Hero Motocorp Ltd.

, formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based inNew Delhi,
India. The company is the largest two wheeler manufacturer in India.[2] In India, it has a market share of about 46%
share in 2-wheeler category.[2][4] The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked
at #108.[5] On 31 March 2013, the market capitalisation of the company was INR 308 billion (USD 5.66 billion).[6]
Hero Honda started in 1984 as a joint venture between Hero Cycles (sometimes called Hero Group, not to be
confused with the Hero Group food company of Swizerland) of India and Honda of Japan.[7] In 2010, when Honda
decided to move out of the joint venture, Hero Group bought the shares held by Honda.[8][9]Subsequently, in August
2011 the company was renamed Hero MotoCorp with a new corporate identity.[10]
In 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 Hero.[11]
Contents

1 History
o

1.1 Termination of Honda joint venture

1.2 Sports Association

1.3 Formation of Hero MotoCorp

1.4 49% stake in Erik Buell Racing

2 Operations

3 Motorcycles
o

3.1 Scooters

4 Company performance

5 Listings and shareholding

6 Employees

7 Awards and recognition

8 Initiatives

9 See also

10 References

11 External links

History[edit]

"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.
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. In 2001, the company became the largest
two-wheeler manufacturing company in India and globally.[2] It maintains global industry leadership till date.[2] The
technology in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (19842010) has come from the
Japanese counterpart Honda.[12]

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.

1994Hero Honda motorcycle Splendor launched.

1997Hero Honda motorcycle Street launched.

1999Hero Honda motorcycle CBZ launched.

2001Hero 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 Karizmalaunched.

2004Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ Star launched.

2005Hero Motocorp SuperSplendor, 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".

2012New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the young generation bike
are launched.

2013Hero MotoCorp unveiled line-up of 15 updated products including Karizma R, ZMR, Xtreme,
Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO,Hero Motocorp SuperSplendor, Passion Pro and
Xpro, Glamour and Glamour FI etc. It also introduced three new technologies- Engine Immobilizer in new
Xtreme, Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start System) in new Splendor
iSmart[13]

2014Hero MotoCorp Launched Splendor Pro Classic, Xtreme Sports and new models of Karizma ZMR,
Karizma R, Maestro and Pleasure.

2014In October 2014, Hero updated its 100cc engine range on Passion Pro and Splendor Pro Classic. Is
should be updated on other Hero's 100cc vehicles shortly as well.

2014Hero invests $25 million into American motorcycle manufacturer EBR(Erik Buell Racing)

Termination of Honda joint venture[edit]

In December 2010, the board of directors of the Hero Honda Group had 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.[14]

Logo of Hero Honda, as the company was known till August 2011

Under the joint venture Hero Group could not export to international markets (except Sri Lanka and Nepal) 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.[15]
The Japanese auto maker 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.[16]
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).[16]
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.[17]
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future models.
[18]

Sports Association[edit]

Hero MotoCorp began its association with the prestigious Indian Open Golf tournament in 2005. The
tournament has helped catapult the popularity of golf in India. Illustrious golfers from around the world participate
in this annual event, which boasts of the largest prize fund sanctioned solely by the Asian Tour. Hero MotoCorp,
the India's largest manufacturer of two-wheelers, took over title sponsorship of the World Challenge Hero World
Challenge

Hockey is India's national sport, and Hero is committed to doing its part to promote and popularize the sport.
In 2010, Hero MotoCorp extended its support to Hockey by sponsoring the 'Hockey World Cup 2010' that was
held in India. 2 years after this, Hero Motocorp was also the sponsor of the 'FIH Road to London 2012'
tournament. The company is proud to associate with, and will continue to endorse this great sport in the future.

Our association with cricket goes a long way. Hero MotoCorp has in the past sponsored major cricket
tournaments in association with International Cricket Council (ICC), including the cricket World Cup and the
Champions Trophy. Hero has also been associated with IPL.

Formation of Hero MotoCorp[edit]

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Limited on 29 July 2011.
[2]

The new brand identity and logo of Hero MotoCorp were developed by the British firm Wolff Olins.[19] The logo was

revealed on 9 August 2011 in London, to coincide with the third test match between England and India.[19]

Hero MotoCorp can now export to Latin America, Africa and West Asia.[19] Hero is free to use any vendor for its
components instead of just Honda-approved vendors.[19]
On 21 April 2014, Hero MotoCorp announced their plan on a $40 Mn joint venture with Bangladesh's Notiol Niloy
Group in the next five years.[20] also hero updated its 100cc engine range in 2014 for 100cc bikes except hero dawn.

