Report on Industrial Visit at

HERO MOTO CORP DHARUHERA

11TH NOVEMBER, 2017

For. ME Engineering Students

RAO PAHLAD SINGH COLLEGE OF ENGINEERING & TECHNOLOGY

Company Profile

Hero Group, India and Honda Motors, Japan on 19th January 1984 joined their hands together to

createa joint venture known as Hero Honda. Jointly they decided to cater to the two – wheeler

segment of the Indian Automobile Industry.

Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer

based in New Delhi, India. The company is the largest two-wheeler manufacturer in the world

and also in India, where it has a market share of about 46% in the two-wheeler category. The

2006 Forbes list of the 200 World's Most Respected Companies has Hero Honda Motors ranked

at 108.On 31 March 2013, the market capitalization of the company was 30,800

crore (US$4.8 billion).

History

Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes

called Hero Group, not to be confused with the Hero Group food company of Switzerland) of

India and Honda of Japan In 2010, when Honda decided to move out of the joint venture, Hero

Group bought the shares held by Honda.Subsequently, in August 2011 the company was

renamed Hero MotoCorp with a new corporate identity.

In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent

Hero Investment Pvt. Ltd. with the automaker. This decision came 18 months after its split from

Hero Honda.

"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 at Dharuhera, India. Munjal family and Honda group

both owned 26% stake in the Company.

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. In 2001, the company became the largest two-wheeler manufacturing

company in India and globally. It maintains global industry leadership to date.The technology in

the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come

from the Japanese counterpart Honda.

Termination of Honda joint venture

By December 2010, the board of directors of the Hero Honda Group had 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 Nepal, Bangladesh and Sri Lanka)

and the termination would mean that Hero Group could now export. Since the beginning, the

Hero Group relied on their Japanese partner Honda for the technology in their bikes.

The Japanese auto maker will exit the joint venture through a series of offmarket transactions by

giving the Munjal family—which held a 26% stake in the company—an additional 26%. Honda,

which also has an independent fully owned two-wheeler subsidiary—Honda Motorcycle and

Scooter India (HMSI)—will exit Hero Honda at a discount and get over 6,400 crore 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 December 16, 2010.

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 from Honda's

reluctance 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 of Hero Honda (mainly

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

fully owned subsidiary Honda 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 include Warburg

Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Formation of Hero MotoCorp

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp

Limited on 29 July 2011. The new brand identity and logo of Hero MotoCorp were developed by

the British firm Wolff Olins.The logo was revealed on 9 August 2011 in London, to coincide

with the third test match between 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.

On 21 April 2014, Hero MotoCorp announced their plan on a 254 crore (US$40 million) joint

venture with Bangladesh's Nitol Niloy Group in the next five years. also hero updated its 100cc

engine range in 2014 for 100cc bikes except hero dawn.

49% stake in Erik Buell Racing

In July 2013, HMC acquired 49.2% shareholding in Erik Buell Racing, a motorcycle

sport company which produced street and racing motorcycles based in East Troy, Wisconsin,

United States. EBR filed for bankruptcy in 2015 and Hero Motocorp proceed to acquire certain

assets for ₹18.2 crore (US$2.8 million).

Operations

Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurgaon, Neemrana,

Haridwar and Halol under Green Field stage. These plants together have a production capacity of

76 lakh+ 2-wheelers per year. Hero MotoCorp has a sales and service network with over 6,000

dealerships and service points across India. It has a customer loyalty program since 2000, called

the Hero Honda Passport Program which is now known as Hero GoodLife Program.

It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa,

AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a

majority of its components.

The company has a stated aim of achieving revenues of 64,000 crore (US$10 billion) and

volumes of 10 lakh two-wheelers by 2016–17. 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 in Nigeria by end-2011 or early-2012.

