INTRODUCTION The Indian Two Wheeler Industry
The Indian two wheeler sector contributes the largest volumes amongst all the segments in automobile Industry. Though the segment can be broadly categorized in to 3-sub segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooter and stepthru’s. The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well known Japanese firms earlier. But with most of the companies now planning 100% subsidiaries in India. In the last four to five years, the two-wheeler market has witnessed a market shift towards motor cycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to with stand the bad road conditions. In the process of the share of motor cycle segment has grown from 48% to 58%, the share of scooters declined declined drastically from 33% to 25%, 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2009-10. All new vehicles are a now being replaced by 4 stock motorcycles. Reduced Reduced excise duties duties and fierce competition competition has led to a fall in prices of certain models. Hero, a name synonymous with two wheelers in India, began its journey around four decades ago. Starting as a manufacturer of by cycle components, hero has today grown into a multiunit, multi-product, geographically diversified group of companies. The hero group began began with simple Philosophy: Philosophy: to provide excellent transportation transportation to the common man, at a price he could easily afford. Even today the dream providing the total satisfaction is all its sphere of activity. To consumers, in excellent products at an affordable price; a thorough understanding the fast
changing consumer understanding the fast changing consumer behaviour, new market segment and opportunities, and marketing mix sensitive changing customer needs from the core of Hero’s marketing strategy and philosophy. philosophy. Hero Moto Corp. is one of the leading companies in the two wheeler Industry. At present, it is segment with around 47% the market share during financial yr. 200001. The company ahs emerged one of the most of successful players, much ahead of it competitors by it superior and reliable product quality complemented with excellent marketing techniques. Hero Moto Corp has been an early entrant in the 4-stroke segment of the two wheeler industry. With a right mix of product styling and pricing the company has graped the 4-stoke market market as compared to Bajaj Auto and and TVS. TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent as a low cost transportations and provide a tremendous potential is all parts of India. However the company is likely to face threat Bajaj Auto Ltd (BAL) which continued its price based competitions and Hero Moto Corp cycle and Scooter Ltd. a new entrants in the 2 wheeler market. Infact the company has achieved excelled the Industry growth rates by a huge margin. From April to December 2008 while while the motor cycle industry industry sales were were upto 38.68% TVS motor’s sales surged by a whooping 73.6% sat more importantly it is the success of its model Victor. Baja Auto has continued with its impressive performance witnessing significant growth is the motor cycle and three wheeler segments. Based on the performance fill data one can expect the company company to meet meet it excellence by FY09. Hero Moto Corp is the largest player is the motorcycle segment. Focused on contemporary design and style, the company has a compare leusine ranges bikes viz; CD-100 DX
CD-100 SS Splendor Street Smart Steek CBZ Passion It splendor model is an urban centric with its fuel efficiency which accounts to over 60-70% of its sales. The passion launched in mid Jan. 2001 has a resending success contributing to 26% of its sales. TVS offers a wide ranges of two-wheelers motorcycles- Victor/Fiero/Max100/ max100R/Max DL. Scooterette- TVS scooty Moped- chap/XL/XL super/XL supper HD/sports. TVS plans to launch 4 new models in the coming 15 months. A 4-stroke version of India’s best selling scooterttes; TVS-scooty and 4-stroke version of the existing moped line will be launched this year. Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy their needs. It’s having 4-stroke single cylinder natural air cool the displacement of engine is 111.6 CC having the engine power it 7-7 bhp at 7000 spm. The bike is having a hydrometric disc brake in front wheel. ―Flash‖ is an added f uture in the bike. In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-motorcycle model, moped model, 3-three wheeler model. But in the recent year Bajaj developed various model in the motorcycle segment which providing good riding conditions is urban road as well as rater roads. Scooter- cub/super/super FE/chetak/stride/Msl Priya. Moped- Bajaj Sunny.