49% stake in Erik Buell Racing[edit]

In July 2013, HMC acquired 49.2%[21] shareholding in Erik Buell Racing, a motorcycle sport company which produced
street and racing motorcycles based in East Troy, Wisconsin, USA. EBR filed for bankruptcy in 2015.

Operations[edit]
Hero MotoCorp has four manufacturing facilities based at Dharuhera, Neemrana and Gurgaon in Haryana and
at Haridwar in Uttarakhand. These plants together have a production capacity of 7.6 million 2-wheelers per
year. Read More Hero MotoCorp has a sales and service network with over 6,000 dealerships and service points
across India. It has a customer loyalty program since 2000, called the Hero Honda Passport Program which is now
known as Hero GoodLife Program.Hero GoodLife
It is reported that Hero MotoCorp 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.[22]
The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016
17. 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.

Motorcycles[edit]

Sleek (Discontinued)

Street (Discontinued)

Achiever

Ambition 133, Ambition 135 (Discontinued)

CBZ, CBZ Star (Discontinued)

CBZ Xtreme, Hero Xtreme 2014, Xtreme Sports

CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start)

New HF Dawn,New HF Deluxe, HF DELUXE ECO

Glamour, Glamour F.I.

Hunk

Karizma, Karizma R, Karizma ZMR FI

Passion, Passion Plus, Passion Pro, Passion XPro, New Passion Pro TR

Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor NXG, Splendor PRO, Splendor
[iSmart],Splendor Pro Classic

Hero Impulse launched in 2011 after the separation of Hero and Honda. Its India's first off-road and on road
Bike.

Hero Ignitor launched in 2012

Hero HX250r

Scooters[edit]
It has 2 models in scooters:

Pleasure

Maestro

Company performance[edit]
The company has sold over 47 million 2-wheelers since its inception in 1984 till March 2013.[2] It sold 6.07 million 2wheelers in 2012, out of which 5.5 million were motorcycles. Hero Motocorp sells more two wheelers than the
second, third and fourth placed two-wheeler companies put together.[2] Its most popular bike Hero Honda
Splendor sells more than one million units per year.[23]
In 2013, Hero MotoCorp registered best ever calendar year performance of more than 6.1 million unit sales. By
selling 6.25 lakh units in the month of October, it became the first-ever manufacturer to cross landmark 6 lakh unit
sales in a month. In the last quarter of the year or say in the festive season, the company sold more than 1.6 million
units, while in non festive time in AprilMay 2013, it managed to sell out quite good numbers of units- 1.1 million.[24]

Listings and shareholding[edit]

The equity shares of Hero Motocorp are listed on the Bombay Stock Exchange,[25] where it is a constituent of the BSE
SENSEX index,[26] and the National Stock Exchange of India,[27] where it is a constituent of the S&P CNX Nifty.[28]
As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero Motocorp. Over
61,000 individual shareholders hold approx. 7.44% of its shares.[29] Foreign Institutional Investors hold approx. 30%
shares in the company.[29]

Shareholders (as on 31-Dec-2013)

Shareholding[29]

Promoter Group

39.92%

Foreign Institutional Investors (FII)

30.63%

Foreign Corporate Bodies

12.29%

Individual shareholders

06.44%

Insurance companies

05.38%

Mutual Funds / UTI

02.56%

Bodies Corporate

01.60%

Financial Institutions / Banks

00.53%

Others

00.60%

Total

100.0%

Employees[edit]
As on 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%). It also had approx.
13,800 temporary employees on that date. The company had an attrition rate of 5.1% in the FY 2012-13.[2] The
company spent INR 8.21 billion on employee benefits during the FY 2012-13.[2]

Awards and recognition[edit]

The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 7th position
among the most trusted brands in India.[30]

It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two Wheelers Category at the
Auto India Best Brand Awards 2012.

Initiatives[edit]
The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as Hero Honda Motors
Ltd., that looks after:

Raman Munjal Vidya Mandir (an educational institution)

Raman Munjal Memorial Hospital

During the financial year, the company spent INR 14 million on corporate social responsibility.

Karizma ZMR

Karizma

Xtreme Sports

Xtreme

Hunk

Impulse

Achiever

Ignitor

Glamour Programmed FI

Glamour

Super Splendor

Passion XPRO

Passion PRO

Passion PRO TR

Splendor iSmart

Splendor PRO Classic

Splendor PRO

Splendor+

HF Deluxe ECO

HF Deluxe

HF Dawn

Maestro

Pleasure