HERO HONDA'S MISSION Hero Hero Honda’ Honda’ss missio mission n is to strive strive for syner synergy gy betwee between n technol technology ogy,, syste systems ms and human human resour resources ces,, to produc producee produc products ts and servic services es that that meet meet the quality quality,, perfor performan mance ce and price price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders. HERO HONDA'S MANDATE Hero Honda 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 Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.
Corporate Profile Hero Honda Motors Ltd. is the world's largest manufacturer of two – wheelers, based in India. The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in 1984. In 2001, 2001, the the comp compan any y achi achiev eved ed the the cove covete ted d posi positi tion on of bein being g the the larg larges estt twotwo-wh whee eele ler r manufacturing company in India and the ‘World No.1’ two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date. Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling motorcycle – Splendor. Vision The Hero Honda story began with a simple vision – the vision of a mobile and an empowered India, India, powered powered by Hero Hero Honda. Honda. This vision vision was driven driven by Hero Hero Honda’ Honda’ss commit commitmen mentt to customer, quality and excellence, and while doing so, maintaining the highest standards of ethics and societal responsibili responsibilities. ties. Hero Honda believes believes that the fastest way to turn that dream into a reality is by remaining focused on that vision. Strategy Hero Honda’s key strategy has been driven by innovation in every sphere of activity – building a robust product portfolio across categories, exploring new markets, aggressively expanding the network and continuing to invest in brand building activities. Manufacturing
Hero Honda bikes are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the hill state of Uttrakhand. Technology In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006. Products Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. The company also started manufacturing scooter in 2006. Hero Honda offers large no. of products and caters to wide variety of requirements across all the segments. Distribution The company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero Honda's extensive sales and service network now spans close to 4500 customer touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the country. Brand The company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground- level activation.
Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010. 2009-10 Performance Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2 EBIDTA margin for the year 17.4 per cent EPS of Rs. 111.77, growth of 74.1 per cent
PROMINENT AWARDS TO THE COMPANY Ye Awards & Recognitions ar
201 Company of the Year awarded by Economic Times Awards for Corporate Excellence 0 2008-09.
CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor NDTV Profit Car & Bike Awards 2010 Two-wheeler Manufacturer of the Year
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CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)
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Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009 200 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009 and 9 Passion Pro adjudged as CNB Viewers' Choice two-wheeler
Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun & Bradstreet-Rolta Corporate Awards Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category NDTV Profit Business Leadership Awards 2009 - two-wheeler category
SALES PERFORMANCE
FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09
Total Sales 26,21,400 30,00,751 33,36,756 33,37,142 37,22,000
Exports (incl in above) 64,015 92,666 97,341 90,571 81,193
Hero Honda Registers 23% Growth in June'06
Hero Honda Sells Over 2.50 Lakh Units in February 2006
Hero Honda Begins 2006 On A High Note
Hero Honda Motors Scales A New High In Cy ’05
Hero Honda Continues On The Growth Path
Retail Sales Escalate To An Unprecedented 4 Lakh + Units In October’05
Hero Honda Registers 22.3 Per Cent Growth In September ’05
Hero Honda’s Sales Jump 28.5 Per Cent In August 2005
Hero Honda Registers 12 Per Cent Growth In Sales In July 2005
Hero Honda Registers 13% Growth In Sales In Q1 Of 2005-06
Hero Honda Motorcycle Sales In May At 2,26,072
Hero Honda Starts The Financial Year With Over 20% Growth
HERO HONDA REGISTERS 23% GROWTH IN JUNE '06 Records a growth of 21% Sales in Q1 Of 2006-07
New Delhi, July 01, 2006: Hero Honda, the 'World No.1' two-wheeler company, continues to strengthen its leadership in the Indian two-wheeler industry, registering impressive growth in sales in the first quarter of the FY 2006 - 07.
For the quarter ending June 2006, the company
achieved cumulative sales of 8,32,692 units, recording a growth of 21.29% compared to the same period last year. During the corresponding period last Financial Year, the company had recorded sales of 6,86,494 units in the first quarter ending June 2005.
In June 2006, the company sold 2,78,660 units registering an impressive growth of 23.26% as against 2,26,073 units in June last year.
During the month, Hero Honda launched Glamour FI India's first Fuel Injection motorcycle. The new technology eliminates the need for a carburetor, offers the most comfortable drive and the lowest emissions, in addition to a host of other features, which is now available for the first time to Indian two-wheeler riders.
Hero Honda Sells Over 2.50 Lakh Units In February 2006
CUMULATIVE SALES JUMP 14.16 %
New Delhi, March 1, 2006: Hero Honda, the ‘World No. 1’ two-wheeler company for the fifth year in a row, has continued to exhibit a leader’s performance in the first couple of months in 2006.
