Team Member

Samir khan Tejpratap Singh Saswat Verma Rinku Kr.Saw

Corporate Story on

Hero MotoCorp

INTRODUCTION
Hero MotoCorp Ltd. ( formerly Hero Honda Motors Ltd) is the worlds largest two wheeler manufacturer based in India.

Worlds No.1 two wheeler company in terms of unit volume sales in a calendar year. co.s vision to strengthen focus on mobility & technology & creating global footprint.

Company Profile

Industry:

Automotive

Founded:

1984

Headquarters: New Delhi, India

Key people:

DR. BRIJMOHAN LALL MUNJAL (Chairman)

Pawan Munjal (MD & CEO) Products: Motorcycles, scooters, three-wheeler vehicles Parent: Hero Group

HISTORY
Hero Moto Corp was started in 1984 as Hero Honda Motors Ltd. 1956 Formation of Hero Cycles in Ludhiana(majestic auto limited) 1975 Hero Cycles becomes largest bicycle manufacturer in India. 1983Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984Hero Honda Motors Ltd. incorporated 1985Hero Honda motorcycle CD 100 launched. 1989Hero Honda motorcycle Sleek launched. 1991Hero Honda motorcycle CD 100 SS launched. 1994 - Hero Honda motorcycle Splendor launched. 1997Hero Honda motorcycle Street launched. 1999 --Hero Honda motorcycle CBZ launched. 2001 --Hero Honda motorcycle Passion and Hero Honda Joy launched. 2002Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched. 2003Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.

 2004Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*. launched 2005Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure. 2007New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched. 2008New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched. 2009New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited edition of Hero Honda motorcycle Hunk launched 2010New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched. 2011New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma ZMR 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".

Mission
Hero MotoCorps 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. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.

Vision

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 Moto Corp 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.

BCG MATRIX
SPLENDER SERIES PASSION SERIES KARIZMA HUNK CBZ-EXTEREME PLEASURE

CD DELUXE CD 100SS CD DAWN

ACHIEVER GLAMOUR

PORTERS 5 FORCE MODULE

POWER OF SUPPLIERS

NEW ENTRNTS

COMPETITION

POWER OF SUBSTITUTES

POWER OF BUYERS

PORTERS 5 FORCE MODULE

: NEW ENTRANTS : Number, size of firms. Industry size & trends. Fixed v/s variable cost.

Product/service ranges.
Differentiation strategy.

PORTERS 5 FORCE MODULE

: POWER OF SUPPLIERS : Brand reputation. Geographical coverage. Product / service level quality.

Relationship with customers.

Hiding processes.

PORTERS 5 FORCE MODULE

: POWER OF SUBSTITUTES : Alternatives price. Fashion & trends. New technology.

PORTERS 5 FORCEMODULE
: POWER OF BUYERS : Buyers choice. Buyer size / numbers.

Product / service.

PORTERS 5 FORCE MODULE

: COMPETITION : Number & size of firms. Industry size & trends.

Different strategy to sell the product.

Product ranges.

Threat of New Entrants

Low Bargaining Power of Suppliers

Yamaha 4% Honda 16%

Suzuki 4%

Others 3% Hero MotoCorp 40%

High Bargaining Power of customers

TVS 14%

Munjal Showa AG Industries Satyam Auto components Sunbeam Auto Rockman Industries

Bajaj 19%

Extensive competition

2012 Domestic Sales 15.4 Million Threat of substitutes

Hero Moto Corp Ltd.

16

Political

Technological
Technical collaboration with Steyr Diamler Puch Largest investment of over Rs. 2500 Cr. to build an integrated R&D centre in Rajasthan Technical & Financial collaboration with Showa Corporation Japan

Land acquisition Imposition of taxes

Economical
Changing lifestyles & high quality Deluxe segment (category) 100-125cc grew up by 15% 125-250cc category grew at 9% 4% excise cut & 1% reduction in CST Higher interest rate & fuel prices

PEST
Social
-

Green Technology Safe Manufacturing Rain Water Harvesting The Green Supply Chain Vocational Training Camp Safe Rider Program
Hero Moto Corp Ltd. 17

MARKETING MIX

PRODUCT
1. 2. 3. 4. Under 125 cc (Yari ki Gaddi) Splender,Passion, More than 125 cc(Always Game) Karizma, CBZ extreme . Scooty (Why Should boy have all the FUN) pleasure Adventurous Bike (Play with the Road) Impulse

PRICE
SORT BY Price (Rs.40,000-60,000) Price (60,001-90,000) Price (90,000+)

PLACE
DEALER SHOWROOM AUTHORISED AUTO STORES

PROMOTION
Print Media TV advertising with celebrity like RANBIR KAPOOR. Road Show TV realty show sponsorship

SEGMENTATION
Upper Middle class people who want a bike that is stylist and give good mileage. Young Boys looking for sporty bike.

