1

Project report
On
Hero Honda

Submitted to:- Submitted by:-

Miss payal bassi Yoonaf ishtiaq
Lect of Seminar BBA 2nd YEAR
Roll no: - 17

Desh Bhagat Institute Of

Management And Computer
Sciences

2
 Hero Honda's company profile

The joint venture between India's Hero Group and Honda

Motor Company, Japan 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 Honda 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 Honda sold millions of bikes purely on the
commitment of increased mileage.

Over 20 million Hero Honda two wheelers tread Indian roads

today. These are almost as many as the number of people in
Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since

inception; and today, every second motorcycle sold in the
country is a Hero Honda. Every 30 seconds, someone in India
buys Hero Honda's top -selling motorcycle – Splendor. This
festive season, the company sold half a million two wheelers
i n a single month—a feat unparalleled in global automotive
history.

3
Hero Honda 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 Honda'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 Honda values its relationship with customers. Its unique

CRM initiative - Hero Honda 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 Honda 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 Honda 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
4
mainstream. This would provide the growth ballast that
would sustain Hero Honda in the years to come. As
Brijmohan Lall Munjal, the Chairman, Hero Honda 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 HONDA. 'S MISSION

Hero Honda’s 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 Honda to new heights in

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

HERO HONDA'S MANDATE

Hero Honda 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 Honda Motor Company, Japan. The
teamwork and commitment are manifested in the highest

5
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,
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 customer’s expectations, and to exceed them.

Behind the success of Hero Honda, is the saga of team-work.

We would like to acknowledge the role played by our JV
partners, Honda Motor Company, Japan, and all our business
associates, shareholders and employees

6
 PROMINENT AWARDS AND ACCOLADES
TO THE CHAIRMAN

Reality by The Institute of Company Secretaries of India

2006 'Lifetime Achievement Award' for Translating Excellence in Corporate Governance into
PROMINENT
Year AWARDS AND ACCOLADES Awards and Accolades
TO THE CHAIRMAN

2005 Indian Automotive Hall of Pride by Overdrive

CNBC TV18 Commendation of Business Leadership displaying extraordinary Corporate
Leadership and Entrepreneurial Spirit
Padma Bhushan by Government of India
Doctor of Letters (Honoris Causa) by Hemwati Nandan Bahuguna Garhwal University, Srinagar
Garhwal
Lifetime Achievement Award by ET Awards for Corporate Excellence

2004 Life Time Achievement Award for Management by All India Management Association
D. Litt. (Honoris Causa) by Banaras Hindu University
Lifetime Achievement Award by Amity Business School
Lifetime Achievement Award by HT Power Jobs

2002 Entrepreneur of the Year Award by Business Standard

Giants International Award to the Chairman in the field of Business & Industry
Business Leadership Award by Madras Management Association

2001 Entrepreneur of the Year Award by Ernst & Young

2000 Sir Jehangir Ghandy Medal for Industrial Peace - by XLRI, Jamshedpur

1998 Business Leader of the Year by Business Baron

1997 Distinguished Entrepreneurship Award by PHD Chambers of Commerce & Industry

1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry
(NSIC Award - Presented by President of India)

1994 Businessman of the Year by Business India Group of Publications

1992 Honorary Membership - Indian Institution of Industrial Engineering Award

7
8
 ABOUT THE CHAIRMAN

Brijmohan Lall Munjal – Seeding a Dream

"Don't dream if you can't fulfill your dreams'' Brijmohan Lall

Munjal is often fond of saying. The founder and patriarch of
the $ 2.8 billion Hero Group is your classic first generation
entrepreneur. He is a man who started small, dreamt big and
used a combination of grit and perseverance to create one of
the country's largest corporate groups and the World's No.1
Two Wheeler Company.
Instinctive from a young age, Brijmohan Lall made a rather
unusual start in life. Around the time when the freedom
movement in India was taking shape in the late 1920s, he
walked into a newly opened Gurukul (Indian heritage school)
near his home in Kamalia (now in Pakistan). He was only six
years old then.
Thus began an extraordinary tale of courage and
perseverance. Brijmohan began his business story after
partition in 1947, when he and his brothers relocated to
Ludhiana. The family set up a company that provided poor
people with basic transport (cycles). Three decades later, as
India evolved, he added a second crucial chapter - which
visualized affordable and technologically superior transport
to millions of middle class Indians. The rest is history.

9
 Building Relationships
When Brijmohan and his brothers started out, there was no
concept of organized dealer networks. Companies just
produced, and most dealers functioned like traders.
Brijmohan changed the rules of the business by trusting his
gut instincts; introducing business norms that were ahead of
their time, and by investing in strategic relationships.
Brijmohan built a series of bonds and networks with
hundreds of family members, vendors, dealers and
employees. Much like the Japanese keiretsu system, these
networks are now the glue that holds the Hero Group
together.

