumpsale based is Rs. 12.25 crore.

Strong focus on R&D

The company has put in place a strong R & D team consisting 400 engineers & is

spending about 3% of its turnover on R & D every year and has in the process

setup a strong world class facility for product design and development. During

2009-10, the company applied for 16 patents & published five technical research

papers in international conference. Modified research projects are carried in

association with leading international research labs and Indian institutes. R & D as

percentage of sales in expected to increase from 1.5% in FY o2 to 3.2% in FY 11.

Valuation

The companys valuations are dependent on five events:

Current four businesses grow at the normal industry growth rates.


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New product launches achieve their targets and are well accepted by themarket.

Three wheeler foray achieve targeted volume in the desired rates of returnon capital employed.

Quadricycle foray achieve the desired rate of return on the capital employed. Overall investment returns. In TVS motor company VICTOR is the most popular bike and very

interestingly without any media interaction FIERO F2 has taken the 2nd spot

with CENTRA on the 3rd spot which has taken a lead with only one place

from MAX-R .It is recommended that FIERO F2 should be given equal salespromotion than CENTRA because of its popularity has come through people

network and not through channel media.


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COMPANY PROFILE

Fill it. Shut it. Forget it

What started out as a Joint Venture between Hero Group, the world's largest

bicycle manufacturers and the Hero Moto Corp Company of Japan, is today the

leading manufacturer of India's largest selling motorcycle. Coming into existence

onJanuary 19, 1984. Hero Moto Corp gave India nothing less than a revolution on

two-wheels made even more famous by the 'Fill it - Shut it - Forget it' campaign.

Driven by the trust of over 30 lakh customers, the Hero Moto Corp product range

today commands as much as 47% making it a veritable giant in the industry. Add

to that technological excellence, an expansive dealer network, and reliable after

sales service, and you have one of the most customer-friendly companies.

In fact, every second bike sold in India today is a Hero Moto Corp ! Customer

satisfaction, a high quality product, the strength of Hero technology and the Hero

group's dynamism have helped HML scale new frontiers and exceed limits.

In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director,

"We will continue to make every effort required for the development of the

motorcycle industry, through new product development, technological innovation,

and investment in equipment and facilities and through and through efficient

management."


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MILESTONE

KEY MILESTONES OF HERO MOTO CORP

Year Event

1983 Joint Collaboration Agreement with Hero Moto Corp, Ltd.,

1984 Hero Moto Corp. Incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle

produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of

founder

1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle

produced

1997 New motorcycle model - "Street and 2nd manufacturing plant at Gurgoan

inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced Environment Management

System of Dharuhera Plant certified with ISO-14001 by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory

of founder Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced Environment Management System of

Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared

'World No. 1' - largest selling single two-wheeler model " Hero Moto Corp

Passport Programmed" - CRM Programmed launched


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2001 New motorcycle model - "Passion" introduced One million production in

one single year New motorcycle model - "Joy" introduced 5,000,000th

motorcycle produced

2002 New motorcycle model - "Dawn" introduced New motorcycle model -

"Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif,

Yuvraj Singh as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales

mark Splendor has emerged as the World's largest selling model for the third

calendar year in a row (2000, 2001, 2002) New motorcycle model - "CD

Dawn" introduced New motorcycle model - "Splendor +" introduced New

motorcycle model - "Passion Plus" introduced New motorcycle model -

"Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced Hero Moto Corp

became the World No. 1 Company for the third consecutive year. Crossed

sales of over 2 million units in a single year, a global record. Splendor -

World's largest selling motorcycle crossed the 5 million mark New

motorcycle model - "CBZ*" introduced Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

2005 Hero Moto Corp is the World No. 1 for the 4th year in a row New

motorcycle model - "Super Splendor" introduced New motorcycle model -

"CD Deluxe" introduced New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced First Scooter model from

Hero Moto Corp - "Pleasure" introduced

2006 Hero Moto Corp is the World No. 1 for the 5th year in row Fill it. Shut it.

Forget it


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The joint venture between india's hero group and Hero Moto Corp company, has not

only created the world's single largest two wheeler company but also one of the most

successful joint ventures worldwide.

During the 80s, Hero Moto Corp became the first company in india to prove that it was

possible to drive a vehicle without polluting the roads. The company introduced new

generation motorcycles that set industry benchmarks for fuel thrift and low emission. A

legendary 'fill it - shut it - forget it' campaign captured the imagination of commuters

across india , and Hero Moto Corp sold millions of bikes purely on the commitment of

increased mileage

Over 20 million Hero Moto Corp two wheelers tread indian roads today. These are

almost as many as the number of people in finland , ireland and sweden put together!