During the month of February 2006, the company sold 2,50,695 units, as compared to 2,23,546 motorcycles sold during February 2005. This translates into a growth
of 12.14 per cent in sales volume.
The cumulative sales of the company for the period April 2005 - February 2006 also witnessed a notable jump of 3,38,632 units, from 23,89,807 to 27,28,439 units during the corresponding period last year. This reflects a growth of 14.16 percent.
In January 2006, Hero Honda rolled out its first 100cc gearless scooter the “Pleasure” across India. The company also launched 22 first ever women-exclusive scooter showrooms “Just4her” across the country. “Just4her” is a unique concept pioneered by Hero Honda Motors targeting the women customers.
In January 2006, Hero Honda was also conferred the honor of the “Bike Maker of the Year” by NDTV ProfitBike and Car for the year 2005. Additionally its 150 cc offering Achiever received the coveted ‘Bike of the Year’ award. Achiever and Glamour also received the best bike awards for their respective categories. The most desirable amongst these awards, the ‘NDTV Viewers’ Choice’ award in the bike category was also awarded to Hero Honda Glamour, truly exemplifying the customers’ enduring trust and faith in the company.
Hero Honda Begins 2006 On A High Note
CUMULATIVE SALES JUMP 14 %
New Delhi, February 1, 2006: Hero Honda, the ‘World No 1’ two-wheeler company for the fifth consecutive year, has continued to exhibit a leader’s performance in the first month of the New Year. During the month of January 2006, the company sold 2,49,450 motorcycles, as compared with 2,30,280 motorcycles sold during January 2005. This translates into an increase of 8.3 % in sales volume. The cumulative sales of the company for the period April 2005 - January 2006 has also increased to 24,77,744 motorcycles, a notable jump from 21,66,261 motorcycles during the corresponding period last year. This reflects a growth of 14.3 %. In the month of January, Hero Honda rolled out its first scooter, the 100cc “Pleasure” and launched 22 womenexclusive scooter showrooms “Just4her” across the country. The cities where “Just4her” showrooms were launched include Lucknow, Delhi, Ahmedabad, Pune (two showrooms), Bangalore, Hyderabad, Baroda, Madgaon, Chennai (two showrooms), Chandigarh, Ludhiana, Jaipur, Nagpur, Jamshedpur, Bhubaneswar, Guwahati, Coimbatore, Cochin, Indore and Raipur. The month of January also saw Hero Honda being conferred the honour of the “Bike Maker of the Year” by NDTV Profit-Bike and Car for the year 2005. Additionally its 150 cc offering Achiever received the coveted ‘Bike of the Year’ award. Achiever and Glamour also received the best bike awards for their respective categories. The most desirable amongst these awards, the ‘NDTV Viewers Choice’ award in the bike category was also awarded to Hero Honda Glamour, truly exemplifying the customers’ enduring trust and faith in the company.
Hero Honda Motors Scales A New High In Cy ’05
CLOSES THE YEAR WITH SALES OF OVER 29 LAC BIKES New Delhi, January 2, 2006: Hero Honda, the ‘World No. 1’ two-wheeler company, set precedence in the industry by registering an unparalleled growth throughout the calendar year (CY) 2005. In the year that logged an impressive growth in the two-wheeler sector, Hero Honda continued to exceed expectations by selling a staggering 29,16,523 motorcycles during the calendar year 2005. This converts to a growth of 15.3 per cent over CY ’04 where the company sold 25,28,699 bikes. Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., thanked customers for the company’s continuous brilliant performance. He said “This year has been exciting for us where we crossed significant milestones. We fulfilled our commitment to the customers by providing the latest and global standard products. We launched several new products this calendar year. It is to the complete credit of our customers who have shown continued faith in us and our products that we have achieved the World No. 1 two-wheeler company year after year." During CY ’05, the company continued its consistent growth in sales performance. In December 2005, the company sold a total of 2,45,104 motorcycles as compared with 2,30,751 bikes during the same month last year which means an increase of 6.2 per cent. With this, the cumulative tally for the period April-December 2005 stands at 22,31,104 bikes, clocking a growth of 15.2 percent over the year 2004. The company sold 19,35,981 motorcycles during the same period last year.
The calendar year 2005 also saw a slew of new launches
in various segments by the company. One of the biggest milestones was the launch of ‘Pleasure’- the first scooter by Hero Honda. ‘Pleasure’ which is slated to hit the roads in January is targeted primarily at women. Having established its leadership in the industry, Hero Honda further consolidated its position by launching three new motorcycles - ‘Super Splendour’, ‘Glamour’ and ‘Achiever’.