"Thanks to the relationships that we have nurtured so

passionately in the Hero Family, the younger generations of
some of our bicycle dealers have become dealers of Hero
Honda. These relationships have survived through
generations - through bad times and good times'' the
patriarch now reminiscences.

Besides bonding with his vendors and dealers, Brijmohan has

been personally responsible for kindling a spirit of
entrepreneurship amongst his employees, and today, 40 of
his former employees are successful entrepreneurs.

10
 Staying Ahead

Though not technically qualified in the conventional sense,

few of his contemporaries have understood the dynamics of
technology better than Brijmohan Lall has. He could always
visualize the applicability of technology before others could.
For example, in the 1980s, when all two-wheeler companies
in India opted for two-stroke engine technology, Brijmohan
preferred a four-stoke engine - a technology that
dramatically increased fuel efficiency and reduced
maintenance costs. This technology was one of the biggest
reasons for Hero Honda's stupendous success.
Time and again, Brijmohan managed to steal a march over
his industry peers. For example, when Honda Motors of Japan
was looking for a collaborator in the 1980s, the Hero Group
was not high up the pecking order initially as there were
other more eligible and established suitors.
Yet it didn't take long for the astute Japanese to realize that
the Hero Group and Honda had much more in common than
earlier perceived; there a sharp focus on financial and raw
material management, and employee turnover was low.
Honda officials were also amazed to find that the Munjals
were already practicing "Just-in-time-inventory" at the time
(JIT). It turned out that Brijmohan Lall's aspiration to provide
11
cheap transportation to India's poor by default ensured lean
and cost-effective operations. This in turn increased vendor
efficiency and led to near-zero inventories.

BOARD OF DIRECTORS

12
No. Name of the Directors Designation
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time
Director
2 Mr. Pawan Munjal Managing Director &
CEO
3 Mr. Toshiaki Nakagawa Joint Managing Director
4 Mr. Sumihisa Fukuda Technical 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. Satoshi Matsuzawa Non-executive Director
(Alternate Director to Mr.
Takashi Nagai)
9 Mr. Pradeep Dinodia Non-executive &
Independent Director
10 Gen.(Retd.) Ved Prakash Non-executive &
Malik Independent Director
11 Mr. Analjit Singh Non-executive &
Independent Director
12 Dr. Pritam Singh Non-executive &
Independent Director
13 Ms. Shobhana Bhartia Non-executive &
Independent Director
14 Mr. Sunil Bharti Mittal Non-executive &
Independent Director
15. Mr. Meleveetil Non-executive &
Damodaran Independent Director

BRIEF PROFILE OF DIRECTORS

13
 MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and

Chairman of the Company and the $ 2.8 billion Hero
Group. He is the Past President of Confederation of Indian
Industry (CII), Society of Indian Automobile Manufacturers
(SIAM) and was a Member of the Board of the Country's
Central Bank (Reserve Bank of India ). In recognition of his
contribution to industry, Mr. Lall was conferred the Padma
Bhushan Award by the Union Government.
Mr. Brijmohan Lall Munjal is currently on the board of the
following companies:

No Name of Company Nature of Office

.
1 Hero Honda Motors Limited Chairman and Whole-
time Director
2 Hero Cycles Limited Chairman and Director
3 Hero Honda Finlease Limited Chairman and Director
4 Munjal Showa Limited Chairman and Director
5 Sunbeam Auto Limited Chairman and Director
6 Easy Bill Limited Director
7 Hero Financial Services Director
Limited
8 Munjal Auto Industries Director
Limited
9 Shivam Autotech Limited Director
10 Daimler Hero Commercial Director
Vehicles Limited

14
MR. PAWAN MUNJAL

Mr. Pawan 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 . 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 Honda 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.

Mr. Pawan Munjal is currently on the Board of the following

companies:

15
No Name of Company Nature of
. Office
1 Hero Honda Motors Limited Managing
Director
2 Hero Honda Finlease Limited Director
3 Daimler Hero Commercial Vehicles Director
Limited

SALES PERFORMANCE

July'0 July'0 FY 05- FY 06-

5 6 06 07
23005 23531
Total Sales 917617 1068006
0 4
Exports (incl in
6900 10575 36441 39970
above)

16
Hero Honda Registers 23% Growth in June'06

Hero Honda Sells Over 2.50 Lakh Units in February 2006

Hero Honda Begins 2006 On A High Note

Hero Honda Motors Scales A New High In Cy ’05

Hero Honda Continues On The Growth Path

Retail Sales Escalate To An Unprecedented 4 Lakh + Units

In October’05

Hero Honda Registers 22.3 Per Cent Growth In September

’05

Hero Honda’s Sales Jump 28.5 Per Cent In August 2005

Hero Honda Registers 12 Per Cent Growth In Sales In July

2005

Hero Honda Registers 13% Growth In Sales In Q1 Of 2005-

06

Hero Honda Motorcycle Sales In May At 2,26,072

Hero Honda Starts The Financial Year With Over 20%

Growth

HERO HONDA REGISTERS 23% GROWTH IN JUNE '06

Records a growth of 21% Sales in Q1 Of 2006-07

New Delhi, July 01, 2006: Hero Honda, the 'World No.1'
two-wheeler company, continues to strengthen its
leadership in the Indian two-wheeler industry, registering
impressive growth in sales in the first quarter of the FY

17
2006 - 07.