Hero Moto Corp has consistently grown at double digits since inception; and today,

every second motorcycle sold in the country is a Hero Moto Corp. Every 30 seconds,

someone in india buys Hero Moto Corp's top -selling motorcyclesplendor. This festive

season, the company sold half a million two wheelers in a single montha feat

unparalleled in global automotive history.

Hero Moto Corp bikes currently roll out from its three globally benchmarked

manufacturing facilities. Two of these are based at dharuhera and gurgaon in haryana and

the third state of the art manufacturing facility was inaugurated at haridwar, uttrakhand in

april this year. These plants together are capable of producing out 4.4 million units per

year.

Hero Moto Corp 's extensive sales and service network now spans over 3000 customer

touch points. These comprise a mix of dealerships, service and spare points, spare parts

stockiest and authorized representatives of dealers located across different geographies.

Hero Moto Corp values its relationship with customers. Its unique crm initiative - Hero

Moto Corp passport program, one of the largest programs of this kind in the world, has

over 3 million members on its roster. The program has not only helped Hero Moto Corp


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understand its customers and deliver value at different price points, but has also created a

loyal community of brand ambassadors.

Having reached an unassailable pole position in the indian two wheeler market, Hero

Moto Corp is constantly working towards consolidating its position in the market place.

The company believes that changing demographic profile of india , increasing

urbanization and the empowerment of rural india will add millions of new families to the

economic mainstream. This would provide the growth ballast that would sustain Hero

Moto Corp in the years to come. As brijmohan lall munjal, the chairman, Hero Moto

Corp motors succinctly points out, "we pioneered india's motorcycle industry, and it's

our responsibility now to take the industry to the next level. We'll do all it takes to reach

there.''

HERO MOTO CORP'S MISSION

Hero Moto Corps mission is to strive for synergy between technology, systems and

human resources, to produce products and services that meet the quality, performance

and price aspirations of its customers. At the same time maintain the highest standards of

ethics and social responsibilities.

This mission is what drives Hero Moto Corp to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO MOTO CORP 'S MANDATE

Hero Moto Corp is a world leader because of its excellent manpower, proven

management, extensive dealer network, efficient supply chain and world-class products

with cutting edge technology from Hero Moto Corp Company. The teamwork and

commitment are manifested in the highest level of customer satisfaction, and this goes a

long way towards reinforcing its leadership status.

FROM THE CHAIRMAN'S DESK LEADING WITH A DREAM

We had a dream. The dream of making motorcycles that would touch and transform the

lives of our customers by giving them a mode of transport that was fuel-efficient,


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comfortable and environment friendly. One that would enhance their efficiency at work,

enable them to share moments of joy with their families and add up to a better quality of

life.

In a scenario where the customer had a few choices, our vision was to offer the highest

quality at a reasonable price, to meet our customers expectations, and to exceed them.

Behind the success of Hero Moto Corp, is the saga of team-work. We would like to

acknowledge the role played by our jv partners, Hero Moto Corp company, all our

business associates, shareholders and employees.

In the new millennium, we stand committed to innovation, to change, to achieving

breakthroughs to moving forward in the new century, while retaining the values that

have been like a beacon in this journey thus far.

2007

-Hero Moto Corp. has appointed Mr. Yutaka Kudo as Director andWhole-time Director of the Company in the category of Executive

Director w.e.f. April 1, 2007.

- Hero Moto Corp is the World No. 1 for the 6th year in a row

- New 'Splendor NXG' launched

- New 'CD Deluxe' launched

- New 'Passion Plus' launched

- New motorcycle model 'Hunk' launched

- 20 million production milestone achieved

2008

- Hero Moto Corp has informed that Mr. Arun Nath Maira. has been appointed as

an Additional Director in the category of Non Executive and Independent Director

w.e.f. December 20, 2008 by the Board of Directors by way of passing a resolution

by circulation.

- Hero Moto Corp Haridwar Plant inauguration


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- New 'Pleasure' launched

- Splendor NXG lauched with power start feature

- New motorcycle model 'Passion Pro' launched

- New 'CBZ Xtreme' launched

- 25 million production milestone achieved

- CD Deluxe lauched with power start feature

- New 'Glamour' launched

- New 'Glamour Fi' launched

2010

- Hero Moto Corp has appointed Mr. Ravi Nath as an Additional Director in the

category of Non Executive and Independent Director w.e.f. October 14, 2010 by

the Board of Directors by way of Passing a resolution by circulation on October

14, 2010.

