A Overall Study About Hero Motocorp Ltd
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8/12/2019 A Overall Study About Hero Motocorp Ltd
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A OVERALL STUDY ABOUT HERO MOTOCORP LTD,
TRICHY-620005
.
BY
S.JAYA PRAKASH
(Register No.814111631014)
A Project Report Submitted
to teSHIVANI SCHOOL OF BUSINESS MANAGEMENT
i! p"rti"# $u#$i##me!t o$ te re%uireme!ts
$or te "&"rd o$ te degree
'$
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
1
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CHENNAI-600025
OCTOBER 2012
BONAFIDE CERTIFICATE
erti$ied t"t tis project report tit#ed A OVERALL STUDY ABOUT HERO MOTOCORP
LTD, TRICHY- 620005is te bo!"$ide &or o$ S.JAYAPRASH !1"1116#101"$* &o c"rried
out te project &or u!der m+ super,isio!. erti$ied $urter* t"t to te best o$ m+ !oedge
te &or reported erei! does !ot $orm p"rt o$ "!+ oter project report or dissert"tio! o! te
b"sis o$ &ic " degree or "&"rd &"s co!$erred o! "! e"r#ier occ"sio! o! tis or "!+ oter
c"!did"te.
INTERNAL GUIDE -r../e#","!
-r. Sur+"murti -irector
Asst. Pro$essor Si,"!i Scoo# o$ Busi!ess "!"geme!t
Si,"!i Scoo# o$ Busi!ess "!"geme!t irucir"pp"##i
irucir"p"##i
INTERNAL E%AMINER E%TERNAL E%AMINER
2
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D&'( )* V+&-V)( E&/+&'+)
Persproj
-irector*
Si,"!i scoo# o$ Busi!ess "!"geme!t*
N","#ur 2utt"p"ttu* ric+ 60005.
-e"r sir*
Sub Summer Project permissio! $or +our stude!t reg
7e "re p#e"sed to permit r S "+"pr""s* 9 BA o$ +our co##ege to dosummer project &or i! our org"!i:"tio!.
e stude!t m"+ p#e"se be "d,ised to co!t"ct te u!dersig!ed$or $urter det"i#s.
"!i!g +ou*
Yours $"it$u##+*
3
http://en.wikipedia.org/wiki/File:Hero_MotoCorp.svg -
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R "!d - ec* Srir"!g"m* irucir"pp"##i* "mi# N"du
DECLARATION
9 ereb+ dec#"re t"t te project tit#e A OVERALL STUDY ABOUT HERO MOTOCORP
LTD, TRICHY, 620005. Submitted $or te "&"rd o$ "ster o$ Busi!ess Admi!istr"tio! i! A!!"
;!i,ersit+* e!!"i "s c"rried out u!der te guid"!ce o$ Assist"!t pro$essor -r.Sur+"moorti
BA Assist"!t Pro$essor Si,"!i Scoo# o$ Busi!ess "!"geme!t* irucir"pp"##i "!d it is m+
origi!"# &or &ic does !ot $orm p"rt o$ te "&"rd o$ "!+ oter degree.
P#"ce Sig!"ture o$ te c"!did"te
-"te
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ACKNOLEDGEMENT
9t gi,es me imme!se p#e"sure to e
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@"st but !ot #e"st 9 &is to e9S'RY 5
3 'PANY PR'=9@? 11
4 'RP'RA? PR'=9@? 1
C 2?Y ?D?;9/?S 14
6 ?R9NA9'N '= >'N-A '9N /?N;R? 16
'PANY P?R='RAN? 1
8 R?'EN99'N 1
5 ''RY@? '-?@ 18
10 S;PP@9?RS 18
11 'P?9'RS 15
1 -?PAR?NS 0
1.1 =9NAN? 0
1. >;AN R?S';R? =;N9'N 3
13 'N@;S9'N C
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INTRODUCTION
H(3) M)')C)3> L'?.* $ormer#+ H(3) H)?&* is "! 9!di"! motorc+c#e "!d scooter
m"!u$"cturer b"sed i!Ne& -e#i* 9!di".>ero >o!d" st"rted i! 1584 "s " joi!t ,e!ture bet&ee!