Motorcycle- M-80/kawasaki RTZ/Kawasaki45 by 1993 and latest model are. Eliminator/Pulsor – 180/Pulsor 150/Boxer/Caliber Crowa/Caliber Sales performance of the player: Hero Moto Corp repeated a y-o-y growth of 6.3% is its motorcycle sales for the month of Jan 2006 at 1,45,708 units. Export during the month have surged almost 64% y-o-y. On a month – on-month basis the sales growth has been even higher up 16.5%. MOTORCYCLE APRIL TO DEC APRIL TO DEC 20 % CHAN 2010
INDUSTRY SAL 2897842
2089637
38.68
INDUSTRY SAL 1281342
1026102
24.85
MARKET SHAR
49.11
44.21
Bajaj Auto: Bajaj auto has reported y-o-y growth of 19.8% in motorcycle sales for Jan 2006 at 75059 units. On a month-on-month basis the growth is 8.8%. Export performance continues to be impressive with 10,089 two and three wheelers exported in Jan 2006, a growth of 98.6% y-o-y. Two wheeler sales for the current year are up 6.8%. The growth is driven sharply in the motor cycle sales upto 37% in two wheeler segment, the share of motor cycle has jumped from 52.8% to 67.8% during the current year. this sharp growth in the motor cycle can be attributed to the positive response received by its need products and the encouraging performance of select existing model. ES (UNITS)
JAN 10 JAN 09 % CHANG
APR-JAN
APR-JAN 0
% CHAN
OTERS (GEARED) 20211
30233
-33.15
235829
348700
-32.37
OTER- UNGEARE 4349
4333
0.37
56072
57686
2.80
PTHRU’S
4563
5810
-21.46
47636
59576
-20.04
ORCYCLE
75059
62640
19.83
717397
523508
37.04
AL 2-WHEELER
104182
103016
1.13
1056934
989470
6.82
EE WHEELERS
17426
14405
20.97
163359
132864
22.95
AL
121608
117421
3.57
1220293
1122334
8.73
India is the second largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the number of twowheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa Scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, the scooter segment was dominated by API, it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. The Motorcycles segment was no different, with only three manufacturers viz Enfield, ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa and the Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two wheeler market was opened to foreign competition in the mid-80s. And the then market leaders- Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of
fuel efficient low power bikes, demand swelled, resulting in Hero Moto Corp then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Moto Corp brought in the first two-stroke and four – stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years. The Industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. the industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. The entry of Kinetic Hero in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters and working women, towards buying scooters, who were earlier inclined towards moped purchases. In the 90s, this trend was reversed with the introduction of scooterettes. In line with this, the scooter segment has consistently lost its part of the market share in the two-wheeler market. In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4 mn vehicles. Barring Hero Moto Corp , all the major producers suffered from recession in FY93 and FY94. Hero Moto Corp showed a marginal decline in 1992. The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in companies either reporting looses or a fall in profits.
India is one of the very few countries manufacturing three- wheelers in the world. It is the world’s largest manufacturer and seller of three-wheelers. Bajaj Auto commands a monopoly in the domestic market with a market share of above 80%, the rest is shared by Bajaj Tempo, Greaves Ltd and Scooters India. The total number of registered two wheelers and three-wheelers on road in India, as on March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler population has almost doubled in 1996 from a base of .6mn in 1990. Automobile Industry in India TVS Centra crosses an astounding 20,000 sales mark in 40 days Hosur, March 6, 2006: TVS Motor Company today announced that the sales of TVS Centra, powered by the indigenously developed Variable Timing Intelligent (VT-i) engine technology crossed 20,000 units in just 40 days since its launch in mid January 2004, the best ever clocked by any new product from the TVS Motor Company stable. This achievement is expected to spiral the overall growth of TVS Motorcycles sales in the coming months. The impressive sales figures reflect the customer's faith in the technological capability of TVS Motor Company to fully live up to its promise of delivering a world-class product at an affordable price. Due to excellent customer feedback across the country, TVS dealers are being pressurised with enquiries on the new 100 CC 4 Stroke Centra and its revolutionary VT-i engine technology. Having caught the public's imagination, TVS Centra has fully lived up to its promise of a 'Fill it Once a Month Bike' where a full tank of petrol lasts for a month based on the average use of motorcycle customers. A panel of leading auto experts in India, after having tested TVS Centra, have endorsed the fact that it was the 'best in its class' and also commended TVS Motor Company on its technology prowess and innovation. TVS Centra is powered by VT-i engines which are designed to deliver superb performance on fuel efficiency and torque delivery based on three fundamental
