Presented By:

Ajay Kumar - 18062

Ravinshon - 18097
Rohit - 18099
Santosh - 18104
Satya prakash - 18105
ADDRESS : Headquarters , New Delhi, India

DATE OF INCORPORATION : January 19, 1984 in Gurgaon,

Haryana, India

Activities : B2C
Industry…
Domestic Market Share
CVs Passenger vehicles
Two Wheeler Three Wheeler
3% 5% 16%

76%

Source : SIAM
Two wheeler Industry

Two wheeler

Motorcycle(79%) Scooters(15%) Mopeds(6%)

Industry Leaders: Industry Leaders:

Industry Leaders: TVS
Hero Honda(58%), HMSI(58%), TVS
Motors(99%), Kinetic
Bajaj Auto(24%), TVS Motors(22%), Hero
Motors(0.5%)
Motors(8%) Honda(12%)
CONSTITUTION

“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 company,India.
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.
SWOT ANALYSIS
STRENGTHS
 Ability to understand customer’s needs and wants

 Recognized and established brand name

 Effective advertising capability

 
 Its after sells service

 Technology

 Maintenance cost is low.

 Resell value is high

 Company’s name is synonymous with fuel-efficient

 bikes and connectivity

SWOT ANALYSIS

WEAKNESSES
 R&D is not close to the Hero manufacturing plant

 Hero is vulnerable in the joint venture because

Honda Motor Company has so much power

 Brand name of Hero itself has no influence in the

automobile industry.
SWOT ANALYSIS
OPPORTUNITIES
 Global expansion

 Expansion of target market (include women)

 Become India’s leader in the scooter market

 Financial help easily available

 Relatively low rate of interest and the discount of prices offered by

the dealers and manufacturers lead to the increasing demand for
two-wheeler vehicles

 Large market for the high performance segment which is increasing

with the upliftment of the lifestyle of people
SWOT ANALYSIS

THREATS
 Honda Motorcycles and Scooters India can take away

 market share and cause joint venture to go sour

 Bajaj Motors is a strong competitor

 The big giant like Harley-Davidson will introduce soon in Indian

market.

 FDI announced in Automobiles is 100%.

CORPORATE SOCIAL RESPONSIBILITIES
STAKEHOLDER TIES AT THE GRASSROOTS
Hero Honda Motors takes considerable pride in its stakeholder relationships,
especially ones developed at the grassroots. The Company believes it has managed to
bring an economically and socially backward region.
 
The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:

* Installation of deep bore hand pumps to provide clean drinking water.

* Constructing metalled roads and connecting these villages to the National
Highway (NH -8).
* Renovating primary school buildings and providing hygienic water and toilet
facilities.
* Ensuring a proper drainage system at each of these villages to prevent water-
logging.
* Promoting non-conventional sources of energy by providing a 50 per cent
subsidy on biogas plants.
CORPORATE SOCIAL RESPONSIBILITIES
Raman Munjal Vidya Mandir
The Raman Munjal Vidya Mandir began with three classes and 55 students
from nearby areas. It has now grown into a modern Senior Secondary, CBSE
affiliated co-educational school with over 1200 students and 61 teachers.

Raman Munjal Memorial Hospital

Multi-specialty hospital equipped with the latest diagnostic and surgical
technology. The Raman Munjal Memorial Hospital provides healthcare to the
rural population in and around Dharuhera.
CORPORATE SOCIAL RESPONSIBILITIES

Raman Munjal Sports Complex

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and
football grounds are used by the local villagers.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by
the Foundation by providing financial help and other support to the families.

Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep
health care services to the local community. Free health care and medical camps are now a
regular feature in the Hero Group's community outreach program.
Shareholding Pattern
Number of shares % of holding

Promoter’s Holding

Indian promoter’s 52340740 26.21%

Foreign promoter’s 51918750 26%

Institutional investor’s

Bank fin. Inst. And 9462016 4.74%

insuarance
FIIs 63406704 31.75%
History
 Honda Motor Company of Japan and the Hero
Group entered a joint venture to setup Hero
Honda Motors Limited in 1984.
 Most successful joint venture till date.
 During the 80s, the company introduced new
generation motorcycles that set industry
benchmarks for fuel thrift and low emission.
 Over 20 million Hero Honda two wheelers tread
Indian roads today
Cont…
 Hero Honda became the first company in the country to
introduce four-stroke motorcycles and set the standards for
fuel efficiency, pollution control and quality.
 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.
Ratings

 ICRA limited - non-convertible debenture program

and fund based limits from bank as "LAAA" , which is
the highest credit quality.
 "A1+" for its non-fund based facilities.
 "LAAA" to fund based facilities.
 CRISIL assigned the bank loan rating of AAA/stable to
the cash credit limit.
 CEO / Directors
BOARD OF DIRECTORS
Name of the Directors Designation
No.
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)
 Cont…
9 Mr. Pradeep Dinodia Non-executive & Independent
Director
10 Gen.(Retd.) V. P. Malik Non-executive & 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. Meleveetil Damodaran Non-executive & Independent Director