>ero +c#eso$ 9!di" "!d >o!d"o$ "p"!. e comp"!+ is te #"rgest t&o &ee#er m"!u$"cturer
i! 9!di". e 006 =orbes 00 ost Respected comp"!ies #ist "s >ero >o!d" otors r"!ed "t
F108.
9! 010* &e! >o!d" decided to mo,e outo$ te joi!t ,e!ture* >ero Eroup bougt te
s"res e#d b+ >o!d". Subse%ue!t#+* i! August 011 te comp"!+ &"s re!"med >ero otoorp
&it " !e& corpor"te ide!tit+ '! u!e 4* 01*>ero otoorp"ppro,ed " propos"# to merge
te i!,estme!t "rm o$ its p"re!t >ero 9!,estme!t P,t. @td. i!to te "utom"er. e decisio!
comes "$ter 18 mo!ts o$ its sp#it $rom >o!d" otors.
7
http://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/Hero_Cycleshttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hero_Honda_Splithttp://en.wikipedia.org/wiki/Hero_Motocorphttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/New_Delhi,_Indiahttp://en.wikipedia.org/wiki/Hero_Cycleshttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hero_Honda_Splithttp://en.wikipedia.org/wiki/Hero_Motocorphttp://en.wikipedia.org/wiki/Motorcycle -
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T( Pub#ic comp"!+
T3&?(? &7 BS? C0018
NS?>?R''''
BS? S?NS?D o!stitue!t
I?:7'3< Automoti,e
F):?(? "!u"r+ 15* 1584
F):?(37$ Brijmo"! @"## u!j"#
H(&?@:&3'(37 Ne& -e#i* 9!di"
A3(& 7(3(? 9!di"* Sri @"!"
K(< >()>4( -e+" /"r"d Se!s ("irm"!)
P"&"! u!j"# (- G ?')
P3)?:'7 otorc+c#es*Scooters* ree7ee#er ,eic#es
R((:( 35.43 bi##io! (;SH4.36 bi##io!) (01)
8
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500182http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HEROMOTOCO§ion=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HEROMOTOCO§ion=7http://en.wikipedia.org/wiki/BSE_SENSEXhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Brijmohan_Lall_Munjalhttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/w/index.php?title=Deya_Varadh_Sens&action=edit&redlink=1http://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500182http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HEROMOTOCO§ion=7http://en.wikipedia.org/wiki/BSE_SENSEXhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Brijmohan_Lall_Munjalhttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/w/index.php?title=Deya_Varadh_Sens&action=edit&redlink=1http://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/United_States_dollar -
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N(' +)/( 3.8 bi##io! (;SH43.8 mi##io!) (01)
T)'&4 &77('7 60.C8 bi##io! (;SH1.1 bi##io!) (01)
P&3(' >ero Eroup
(;7+'( &&&.eromotocorp.com
H+7')3ero otoorp &"s st"rted i! 1584 "s >ero >o!d" otors @td.
15C6I=orm"tio! o$ >ero +c#esi! @udi"!"(m"jestic "uto #imited)
15CI>ero +c#es becomes #"rgest bic+c#e m"!u$"cturer i! 9!di".
1583Ioi!t o##"bor"tio! Agreeme!t &it >o!d" otor o. @td. "p"! sig!ed
S"reo#ders Agreeme!t sig!ed
1584I>ero >o!d" otors @td. i!corpor"ted
158CI>ero >o!d" motorc+c#e - 100 #"u!ced.
1585I>ero >o!d" motorc+c#e S#ee #"u!ced.
1551I>ero >o!d" motorc+c#e - 100 SS #"u!ced.
1554 >ero >o!d" motorc+c#e Sp#e!dor#"u!ced.
