Her Oh on Darn

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Presented By Roll No.

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Hero Honda Motors Limited, based in Delhi, is theworld's Largest manufacturer of motorcycles .

A joint venture that began in 1984 betweenthe Hero Group of India and Honda of Japan.

Hero Honda's Splendor is the world's largest sellingmotorcycle.

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Type : Public company BSE:HEROHONDA M

Founded:January 19, 1984in Gurgaon,Haryana, India

Headquarters : New Delhi, India

Key people: Brijmohan Lal Munjal (chairman &founder)

Toshiaki Nakagawa (joint managingdirector)

Pawan Munjal (CEO)

Industry: Automotive

Products: Motorcycles, Scooters

Revenue: U$ 2.8 billion 33


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Hero Honda is worlds third largest 2-wheeler maker.

THE LICENSE RAJ : Customers in India were forced

to wait 12 years to buy a scooter from Bajaj.

In the mid-1980s, Foreign companies permitted to

enter the Indian market through minority joint

ventures.

Four Indo-Japanese joint ventures: Hero Honda, TVS

Suzuki, Bajaj Kawasaki and Kinetic Motor Company

(Kinetic Honda)

The 2006 Forbes 200 Most Respected companies listhas Hero Honda Motors ranked at 108.

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Company Profile

Hero is the brand name used by theHero is the brand name used by the

Munjal brothers for their flagshipMunjal brothers for their flagship

company Hero Cycles Ltd. A jointcompany Hero Cycles Ltd. A jointventure between the Hero Group andventure between the Hero Group and

Honda Motor Company wasHonda Motor Company was

established in 1984 as the Hero Hondaestablished in 1984 as the Hero Honda

company, India.company, India. During the 1980s, theDuring the 1980s, thecompany introduced motorcycles that werecompany introduced motorcycles that were

popular in India for their fuel economy andpopular in India for their fuel economy and

low cost. A popular advertising campaignlow cost. A popular advertising campaign

based on the slogan 'Fill it - Shut it -based on the slogan 'Fill it - Shut it -For et it' that em hasized theFor et it' that emp

hasized the

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By 2002 Hero Group had sold 86 million

bicycles .

Today Hero Honda has an assembly line

of 9 different models of motorcycles .

Currently the largest producer of

Two Wheelers in the world.

Sold 3 million bikes in the year 2005-06.

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Hero Honda Ambition 133,135

Hero Honda CD 100,CD SS, CD Dawn

Hero Honda Splendor , Splendor+ , SuperSplendor, Splendor NXG

Hero Honda CBZ , CBZ Xtreme

Hero Honda Passion , Passion+ , Passion Pro

Hero Honda Karizma

Hero Honda HunkHero Honda Pleasure

Hero Honda Glamour

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1983 : Joint Collaboration Agreement with Honda

Motor Co. Ltd. Japan signed 1984: Hero Honda Motors Ltd. incorporated

1985 :First motorcycle "CD 100" rolled out

1987:100,000th motorcycle produced

1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir inaugurated -

1994 : New motorcycle model - "Splendor"introduced

2000: 4,000,000th motorcycle producedSplendor declared 'World No. 1' - largest selling

single two- wheeler model

2001: One million production in a single year :5,000,000th motorcycle

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2003: Becomes the 1st Indian Company to cross the 7 millionsales

Splendor has emerged as the World's largest sellingmodel for the third calendar year in a row (2000, 2001,2002)

New motorcycle model - "Karizma" introduced 2005 : Hero Honda is the World No. 1 for the 4th year in a

rowSuper Splendor , CD Deluxe , Glamour ,Achiever

introduced

First Scooter model from Hero Honda - "Pleasure"introduced

2006 : Hero Honda is the World No. 199


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Hero Honda

Bajaj

TVS

Yamaha

LML

Kinetic

Royal EnfieldMajetic


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1111

Management introduced new ideas coupled withManagement introduced new ideas coupled withimproved terms of agreement for their joint ventureimproved terms of agreement for their joint venture

Two primary goals in mindTwo primary goals in mind

Continuing their successContinuing their success

Maintaining their existing market shareMaintaining their existing market share


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Environment Policy Integrate environmental attributes and cleaner

production in all business processes

Substitution of hazardous chemicals where viable

and strengthen the greening of supply chain.