BOARD OF DIRECTORS

No. Name of the directorscategory of directorship

1 Mr. Brijmohan Lall Munjal

Chairman & whole-time director

2 Mr. Pawan Munjal managing director

3 Mr. Toshiaki Nakagawa joint managing director

4 Mr. Yutaka kudo whole-time director

5 Mr. Om prakash munjal non-executive director

6 Mr. Sunil kant munjal non-executive director

7 Mr. Masahiro takedagawa non-executive director

8 Mr. Takashi nagai non-executive director

9 Mr. Narinder nath vohra non-executive & independent director

10 Mr. Pradeep dinodia non-executive & independent director

11 Gen.(retd.) Ved prakash maliknon-executive & independent director
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12 Mr. Analjit singh non-executive & independent director

13 Dr. Pritam singh non-executive & independent director

14 Ms. Shobhana bhartia non-executive & independent director

15 Mr. Sunil bharti mittal non-executive & independent director

Hero Moto Corp is the world no. 1 for the 5th year in a row

PROMINENT AWARDS TO THE COMPANY

Year Awards & recognitions

2008 dtv profit car india & bike india awards - bike manufacturer of th

Overdrive magazine - bike manufacturer of the year

Tns voice of the customer awards:

o.1 executive motorcycle splendor nxg

o.1 standard motorcycle cd deluxe

o. Premium motorcycle cbz xtreme

2007 The ndtv profit car india & bike india awards 2007 in the foll

category:

Overall "bike of the year" - cbz x-treme

"bike of the year" - cbz x-treme (up to 150 cc category)

"bike technology of the year" - glamout pgm fi

"auto tech of the year" - glamout pgm fi by overdrive ma

bike of the year" - cbz x-treme by overdrive ma

ranked cbz x-treme " bike of the year" - by b s motoring ma

most trusted company , by tns voice of the customer awards
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Cd deluxe rated as "no 1 standard motorcycle" by tns voice

customer awards 2006.

2006 Adjudged 7th top indian company by wallstreet journal asia (top i

two wheeler com

one of the 8 indian companies to enter the forbes top 200 list of w

most reputed comp

No. 1 in automobile industry by tns corporate social responsibility a

Best in its class awards for each category by tns total cu

satisfaction awards 2006:

Splendor plus (executive)

Cd deluxe (entry)

Pleasure (gearless scooters)

Splendor & passion - top two models in two wheeler category

brand equity survey 2006

Adjudged 7th top indian company by wallstreet journal asia (top i

two wheeler company)

Top indian company in the automobile - two wheeler sector by

bradstreet - american express corporate awards 2006

Hero Moto Corp splendor rated as india's most preferred two-w

brand at the awaaz consumer awards 2006.

Certificate of export excellence for outstanding export perfor

during 2003-04 for two-wheeler & three- wheelers - complete (no

by engineering export promotion council


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The ndtv profit car india & bike india awards 2006 in the foll

category:

Bike maker of the year

Bike of the year - achiever

Bike of the year - achiever (up to 150 cc category)

Bike of the year - glamour (up to 125 cc category)

dtv viewers' choice award to glamour in the bike category

2005 Awaaz consumer awards 2005 - india's most preferred two-w

brand by cnbc in the 'automobiles' category

Bike maker of the year award by overdrive magazine

Icwai national award for excellence (second) in cost management

in the private sector category by icwai

10th motilal oswal wealth creator award for as the most consistent

creator for the period 1991-2005

2004 Winner of the review 200 - asia's leading companies award (3rd

amongst the top 10 indian companies)

Gvc level 1 (highest rating) by crisil for corporate governance

Adjudged as the best value creator - large size companies 2003-04

outlook money

Corporate excellence award 2004 by indian institute of ma

management

Adjudged as the organization with innovative hr practices by htjobs for hr excellence

Icsi national award for excellence in corporate governance 2004

institute of company secretaries of india


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2003 Winner of the review 200 - asia 's leading companies award (3r


Most respected company in automobile sector by business world

Bike maker of the year by overdrive magazine

2002 Bike maker of the year by overdrive magazine

Winner of the review 200 - asia 's leading companies award (4t


Company of the year of et awards for corporate excellence

Ranked 4th in 'overall best managed company' category, ranked

'best financial management' and 'best operational efficiency' cat

ranked 6th in 'overall best investor relations' category, by asiamone

Highest wealth creating company of the year award by the money

Gvc level 1 (highest rating) by crisil for corporate governance

2001 Bike maker of the year by overdrive magazine

Winner of the review 200 - asia 's leading companies award (9t


Winner of three leaves award for showing corporate enviro

responsibility in the automobile sector by centre for scien

environment

1999 National productivity award for the best productivity award i

category of automobile & tractor presented by vice president of indi

1995 The analyst award 1995 presented to Hero Moto Corp. On being r

9th amongst the most investor rewarding companies in India

1995 National award for outstanding contribution to the development of I

small scale industry (nsic award - presented by president of India)


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1991 Economic times-harvard business school award for corporate

performance to Hero Moto Corp.

