History of hero honda

Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Group and Japanese Honda Motors Company in the year 1983. This joint venture has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. Hero Honda is globally known of being the most fuel-efficient and the largest CBZ selling Indian motorcycle company. This is a relationship so harmonious that Hero Honda has managed to achieve indigenisation of over 95 percent, a Honda record worldwide. The below chart shows the golden years in the history of HERO HONDA :1985 1989 1991 1994 1997 1999 2001 2002 2003 2005 CD-100 SLEEK CD-100 SS Spelendor Street CBZ PASSION DAWN, AMBITION CD-DAWN, SPLENDOR +, PASSION +, KARIZMA SUPER-SPLENDOR, CD-DELUX, GLAMOUR, ACHIEVER

The company is committed to provide the customer with excellence. A rich background of producing high value products at reasonable prices led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer. During 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. They company possess three manufacturing units based at Dharuhera, Gurgaon and Haridwar are capable to produce 4.4 million units per year. They introduced new

generation motorcycles that set industry benchmarks for fuel thrift and low emission. The unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country. Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been steadily on the rise. Over the years, the Company has received its share of accolades, including the National Productivity Council's Award ( 1990-91), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders. The gross sales of Hero Honda by March end'2008 was 33,371,43 Crores

Corporate Profile
Hero Honda Motors Ltd. is the world's largest manufacturer of two wheelers, based in India. The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in 1984. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the World No.1 two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date. Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling motorcycle Splendor. Vision The Hero Honda story began with a simple vision the vision of a mobile and an empowered India,

powered by Hero Honda. This vision was driven by Hero Hondas commitment to customer, quality and excellence, and while doing so, maintaining the highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that dream into a reality is by remaining focused on that vision. Strategy Hero Hondas 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. 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 1980s 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.

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. 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. 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.

2009-10 Performance Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2 EBIDTA margin for the year 17.4 per cent EPS of Rs. 111.77, growth of 74.1 per cent

Barriers of hero Honda in Africa

This movement is a bit doubtful since the joint venture agreement between Hero group and Honda Motor does not allow Hero Honda Motors to export motorcycles in the large markets where Honda already has its assembly units. But, according to analyst Jatin Chawla, India Infoline, Honda Motor does not have an assembly unit in Africa because of its presence in the higher capacity engine models, while most bikes that run on the roads of Africa are 100cc. Chawla also added that going by the strength that Hero Honda has in the 100cc markets and the low cost, allowing exports in Africa would be a strong case for Honda Motors to reject. If Honda Motors agrees, Hero Honda would get access to the African market that is estimated to be worth more than half million units annually sold market. If all goes well, Hero Honda will compete with Bajaj in this region.

Share of hero Honda in india

SALES PERFORMANCE
HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50 % NET PROFIT IN Q2, '08-09 DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES & OTHER OPERATING INCOME), AT RS. 3202 CRORE; EBIDTA AT 13.58 PER CENT Aug'06 Total Sales 2,15,076 Aug'07 2,40,875 FY 06-07 12,82,860 FY 07-08 12,63,254

Highlights of Q2, FY'08-09

Total turnover(Net sales & Other Operating income)Rs 3202 crores, growth of 35.6 per cent Net profit after tax at Rs 306.30 crores, growth of 50 per cent EBIDTA margin for the quarter 13.58 per cent Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent Total sales for H1 stands at 18,66,349, growth of 19.7 per cent Over 55 per cent share in domestic motorcycle market Launches first-of-its kind music video to celebrate 25 years of Hero Honda

New Delhi, October 21, 2008: Hero Honda Motors Ltd (HHML), the world's largest two-wheeler company for seven consecutive years, today firmly reiterated its undisputed leadership in the domestic two-wheeler market with impressive bottom line growth for the second quarter (Q2) July to September - of this financial year (FY) 2008-09.

Even as the industry continued to face tough market conditions on account of uncertainty

over interest rates and overall credit squeeze, the company reported 50 per cent growth in profit after tax (PAT) at Rs 306.30 crore for the second quarter. Hero Honda's profit after tax in the corresponding period last fiscal (July - Sept, 2007-08) stood at Rs 204.33 crore.

Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a growth of 35.6 per cent over Rs 2361 crore recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 13.58 per cent in the quarter. The EBIDTA margin in the previous quarter (April - June '08) was 12.20 per cent.

The strong financial performance is in line with the company's better-than-industry top line growth. After posting a growth 11.38 per cent in the first quarter, the company kicked off the second quarter with a 39.8 per cent growth in sales in the month of July, and followed up with 26.8 per cent growth in August and 22.4 per cent in September. Hero Honda consistently keeps growing its share in the domestic motorcycle market, and currently enjoys over 55 per cent share.

Hero Honda's cumulative sales for the second quarter (Q2) this FY stands at 9,72,095 units - a growth of 28.5 per cent over Q2 last FY (2007-08). The cumulative sales for the first six months (H1) stands at 18, 66,339 units of two-wheelers compared to 15, 59,486 units sold in H1 in the last FY sales. reflecting a consistent 19.7 per cent growth in cumulative