Quality Policy Excellence in quality is the core value of Hero

Honda's philosophy. Innovation in products, processes and services.

Continuous improvement in total qualitymanagement systems.

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Safety Policy Committed to safety and health of its

employees and other persons.

Ensuring compliance with all applicable

legislative requirements.

Promoting safety and health awareness

amongst suppliers & contractors.

Continuous improvements in safety

performance through precautions besides

participation and training of employees.

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Date ofApproval Date ofIssue Particulars of Issue No. of Shares19.01.84 Subscription shares 150

09.08.1984 19.03.85 Public Issue 11999985

09.08.1984 29.04.87 Issue of Rights Shares in the

ratio of 15:50

3975000

09.08.1984 07.02.1995 Issue of Bonus Shares in the

ratio of 1:4

3993750

09.08.1984 28.09.1998 Issue of Bonus Shares in the

ratio of 1:1

19968750

09.08.1984 26.03.2001 Sub-division of Equity Sharesof Rs. 10 each

Into 5 Equity Shares of Rs. 2

each

199687500*

Details of issue of Equity Shares since beginning

STOCK HISTORYSTOCK HISTORY

* Equity Shares of Rs. 2 each.


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SALES RECORDSSALES RECORDS


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PROFITS ANALYSISPROFITS ANALYSIS


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StrengthsStrengths Ability to understand customers needs and wantsAbility to understand customers needs and wants

Recognized and established brand nameRecognized and established brand name

Effective advertising capabilityEffective advertising capability

WeaknessesWeaknesses R&D is not close to the Hero manufacturing plantR&D is not close to the Hero manufacturing plant

Hero is vulnerable in the joint venture because HondaHero is vulnerable in the joint venture because Honda

Motor Company has so much powerMotor Company has so much power


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OpportunitiesOpportunities Global expansion into the Caribbean and CentralGlobal expansion into the Caribbean and Central

AmericaAmerica

Expansion of target market (include women)Expansion of target market (include women)

Become Indias leader in the scooter marketBecome Indias leader in the scooter market

ThreatsThreats Honda Motorcycles and Scooters India can take awayHonda Motorcycles and Scooters India can take away

market share and cause joint venture to go sourmarket share and cause joint venture to go sour Bajaj Motors is a strong competitorBajaj Motors is a strong competitor


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NDTV Profit Business Leadership Award 2008

TopGear Design Awards 2008 - Hunk: Bike of the YearAward

Asian Retail Congress Award for Retail Excellence -

Best Customer Loyalty Program in Automobile categoryNDTV Profit Car India & Bike India Awards - Bike

Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

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25-year old joint venture with Japans Honda Motor ,deadline in 2014

The Munjals of the Hero group and Honda Motors

are equal partners in Hero Honda, Indias largestmotorcycle company.

Honda decided to establish its 100% subsidiary inIndia and produce scooters and motorcycles.

The two partners have also not agreed on the issue

like Hondas desire that the JV firm join its umbrellaparts company Honda Motor India.

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YesYes!! Established name andEstablished name and

dominant market positiondominant market position

Strong Marketing DepartmentStrong Marketing Department

Local KnowledgeLocal Knowledge

Technological AdvancementsTechnological Advancements

Introduction of scooterIntroduction of scooter


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JOURNEY OFJOURNEY OF

HERO HONDAHERO HONDA

1985 CD-1001985 CD-100

1989 SLEEK1989 SLEEK

1994 SPLENDOR1994 SPLENDOR

1999 CBZ1999 CBZ

2001 PASSION2001 PASSION

2002 AMBITION2002 AMBITION

2003 KARIZMA2003 KARIZMA

2005 : GLAMOUR2005 : GLAMOUR

2005: ACHIEVER2005: ACHIEVER

2005: PLEASURE2005: PLEASURE

2007: HUNK2007: HUNK


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ThankThankyou!you!

Her Oh on Darn

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