actions namely variable ignition timing and superior combustion of fuel, friction reduction and fuel wastage reduction. Added to its technological edge are features that include attractive price, fuel efficiency, low maintenance, contemporary style, ride comfort and backed by TVS Motor Company's reliability, making it truly the preferred two-wheeler in its class. Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor Company's commitment to produce the best technology in its products for its customers has led to the launch of TVS Centra with Variable Timing intelligent engines (VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment. This revolutionary new VT-i engine technology, developed indigenously by TVS Motor Company, inbuilt into TVS Centra will make it the most fuel-efficient motorcycle in the Country. It will be rightfully called as the 'Fill it Once a Month Bike' where a full tank of petrol will last for a month based on the average use of motorcycle customers. The VT-i Engines by TVS Motor Company will go down in the history of the Automobile Industry in India as one of the most innovative technology developed indigenously. The VT-i engines are designed to deliver superb performance on fuel efficiency and torque delivery based on three fundamental actions namely variable ignition timing and superior combustion of fuel, friction reduction and fuel wastage reduction. This action facilitates deceleration fuel cut off, faster warm up of the Engine and has four curve ignition mapping Like all TVS Motor Company products, TVS Centra too has been engineered and designed keeping in mind extensive customer feedback and changing customer needs. TVS Centra will be the first motorcycle in India that will bundle price, mileage, maintenance, style, reliability, power, ruggedness and ride comfort making it truly a value for money personal transportation two-wheeler. Those who
want all these performance attributes in a commuter motorcycle at a great price; nothing will beat the TVS Centra for all the advantages it offers. TVS Centra is built around to give a mileage that will offer atleast 10 per cent more than any other motorcycle in the country, today. It will be powered by 7.5 Brake HorsePower (Bhp) at 7250 RPM making it the most powerful motorcycle in its class. TVS Centra will also be known for its nimble handling and riding comfort enabling easy maneuvering even in busy city traffic. Its contemporary style with big muscular tank and well-rounded looks with a horizontal engine and superior ergonomics will mark a new standard in the popular segment of two wheelers. It will come with Econometer to keep a check on the mileage / power ratio, wide and skid free seat and Utility space. Victor the Saviour TVS launched Victor 110 cc model in September 2001, with leading cricketer Sachin Tendulkar as the brand ambassador the model has proved to be a big success. The success of TVS Victor is especially significant because it was developed with indigenous technology.
Two stroke Max Range – On the way out
The company is currently looking forward to phase out its two stroke Max range, which is perceived to be less fuel efficient with a new four stroke range. The change over is expected to take place by the end of June 2010. Two new launches could out TVS on a high growth trajectory
TVS Centra TVS Centra a new 100 cc model has recently been launched and the company has set ambitions targets of achieving monthly sales in the range of 15000 -20000 bikes per month. Also, a new upgraded 125 cc TVS Victor has been launched which will improve the trajectory of the company. Three Wheeler Project- Entering A New Market TVS Motor has set the stage for entry into the three-wheeler markets with the setting up of a new plant at Nanjangud, near Mysore in Karnataka. We understand that the company would be targeting the sub-one ton passenger and goods carriers segment of the market. With an investment of about Rs 50 crore in phase-1, it will cater to both passenger and cargo segments. The total investments for the three wheeler and four-wheeler quardricycle project are expected to be in the range of Rs 500 crore in the next two-three years. It plans to go with petrol version of three wheelers and expects higher demand to come from B class towns. The company expects higher margin and low competition in three-wheeler business as compared to its two-wheeler business. Three wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units FY 03, and are expected to grow at the same rate for the next five years. TVS is expected to roll out its first three-wheeler by the end of FY05 to garner a 30% market share with around 100,000 unit sales by the end of FY08. Three-Wheeler Market Scenario