Current Products

Scooters

Pleasure

Duet

Maestro Edge

Motorcycles

HF Deluxe

HF Deluxe Eco

Splendor+

Splendor Pro

Splendor ismart 110

Super Splendor

Passion Pro

Passion i3s

Glamour

New Glamour

New Glamour FI i3s

New Glamour i3s

Glamour FI

Glamour Pro FI

Achiever

Xtreme Sports

Karizma ZMR

Discontinued

Motorcycles

Hero Honda CD100

Hero Honda CD100 Deluxe

Hero Honda CD100SS

Hero Honda CD Dawn 100

Hero Honda CD Deluxe 100

Hero Honda Dawn 100

Hero Honda Joy 100

Hero Honda Sleek 100

Hero Honda Street 100

Hero Honda Street Smart 100

Hero Honda Splendor 100

Hero Honda Passion 100

Hero Honda Passion Plus 100

Hero Honda CBZ 150

Hero Honda CBZ Star 150

Hero Honda CBZ Xtreme 150

Hero Honda Ambition 135

Hero Splender NXG 100

Hero Impluse 150

Hero Splendor ismart 100

Hero Splendor Classic 100

Hero HF Dawn 100

Hero Passion Pro TR 100

Hero Passion XPro 110

Hero Ignitor 125

Hero Hunk 150

Hero Xtreme 150

Hero Karizma 220

Hero Majestic/Hero Puch(Mopeds & Scooters)

Hero Effy

Hero Panther

Hero Panther 4s

Hero Pacer

Hero Gizmo

Hero Power

Hero Ankur

Hero Student

Hero Stepmatic

Hero Stalion

Hero Puch Automatic

Hero Puch Winner

Hero Puch Winner SL

Hero Puch Winner SLX

Hero Puch Sheriif

Hero Puch TurboSport

Hero Puch Shakti 2G

Hero Puch Maxwell

Company performance

The company has sold over 4.7 crore 2-wheelers since its inception in 1984 till March 2013. It

sold 60.7 lakh 2-wheelers in 2012, out of which 55 lakh were motorcycles. Hero Motocorp sells

more two wheelers than the second, third and fourth placed two-wheeler companies put

together. Its most popular bike Hero Honda Splendor sells more than ten lakh units per year.

In 2013, Hero MotoCorp registered best ever calendar year performance of more than 61 lakh

unit sales. By selling 6,25,000 units in the month of October, it became the first-ever

manufacturer to cross landmark 6 lakh unit sales in a month. In the last quarter of the year or say

in the festive season, the company sold more than 16 lakh units, while in non festive time in

April–May 2013, it managed to sell out quite good numbers of units 11 lakh.

Listings and shareholding

The equity shares of Hero Motocorp are listed on the Bombay Stock Exchange,where it is a

constituent of the BSE SENSEX index, and the National Stock Exchange of India,where it is a

constituent of the S&P CNX Nifty.

As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero

Motocorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares.Foreign

Institutional Investors hold approx. 30% shares in the company.

Shareholders (as on 31-Dec-2013) Shareholding

Promoter Group 39.92%

Foreign Institutional Investors (FII) 30.63%

Foreign Corporate Bodies 12.29%

Individual shareholders 06.44%

Insurance companies 05.38%

Mutual Funds / UTI 02.56%

Bodies Corporate 01.60%

Financial Institutions / Banks 00.53%

Others 00.60%

Total 100.0%

Employees

As on 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%).

It also had approx. 13,800 temporary employees on that date. The company had an attrition rate

of 5.1% in the FY 2012-13. The company spent ₹821 crore (US$130 million) on employee

benefits during the FY 2012-13.

Awards and recognition

The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in

the 7th position among the most trusted brands in India.

It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two Wheelers

Category at the Auto India Best Brand Awards 2012.

Initiatives

The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as

Hero Honda Motors Ltd., that looks after:

Raman Munjal Vidya Mandir (an educational institution)

Raman Munjal Memorial Hospital

BML Munjal University

During the financial year, the company spent 1.4 crore on corporate social responsibility.