For the quarter ending June 2006, the company achieved

cumulative sales of 8,32,692 units, recording a growth of
21.29% compared to the same period last year. During the
corresponding period last Financial Year, the company had
recorded sales of 6,86,494 units in the first quarter ending
June 2005.

In June 2006, the company sold 2,78,660 units registering

an impressive growth of 23.26% as against 2,26,073 units
in June last year.

During the month, Hero Honda launched Glamour FI -

India's first Fuel Injection motorcycle. The new technology
eliminates the need for a carburetor, offers the most
comfortable drive and the lowest emissions, in addition to a
host of other features, which is now available for the first
time to Indian two-wheeler riders.

Hero Honda Sells Over 2.50 Lakh Units In February

2006

CUMULATIVE SALES JUMP 14.16 %

New Delhi, March 1, 2006: Hero Honda, the ‘World No. 1’

18
two-wheeler company for the fifth year in a row, has
continued to exhibit a leader’s performance in the first
couple of months in 2006.
During the month of February 2006, the company sold
2,50,695 units, as compared to 2,23,546 motorcycles sold
during February 2005. This translates into a growth of 12.14
per cent in sales volume.
The cumulative sales of the company for the period April
2005 - February 2006 also witnessed a notable jump of
3,38,632 units, from 23,89,807 to 27,28,439 units during
the corresponding period last year. This reflects a growth of
14.16 percent.
In January 2006, Hero Honda rolled out its first 100cc
gearless scooter the “Pleasure” across India. The company
also launched 22 first ever women-exclusive scooter
showrooms “Just4her” across the country. “Just4her” is a
unique concept pioneered by Hero Honda Motors targeting
the women customers.
In January 2006, Hero Honda was also conferred the honor
of the “Bike Maker of the Year” by NDTV Profit-Bike and Car
for the year 2005. Additionally its 150 cc offering Achiever
received the coveted ‘Bike of the Year’ award. Achiever and
Glamour also received the best bike awards for their
respective categories. The most desirable amongst these
awards, the ‘NDTV Viewers’ Choice’ award in the bike
category was also awarded to Hero Honda Glamour, truly

19
exemplifying the customers’ enduring trust and faith in the
company.

Hero Honda Begins 2006 On A High Note

CUMULATIVE SALES JUMP 14 %

New Delhi, February 1, 2006: Hero Honda, the ‘World No

1’ two-wheeler company for the fifth consecutive year, has
continued to exhibit a leader’s performance in the first
month of the New Year.
During the month of January 2006, the company sold
2,49,450 motorcycles, as compared with 2,30,280
motorcycles sold during January 2005. This translates into
an increase of 8.3 % in sales volume.
The cumulative sales of the company for the period April
2005 - January 2006 has also increased to 24,77,744
motorcycles, a notable jump from 21,66,261 motorcycles
during the corresponding period last year. This reflects a
growth of 14.3 %.
In the month of January, Hero Honda rolled out its first
scooter, the 100cc “Pleasure” and launched 22 women-
exclusive scooter showrooms “Just4her” across the country.
The cities where “Just4her” showrooms were launched
include Lucknow, Delhi, Ahmedabad, Pune (two
showrooms), Bangalore, Hyderabad, Baroda, Madgaon,
Chennai (two showrooms), Chandigarh, Ludhiana, Jaipur,

20
Nagpur, Jamshedpur, Bhubaneswar, Guwahati, Coimbatore,
Cochin, Indore and Raipur.
The month of January also saw Hero Honda being conferred
the honour of the “Bike Maker of the Year” by NDTV Profit-
Bike and Car for the year 2005. Additionally its 150 cc
offering Achiever received the coveted ‘Bike of the Year’
award. Achiever and Glamour also received the best bike
awards for their respective categories. The most desirable
amongst these awards, the ‘NDTV Viewers Choice’ award in
the bike category was also awarded to Hero Honda
Glamour, truly exemplifying the customers’ enduring trust
and faith in the company.

Hero Honda Motors Scales A New High In Cy ’05

CLOSES THE YEAR WITH SALES OF OVER 29 LAC
BIKES

New Delhi, January 2, 2006: Hero Honda, the ‘World No.