These are two main segments in the Indian passenger three -wheeler markets are: Number of seats including driver not exceeding 4 and maximum max not exceeding 1 tonne. Number of seats including driver excluding 4 but not exceeding 7 max mass not exceeding 1.5 tonnes. The three-wheeler goods carrier segments are: Maximum mass not exceeding 1 tonne Others. Around 95% of the three-wheeler sold in India belong to the smaller vehicles category in which Bajaj Auto is the major player and has around 90% market share. The other players in the segment are Atul Auto and Piaggio group, Italy. Similarly, in the three-wheeler segment, domestic sales of the goods carrying variety grew a whopping 46.95%. This growth in 2008-09 could have possibly come from two factors. 1) The increasing number of cities whose corporations have legislated that larger goods carrier, like trucks be kept out for logistics purpose. 2)The increase in the number of offerings in this category, especially from companies such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd. Quardricycle-A new introduction in the Indian market There is a new challenger emerging in the Quardricycle segment. These new vehicles could impact on the entry level sales. These new vehicle could impact on the entry level sales. Quardricycles are three wheelers converted into four wheelers by using, a column axle. All the major three-wheeler units have prepared Quardricycles prototypes. Plans setting up manufacturing units in Indonesia / Vietnam TVS motor is actively looking to set up a foothold in the south east Asian markets and has made top level visits to Indonesia & Vietnam. Indonesia is the third largest two-wheeler market in the world with an estimated size this year of two million
units. Presently in Indonesia there is one motorcycle for every 15 people, in Vietnam one for every seven people. Further in Indonesia forty million households, representing 86% of the total not having a motorcycle. Merger of engine components Division of Lakshmi Auto components with TVS Motor: TVS motor would merge engine component division of Lakshmi Auto Component Ltd. (LAC) and investments and other assests with itself and the dwap ratio has been fixed at once phase of TVS motor for every seven share held as consideration for the merger. Presently TVS motor holds 66.5% of equity capital of LAC, which would be cancelled. Around 66% of LAC’s sales come from the engine components division, mode of which is currently being sold to TVS motor. LAC’s total net sales in HI FY 09 were Rs. 69 crore and made anet profit of Rs. 10.5 crore.. The Plastics and Rubber components division of LAC will be transferred to the wholly owned subsidiary company, Sundaram Auto Components Ltd. The total consideration on slump – sale based is Rs. 12.25 crore. Strong focus on R&D
The company has put in place a strong R & D team consisting 400 engineers & is spending about 3% of its turnover on R & D every year and has in the process setup a strong world class facility for product design and development. During 2009-10, the company applied for 16 patents & published five technical research papers in international conference. Modified research projects are carried in association with leading international research labs and Indian institutes. R & D as percentage of sales in expected to increase from 1.5% in FY o2 to 3.2% in FY 11. Valuation The company’s valuations are dependent on five events:
Current four businesses grow at the normal industry growth rates.
New product launches achieve their targets and are well accepted by the market.
Three wheeler foray achieve targeted volume in the desired rates of return on capital employed.
Quadricycle foray achieve the desired rate of return on the capital employed.
Overall investment returns.
In TVS motor company VICTOR is the most popular bike and very interestingly without any media interaction FIERO F2 has taken the 2nd spot with CENTRA on the 3rd spot which has taken a lead with only one place from MAX-R .It is recommended that FIERO F2 should be given equal sales promotion than CENTRA because of its popularity has come through people network and not through channel media.
COMPANY PROFILE
Fill it. Shut it. Forget it
What started out as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Hero Moto Corp Company of Japan, is today the leading manufacturer of India's largest selling motorcycle. Coming into existence on January 19, 1984. Hero Moto Corp gave India nothing less than a revolution on two-wheels made even more famous by the 'Fill it - Shut it - Forget it' campaign. Driven by the trust of over 30 lakh customers, the Hero Moto Corp product range today commands as much as 47% making it a veritable giant in the industry. Add to that technological excellence, an expansive dealer network, and reliable after sales service, and you have one of the most customer-friendly companies. In fact, every second bike sold in India today is a Hero Moto Corp ! Customer satisfaction, a high quality product, the strength of Hero technology and the Hero group's dynamism have helped HML scale new frontiers and exceed limits. In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We will continue to make every effort required for the development of the motorcycle industry, through new product development, technological innovation, and investment in equipment and facilities and through and through efficient management."
