PRESENTED BY: CHETAN PRESENTED BY: CHETAN SINGHALSINGHAL IM XVI , SEC AIM XVI , SEC A

ROLL NO. 47ROLL NO. 47

Driven By The Trust Of Our CustomersDriven By The Trust Of Our Customers

HERO HONDA MOTORS LTD , HERO HONDA MOTORS LTD , INDIAINDIA

Hero Honda Motors Limited, based in Delhi, is the world's Largest manufacturer of motorcycles .

A joint venture that began in 1984 between the Hero Group of India and Honda of Japan.

Hero Honda's Splendor is the world's largest selling motorcycle.

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Type : Public company BSE:HEROHONDA MFounded: January 19, 1984 in Gurgaon,Haryana, IndiaHeadquarters : New Delhi, IndiaKey people: Brijmohan Lal Munjal (chairman &

founder) Toshiaki Nakagawa (joint managing

director) Pawan Munjal (CEO)Industry: AutomotiveProducts: Motorcycles, ScootersRevenue: U$ 2.8 billionWebsite: www.Herohonda.com

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Hero Honda is world’s third largest 2-wheeler maker.

“THE LICENSE RAJ” : Customers in India were forced to

wait 12 years to buy a scooter from Bajaj.

In the mid-1980s, Foreign companies permitted to enter

the Indian market through minority joint ventures.

Four Indo-Japanese joint ventures: Hero Honda, TVS

Suzuki, Bajaj Kawasaki and Kinetic Motor Company

(Kinetic Honda)

The 2006 Forbes 200 Most Respected companies list has

Hero Honda Motors ranked at 108. 

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By 2002 Hero Group had sold 86 million

bicycles .

Today Hero Honda has an assembly line

of 9 different models of motorcycles .

Currently the largest producer of

Two Wheelers in the world.

Sold 3 million bikes in the year 2005-06.

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Hero Honda Ambition 133,135Hero Honda CD 100,CD SS, CD DawnHero Honda Splendor , Splendor+ , Super

Splendor, Splendor NXGHero Honda CBZ , CBZ XtremeHero Honda Passion , Passion+ , Passion ProHero Honda KarizmaHero Honda HunkHero Honda PleasureHero Honda Glamour

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1983 : Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

1984: Hero Honda Motors Ltd. incorporated 1985 :First motorcycle "CD 100" rolled out 1987:100,000th motorcycle produced 1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir inaugurated - 1994 : New motorcycle model - "Splendor" introduced  2000: 4,000,000th motorcycle produced 

Splendor declared 'World No. 1' - largest selling single two- wheeler model 

2001: One million production in a single year : 5,000,000th motorcycle

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2003: Becomes the 1st Indian Company to cross the 7 million sales Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "Karizma" introduced

2005 : Hero Honda is the World No. 1 for the 4th year in a row Super Splendor , CD Deluxe , Glamour ,Achiever introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 : Hero Honda is the World No. 1

for the 5th year in a row

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Hero Honda

Bajaj

TVS

Yamaha

LML

Kinetic

Royal Enfield

Majetic

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Management introduced new ideas coupled with Management introduced new ideas coupled with improved terms of agreement for their joint ventureimproved terms of agreement for their joint venture

Two primary goals in mindTwo primary goals in mind Continuing their success Continuing their success Maintaining their existing market shareMaintaining their existing market share

 Environment Policy Integrate environmental attributes and cleaner

production in all business processes Substitution of hazardous chemicals where viable

and strengthen the greening of supply chain.

 Quality Policy Excellence in quality is the core value of Hero

Honda's philosophy. Innovation in products, processes and services. Continuous improvement in total quality management

systems.

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 Safety Policy Committed to safety and health of its

employees and other persons. Ensuring compliance with all applicable

legislative requirements. Promoting safety and health awareness

amongst suppliers & contractors. Continuous improvements in safety

performance through precautions besides

participation and training of employees.

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Date of Approval

Date ofIssue

Particulars of Issue No. of Shares

  19.01.84 Subscription shares 150

09.08.1984 19.03.85 Public Issue 11999985

09.08.1984 29.04.87 Issue of Rights Shares in the ratio of 15:50

3975000

09.08.1984 07.02.1995 Issue of Bonus Shares in the ratio of 1:4

3993750

09.08.1984 28.09.1998 Issue of Bonus Shares in the ratio of 1:1

19968750

09.08.1984 26.03.2001 Sub-division of Equity Shares of Rs. 10 each Into 5 Equity Shares of Rs. 2 each

199687500*

  Details of issue of Equity Shares since beginning

STOCK HISTORYSTOCK HISTORY

* Equity Shares of Rs. 2 each.

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SALES RECORDSSALES RECORDS

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PROFITS ANALYSISPROFITS ANALYSIS

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StrengthsStrengths Ability to understand customer’s needs and wantsAbility to understand customer’s needs and wants Recognized and established brand nameRecognized and established brand name Effective advertising capabilityEffective advertising capability

WeaknessesWeaknesses R&D is not close to the Hero manufacturing plantR&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda Hero is vulnerable in the joint venture because Honda

Motor Company has so much powerMotor Company has so much power

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OpportunitiesOpportunities Global expansion into the Caribbean and Central Global expansion into the Caribbean and Central

AmericaAmerica Expansion of target market (include women)Expansion of target market (include women) Become India’s leader in the scooter marketBecome India’s leader in the scooter market

ThreatsThreats Honda Motorcycles and Scooters India can take away Honda Motorcycles and Scooters India can take away

market share and cause joint venture to go sourmarket share and cause joint venture to go sour Bajaj Motors is a strong competitorBajaj Motors is a strong competitor

NDTV Profit Business Leadership Award 2008  TopGear Design Awards 2008 - Hunk: Bike of the Year

Award Asian Retail Congress Award for Retail Excellence  -

Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards - Bike

Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme1818

25-year old joint venture with Japan’s Honda Motor , deadline in 2014

The Munjals of the Hero group and Honda Motors are equal partners in Hero Honda, India’s largest motorcycle company.

Honda decided to establish its 100% subsidiary in India and produce scooters and motorcycles.

The two partners have also not agreed on the issue like Honda’s desire that the JV firm join its umbrella parts company Honda Motor India. 

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2020

YesYes!! Established name and Established name and dominant market positiondominant market position Strong Marketing DepartmentStrong Marketing Department Local KnowledgeLocal Knowledge Technological AdvancementsTechnological Advancements Introduction of scooterIntroduction of scooter

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JOURNEY OF JOURNEY OF HERO HONDAHERO HONDA

1985 CD-100 1985 CD-100

1989 SLEEK1989 SLEEK

1994 SPLENDOR1994 SPLENDOR

1999 CBZ1999 CBZ

2001 PASSION2001 PASSION

2002 AMBITION2002 AMBITION

2003 KARIZMA2003 KARIZMA

2005 : GLAMOUR2005 : GLAMOUR

2005: ACHIEVER2005: ACHIEVER

2005: PLEASURE2005: PLEASURE

2007: HUNK2007: HUNK

Thank Thank you!you!