1’ two-wheeler company, set precedence in the industry by
registering an unparalleled growth throughout the calendar
year (CY) 2005. In the year that logged an impressive
growth in the two-wheeler sector, Hero Honda continued to
exceed expectations by selling a staggering 29,16,523
motorcycles during the calendar year 2005. This converts to
a growth of 15.3 per cent over CY ’04 where the company
sold 25,28,699 bikes.

21
Mr. Pawan Munjal, Managing Director, Hero Honda Motors
Ltd., thanked customers for the company’s continuous
brilliant performance. He said “This year has been exciting
for us where we crossed significant milestones. We fulfilled
our commitment to the customers by providing the latest
and global standard products. We launched several new
products this calendar year. It is to the complete credit of
our customers who have shown continued faith in us and
our products that we have achieved the World No. 1 two-
wheeler company year after year."
During CY ’05, the company continued its consistent growth
in sales performance. In December 2005, the company sold
a total of 2,45,104 motorcycles as compared with 2,30,751
bikes during the same month last year which means an
increase of 6.2 per cent. With this, the cumulative tally for
the period April-December 2005 stands at 22,31,104 bikes,
clocking a growth of 15.2 percent over the year 2004. The
company sold 19,35,981 motorcycles during the same
period last year.
The calendar year 2005 also saw a slew of new launches in
various segments by the company. One of the biggest
milestones was the launch of ‘Pleasure’- the first scooter by
Hero Honda. ‘Pleasure’ which is slated to hit the roads in
January is targeted primarily at women. Having established
its leadership in the industry, Hero Honda further
22
consolidated its position by launching three new
motorcycles - ‘Super Splendour’, ‘Glamour’ and ‘Achiever’.

The year also witnessed one of the highest civilian

honours, the Padma Bibhushan being awarded to Mr.
Brijmohan Lall, Chairman, Hero Honda Motors, for his
invaluable contribution to trade, industry and
philanthropist activities. Mr. Brijmohan Lall is a first
generation entrepreneur who through sheer hard
work and perseverance has made his mark on the
global business environment. During the year Mr.
Brijmohan Lall was also honoured with a Lifetime
Achievement Award by the Economic Times.

Hero Honda Continues On The Growth Path

CUMULATIVE SALES FOR THE PERIOD APR-NOV ’05

GROWS BY OVER 14 PER CENT

New Delhi, December 1st, 2005: Hero Honda, the ‘World

No. 1’ two-wheeler company, is continuing to ride high on
its steady sales performance month after month.
During November 2005, the company recorded a sales
volume of 2,51,186 motorcycles as compared with 2,35,836
motorcycles sold during the same month last year. This
translates into an increase of 6.5 per cent.

23
The cumulative sales of the company for the period April-
November 2005 has also jumped by 14.7 per cent,
increasing from 17,05,230 motorcycles sold during April–
November 2004 to 19,56,416 motorcycles sold during the
same period in 2005.
The month of November also witnessed the 5th Hero Honda
Indian Television Academy Awards, the first and only
television awards in the country.

Retail Sales Escalate To An Unprecedented 4 Lakh +

Units In
October ’05
DESPATCH CROSSES THE 3-LAKH LANDMARK
New Delhi, October 31, 2005: Hero Honda, the ‘World
No.1’ two wheeler manufacturer, has set yet another
precedent for the Indian two-wheeler industry by recording
incredible sales in October 2005. The company’s retail sales
crossed the 4-lakh milestone, for the first time ever in the
Indian two-wheeler industry.
Additionally, dispatch during the month also reached an
unprecedented high of 3,02,000 units, marking a
remarkable jump of 23.02% as compared with the
corresponding month in 2004. The company had recorded
dispatch of 2,45,475 units in October 2004.
Hero Honda’s achievement of the landmark 4 lakh plus
retail sales and 3 lakh plus dispatch, within a single month,

24
is an extraordinary feat considering the growing
competition in the two-wheeler market and is certain to
redefine industry standards.

The company’s sales performance during October 2005 is a

testimony to the success of its customer centric business
philosophy. Month over month, the company has been
recording increasing sales, also signifying the success of its
new models launched in the current year.
The company’s sales (dispatch) during the month is up by
13.5%, as compared with the previous month (September
2005), when the company had recorded sales of 2,66,071
units.
With the first festive month ending, Hero Honda’s
cumulative sales (dispatch) for the period April-October
2005 has also registered a significant growth of 17.87%
over the corresponding period in the previous year. The
company’s cumulative sales tally has thereby increased to
17,31,992 units, a jump from 14,69,394 units in 2004.
With the recent launch of Achiever in end-October and the
forthcoming launch of Pleasure in mid-November, the
company is confident of continuing its upward movement
on the sales chart.
The company’s festive promotion, which offers Rs.1001/- off
on each of its models, has also met with huge success,
across the country.