The year also witnessed one of the highest civilian honours, the Padma Bibhushan being awarded to Mr. Brijmohan Lall, Chairman, Hero Honda Motors, for his invaluable contribution to trade, industry and philanthropist activities. Mr. Brijmohan Lall is a first generation entrepreneur who through sheer hard work and perseverance has made his mark on the global business environment. During the year Mr. Brijmohan Lall was also honoured with a Lifetime Achievement Award by the Economic Times.
Hero Honda Continues On The Growth Path
CUMULATIVE SALES FOR THE PERIOD APR-NOV ’05 GROWS BY OVER 14 PER CENT
New Delhi, December 1st, 2005: Hero Honda, the ‘World No. 1’ two-wheeler company, is continuing to ride high on its steady sales performance month after month.
During November 2005, the company recorded a sales volume of 2,51,186 motorcycles as compared with 2,35,836 motorcycles sold during the same month last
year. This translates into an increase of 6.5 per cent.
The cumulative sales of the company for the period April-November 2005 has also jumped by 14.7 per cent, increasing from 17,05,230 motorcycles sold during April– November 2004 to 19,56,416 motorcycles sold during the same period in 2005.
The month of November also witnessed the 5th Hero Honda Indian Television Academy Awards, the first and only television awards in the country.
Retail Sales Escalate To An Unprecedented 4 Lakh + Units In October ’05
DESPATCH CROSSES THE 3-LAKH LANDMARK
New Delhi, October 31, 2005: Hero Honda, the ‘World No.1’ two wheeler manufacturer, has set yet another precedent for the Indian two-wheeler industry by recording incredible sales in October 2005. The company’s retail sales crossed the 4-lakh milestone, for the first time ever in the Indian two-wheeler industry.
Additionally, dispatch during the month also reached an unprecedented high of 3,02,000 units, marking a remarkable jump of 23.02% as compared with the corresponding month in 2004. The company had recorded dispatch of 2,45,475 units in October 2004.
Hero Honda’s achievement of the landmark 4 lakh plus retail sales and 3 lakh plus dispatch, within a single month, is an extraordinary feat considering the growing competition in the two-wheeler market and is certain to redefine industry standards.
The company’s sales performance during October 2005 is a testimony to the success of its customer centric business philosophy. Month over month, the company has been recording increasing sales, also signifying the success of its new models launched in the current year.
The company’s sales (dispatch) during the month is up by 13.5%, as compared with the previous month (September 2005), when the company had recorded sales of 2,66,071 units.
With the first festive month ending, Hero Honda’s cumulative sales (dispatch) for the period April-October 2005 has also registered a significant growth of 17.87% over the corresponding period in the previous year. The company’s cumulative sales tally has thereby increased to 17,31,992 units, a jump from 14,69,394 units in 2004.
With the recent launch of Achiever in end-October and the forthcoming launch of Pleasure in mid-November, the company is confident of continuing its upward movement on the sales chart.
The company’s festive promotion, which offers Rs.1001/off on each of its models, has also met with huge success, across the country.
Hero Honda Registers 22.3 Per Cent Growth In September ’05
CLOSES HALF YEAR WITH IMPRESSIVE NUMBERS New Delhi, 1st October 2005: Hero Honda, the ‘World No.1’ two-wheeler company, for the fourth consecutive year, continued its upswing during the month of September 2005.
The September sales of Hero Honda mark an impressive growth of 22.3 per cent over last year. The company sold 2,66,071 bikes in September 2005 as against 2,17,507 bikes in the corresponding month during the previous year. Sales during the month have also jumped by 9.6 per cent over the previous month (August 2005), when the company sold 2,46,304 motorcycles.
The cumulative sales of the company for the period April - September 2005 have also shown a growth of 16.84 per cent over the corresponding period last year. The cumulative sales during the period have increased to 14,29,992 motorcycles from 12,23,919 motorcycles during April-September 2004.
Hero Honda's Sales Jump 28.5 Per Cent In August
2005
PHASED LAUNCH OF 'GLAMOUR' COMPLETED; OVER 45,000 UNITS SOLD ALREADY
New Delhi, September 01, 2005: Hero Honda Motors Ltd., the ‘World No.1’ two-wheeler company for the fourth consecutive year, is continuing with its robust performance month after month. The company’s emphasis on proactive understanding and satisfaction of customer needs and desires along with new product offerings has resulted in the company consolidating its leadership in the industry.
The company sold a total of 2,46,304 motorcycles during August 2005, thereby registering an impressive growth of 28.5 per cent in sales over the corresponding month last year. The company had sold a total of 1,91,635 motorcycles in August 2004.
At the end of August 2005, the cumulative sales of the company for the period April - August 2005 stood at 11,63,921 motorcycles, translating into a growth of 15.6 per cent. The company had sold 10,06,412 motorcycles during the corresponding period (April-August 2004) last year.