TARGETING
Young and adventurous man ,for the age of (25-35) College and School girls ,age group (1625) Middle class youth ,age from (20-35)

POSITIONING
Indias First on Road off Road bike . Its for the girls who want to enjoy every moment. For the Bikers who are always ready for action A motor cycle for making friends of LIFE.

Profit & Loss Account

(Rs.in crore)
31/03/2012 30/03/2011

Income
Sales Turnover LESS: Excise Duty Net Sales Other Income Stock Adjustments Total Income

31/03/2013

25,474.54 1,891.80 23,582.74 398.38 32.20 24,013.32 17,495.18 129.18 820.92 56.42 1,479.30 438.62 20,419.62

25,252.98 1,666.18 23,586.80 347.46 94.03 24,028.29 17,485.65 112.66 735.52 51.62 1,257.84 389.52 20,032.81

20,787.27 1,420.30 19,366.97 238.27 27.00 19,632.24 14,236.45 100.47 618.95 409.89 1,090.72 340.42 16,796.90

Expenditure
Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Total Expenses

(Rs.in crore)

Particulars Operating Profit PBDIT Interest PBDT Depreciation Profit Before Tax Tax Reported Net Profit

31/03/2013

31/03/2012

30/03/2011

3,561.5 3,593.70 30.60 3,670.95 1,141.75 2,529.20 411.04

2,118.16

3,648.02 3,995.48 33.43 3,962.05 1,097.34 2,864.71 486.58 2,378.13

2,597.07 2,835.34 28.2 2,807.14 402.38 2,404.76 476.86 1,927.90

Balance Sheet
Sources of Funds
Total Share Capital
Equity Share Capital
31/03/2013 31/03/2012

(Rs.in crore)

30/03/2011

39.94
39.94

39.94
39.94

39.94
39.94

Reserves
Net worth Secured Loans Unsecured Loans Total Debt Total Liabilities

4,966.30
5,006.24 281.18 0 281.18 5,287.42

4,249.89
4,289.83 994.85 0 994.85 5,284.68

2,916.12
2,956.06 1,458.45 32.71 1,491.16 4,447.22

Application Of Funds
Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Current Liabilities Provisions Total CL & Provisions Net Current Assets Total Assets

31/03/2013

31/03/2012 30/03/2011

6,735.48 3,664.5 3,070.98 62.09 3,623.83 636.76 665.00 134.95 1436.71 780.06 31.90 2,248.67 2,278.09 1,439.76 3,717.85 -1,469.18 5,287.42

6,308.26 2,522.75 3,785.51 193.95 3,964.26 675.57 272.31 56.1 1,003.98 926.99 20.72 1,951.69 3,520.66 1,090.07 4,610.73 -2,659.04 5,284.68

5,538.46 1,458.18 4,080.28 125.14 5,128.75 524.93 130.59 47.75 703.27 783.48 23.77 1,510.52 5,316.40 1,081.07 6,397.47 -4,886.95 4,447.22

Cash Flow Statement

(Rs.in crore)
31/03/2012 30/03/2011 2864.71 2359.78 92.79 -2458.16 -5.59 39.32 33.73 2404.76 2288.11 -1322.31 -989.18 -23.38 62.61 39.23

Particulars

31/03/2013 2529.20 1890.43 -732.94 -1056.27 101.22 33.73 134.95

Net Profit Before Tax

Net Cash flow From Operating Activities Net Cash (used in)/ flow from investing activities Net Cash (used in)/ flow from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

Net Profit Ratio

10.20 10.00 9.80 9.60 9.40

10.08%
9.20 9.00 8.80 8.60 8.40 2011 2012 8.98%

9.95%

2013

Debt Equity Ratio

0.50 0.45 0.40 0.35 0.30 0.50 0.25 0.20 0.15 0.23 0.10 0.05 2011 2012 2013 Debt Equity Ratio