KEY POLICIES

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Moto Corp, our goal is not only to sell you a bike, but also to help you

every step of the way in making your world a better place to live in. Besides its

will to provide a high-quality service to all of its customers, Hero Moto Corp takes

a stand as a socially responsible enterprise respectful of its environment and

respectful of the important issues.

Hero Moto Corp has been strongly committed not only to environmental

conservation programmes but also expresses the increasingly inseparable balance

between the economic concerns and the environmental and social issues faced by a

business. A business must not grow at the expense of mankind and man's future

but rather must serve mankind.

"we must do something for the community from whose land we generate our

wealth."A famous quote from our worthy chairman mr.brijmohan lall munjal.

ENVIRONMENT POLICY

WE at Hero Moto Corp are committed to demonstrate excellence in our

environmental performance on a continual basis, as an intrinsic element of our

corporate philosophy.

TO ACHIEVE THIS WE COMMIT OURSELVES TO:

Integrate environmental attributes and cleaner production in all our business

processes and practices with specific consideration to substitution of hazardous

chemicals, where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility.


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Comply with all applicable environmental legislation and also controlling our

environmental discharges through the principles of "alara" (as low as reasonably

achievable).

Institutionalise resource conservation, in particular, in the areas of oil, water,

electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors, while

promoting their involvement in ensuring sound environmental management.

QUALITY POLICY

Excellence in quality is the core value of Hero Moto Corp's philosophy. We are

committed at all levels to achieve high quality in whatever we do, particularly in our

products and services which will meet and exceed customer's growing aspirations

through: Innovation in products, processes and services. Continuous improvement in

our total quality management systems. Teamwork and responsibility.

MISSION STATEMENT IN PURSUIT OF EXCELLENCE

We, at Hero Moto Corp, are continuously striving for synergy between technology,

systems, and human resources to provide products and services that meet the

quality, performance, and price aspirations of our customers. While doing so, we

maintain the highest standards of ethics and societal responsibilities, constantly

innovate products and processes, and develop teams that keep the momentum

going to take the company to excellence in the new millennium".

WE CARE FOR ENVIRONMENT

A philosophy closest to Hero Moto Corp is that which pertains to the environment,

which is why the company goes that extra step to ensure that each one of the high

technology 4-stroke Hero Moto Corp motorcycles meet the most demanding of

pollution norms at every level. This is a policy that the company has followed

since the very beginning.


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WE CARE FOR COMMUNITY

Hero Moto Corp is a company with a difference. Constantly involved in social

activities, spreading. Awareness about the community and environment, the

company has taken a giant step in the fields of Health care; Education;

Engineering; Environment and many more

International Marketing

Based on our own brand of globalization, they have built our distribution network

over 60 countries worldwide and multiplied our exports from 5 percent of total

turnover in Fiscal 2007-08 to over 15 percent in Fiscal 2010-11.

Motorcycles form the major chunk of the sales revenue of Hero Moto Corp. A

small proportion of the revenue comes from the sales of spares. The proportion of

sales revenue coming from each of these two segments in the FY10 is depicted in

the graph below:

MAIN OBJECTIVE OF COMPANY

Through the company has wide list goals to be achieved but the major objective of

the company has to achieve areas follows:-

1. To provide right product to right people at right time.2. Price should be reasonable; by this every level of person can afford the

product.

3. To maximize the share holders value by customer value enhancement.4. Changes should be according to prospective customer5. To provide delivery of standard product.

To provide value for money to there consumers


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REFERENCE & BIBLIOGRAPHY

1. Phillip Litler Marketing management (Prentice-Hall of India Pvt.).2. Harper W. Bayd, Ralph West Fall, and Stanley F. Stasch Marketing research (AITBS

Publisher 7

th

ed. 2001).3. A.G. Sawyer and Davied J Howard, Journal of Marketing research 1999.4. consumer Behaviour by Leon G. Schiffman and Leslie Lazar Kanuk (Fifth edition)5. Research Methodology by C.R. Kothari (Second Edition)

Documents

Case Study of Hero Motorcop