Hero MotoCorp

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Hero Motocorp Ltd

Type Public company
Traded as BSE: 500182
NSE: HEROMOTOCO
BSE SENSEX Constituent
Industry Automotive
Founded 19 January 1984
Founder(s) Brijmohan Lall Munjal
Headquarters New Delhi, India
Area served India, Sri Lanka
Key people Deya Varadh Sens (Chairman)
Pawan Munjal (MD & CEO)
[1]

Products Motorcycles, scooters, three-wheeler vehicles
Revenue 239.43 billion (US$4.4 billion) (2012)
[2]

Net income 23.78 billion (US$440 million) (2012)
[3]

Total assets 60.58 billion (US$1.1 billion) (2012)
Parent Hero Group
Website www.heromotocorp.com
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New
Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of
Japan.
[4]
The company is the largest two wheeler manufacturer in India.
[5]
The 2006 Forbes 200 Most
Respected companies list has Hero Honda Motors ranked at #108.
[6]

In 2010, when Honda decided to move out of the joint venture,
[7]
Hero Group bought the shares held by
Honda.
[8]
Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate
identity.
[9]
On 4 June 2012,Hero Motocorp approved a proposal to merge the investment arm of its parent Hero
Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split from Honda Motors.
[10]

Contents
[hide]
1 Company profile
2 History
o 2.1 Termination of Honda joint venture
o 2.2 Hero MotoCorp
3 Company performance
4 Recognition
5 Motorcycle models
6 Suppliers
7 References
8 External links
[edit]Company profile
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
Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in the Company. In
2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.
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. The technology in
the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda.
[11]

Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in
Uttarakhand. These plants together are capable of churning out 3 million bikes per year.
[12]
Hero MotoCorp has
a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has
a customer loyalty program since 2000,
[13]
called the Hero Honda Passport Program.
The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by
201617. This in conjunction with new countries where they can now market their two-wheelers following the
disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of their revenues from international
markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the
new demand over the coming half decade, the company was going to build their fourth factory in South India
and their fifth factory in Western India. There is no confirmation where the factories would be built.
[14]

[edit]History
Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.
[4]

1956Formation of Hero Cycles in Ludhiana(majestic auto limited)
1975Hero 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 plus, 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 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".
2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the young generation bike
are launched.
[edit]Termination of Honda joint venture
In December 2010, the board of directors of the Hero Honda Group have decided to terminate the joint venture
between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the
26% stake of the Honda in JV Hero Honda.
[15]
Under the joint venture Hero Group could not export to
international markets (except Sri Lanka) and the termination would mean that Hero Group can now export.
Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes.
So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture
alone.
[16][17]

The Japanese auto major will exit the joint venture through a series of offmarket transactions by giving the
Munjal familythat held a 26% stake in the companyan additional 26%. Honda, which also has an
independent fully owned twowheeler subsidiaryHonda Motorcycle and Scooter India (HMSI)will exit Hero
Honda at a discount and get over $1 billion for its stake. The discount will be between 30% and 50% to the
current value of Honda's stake as per the price of the stock after the market closed on Wednesday.
[18]

The rising differences between the two partners gradually emerged as an irritant. Differences had been brewing
for a few years before the split over a variety of issues, ranging from Honda's reluctance to fully and freely
share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Indian
partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was
the refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts
business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI).
[18]

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by Brijmohan Lal Munjal
group, will form an overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake, which
will be backed by bridge loans. This SPV would eventually be thrown open for private equity participation and
those in the fray include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle
Group.
[19]

Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future
models.
[20]

[edit]Hero MotoCorp
The new brand identity and logo of Hero MotoCorp were developed by the British firm Wolff Olins.
[21]
The logo
was revealed on 9 August 2011 in London, to coincide with the third test matchbetween England and India.
[21]

Hero MotoCorp can now export to Latin America, Africa and West Asia.
[21]
Hero is free to use any vendor for its
components instead of just Honda-approved vendors.
[21]

[edit]Company performance
During the fiscal year 200809, the company sold 3.7 million bikes, a growth of 12% over last year. In the same
year, the company had a market share of 57% in the Indian market.
[22]
Hero Honda sells more two wheelers
than the second, third and fourth placed two-wheeler companies put together.
[11]
Hero Honda's bike Hero
Honda Splendor sells more than one million units per year.
[23]
On 1 June 2012, Hero MotoCorp reported its
highest ever monthly sales at 556,644 units in May, registering a growth of 11.28%.
[24]

[edit]Recognition


Logo of Hero Honda, as the company was known till Aug. 2011
The Brand Trust Report
[25]
published by Trust Research Advisory has ranked Hero Honda in the 13th position
among the brands in India.
[edit]Motorcycle models
See also: Category:Hero Honda motorcycles
Sleek
Street
Achiever
Ambition 133, Ambition 135
CBZ, CBZ Star, CBZ Xtreme
CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
Glamour, Glamour F.I
Hunk
Karizma, Karizma R, Karizma ZMR FI
Passion, Passion Plus, Passion Pro
Pleasure
Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor NXG,Splendor PRO
Hero Impulse launched in 2011 after the separation of hero and Honda. Its India's first off-road and on
road Bike.
[edit]Suppliers
It is reported Hero Honda has five joint ventures or associate companies, Munjal Showa, AG Industries,
Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a majority of its components




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Hero Honda Q4 profit zooms 49%
ET Bureau Apr 20, 2010, 03.06am IST
Tags:
Pawan Munjal|
Hero Honda Motors Ltd.|
Earnings Announcement
NEW DELHI: Hero Honda, India's largest two-wheeler maker, said on Monday that the twin effects of
slower industry growth and higher commodity prices in 2010-11 could affect profit margins and halve its
sky-high sales growth rate.
Hero Honda, which posted a 48.9% jump in fourth quarter net profit to Rs 598.8 crore, was quick to
dampen expectations of a repeat performance by stressing that the industry and demand scenario will be
substantially different.
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B M Munjal family retains rights to Hero Group
PTI Oct 24, 2010, 11.08am IST
Tags:
Rockman Cycles Industries|
Hero Honda Motors Ltd.|
Hero group|
Hero Corporate Services|
B M Munjal

NEW DELHI: The family led by B M Munjal and his sons, owners of the Indian promoter's stake in Hero
Honda, will be officially known as the Hero Group, following the division of the $4.2 billion group.
In June, the diversified group was divided on a simple principle of ending the numerous cross holdings
between the families of B M Munjal and his three brothers - O P Munjal, Satyanand Munjal and Late
Dayanand Munjal.

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