25
Hero Honda Registers 22.3 Per Cent Growth In
September ’05
CLOSES HALF YEAR WITH IMPRESSIVE NUMBERS

New Delhi, 1st October 2005: Hero Honda, the ‘World

No.1’ two-wheeler company, for the fourth consecutive
year, continued its upswing during the month of September
2005.
The September sales of Hero Honda mark an impressive
growth of 22.3 per cent over last year. The company sold
2,66,071 bikes in September 2005 as against 2,17,507
bikes in the corresponding month during the previous year.
Sales during the month have also jumped by 9.6 per cent
over the previous month (August 2005), when the company
sold 2,46,304 motorcycles.
The cumulative sales of the company for the period April -
September 2005 have also shown a growth of 16.84 per
cent over the corresponding period last year. The
cumulative sales during the period have increased to
14,29,992 motorcycles from 12,23,919 motorcycles during
April-September 2004.
Hero Honda's Sales Jump 28.5 Per Cent In August
2005

26
PHASED LAUNCH OF 'GLAMOUR' COMPLETED; OVER
45,000 UNITS SOLD ALREADY
New Delhi, September 01, 2005: Hero Honda Motors
Ltd., the ‘World No.1’ two-wheeler company for the fourth
consecutive year, is continuing with its robust performance
month after month. The company’s emphasis on proactive
understanding and satisfaction of customer needs and
desires along with new product offerings has resulted in the
company consolidating its leadership in the industry.
The company sold a total of 2,46,304 motorcycles during
August 2005, thereby registering an impressive growth of
28.5 per cent in sales over the corresponding month last
year. The company had sold a total of 1,91,635 motorcycles
in August 2004.
At the end of August 2005, the cumulative sales of the
company for the period April - August 2005 stood at
11,63,921 motorcycles, translating into a growth of 15.6 per
cent. The company had sold 10,06,412 motorcycles during
the corresponding period (April-August 2004) last year.
Also during the month, Hero Honda completed the phased
launch of ‘Glamour’- its new offering in the 125 cc segment.
The bike comes powered with the futuristic and exemplary
Quantum Core engine, which has been perfected after a
series of refinements and offers customers an
unprecedented combination of top-class fuel-efficiency and
high power. The company has already sold over 45,000

27
units of Glamour since its first launch in South India towards
the end of June, demonstrating a tremendous response
from customers.

Hero Honda Registers 12 Per Cent Growth In Sales In

July 2005
CUMULATIVE SALES CROSS NINE LAKH BIKES IN FOUR
MONTHS
New Delhi, August 01, 2005: Hero Honda Motors Ltd.,
the ‘World No.1’ two-wheeler company has come to
epitomize consistent performance. The company has,
month on month, managed to stand up against all odds and
maintained its leadership in the increasingly competitive 2-
wheeler segment.
During the month of July 2005, the company sold 2,30,050
bikes, as against 2,05,654 bikes in the corresponding period
last year, thus registering a sales growth of 12 per cent.
For the period April - July 2005, the cumulative sale of the
company stood at 9,17,617 units, translating into a growth
of 12.6% per cent. The company had sold 8,14,777 units
during the corresponding period last year.

28
The company was able to achieve this impressive growth in
the face of continuing supply constraints of components
caused by the volatile labour situation prevailing in parts of
the state of Haryana, where both the manufacturing plants
of the company are located. The adverse situation impacted
other industries in the region as well. Thanks to the
initiative taken by the Haryana government, the situation
has improved and production is expected to be back on
track.

Market demand for Hero Honda products remains buoyant

and the company launched ‘Glamour’- a new entry by the
company in the premium deluxe segment, in Western India
during this month. The bike was very successfully launched
in South India in the previous month and has been very well
received by the customers in that region. With this new
product in its portfolio, the company is now looking at
consolidating its indisputable leadership in the market.

Hero Honda Registers 13% Growth In Sales In Q1 Of

2005-06
New Delhi, July 01, 2005: Hero Honda, the ‘World No.1’
two-wheeler company, continues to strengthen its
leadership in the Indian two-wheeler industry, registering
impressive growth in sales in the first quarter of 2005 – 06.
For the quarter ending June 2005, the company achieved

29
cumulative sales of 6,86,494 units, recording a growth of 13
per cent. During the corresponding period last Financial
Year, the company had recorded sales of 6,09,123 units.
In June 2005, the company sold 2,26,073 bikes registering a
growth of 12.5% as against 2,00,922 units in June last year.
This impressive growth was achieved in the face of
continuing supply constraints of components caused by the
volatile situation prevailing in parts of the state of Haryana,
where both the manufacturing plants of the company are
located. The adverse situation has impacted other
industries in the region as well.

However, market demand for Hero Honda products remains

buoyant and production is expected to be back on track to
meet this demand. With the steady progress of monsoon,
the outcome also remains positive.