9
http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Hero_Cycleshttp://www.heromotocorp.com/http://en.wikipedia.org/wiki/Hero_Cycleshttp://en.wikipedia.org/wiki/Honda_Motorhttp://en.wikipedia.org/wiki/Hero_Honda_Splendorhttp://en.wikipedia.org/wiki/Hero_Honda_Splendorhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Hero_Cycleshttp://www.heromotocorp.com/http://en.wikipedia.org/wiki/Hero_Cycleshttp://en.wikipedia.org/wiki/Honda_Motorhttp://en.wikipedia.org/wiki/Hero_Honda_Splendor -
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155I>ero >o!d" motorc+c#e Street #"u!ced.
1555 >ero >o!d" motorc+c#e BJ#"u!ced.
001 >ero >o!d" motorc+c#e P"ssio!"!d >ero >o!d" o+ #"u!ced.
00I>ero >o!d" motorc+c#e -"&! "!d >ero >o!d" motorc+c#e Ambitio! #"u!ced.
003I>ero >o!d" motorc+c#e - -"&!* >ero >o!d" motorc+c#e Sp#e!dor p#us* >ero
>o!d" motorc+c#e P"ssio! P#us "!d >ero >o!d" motorc+c#e 2"ri:m"#"u!ced.
004I>ero >o!d" motorc+c#e Ambitio! 13C "!d >ero >o!d" motorc+c#e BJK
#"u!ced.
00CI>ero >o!d" motorc+c#e Super Sp#e!dor* >ero >o!d" motorc+c#e - -e#uero >o!d" motorc+c#e E#"mour* >ero >o!d" motorc+c#e Acie,er "!d >ero >o!d"
Scooter P#e"sure.
00INe& ode#s o$ >ero >o!d" motorc+c#e Sp#e!dor NDE* Ne& ode#s o$ >ero
>o!d" motorc+c#e - -e#uero >o!d" motorc+c#e P"ssio! P#us "!d
>ero >o!d" motorc+c#e >u!#"u!ced.
008INe& ode#s o$ >ero >o!d" motorc+c#es P#e"sure* BJ Dtreme* E#"mour*
E#"mour =i "!d >ero >o!d" motorc+c#e P"ssio! Pro #"u!ced.
005INe& ode#s o$ >ero >o!d" motorc+c#e 2"ri:m"2"ri:m" JR "!d #imited
editio! o$ >ero >o!d" motorc+c#e >u!#"u!ced
010INe& ode#s o$ >ero >o!d" motorc+c#e Sp#e!dor Pro "!d New >ero >o!d"
motorc+c#e >u!"!d New>ero >o!d" otorc+c#e Super Sp#e!dor #"u!ced.
10
http://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_CBZ_Xtremehttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_CBZ_Xtremehttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunk -
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011INe& ode#s o$ >ero >o!d" motorc+c#es E#"mour* E#"mour =9* BJ Dtreme*
2"ri:m" #"u!ced. Ne& #ice!si!g "rr"!geme!t sig!ed bet&ee! >ero "!d >o!d". 9!
August >ero "!d >o!d" p"rted comp"!+* tus $ormi!g >ero otoorp "!d >o!d"
mo,i!g out o$ te >ero >o!d" joi!t ,e!ture. 9! No,ember* >ero #"u!ced its $irst e,er
'$$ Ro"d Bie N"med >ero L9mpu#seL.
01Ne& ode#s o$ >ero otoorp "estro te "scu#i!e scooter "!d 9g!itor te +ou!g
ge!er"tio! bie "re #"u!ced
C)/>&< >3)*+4(
M>ero is te br"!d !"me used b+ te u!j"# broters $or teir $#"gsip comp"!+* >ero +c#es
@td. A joi!t ,e!ture bet&ee! te >ero Eroup "!d >o!d" otor omp"!+ &"s est"b#ised i!
1584 "s te >ero >o!d" otors @imited "t -"ruer"* 9!di". u!j"# $"mi#+ "!d >o!d"group
bot o&!ed 6O st"e i! te omp"!+. 9! 010* it &"s reported t"t >o!d" p#"!!ed to se## its
st"ei! te ,e!ture to te u!j"# $"mi#+.