A few glimpse of Industrial Visit

Student List for Hero Moto Corp. Industrial Visit

Sr No. College Roll No

Name of student Father's Name

1 14ME07 AMIT KUMAR SUMER SINGH

2 14ME39 KONARK SINGHAL DALIP KUMAR SINGHAL

3 14ME50 MD QYAMUDDINANSARI

ZAHIR HUSSAIN

4 14ME108 VIKAS VIKRAM SINGH

5 14ME122 AKSHAY VERMA KRISHAN KANT VERMA

6 L15ME130 RAHUL BRAHAM DEV

7 L15ME131 MANISH YASHODHAN

8 15ME03 AJIT YADAV SOHAN LAL

9 15ME20 HIMANSHU RAJPAL

10 15ME24 JITENDER RAJBIR SINGH

11 15ME30 MANDEEP SINGH KARAMVIR SINGH

12 15ME34 MITHLESH KUMAR MAHTO

FULU MAHTO

13 15ME37 MOHIT YADAV BIRENDER SINGH

14 15ME38 MONU YADAV OMPARKASH

15 15ME39 MUKESH BABU LAL

16 15ME40 NAVEEN LAKSHMAN

17 15ME46 PRADEEP KUMAR SAHANI

RAMJEE SAHANI

18 15ME49 RAHUL TULSI RAM

19 15ME50 RAHUL SAINI NIRANJAN LAL

20 15ME51 RAHUL SAINI HUKAM CHAND

21 15ME55 ROHIT PRADEEP KUMAR

22 15ME61 SHUBHAM GOYAL HARISH GOYAL

23 L16ME78 DINESH ASHWANI KUMAR

24 L16ME80 NITIN SAINI PREM CHNAD

25 16ME03 AKLESH CHOUDHARY ROSHAN LAL

26 16ME05 AMAN YADAV RAJENDER SINGH

27 16ME11 AMIT KUMAR HARI SINGH

28 16ME13 ANIL SOHAN LAL

29 16ME17 ANSHUL SURENDER KUMAR

30 16ME21 ASHWANI PRATAP SINGH

31 16ME34 GAURAV YADAV ABHEY SINGH YADAV

32 16ME37 HEMANT KUMAR RAJBIR

33 16ME39 ISHU RAMKISHAN

34 16ME42 KESHAV POHAP SINGH

35 16ME49 MANJEET BANWARI LAL

36 16ME75 ROHIT YADAV RAJESH KUMAR

37 16ME76 SACHIN KUMAR JAG DEV

38 16ME82 SANJEEV KUMAR RAM SINGH

39 16ME86 SONU LAMBA AJIT SINGH

40 16ME90 SUNIL KUMAR MAHTO MAHADEO MAHTO

Keeping the objective of bridging the gap between academia and industry Department of

Mechanical Engineering, organised an Industrial visit for B.tech Mechanical students to Hero

Moto Corp Ltd. at Dharuhera plant. To gain insight about the functioning within the industry will

definitely enlighten the students and will make them Industry prepared.The visit of RPS

Engg.college students was intended to help students understand various aspects of manufacturing

namely manufacturing operations and assembly lines by providing shop floor experience and

interaction with the Engineers, supervisors and operators of Hero Motocorp Ltd. The shop floor

experience also enriched the knowledge of the students about industrial safety and various safety

practices.

The students were briefed about the various manufacturing operations taking place inside the

company from the raw material to the complete manufacturing of the products like casting,

welding, machining, painting etc. The students were very enthusiastic to see the full assembly of

the bike in front of their eyes. Hero Motocorp is using JIT as a quality improvement technique

and students have seen this as their practical experience.

The Staff at Hero Moto Corp Ltd. was very cooperative and demonstrated the technical faculties

to their extent.The staff member of Hero Moto Corp Ltd. guided students on each and every

question with detailed answers. It is rightly said that “See & know” is better than “read & learn”.

Students really got the real exposure about company’s functioning after this visit. They got a

chance to transfer their theoretical knowledge to practical implication. This kind of visit will help

students to understand subject matter clearly. The students were also briefed about the job

opportunities for graduate engineers within Hero Moto Corp

Benefits

Developing better understanding amongst the students of the manufacturing Processes and

assembly of products.Understanding CNC Machines working and production rates.Sequencing

of operations on assembly lines leading to a higher production rate.Use of quality improvement

techniques.

Participation

A total of 40 students with Two Faculty Member joined the visit and gained experience and

industrial exposure.

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 MotoCorp two wheelers are manufactured across 4 globally benchmarked

manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in

the state of Haryana in northern India. The third and the latest manufacturing plant is based at

Haridwar, in the hill state of Uttrakhand.

Faculty Coordinators

Mr. Neeraj , Mr. Praveen

Conclusions and Suggestions

Visit to Hero Moto Corp was an amazing visit where the management and Engineering functions

were being practiced and it was a great experience going there. We can conclude that since Hero

has a good image attached to it, thus it should try and maintain its image, because in today`s time

the people and more brand conscious and look for value for their money and hence with such a

great brand name established for them, it is a real advantage to them and with this they can reach

to new heights

Thank You.

With Best Regards Mr.Rajesh Rana Asstt.Professor & Head Department of Mechanical Engineering Rao Pahlad Singh College of Engineering & Technology