Hero Honda Motorcycle Sales In May At 2,26,072

New Delhi, June 1, 2005: Hero Honda, the ‘World No. 1’
two-wheeler company, sold 2,26,072 units in May 2005.
The impressive figure was achieved despite some supply
constraints. With the huge demand for Hero Honda bikes in
the market and supplies now back to normal, sales are set
to get a boost in June.
During the month of May, Hero Honda also announced
auditions for Hero Honda MTV Roadies- 3, a reality show
that the company has been associated with for the last two

30
years. This year the Hero Honda MTV Roadies journey will
begin on June 12th from Jaisalmer to Leh with 13 bikers on
Hero Honda Karizma, the only premium sports bike in India.
The show aims at testing the participants’ endurance and
bringing out the real riders in them.

Hero Honda Starts The Financial Year With Over 20%

Growth
New Delhi, May 2, 2005: Hero Honda, the ‘World No. 1’
two-wheeler company, has started the year with a bang.
The company sold impressive peak capacity 2,35,422
motorcycles during April 2005, a jump of 20.09% per cent
as compared with the corresponding period in the previous
FY. The company had sold 1,96,024 motorcycles in April
2004.
The month also saw the launch of CD Deluxe, the stylish,
true value, 100cc motorcycle from Hero Honda,
encompassing the legendary Hero Honda values of fuel-
efficiency, economy and rock-solid dependability. The new
model comes with a unique suspension, which smoothens
and absorbs bumps on rough roads. Also, its double tubular-
cradle frame imparts extra stability to the motorcycle.
CD Deluxe is available at an ex-showroom price of
31
Rs.33,900/- across India, in five attractive colours - Candy
Blazing Red, Black (2 stripes), Candy Tahitian Blue, Cloud
Silver, Amaranth Maroon and Cool Mint Green. The new
model is a part of the company’s efforts to offer enhanced
value-for-money to its customers.

PRINT ADs

New Launches:

Glamour Just4her Glamour PGMFI

CD Deluxe CBZ X-Treme Achiever

Next Generation Pleasure Splendar NXG

of Motorcycling

Hunk

32
Campaigns:

We got a Good thing Going!

A Lot less Stops One Litre Road It's the Honda

Stretch That Litre. Save Petrol

Chartered Accountant Over-Time Best Seller

Economical Honours

Others:

World's No.1! Friends For Life Nawab of

Najafgarh

Designed to Excel Awaaz Consumer Awards '06

Quick Links

33
34
35
36
 STOCK HISTORY
Details of issue of Equity Shares since beginning

37
Date of Date of Particulars of Issue No. of
Approva Issue Shares
l
19.01.84 Subscription shares 150
09.08.19 19.03.85 Public Issue 11999985
84
09.08.19 29.04.87 Issue of Rights Shares 3975000
84 in the ratio of 15:50
09.08.19 07.02.19 Issue of Bonus Shares 3993750
84 95 in the ratio of 1:4
09.08.19 28.09.19 Issue of Bonus Shares 19968750
84 98 in the ratio of 1:1
09.08.19 26.03.20 Sub-division of Equity 199687500
84 01 Shares of Rs. 10 each *
Into 5 Equity Shares of
Rs. 2 each
* Equity Shares of Rs. 2 each.

LISTING INFORMATION

Hero Honda Motors Ltd. is actively traded on the bourses

and is included in the computation of the BSE Sensex,
BSE-100, BSE-200, BSE-500, S&P CNX Nifty and S&P CNX
500. The scrip is traded on the nationwide network of
terminals of the following Stock Exchanges:

38
 The Stock Exchange, Mumbai
Phiroze Jeejeebhoy Towers , Dalal Street, Mumbai - 400 001
Telephone: 022-2272 1233/34
Facsimile: 022-2272 1552
e-mail: info@bseindia.com
Website: www.bseindia.com
BSE Code: 500182

National Stock Exchange of India Limited

Exchange Plaza ,
Plot No. C/1, G Block, Bandra-Kurla Complex,Bandra (East),
Mumbai - 400 051
Telephone: 022-2659 8100-114, 5641 8100 - 108
Facsimile: 022-2659 8120
e-mail: cc_nse@nse.co.in
Website: www.nseindia.com
NSE Code: HEROHONDA

The Company has paid the annual listing fee to the

Stock Exchanges for the financial year 2005-06 in
stipulated time.