MILESTONE KEY MILESTONES OF HERO MOTO CORP Year Event 1983 Joint Collaboration Agreement with Hero Moto Corp, Ltd., 1984
Hero Moto Corp. Incorporated
1985 First motorcycle "CD 100" rolled out 1987 100,000th motorcycle produced 1989 New motorcycle model - "Sleek" introduced 1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle
produced 1992
Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder
1994
New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced
1997 New motorcycle model - "Street‖ and 2nd manufacturing plant at Gurgoan
inaugurated 1998 2,000,000th motorcycle produced 1999
New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal
2000
4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared 'World No. 1' - largest selling single two-wheeler model " Hero Moto Corp Passport Programmed" - CRM Programmed launched
2001 New motorcycle model - "Passion" introduced One million production in
one single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced 2002
New motorcycle model - "Dawn" introduced New motorcycle model "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh as Brand Ambassadors
2003
Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "CD Dawn" introduced New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model "Karizma" introduced
2004
New motorcycle model - "Ambition 135" introduced Hero Moto Corp became the World No. 1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor World's largest selling motorcycle crossed the 5 million mark New motorcycle model - "CBZ*" introduced Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles
2005
Hero Moto Corp is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Moto Corp - "Pleasure" introduced
2006 Hero Moto Corp is the World No. 1 for the 5th year in row Fill it. Shut it.
Forget it
The joint venture between india's hero group and Hero Moto Corp company, has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. During the 80s, Hero Moto Corp became the first company in india to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'fill it - shut it - forget it' campaign captured the imagination of commuters across india , and Hero Moto Corp sold millions of bikes purely on the commitment of increased mileage Over 20 million Hero Moto Corp two wheelers tread indian roads today. These are almost as many as the number of people in finland , ireland and sweden put together! Hero Moto Corp has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Moto Corp. Every 30 seconds, someone in india buys Hero Moto Corp's top -selling motorcycle – splendor. This festive season, the company sold half a million two wheelers in a single month — a feat unparalleled in global automotive history. Hero Moto Corp bikes currently roll out from its three globally benchmarked manufacturing facilities. Two of these are based at dharuhera and gurgaon in haryana and the third state of the art manufacturing facility was inaugurated at haridwar, uttrakhand in april this year. These plants together are capable of producing out 4.4 million units per year. Hero Moto Corp 's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized representatives of dealers located across different geographies. Hero Moto Corp values its relationship with customers. Its unique crm initiative - Hero Moto Corp passport program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Moto Corp
understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors. Having reached an unassailable pole position in the indian two wheeler market, Hero Moto Corp is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of india , increasing urbanization and the empowerment of rural india will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Moto Corp in the years to come. As brijmohan lall munjal, the chairman, Hero Moto Corp motors succinctly points out, "we pioneered india's motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.'' HERO MOTO CORP'S MISSION
Hero Moto Corp’s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Moto Corp to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders. HERO MOTO CORP 'S MANDATE
Hero Moto Corp is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Hero Moto Corp Company. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status. FROM THE CHAIRMAN'S DESK LEADING WITH A DREAM
We had a dream. The dream of making motorcycles that would touch and transform the lives of our customers by giving them a mode of transport that was fuel-efficient,
comfortable and environment friendly. One that would enhance their efficiency at work, enable them to share moments of joy with their families and add up to a better quality of life. In a scenario where the customer had a few choices, our vision was to offer the highest quality at a reasonable price, to meet our customer’s expectations, and to exceed them. Behind the success of Hero Moto Corp, is the saga of team-work. We would like to acknowledge the role played by our jv partners, Hero Moto Corp company, all our business associates, shareholders and employees. In the new millennium, we stand committed to innovation, to change, to achieving breakthroughs… to moving forward in the new century, while retaining the values that have been like a beacon in this journey thus far. 2007