-uri!g te 1580s* te comp"!+ i!troduced motorc+c#es t"t &ere popu#"r i! 9!di" $or teir $ue#
eco!om+ "!d #o& cost. A popu#"r "d,ertisi!g c"mp"ig! b"sed o! te s#og"! =i## it Sut it
=orget it t"t emp"si:ed te motorc+c#es $ue# e$$icie!c+ e#ped te comp"!+ gro& "t " doub#e
digit p"ce si!ce i!ceptio!. e tec!o#og+ i! te bies o$ >ero >o!d" $or "#most 6 +e"rs
(1584010) "s come $rom te "p"!ese cou!terp"rt >o!d".
11
http://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Dharuherahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hero_Honda_Splithttp://en.wikipedia.org/wiki/Hero_Honda_Splithttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Dharuherahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hero_Honda_Splithttp://en.wikipedia.org/wiki/Hero_Honda_Splithttp://en.wikipedia.org/wiki/Honda -
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>ero otoorp "s tree m"!u$"cturi!g $"ci#ities b"sed "t -"ruer"*Eurg"o!i! >"r+"!""!d
"t >"rid&"ri! ;tt"r""!d. ese p#"!ts togeter "re c"p"b#e o$ cur!i!g out 3 mi##io! bies per
+e"r. >ero otoorp "s " #"rge s"#es "!d ser,ice !et&or &it o,er 3*000 de"#ersips "!d
ser,ice poi!ts "cross 9!di". >ero >o!d" "s " customer #o+"#t+ progr"m si!ce 000* c"##ed te
>ero >o!d" P"ssport Progr"m.
e comp"!+ "s " st"ted "im o$ "cie,i!g re,e!ues o$ H10 bi##io! "!d ,o#umes o$ 10 mi##io!
t&o&ee#ers b+ 0161. is i! co!ju!ctio! &it !e& cou!tries &ere te+ c"! !o& m"ret
teir t&o&ee#ers $o##o&i!g te dise!g"geme!t $rom >o!d". >ero otoorp opes to "cie,e
10 per ce!t o$ teir re,e!ues $rom i!ter!"tio!"# m"rets* "!d te+ eero otoorp @td. (=ormer#+ >ero >o!d" otors @td.) is te &or#ds #"rgest m"!u$"cturer o$ t&o
&ee#ers* b"sed i! 9!di". 9! 001* te omp"!+ "cie,ed te co,eted positio! o$ bei!g te #"rgest t&o&ee#er
m"!u$"cturi!g omp"!+ i! 9!di" "!d "#so* te Q7or#d No.1 t&o&ee#er omp"!+ i! terms o$ u!it ,o#ume s"#es i!
" c"#e!d"r +e"r. >ero otoorp @td. co!ti!ues to m"i!t"i! tis positio! ti## d"te.
V+7+)
e stor+ beg"! &it " simp#e ,isio! te ,isio! o$ " mobi#e "!d "! empo&ered 9!di"* po&ered b+ its
bies. >ero otoorp @td.* comp"!+s !e& ide!tit+* re$#ects its commitme!t to&"rds pro,idi!g &or#d c#"ss
mobi#it+ so#utio!s &it re!e&ed $ocus o! e
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>ero otoorp e+ str"tegies "re to bui#d " robust product port$o#io "cross c"tegories* eero >o!d" bies "re m"!u$"ctured "cross tree g#ob"##+ be!cm"red m"!u$"cturi!g $"ci#ities. &o o$
tese "re b"sed "t Eurg"o! "!d -"ruer" &ic "re #oc"ted i! te st"te o$ >"r+"!" i! !orter! 9!di". e tird "!d
te #"test "!u$"cturi!g p#"!t is b"sed "t >"rid&"r* i! te i## st"te o$ ;tt"r""!d.
T(8)4)ero otoorp* i! its e!de",or to rem"i! tec!o#og+ pio!eer* &i## co!ti!ue to i!!o,"te "!d de,e#op
cutti!g edge products "!d processes.
