Hero Handa Final

8/14/2019 Hero Handa Final

1/70


2/70

1.1. VISION & MISSION

Mission

Hero Hondas 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 Honda to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake holders.

Vision

We believe that profitability trading is the result of repeatedly andconsistently applying a proven edge to realize a statistically profitfrom the successful implementation of a trading system.


3/70

1.2 . GOALS & OBJECTIVES

To provide excellent transportation to the common man at easily affordable prices

and to provide total satisfaction in all its spheres of activity." The group philosophy clearly

states what the group objectives are and stresses the focus on customers, providing

reliable and affordable mobility for the masses and other stakeholders like employees,

suppliers, distributors, society and environment at large.

Apart from being customer-centric, the Hero Group provides its employees with a fine

quality of life and its business associates (suppliers & distributors) with a total sense of

belonging, thus strengthening the bond that is already deep-rooted.

1.3. VALUES Respect for Human Beings.

Is a responsive organization?

Is a boundary less organization?

Is striving for excellence.

Provide fearless, enjoyable working environment.

Is self-reliant.

Providing learning environment.

Is a caring organization?

Enables relationship buildings.

Prompts transparency & trust.

Is creativity promoting.

Is performance oriented?


4/70

Company profile

Hero Honda Motors Limited was established in 1984, as a joint venture betweenIndia's Hero Group (world's largest bicycle manufacturers) and Japan's Honda MotorCompany. In 1985 production began with the launch of its first motorcycle, the CD100,which gave 80 km to the liter. In 1987 the engine plant was started and in 1989 theCompany produced its 3,00,000th motorcycle. In 2001 Hero Honda manufactured its50,00,000th motorbike. Hero Honda has a reputation of being the most fuel-efficient andthe world's single largest two wheeler Company. Shri Brijmohan Lall Munjal is thechairman and managing director of this Company.

As early as in 1960s very few Indian bicycle manufacturers were interested inexports. However, the hero groups foray into the overseas markets in 1963 pioneered

Indian exports in the bicycle segment. It was more prompted essentially by the need toremain attuned to the global marketplace. While initial exports were restricted to Africaand the middle east, today more than 50% of the exports from Hero Cycles Ltd. Meet thedemands of sophisticated markets in Europe and America. This is primarily because ofappropriate product development and excellent quality that hero offers..

Hero Honda has grown like no other company in the auto business. Several times inthe path, savvy observers have insisted that it has grown just too big and that no companyits size can continue to show growth rates. But Hero Honda has ignored that opinion andcontinued growing at the place it has set many years ago.

Hero Honda today faces more competitor than it has ever in the history. Now that isthe undisputed two wheeler Numero Uno in the country. Every single two wheelermanufacturer in India if looking market share away from it. More over for the first timethere are so many four- stroke challengers in the market. And Hero Hondas best sellingproducts are ageing.

Corporate Profile:

The joint venture between India's Hero Group and Honda Motor Company, Japanhas not only created the world's single largest two wheeler company but also one of themost successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it waspossible to drive a vehicle without polluting the roads. The company introduced newgeneration motorcycles that set industry benchmarks for fuel thrift and low emission. Alegendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters


5/70

across India, and Hero Honda sold millions of bikes purely on the commitment of increasedmileage

Over 19 million Hero Honda two wheelers tread Indian roads today. These arealmost as many as the number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today,every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someonein India buys Hero Honda's top -selling motorcycle Splendor. This festive season, thecompany sold half a million two wheelers in a single montha feat unparalleled in globalautomotive history.

Hero Honda bikes currently roll out from two globally benchmarked manufacturingfacilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable ofchurning out 3.9 million bikes per year. A third state of the art manufacturing facility atHardwar in Uttranchal will soon be commissioned to cope with sustained customerdemand.

Hero Honda's extensive sales and service network now spans over 3000 customertouch points. These comprise a mix of dealerships, service and spare points, spare partsstockiest and authorized representatives of dealers located across different geographies.Hero Honda values its relationship with customers. Its unique CRM initiative - Hero HondaPassport Program, one of the largest programs of this kind in the world, has over 3 millionmembers on its roster. The program has not only helped Hero Honda understand itscustomers and deliver value at different price points, but has also created a loyalcommunity of brand ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market,Hero Honda is constantly working towards consolidating its position in the market place.The company believes that changing demographic profile of India, increasing urbanizationand the empowerment of rural India will add millions of new families to the economicmainstream. This would provide the growth ballast that would sustain Hero Honda in theyears to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctlypoints out, "We pioneered Indias motorcycle industry, and it's our responsibility now totake the industry to the next level. We'll do all it takes to reach there.''

1984

- The Company was Incorporated on 19th January, at New Delhi. The CompanyManufacture motor cycles upto 100 cc capacity. The Company was promoted by HeroCycles (P) Ltd. (HCPL).


6/70

- The Company entered into a technical-cum-financial collaboration agreement with HondaMotor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnishcomplete technical information and know-how and trade secrets and other relevant data.

- Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc

range. Its most attractive features are fuel efficiency and its light weight. CD-100 will beequipped with electronic ignition system, illuminated speedometer, 4 speed gear box,neutral and flasher indicators, etc.

- 15 No. of equity shares subscribed for by the promoters, etc. In November, 119,99,985No. of equity shares issued at par of which 71,99,985 shares reserved for allotment asunder:

- (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and BahadurChand Investments (P) Ltd.