Also during the month, Hero Honda completed the phased launch of ‘Glamour’- its new offering in the 125 cc segment. The bike comes powered with the futuristic
and exemplary Quantum Core engine, which has been perfected after a series of refinements and offers customers an unprecedented combination of top-class fuel-efficiency and high power. The company has already sold over 45,000 units of Glamour since its first launch in South India towards the end of June, demonstrating a tremendous response from customers.
Hero Honda Registers 12 Per Cent Growth In Sales In July 2005
CUMULATIVE SALES CROSS NINE LAKH BIKES IN FOUR MONTHS
New Delhi, August 01, 2005: Hero Honda Motors Ltd., the ‘World No.1’ two-wheeler company has come to epitomize consistent performance. The company has, month on month, managed to stand up against all odds and maintained its leadership in the increasingly competitive 2-wheeler segment.
During the month of July 2005, the company sold 2,30,050 bikes, as against 2,05,654 bikes in the corresponding period last year, thus registering a sales growth of 12 per cent.
For the period April - July 2005, the cumulative sale of the company stood at 9,17,617 units, translating into a growth of 12.6% per cent. The company had sold 8,14,777 units during the corresponding period last
year.
The company was able to achieve this impressive growth in the face of continuing supply constraints of components caused by the volatile labour situation prevailing in parts of the state of Haryana, where both the manufacturing plants of the company are located. The adverse situation impacted other industries in the region as well. Thanks to the initiative taken by the Haryana government, the situation has improved and production is expected to be back on track.
Market demand for Hero Honda products remains buoyant and the company launched ‘Glamour’- a new entry by the company in the premium deluxe segment, in Western India during this month. The bike was very successfully launched in South India in the previous month and has been very well received by the customers in that region. With this new product in its portfolio, the company is now looking at consolidating its indisputable leadership in the market.
Hero Honda Registers 13% Growth In Sales In Q1 Of 2005-06
New Delhi, July 01, 2005: Hero Honda, the ‘World No.1’ two-wheeler company, continues to strengthen its leadership in the Indian two-wheeler industry, registering impressive growth in sales in the first quarter of 2005 – 06.
For the quarter ending June 2005, the company achieved cumulative sales of 6,86,494 units, recording a growth of 13 per cent. During the corresponding period last Financial Year, the company had recorded sales of 6,09,123 units.
In June 2005, the company sold 2,26,073 bikes registering a growth of 12.5% as against 2,00,922 units in June last year.
This impressive growth was achieved in the face of continuing supply constraints of components caused by the volatile situation prevailing in parts of the state of Haryana, where both the manufacturing plants of the company are located. The adverse situation has impacted other industries in the region as well.
However, market demand for Hero Honda products remains buoyant and production is expected to be back on track to meet this demand. With the steady progress of monsoon, the outcome also remains positive.
Hero Honda Motorcycle Sales In May At 2,26,072
New Delhi, June 1, 2005: Hero Honda, the ‘World No. 1’ two-wheeler company, sold 2,26,072 units in May 2005.
The impressive figure was achieved despite some supply
constraints. With the huge demand for Hero Honda bikes in the market and supplies now back to normal, sales are set to get a boost in June.
During the month of May, Hero Honda also announced auditions for Hero Honda MTV Roadies- 3, a reality show that the company has been associated with for the last two years. This year the Hero Honda MTV Roadies journey will begin on June 12th from Jaisalmer to Leh with 13 bikers on Hero Honda Karizma, the only premium sports bike in India. The show aims at testing the participants’ endurance and bringing out the real riders in them.
Hero Honda Starts The Financial Year With Over 20% Growth
New Delhi, May 2, 2005: Hero Honda, the ‘World No. 1’ two-wheeler company, has started the year with a bang. The company sold impressive peak capacity 2,35,422 motorcycles during April 2005, a jump of 20.09% per cent as compared with the corresponding period in the previous FY. The company had sold 1,96,024 motorcycles in April 2004.
The month also saw the launch of CD Deluxe, the stylish, true value, 100cc motorcycle from Hero Honda, encompassing the legendary Hero Honda values of fuelefficiency, economy and rock-solid dependability. The new model comes with a unique suspension, which
smoothens and absorbs bumps on rough roads. Also, its double tubular-cradle frame imparts extra stability to the motorcycle.
CD Deluxe is available at an ex-showroom price of Rs.33,900/- across India, in five attractive colours Candy Blazing Red, Black (2 stripes), Candy Tahitian Blue, Cloud Silver, Amaranth Maroon and Cool Mint Green. The new model is a part of the company’s efforts to offer enhanced value-for-money to its customers.