P3)?:'7
>ero >o!d"s product r"!ge i!c#udes ,"riet+ o$ motorc+c#es t"t ",e set te i!dustr+ st"!d"rds "cross "##
te m"ret segme!ts. e omp"!+ "#so st"rted m"!u$"cturi!g scooter i! 00C. >ero >o!d" o$$ers #"rge !o. o$
products "!d c"ters to &ide ,"riet+ o$ re%uireme!ts "cross "## te segme!ts.
D+7'3+;:'+)
e omp"!+s gro&t i! te t&o &ee#er m"ret i! 9!di" is te resu#t o$ "! i!tri!sic "bi#it+ to i!cre"se
re"c i! !e& geogr"pies "!d gro&t m"rets. >ero otoorp eero is risi!g "!d is poised to si!e o! te g#ob"# "re!". omp"!+s !e& ide!tit+ M>ero
otoorp @td. 9s tru#+ re$#ecti,e o$ its ,isio! to stre!gte! $ocus o! mobi#it+ "!d tec!o#og+ "!d cre"ti!g g#ob"#
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$ootpri!t. Bui#di!g "!d promoti!g !e& br"!d ide!tit+ &i## be ce!tr"# to "## its i!iti"ti,es* uti#i:i!g e,er+ opportu!it+
"!d #e,er"gi!g its stro!g prese!ce "cross sports* e!tert"i!me!t "!d grou!d #e,e# "cti,"tio!.
2010-11 P(3*)3/&(
ot"# u!it s"#es o$ C4* 0*444 t&o&ee#ers* gro&t o$ 1.44 per ce!t
ot"# !et oper"ti!g i!come o$ Rs. 15*401.1C rores* gro&t o$ .3 per ce!t
Net pro$it "$ter t"< "t Rs. 1*5.50 rores
ot"# di,ide!d o$ CC0O or Rs. 10C per s"re i!c#udi!g 9!terim -i,ide!d o$ Rs. 0 per s"re o! $"ce ,"#ue
o$ e"c S"re o$ Rs. e"c
?B9-A m"rgi! $or te +e"r 13.45 per ce!t
?PS o$ Rs. 56.C4
KEY EXECUTIVES:
S.N) N&/( D(7+&'+)
1 Brijmo"! @"## u!j"# "irm"!
3 P"&"! u!j"# "!"gi!g -irector
9#"m 2"mboj omp"!+ Secret"r+
4 Sum"! 2"!t u!j"# No!?
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10/ P "#i
No!?
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MR. VI,A S"#I
Vice President and Chief Inf$r/ati$n Officer* #er$ M$t$C$r% Ltd.
MR. N""RA, MA#UR
Vice President- Strategic S$'rcing & S'%%l( Chain Manage/ent
#AR,"" SIN0#
Vice President and #ead R&D
T(3/+&'+) )* H)?& )+' (':3(
9! -ecember 010* te Bo"rd o$ -irectors o$ te >ero >o!d" Eroup "s decided to
termi!"te te joi!t ,e!ture bet&ee! >ero Eroup o$ 9!di" "!d >o!d" o$ "p"! i! " p"sed
m"!!er. e >ero Eroup &ou#d bu+ out te 6O st"e o$ te >o!d" i! / >ero >o!d". ;!der
te joi!t ,e!ture >ero Eroup cou#d !ot e
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co!cer!s t"t te >ero Eroup migt !ot be "b#e to sust"i! te per$orm"!ce o$ te oi!t /e!ture
"#o!e.
e "p"!ese "uto m"jor &i## eo!d"
otorc+c#e "!d Scooter 9!di" (>S9)I&i## eero >o!d" "t " discou!t "!d get o,er H1
bi##io! $or its st"e. e discou!t &i## be bet&ee! 30O "!d C0O to te curre!t ,"#ue o$ >o!d"s
st"e "s per te price o$ te stoc "$ter te m"ret c#osed o! 7ed!esd"+.
e risi!g di$$ere!ces bet&ee! te t&o p"rt!ers gr"du"##+ emerged "s "! irrit"!t.