- Hero Moto Corp. has appointed Mr. Yutaka Kudo as Director and Whole-time Director of the Company in the category of Executive Director w.e.f. April 1, 2007. - Hero Moto Corp is the World No. 1 for the 6th year in a row - New 'Splendor NXG' launched - New 'CD Deluxe' launched - New 'Passion Plus' launched - New motorcycle model 'Hunk' launched - 20 million production milestone achieved 2008
- Hero Moto Corp has informed that Mr. Arun Nath Maira. has been appointed as an Additional Director in the category of Non Executive and Independent Director w.e.f. December 20, 2008 by the Board of Directors by way of passing a resolution by circulation. - Hero Moto Corp Haridwar Plant inauguration
- New 'Pleasure' launched - Splendor NXG lauched with power start feature - New motorcycle model 'Passion Pro' launched - New 'CBZ Xtreme' launched - 25 million production milestone achieved - CD Deluxe lauched with power start feature - New 'Glamour' launched - New 'Glamour Fi' launched 2010
- Hero Moto Corp has appointed Mr. Ravi Nath as an Additional Director in the category of Non Executive and Independent Director w.e.f. October 14, 2010 by the Board of Directors by way of Passing a resolution by circulation on October 14, 2010. BOARD OF DIRECTORS
No. Name of the directorscategory of directorship 1 Mr. Brijmohan Lall Munjal Chairman & whole-time director 2 Mr. Pawan Munjal managing director 3 Mr. Toshiaki Nakagawa joint managing director 4 Mr. Yutaka kudo whole-time director 5 Mr. Om prakash munjal non-executive director 6 Mr. Sunil kant munjal non-executive director 7 Mr. Masahiro takedagawa non-executive director 8 Mr. Takashi nagai non-executive director 9 Mr. Narinder nath vohra non-executive & independent director 10 Mr. Pradeep dinodia non-executive & independent director 11 Gen.(retd.) Ved prakash malik non-executive & independent director
12 Mr. Analjit singh non-executive & independent director 13 Dr. Pritam singh non-executive & independent director 14 Ms. Shobhana bhartia non-executive & independent director 15 Mr. Sunil bharti mittal non-executive & independent director Hero Moto Corp is the world no. 1 for the 5th year in a row
PROMINENT AWARDS TO THE COMPANY
Year Awards & recognitions 2008
dtv profit car india & bike india awards - bike manufacturer of th Overdrive magazine - bike manufacturer of the year Tns voice of the customer awards: o.1 executive motorcycle splendor nxg o.1 standard motorcycle cd deluxe o. Premium motorcycle cbz xtreme
2007
The ndtv profit car india & bike india awards 2007 in the foll category: Overall "bike of the year" - cbz x-treme "bike of the year" - cbz x-treme (up to 150 cc category) "bike technology of the year" - glamout pgm fi "auto tech of the year" - glamout pgm fi by overdrive ma bike
of
the
year"
-
cbz
x-treme
by
overdrive
ma
ranked cbz x-treme " bike of the year" - by b s motoring ma
―most trusted company‖ , by tns voice of the customer awards
Cd deluxe rated as "no 1 standard motorcycle" by tns voice customer awards 2006. 2006
Adjudged 7th top indian company by wallstreet journal asia (top i two
wheeler
com
one of the 8 indian companies to enter the forbes top 200 list of w most
reputed
comp
No. 1 in automobile industry by tns corporate social responsibility a Best in its class awards for each category by tns total cu satisfaction awards 2006: Splendor plus (executive) Cd deluxe (entry) Pleasure (gearless scooters) Splendor & passion - top two models in two wheeler category brand equity survey 2006 Adjudged 7th top indian company by wallstreet journal asia (top i two wheeler company) Top indian company in the automobile - two wheeler sector by bradstreet - american express corporate awards 2006 Hero Moto Corp splendor rated as india's most preferred two-w brand at the awaaz consumer awards 2006. Certificate of export excellence for outstanding export perfor during 2003-04 for two-wheeler & three- wheelers - complete (no by engineering export promotion council
The ndtv profit car india & bike india awards 2006 in the foll category: Bike maker of the year Bike of the year - achiever Bike of the year - achiever (up to 150 cc category) Bike of the year - glamour (up to 125 cc category) dtv viewers' choice award to glamour in the bike category 2005
Awaaz consumer awards 2005 - india's most preferred two-w brand by cnbc in the 'automobiles' category Bike maker of the year award by overdrive magazine Icwai national award for excellence (second) in cost management in the private sector category by icwai 10th motilal oswal wealth creator award for as the most consistent creator for the period 1991-2005
2004
Winner of the review 200 - asia's leading companies award (3rd amongst the top 10 indian companies) Gvc level 1 (highest rating) by crisil for corporate governance Adjudged as the best value creator - large size companies 2003-04 outlook money Corporate excellence award 2004 by indian institute of ma management Adjudged as the organization with innovative hr practices by ht jobs for hr excellence Icsi national award for excellence in corporate governance 2004 institute of company secretaries of india