HEROHONDA BIKE MODELS

Model: Achiver ES Model: Achiver Kick Model: CBZ Xtreme ES
Start

Model: CBZ Xtreme Kick Model: CD Dawn Model: CD Deluxe

Start

Model: Glamour Electric Model: Glamour FI ES Model: Glamour FI Kick

Start Start

Model: Glamour Kick Model: Hunk ES Model: Hunk Kick Start

Start

39
Model: New Karizma Model: Passion Plus Model: Pleasure

Model: Splendor NXG Model: Splendor NXG Model: Splendor Plus

(Alloy) (Spoke)

Model: Super Splendor Model: Ambition Model: CBZ

Model: CBZ* Kick Start Model: CBZ* Electric Model: CD 100 SS

Start

Model: Dawn Model: Karizma Model: Passion

Model: Splendor Model: Street Dlx Model: Super Splendor

KS

40
 HERO HONDA KARIZMA
Jet Set Go...

Hero Honda Karizma was the first real

sports bike in India. The bike addresses to those who have a passion
for speed and styling and head-turning looks. It has 17 ps power
thrust and picks up 0-60 in 3.8 heart-stopping seconds. The bike is
based on power and styling. Disc breaks and Mag wheels makes
Karizma the safest jet on the road.

Company Stroke Maximum Power Displacement

Hero Honda
4-Stroke 16.8 bhp @ 7000 rpm 223 cc
Motors Ltd.

Striking Features

• Style
• Sporty position of the seat.
• It stands on its feet even at speeds reaching up to 130 kmph.
• Fuel Efficiency.

Color Variants

• Pearl Composed Red

• Myth Gold Metallic
• Sparkling Silver
• Turquoise Blue
• Candy Blazing Red
41
 • Black
• Moon Yellow

Price Tag - Rs 79,000 Ex-Showroom in Delhi

(The prices are to the close approximation. Please check the latest
prices and variant specifications with your dealer.)

Technical Specifications

Dimension & Weight

Overall height 1160 mm
Overall length 2125 mm
Overall Width 755 mm
Wheelbase 1355 mm
Ground Clearance 150 mm
Kerb weight 150 kg
Fuel Tank Capacity 15 litres
Engine
Type OHC, Air Cooled
Stroke (2/4) 4-stroke
No. of cylinders Single Cylinder
Displacement 223cc
Electrical 12 V, 7.0 Ah
Transmission
No. of Gears 5 speed
Clutch Multi-plate wet type
Performance
Maximum Power 16.8bhp @ 7000rpm
Max. Torque -

42
Start Kick / Electric
Suspensions
Front Telescopic Hydraulic Shock Absorbers
Swing arm with 5 step adjustable type hydraulic
Rear
shock absorber
Brakes
Front Disc Brakes, 276 mm diameter
Rear Internal Expanding Shoe, 130 mm
Tyres
Front 2.75 x 18” - 42 P
Rear 100 / 90 x 18” - 56 P

More 150 cc - 500 cc Bikes in India

Bajaj Avenger Bajaj Pulsar Bajaj PulsarDTSi
Bullet Electra Bullet 350 Hero Honda Achiever
Hero Honda CBZ X-
Hero Honda Hunk Honda Unicorn
treme
Kinetic Comet Thunderbird TVS Apache
TVS Apache RTR FI
TVS Fiero FX Yamaha R15
160

43
44
 Hero Honda-Hunk

Hunk, the latest launch from Hero Honda, as the

name indicates is a manly bike. Hunk is the fourth product in the
150cc. Hunk is very sporty in looks and performance. The look of the
bike is definitely a upright one having a brawny styling. The bike is
available in the market in four colors black, blue, red and silver. The
cover of air filter and battery are of black and silver colors and the tail
extension has a dual black color painted on it. The engine is also not
the typical black in color but it has got silver and gray colors on it. The
front forks and gas filled rear have copper and gray colors. The bike
has got a big tank and black alloy wheels.

Available Models of Hunk Price Ex.Showroom(Mumbai)

Model Engine Price
• Hero Honda Hunk 150 149.2 cc Rs. 59,749

Hero Honda Hunk 150

Price Rs.59,749
Price Ex. Showroom (Mumbai)

45
Specifications Colors Photos

Dimensions and Weights

Length 2080 (mm)

Width 765 (mm)
Height 1095 (mm)
Wheelbase 1235 (mm)
Seat Height -
Ground Clearance 145 (mm)
Fuel Tank Capacity 12.4 (L)
Reserve Tank
2.2 (L)
Capacity
Self Kerb weight 146 (kg)
Kick Kerb weight 143 (kg)

Performance

Max Speed -
Acceleration(0-
-
200m)
Overtaking
Acceleration for -
200 m (at 40kmph)
Acceleration (0-60
-
kmph)
Mileage (in Indian
-
Mode)

Body and Tyre

46
Frame -
Front Suspension Telescopic
Hydraulic
Rear Suspension Swing Arm
Front Tyre 2.75 X 18 42P
Rear Tyre 100/90 X 18 - 56P
(W
Front Brake Drum -
Front Brake Disc 240 (mm)
Rear Brake Drum 130 (mm)
Rear Brake Disc -