-i$$ere!ces "d bee! bre&i!g $or " $e& +e"rs be$ore te sp#it o,er " ,"riet+ o$ issues* r"!gi!g
$rom >o!d"s re#uct"!ce to $u##+ "!d $ree#+ s"re tec!o#og+ &it >ero (despite " 10+e"r
tec!o#og+ tieup t"t eo!d" &"s te re$us"# o$ >ero
>o!d"(m"i!#+ m"!"ged b+ te u!j"# $"mi#+) to merge te comp"!+s sp"re p"rts busi!ess &it
>o!d"s !e& $u##+ o&!ed subsidi"r+ >o!d" otorc+c#e "!d Scooter 9!di"(>S9).
As per te "rr"!geme!t* it &i## be " t&o#eg de"#. 9! te $irst p"rt* te u!j"# $"mi#+* #ed
b+ Brijmo"! @"# u!j"# group* &i## $orm "! o,erse"si!corpor"ted speci"# purpose ,eic#e
(SP/) to bu+ out >o!d"s e!tire st"e* &ic &i## be b"ced b+ bridge #o"!s. is SP/ &ou#d
e,e!tu"##+ be tro&! ope! $or pri,"te e%uit+ p"rticip"tio! "!d tose i! te $r"+ i!c#ude 7"rburg
Pi!cus* 2o#berg 2r",is Roberts(22R)* PE*B"i! "pit"#* "!d "r#+#e Eroup.
17
http://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hero_Hondahttp://en.wikipedia.org/wiki/Hero_Hondahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/HMSIhttp://en.wikipedia.org/wiki/Warburg_Pincushttp://en.wikipedia.org/wiki/Warburg_Pincushttp://en.wikipedia.org/wiki/Kohlberg_Kravis_Robertshttp://en.wikipedia.org/wiki/TPGhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Carlyle_Grouphttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hero_Hondahttp://en.wikipedia.org/wiki/Hero_Hondahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/HMSIhttp://en.wikipedia.org/wiki/Warburg_Pincushttp://en.wikipedia.org/wiki/Warburg_Pincushttp://en.wikipedia.org/wiki/Kohlberg_Kravis_Robertshttp://en.wikipedia.org/wiki/TPGhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Carlyle_Group -
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>o!d" &i## co!ti!ue to pro,ide tec!o#og+ to >ero >o!d" motorbies u!ti# 014 $or
e&< >(3*)3/&(
-uri!g te $isc"# +e"r 00805* te comp"!+ so#d 3. mi##io! bies* " gro&t o$ 1O
o,er #"st +e"r. 9! te s"me +e"r* te comp"!+ "d " m"ret s"re o$ CO i! te 9!di"! m"ret.
>ero >o!d" se##s more t&o &ee#ers t"! te seco!d* tird "!d $ourt p#"ced t&o&ee#er
comp"!ies put togeter. >ero >o!d"s bie >ero >o!d" Sp#e!dorse##s more t"! o!e mi##io!
u!its per +e"r. '! 1 u!e 01* >ero otoorp reported its igest e,er mo!t#+ s"#es "t C*
C6*644 u!its i! "+* registeri!g " gro&t o$ 11.8O.
R()+'+)
e Br"!d rust Report pub#ised b+ rust Rese"rc Ad,isor+ "s r"!ed >ero i! te
13t positio! "mo!g te br"!ds i! 9!di".
M)')3
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BJ* BJ St"r*BJ ?u!
2"ri:m"*2"ri:m" R* 2"ri:m" JR =9
P"ssio!* P"ssio! P#us* P"ssio! Pro
P#e"sure
Sp#e!dor* Sp#e!dorV* Sp#e!dorV (@imited ?ditio!)* Super Sp#e!dor* Sp#e!dor
NDE*Sp#e!dor PR'
>ero 9mpu#se #"u!ced i! 011 "$ter te sep"r"tio! o$ ero "!d >o!d". 9ts 9!di"s $irst
o$$ro"d "!d o! ro"d Bie.
