hero motocorp ltd
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Hero Motocorp Ltd
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. In India, it has a market share of about 46%
share in 2-wheeler category. The 2006 Forbes 200 Most Respected companies list
has Hero Honda Motors ranked at #108. On 31 March 2013, the market
capitalisation of the company was INR 308 billion (USD 5.66 billion).
Hero Honda started in 1984 as a joint venture between Hero Cycles 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. into the automaker. The decision comes after
18 months of its split from Honda Motors.
History
"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
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
company became the largest two-wheeler manufacturing company in India and
globally. It maintains global industry leadership till 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.
1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)
1975—Hero Cycles becomes largest bicycle manufacturer in India.
1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
1984—Hero Honda Motors Ltd. incorporated
1985—Hero Honda motorcycle CD 100 launched.
1989—Hero Honda motorcycle Sleek launched.
1991—Hero Honda motorcycle CD 100 SS launched.
1994 – Hero Honda motorcycle Splendor launched.
1997—Hero Honda motorcycle Street launched.
1999 – Hero Honda motorcycle CBZ launched.
2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.
2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition
launched.
2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor
plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle
Karizma launched.
2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle
CBZ Star launched.
2005—Hero Motocorp SuperSplendor, Hero Honda motorcycle CD Deluxe,
Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero
Honda Scooter Pleasure.
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
2007—New Models of Hero Honda motorcycle Splendor NXG, New Models
of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda
motorcycle Passion Plus andHero Honda motorcycle Hunk launched.
2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,
Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.
2009—New Models of Hero Honda motorcycle Karizma:Karizma – ZMR and
limited edition of Hero Honda motorcycle Hunk launched
2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero
Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor
launched.
2011—New 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 and Honda moving 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 young generation bike are launched.
2013-Hero MotoCorp unveiled line-up of 15 updated products including
Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF
Deluxe ECO, Hero Motocorp SuperSplendor, Passion Pro and Xpro, Glamour
and Glamour FI etc. It also introduced three new technologies- Engine
Immobilizer in new Xtreme, Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart
2014-Hero MotoCorp Launched Splendor Pro Classic, Xtreme Sports and new models of Karizma ZMR, Karizma R, Maestro and Pleasure.
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
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 $ 40 Mn joint
venture with Bangladesh's Notiol Niloy Group in the next five years.
49% stake in Erik Buell Racing
In July 2013, HMC acquired 49.2% shareholding in Erik Buell Racing,
a motorcycle sport company which produces street and racing motorcycles based
in East Troy, Wisconsin, USA.
Operations
Hero MotoCorp has four manufacturing facilities based at Dharuhera, Neemrana
and Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together
have a production capacity of 7.6 million 2-wheelers per year. Read More 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. Hero
GoodLife
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.
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
The company has a stated aim of achieving revenues of $10 billion and volumes of
10 million 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.
Company performance
The company has sold over 47 million 2-wheelers since its inception in 1984 till
March 2013. It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million 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 one million units per year.
In 2013, Hero MotoCorp registered best ever calendar year performance of more
than 6.1 million unit sales. By selling 6.25 lakh 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 1.6 million units, while in non festive time in April–May 2013, it managed to
sell out quite good numbers of units- 1.1 million.
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.
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
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%
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
Employees
As on 31 March 2013, the company had 5,832 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 INR
8.21 billion 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
During the financial year, the company spent INR 14 million on corporate social
responsibility.
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
Vision & Mission of the companyVision
The story of Hero Honda began with a simple vision – the vision of a mobile and an empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint In the global arena.
Mission
Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates.
Strategy
Hero MotoCorp’s key 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.
Brand
The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground-level activation
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]
Manufacturing
Hero MotoCorp two wheelers are manufactured across 3 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.
Distribution
The Company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero MotoCorp’s extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, service & spare parts outlets, and dealer-appointed outlets across the country
Sheikh abdul ShahnawazASBM 14-16, Bhubaneshwar [email protected]