Engine and Transmission

Engine Type Air Cooled, 4 -

Stroke Single
Cylinder O
Engine response -
Displacement 149.2 cc (cc)
Net Power 14.4Ps@8500rpm
Torque 12.8Nm@6500rpm
Air Filter -
Carburetor CV
ACG Power
Generating -
Capacity
Oil Capacity -
Transmission -
Gear Shift Pattern -

Electricals

Ignition -
Battery In Kick
12V -7 Ah
Start

47
Battery In Self
-
Start
Headlamp 12V - 35 / 35 W
Tail / Stop lamp 12 V - 5W, 12V -
21W

Front Right View Back View Metre

Another Colour
View

48
 Hero Honda-Achiever

Its new Power Pro 149.1cc 4 stroke air-cooled

engine produces power of 13.4 bhp (10 kW).
Its petrol tank comes with excellent body graphics. Its masculine and
robust structure is really eye-catching to many bikers.
Riding here becomes safer due to the presence of multi-reflector
headlight with halogen lamp and a position lamp, multi-reflector tail
light and winkers, protective visor etc.

Available Models of Achiever Price Ex. Showroom(Mumbai)

Model Engine Price
• Hero Honda Achiever 150 149.1 Rs. 53,200

Hero Honda Achiever 150

Price Rs.53,200
Price Ex. Showroom (Mumbai)

Specifications Colors Photos

Dimensions and Weights

Length -
Width -
Height -
Wheelbase 1290 (mm)
Seat Height -

49
Ground
-
Clearance
Fuel Tank
12 (L)
Capacity
Reserve Tank
-
Capacity
Self Kerb weight -
Kick Kerb weight 134 (kg)

Performance

Max Speed 101 (kmph)

Acceleration(0-
-
200m)
Overtaking
Acceleration for
-
200 m (at
40kmph)
Acceleration (0-
5 (Sec)
60 kmph)
Mileage (in
-
Indian Mode)

Body and Tyre

Frame Diamond Cradle

Front Suspension Telescopic
hydraulic
Rear Suspension Swing Arm
Front Tyre 2.75 X 18 - 42 P /
4
Rear Tyre 3.00 X 18 - 52 P /
6
Front Brake
-
Drum
Front Brake Disc 240 (mm)
50
Rear Brake Drum 130 (mm)
Rear Brake Disc -

Engine and Transmission

Engine Type 4 Stroke, Air

Cooled
Engine response -
Displacement 149.1 (cc)
Net Power 13.4bhp@6500rpm
Torque 12.8nm@5000rpm
Air Filter -
Carburettor -
ACG Power
Generating -
Capacity
Oil Capacity -
Transmission 5-Speed
Gear Shift
-
Pattern
Electricals

Ignition -
Battery In Kick
-
Start
Battery In Self
12V - 2.5 Ah
Start
Headlamp 35/35 W Halogen
Tail / Stop lamp -

Herohonda-Glamour

51
 Hero Honda Glamour is equipped with all the
required market friendly features. Two models of this bike are based
on all the technological advances. It is the bike for every kind of
customers and with different choices. This bike comes with all the
facilities that all finicky bike lovers really look for in his best
possession

Available Models of Glamour Price Ex.Showroom(Mumbai)

Model Engine Price
• Herohonda Glamour Fi 124.8 Rs. 53,000

Herohonda Glamour Fi
Price Rs.53,000
Price Ex. Showroom (Mumbai)

Specifications Colors Photos

Dimensions and Weights

Length 2005 (mm)

Width 735 (mm)
Height 1070 (mm)
Wheelbase 1265 (mm)
Seat Height -
Ground Clearance 150 (mm)
Fuel Tank Capacity 12 (L)
Reserve Tank
1.5 (L)
Capacity
Self Kerb weight 129 (kg)
Kick Kerb weight 125 (kg)

52
Performance

Max Speed -
Acceleration(0-
-
200m)
Overtaking
Acceleration for -
200 m (at 40kmph)
Acceleration (0-60
-
kmph)
Mileage (in Indian
-
Mode)

Body and Tyre

Frame -
Front Suspension Telescopic
Hydraulic
Rear Suspension Swing Arm
Front Tyre 2.75 x 18 - 42 P
Rear Tyre 3.0" x 18 - 52 P
Front Brake Drum 240 (mm)
Front Brake Disc -
Rear Brake Drum 130 (mm)
Rear Brake Disc -

Engine and Transmission

Engine Type Air-Cooled, 4-

stroke OHC
Engine response -
Displacement 124.8 (cc)
Net Power 9.0bhp@7000rpm
Torque 10.3Nm@4000rpm

53
Air Filter -
Carburettor -
ACG Power
Generating -
Capacity
Oil Capacity -
Transmission 4-Speed
Gear Shift Pattern -

Electricals

Ignition -
Battery In Kick
-
Start
Battery In Self
-
Start
Headlamp 35W / 35W -
Halogen
Tail / Stop lamp -

54