S:>>4+(37
9t is reported >ero >o!d" "s $i,e joi!t ,e!tures or "ssoci"te comp"!ies* u!j"# So&"*
AE 9!dustries* Su!be"m Auto* Rocm"! 9!dustries "!d S"t+"m Auto ompo!e!ts* t"t supp#+ "
m"jorit+ o$ its compo!e!ts.
C)/>('+')37
19
http://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/CBZ_Extremehttp://en.wikipedia.org/wiki/CBZ_Extremehttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_Splendorhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/CBZ_Extremehttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_Splendor -
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B"j"j Auto
/S otor
""r"str" Scooters
Atu# Auto
Scooters 9!di"
2i!etic ?!gg
@@
2i!etic otors
/@
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DEPARTMENTS.
FINANCE
Re,e!ues rise .CO +o+ o! b"c o$ " 3.6O +o+ i!cre"se i! re"#i:"tio!s. e impro,eme!t
&"s s"rp se%ue!ti"##+ &erei! !et s"#es &ere better b+ 15.3O %o% post " &e" W =Y1
"rgi!s "t 1.6O &ere do&! 304bps +o+ "!d 18bps %o% o! b"c o$ i!cre"sed "d spe!ds
"!d iger m"teri"# costs (u!$",or"b#e product mi =Y1* &e bui#d i! $#"t ,o#umes $or te +e"r "!d
"ssume moder"te gro&t i! =Y13
"i!t"i! "ret Per$ormer &it " re,ised 5mo!t price t"rget o$ Rs1* 54C.
21
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R(7:4' '&;4(
R7 /$ # FY12 # FY11
3)*+' ,!6 ,"#2 1."$ ,12 !.#
OPM (%) 12.6 15.6 (304)
bps
13.9 (128)
-epreci"tio! (*83) (*58) (C.) (*85C) (.
9!terest (30) (3C) (1C.) (30) 0.3
'ter i!come 501 88 8.8 553 (5.3
PBT 5,!26 ,2#! 1.5$ 5,261 10.
"< (54) (1*108) (14.C) (8CC) 10.
Effective tax rate
(%)
16.3 15.3 95
bps
16.3 0 bp
PAT ",! 6,1#0 20."$ ","06 10.
PA !ar"i# (%) $.9 10.2 (22$)
bps
8.5 (61) b
A!!. ?PS (Rs) 5. 1.8 (0.4) 88. 10.
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V)4:/(7 3(;):? ) *(7'+( 8((. G&+7 ;&= 7)/( /&3=(' 78&3(
>ero otocorp @td (>@) reported 15.3O %o% i!cre"se i! re,e!ues to Rs61.5b! o!
b"c o$ stro!g $esti,e s"#es booed i! te %u"rter. ot"# ,o#umes so#d duri!g te %u"rter &ere "t
1*C3*13C u!its &ic &ere 1O do&! +o+ but up b+ " e"#t+ 18O o! %o% b"sis. e
re"#i:"tio!s &ere iger se%ue!ti"##+ b+ 1.1O o! b"c o$ " s#igt#+ better product mi< i!
motorc+c#es &erei! te disp"tces o$ 1Ccc1C0cc c"tegor+ i!cre"sed duri!g te %u"rter.
e %u"rter s"#es e!"b#ed >@ to reg"i! m"ret s"re b+ 150bps i! domestic
motorc+c#e segme!t o! " se%ue!ti"# b"sis. 9! te scooters segme!t "#so >@ m"de sm"rt
m"ret s"re g"i!s o$ 3.5O "t te eS9. e s"re o$ scooters i! tot"#
domestic ,o#umes co!ti!ued to i!cre"se to 10.O (,isX,is 5.5O i! W =Y1) o! b"c o$ te
success o$ te P#e"sure "!d "estro. "!"geme!t i!dic"ted o$ i!cre"si!g te c"p"cit+ i!
scooters "!d s#e& o$ product #"u!ces i! tis segme!t goi!g "e"d to $urter re"p tis m"ret.
HR FUNCTIONS
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CONCLUSION
9t is o!e o$ te gre"t coices to do pr"ctic"# "!"#+sis i! i!dustr+ troug tis
$ie#d &or. 9 got some e