2003
Winner of the review 200 - asia 's leading companies award (3r amongst the top 10 indian companies) Most respected company in automobile sector by business world Bike maker of the year by overdrive magazine
2002
Bike maker of the year by overdrive magazine Winner of the review 200 - asia 's leading companies award (4t amongst the top 10 indian companies) Company of the year of et awards for corporate excellence Ranked 4th in 'overall best managed company' category, ranked 'best financial management' and 'best operational efficiency' cat ranked 6th in 'overall best investor relations' category, by asiamone Highest wealth creating company of the year award by the money Gvc level 1 (highest rating) by crisil for corporate governance
2001
Bike maker of the year by overdrive magazine Winner of the review 200 - asia 's leading companies award (9t amongst the top 10 indian companies) Winner of three leaves award for showing corporate enviro responsibility in the automobile sector by centre for scien environment
1999
National productivity award for the best productivity award i category of automobile & tractor presented by vice president of indi
1995
The analyst award 1995 presented to Hero Moto Corp. On being r 9th amongst the most investor rewarding companies in India
1995
National award for outstanding contribution to the development of I small scale industry (nsic award - presented by president of India)
1991
Economic times-harvard business school award for corporate performance to Hero Moto Corp.
KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY
At Hero Moto Corp, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a high-quality service to all of its customers, Hero Moto Corp takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues. Hero Moto Corp has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind. "we must do something for the community from whose land we generate our wealth." A famous quote from our worthy chairman mr.brijmohan lall munjal. ENVIRONMENT POLICY
WE at Hero Moto Corp are committed to demonstrate excellence in our environmental performance on a continual basis, as an intrinsic element of our corporate philosophy. TO ACHIEVE THIS WE COMMIT OURSELVES TO:
Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain. Continue product innovations to improve environmental compatibility.
Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable). Institutionalise resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals. Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management. QUALITY POLICY
Excellence in quality is the core value of Hero Moto Corp's philosophy. We are committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customer's growing aspirations through: Innovation in products, processes and services. Continuous improvement in our total quality management systems. Teamwork and responsibility.
MISSION STATEMENT IN PURSUIT OF EXCELLENCE We, at Hero Moto Corp, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the company to excellence in the new millennium". WE CARE FOR ENVIRONMENT
A philosophy closest to Hero Moto Corp is that which pertains to the environment, which is why the company goes that extra step to ensure that each one of the high technology 4-stroke Hero Moto Corp motorcycles meet the most demanding of pollution norms at every level. This is a policy that the company has followed since the very beginning.
WE CARE FOR COMMUNITY
Hero Moto Corp is a company with a difference. Constantly involved in social activities, spreading. Awareness about the community and environment, the company has taken a giant step in the fields of Health care; Education; Engineering; Environment and many more International Marketing
Based on our own brand of globalization, they have built our distribution network over 60 countries worldwide and multiplied our exports from 5 percent of total turnover in Fiscal 2007-08 to over 15 percent in Fiscal 2010-11. Motorcycles form the major chunk of the sales revenue of Hero Moto Corp. A small proportion of the revenue comes from the sales of spares. The proportion of sales revenue coming from each of these two segments in the FY10 is depicted in the graph below:
MAIN OBJECTIVE OF COMPANY Through the company has wide list goals to be achieved but the major objective of the company has to achieve areas follows:1. To provide right product to right people at right time. 2. Price should be reasonable; by this every level of person can afford the product. 3. To maximize the share holder’s value by customer value enhancement. 4. Changes should be according to prospective customer 5. To provide delivery of standard product. To provide value for money to there consumers
REFERENCE & BIBLIOGRAPHY 1. Phillip Litler ―Marketing management‖ (Prentice-Hall of India Pvt.). 2. Harper W. Bayd, Ralph West Fall, and Stanley F. Stasch ―Marketing research (AITBS th
Publisher 7 ed. 2001). 3. A.G. Sawyer and Davied J Howard, Journal of Marketing research 1999. 4. consumer Behaviour by Leon G. Schiffman and Leslie Lazar Kanuk (Fifth edition) 5. Research Methodology by C.R. Kothari (Second Edition)