15. Mr. Ravi Nath Non-executive & Independent Director

16. Dr. Anand C. Burman Non-executive & Independent Director

SENIOR MANAGEMENT TEAM
No. Name
1 Mr. Ravi Sud
2 Mr. Anil Dua
3 Mr. Vikram Kasbekar
4 Dr. Anadi S. Pande
5 Mr. Vijay Sethi
6 Mr. Neeraj Mathur
 Company Secretary & Compliance Officer
No. Name
1 Mr. Ilam C. Kamboj
Designation
Sr. Vice President & Chief Finance Officer
Sr. Vice President-Sales,
Marketing and Customer Care
Plants Head-Operations and Supply Chain
Vice President-HRM,
Corporate Planning and Strategy
Vice President-Information Systems
Vice President Supply Chain and Strategic
Sourcing
Designation
Sr. G. M. Legal & Company Secretary
Email - ickamboj@herohonda.com
Competitors Detail

Market Cap. Sales Net Profit Total assets

(Rs. Cr.) Turnover

Bajaj Auto 44,659.46 11,920.98 1,700.11 4,266.92

TVS Motor 3,518.02 4,430.13 88.02 1,868.67

Yamaha 465.14 4.42 8.41 200.56

Kinetic Motor 108.16 15.70 97.61 29.99

 
Marketing Arrangement
Strategy

Hero Honda’s key strategy has been driven by innovation in every sphere
of activity – building a robust product portfolio across categories,
exploring new markets, aggressively expanding the network and
continuing to invest in brand building activities.
* Four- stroke bike
*Fill it, sut it, and forget it
*Brand extension
Manufacturing
Hero Honda bikes are manufactured across three 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.
Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient,
environment friendly four-stroke motorcycles in the country. Today, Hero
Honda continues to be technology pioneer. It became the first company to
launch the Fuel Injection (FI) technology in Indian motorcycles, with the
launch of the Glamour FI in June 2006.
*Resell Value
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 Honda's extensive sales and service network now spans
close to 4500 customer touch points. These comprise a mix of authorized
dealerships, Service & Spare Parts outlets, and dealer-appointed outlets
across the country.
Products
Hero Honda's product range includes variety of motorcycles that have set
the industry standards across all the market segments. The company also
started manufacturing scooter in 2006. Hero Honda offers large no. of
products and caters to wide variety of requirements across all the
segments.
Product range

1985 CD-100
1989 SLEEK
1991 CD-100 SS
1994 Splendor
1997 Street
1999 CBZ
2001 PASSION
2002 DAWN, AMBITION
2003 CD-DAWN, SPLENDOR +, PASSION +.
KARIZMA
2005 SUPER-SPLENDOR, CD-DELUX,
GLAMOUR, ACHIEVER
Brand
The company has been continuously investing in brand building utilizing
not only the new product launch and new campaign launch opportunities
but also through innovative marketing initiatives revolving around
cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey,
cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH
Hockey World Cup that was played in Delhi during Feb-March 2010.
Hero Honda also partners the Commonwealth Games Delhi 2010.
Promotional Strategies

*HHML is an organization, which is known for its innovative &

Aggressive Marketing.
*All the mediums are used extensively, be it print or mass media like
T.V & hoardings.
*HHML also promotes sports in the country. It is also the sponsor of the
ICC world Cup 2003 and half of the Indian team represents Hero
Honda.
 cont……….

*Help promote its "We Care" campaign comprising safety riding,

environment and friendliness Also.
*Advertising is done at a local level by dealers, in which HHML
also contributes to help dealer promote the dealership in the local

area.
Some of the Events Sponsored During the Years-
•HERO HONDA ROADIES

•HERO HONDA CAMPUS ROCK IDIOLS

•HERO HONDA SA RA GA MA PA CHALLENGE

 
Print ads.

HHML has print ads that the customer gets to see almost every day in
newspapers, magazines, etc. This has increased the brand recall by a
significant number. They also have their bikes featured in various TV
programs like top drive on star news and others which act as a strong
reference.
 Total income

Rs in crore.
18000
16000

14000
12000
10000
Rs in crore.
8000

6000
4000
2000
0
2005-06 2006-07 2007-08 2008-09 2009-10
 sales nos.
5000
in Thousands
4500
4000
3500
3000
2500
sales nos.

2000
1500
1000
500
0
2005-06 2006-07 2007-08 2008-09 2009-10
 Operating profit
in cr.
3000

2500

2000

Operating profit
1500

1000

500

0
2005-06 2006-07 2007-08 2008-09 2009-10
Company Stock Performance for the last Six Months
 growth in income %
30

25

20

growth in income %

15

10

0
2005-06 2006-07 2007-08 2008-09 2009-10
Market capitalization
Rs. In crore

40000

35000

30000

25000
Rs. In crore

20000

15000

10000

5000

0
2005-06 2006-07 2007-08 2008-09 2009-10
 Total assets
in crore
4000

3500

3000

2500
Total assets

2000

1500

1000

500

0
2005-06 2006-07 2007-08 2008-09 2009-10
Details of Foreign Exchange Exposure

In financial year 2009-10 company Exported 97699 vehicle a

growth of20% over previous year.

Earnings from Foreign Exchange during financial year 2009-10 was

Rs.337.59 crores
Financial highlights