0.06

Return on Investment
55.00 54.00 53.00 52.00 51.00 50.00 Return on Investment

54.21%
49.00 48.00

54.07%

47.00
46.00 45.00 44.00 2011 2012 2013 47.83%

Comparison With Competitors

(RS. In crore)

Name

Sales turnover

Net Profit

Total Assets

Bajaj Auto Hero Motorcorp

19,997.25 3,043.57 23,768.11 2,118.16

7,973.22 5,284.68

TVS Motor
Mah Scooter

7,065.00
6.7

116.02
48.84

1,770.53
224.59

HUMAN RESOURCEHUMAN RESOURCE

HRM

HR Mission: We commit to the HR vision of making " HERO

MotoCorp the most Desired Workplace for top talent

Recruitment & Selection

Selection of any employee depends on the need in any sector. For this the particular department of organization define the quality needed in employee and after this the HR department post the job on different websites, hire consultant or take placement from different colleges.

Recruitment & Selection

There are two types of recruitment sources followed by HERO MotoCorp 1) Internal sources Present Permanent Employees, Former Employees. 2) External sources Advertisement, Campus Interview, Employee Referrals and Unsolicited application

Recruitment & Selection

.REGULARLY RECRUITS MBAS FROM REPUTED B-SCHOOLS IN INDIA. EMPLOYEE ENGINEERING TRAINEES. DIPLOMA HOLDERS. PROVIDE INDUSTRY TRAINING. ATTRACTIVE PERFORMANCE LINKED INCENTIVES. RECRUITMENT IS MAINLY DONE BY POST EXECUTIVES.

SELECTION PROCESS IN NEROLAC

VACANCY IN ANY DEPARTMENT

APPROVAL FROM M.D ADVERTISEMENT DIRECT APPLICATION COLLECTION OF APPLICATION SHORTLISTING OF APPLICATION

INTERVIEW
MEDICAL CHECK UP

SELECTION

TRAINING & DEVELOPMENT

Believes in leveraging technology to help it gain a competitive edge in the market place thorugh the Training and Develeopment program .

TEAMWORK & TEAM-ORIENTED ENVIRONMENT

Hero MotoCorp provides an environment which would foster teamwork, cooperation and an urge to utilize knowledge and information.

CSR ACTIVITIES

CSR ACTIVITY
Area of education , environment preservation, health and community development. Targeting social and cultural issues and maintaining humanitarian approach.

The Centre-complete with wide approach roads, clean water and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community.
The Foundation has adopted various villages located within vicinity of the Hero MotoCorp 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.

CSR ACTIVITY
RAMAN MUNJAL VIDYA MANDIR The Raman Munjal Vidya Mandir began with three classes (up to class II) 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. The school has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room, a wellstocked library and a computer center. 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, and also caters to accident and trauma victims driving along the Delhi-Jaipur highway.

CSR ACTIVITY
The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and football grounds are used by the local villagers. In the near future, sports academies are planned for volley ball and basket ball, in collaboration with National Sports Authority of India. VOCATIONAL TRAINING CENTRE In order to help local rural people, especially women, Hero MotoCorp has set up a Vocational Training Centre. So far 26 batches comprising of nearly 625 women have been trained in tailoring, embroidery and knitting. The Company has helped women trained at this center to set up a production unit to stitch uniforms for Hero MotoCorp employees. Interestingly, most of the women are now self-employed. 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.

CSR ACTIVITY
ADULT LITERACY MISSION This Scheme was launched on 21st September, 1999, covering the nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero MotoCorp is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults. 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.

SAFETY POLICY
We believe that safe work practices lead to better business performance, motivated workforce and higher productivity. We shall create a safety culture in the organization by: Integrating safety and health matters in all our activities. Promoting safety and health awareness amongst employees, suppliers and contractors. Continuous improvements in safety performance through precautions besides participation and training of employees. Ensuring compliance with all applicable legislative requirements. Empowering employees to ensure safety in their respective work places.

OUR REFRENCES
http://www.heromotocorp.com
www.scribd.com www.slideshare.com www.wikiversity.com www.moneycontrol.com