- (ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and

- (iii) 9,59,987 shares to friends and association of promoters. Out of the balance 48,00,000shares, 2,40,000 shares were reserved for subscription by the employees of the Companyand 96,000 shares by business associates. The remaining 44,64,000 shares were offered atpar for public subscription during November.

1985

- The Company embarked on its 2nd phase of expansion of increasing its installed capacityfrom 1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium

and steel components.

1986

- 36,00,000 rights equity shares issued at par in prop. 3:10.

1987

- The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures ofRs 100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares.

- Another 3,00,000 - 15% debentures were allotted to retain oversubscription. Thedebentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of the7th year from the date of allotment of the debentures.

- 3,75,000 rights equity shares issued at par in prop. 3:10.

1989


7/70

- The Company introduced a new model "Sleek" during July.

- 850 No. of equity shares forfeited.

1990

- The Company was planning to launch a new model motor cycle-CD 100 SS sutiable tosemi-rural conditions. In the domestic market the Company was reported to have a marketshare of 46%.

- 850 forfeited shares reissued.

1994

- The Company proposed to expand the capacity of existing plant at Dharuhera to 2,40,000nos. per annum. Another plant with an installed capacity of 1,50,000 nos. per annum atGurgaon Industrial Estate was being set up.

- The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of1:4. The Company also issued 28,557 number of fractional coupons representing 14,250shares against which shares shall be allotted to presenting the same for consolidation andallotment.

- The Company's production and turnover increased to 1,83,490 motorcycles and Rs.483.85crores respectively due to growth in demand for two wheelers and declining inflation.

1995

- 14,420 bonus shares issued by way of consolidation of fractional coupons. - A newTechnical Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan forthe period upto the year 2004 which includes technology related to models of higherEngine displacement.

- The Company alloted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shares on7th February, by way of capitalisation of General Reserves.


8/70

- The Company had issued 28557 No. of Fractional Coupons representing 14.250 sharesagainst which the Shares shall be alloted on presenting the same for consolidation andallotment.

1997

- Hero Honda Motors has launched its newest motorcycle, the Street, a 100 cc bikedesigned for use in congested urban traffic conditions.

- Hero Honda Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon, nearDelhi for the manufacture of the Honda Super Cub 100 cc stepthro bike.

- Hero Honda has set up a new state-of-the-art plant, heralding a new phase of developmentof motorcycle industry in India, to provide the most modern and technologically advancedproduction facilities.

- Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set upa plant in Brazil for manufacturing hero winner scooters.

- A new step thru model `Street-100' with unique feature was launched on 24th January.

1998

- The company proposes to increase the share capital to 5 crore equity shares of Rs. 10each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakhcumulative convertible preference shares of Rs. 100 each with power to increase or reduceit from time to time.

- The company further proposes to capitalise Rs. 19,96,87,500 from general reserve toshare capital through issue and allotment of bonus shares. Altogether, 1,99,68,750 fully

paid bonus shares will be allotted and distributed to members of the company holdingequity shares of the company in the proportion of one bonus share for every fully paidequity shares of Rs.10 each.

- Motorcycles major Hero Honda is considering entry into scooters in collaboration withpartners, Honda Motors, after the Japanese company decided to walk out of Kinetic Honda,their scooter venture with the Firodias of Pune.


9/70

- Honda Motors recently pulled out of its joint venture with the Firodias in which it held a51 per cent equity stake.

- Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML)have signed a five-year licence and technical assistance agreement under which KHML

will continue to receive the technical knowhow, critical vehicle parts and access to Honda'smarkets even after the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL).

- The Company changed the paradigm in two-wheelers by launching the most powerful andfast bike- CBZ with a unique feature of Transient Power Fuel Control (TPEC) system.

- 23,962,500 bonus shares issued in prop. 1:1.

1999

- Hero Honda Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signed

a Memorandum of Understanding (MoU) for financing of Hero Honda motorcycles.

- The company, a joint venture between Honda Motor Company of Japan and Hero groupof India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to38.6 per cent during the current fiscal.

- Leading two-wheelers manufacturer Hero Motors has formed a joint venture with BriggsStratton of US to develop and manufacture four-stroke engines for mopeds and scooters inIndia, a top company.

- Honda Motor Company of Japan has decided to re-enter the scooter market in India as

also foray into three-wheelers in a joint initiative with its existing joint venture companyHero Honda Motors Ltd.

2000

- Hero Honda Motors Ltd. and Tata Finance Ltd. have signed a national tie-up agreement.The Company is the largest manufacturer of motorcycles in the country.

- The Company will relaunch its stepthru Stree Smart on Baisakhi 13th April.

- Hero Honda Motors Ltd (HHML), has launched an upgraded version of the existing step-through motorcycle - the Hero Honda Street.


10/70

- The Company was ranked as the 9th Highest Value Creator among 12 industry groupswithin the Bombay Stock Exchange top 100 companies over a five year period (1994-99).

2001

- Hero Honda Motors Ltd. has launched a new 100cc motorcycle named `Passion'.

- The Company has secured shareholders' approval for splitting one equity share of Rs 10each into five equity shares of Rs 2 each in the ratio of 1:5.

2.1 SIGNIFICANT & DEVELOPMENT


11/70

Samsung is guided by a simple philosophy, strong values and high

ethical standards that inform our work every day. In everything we

do, we strive to help people live better lives.

Samsung is dedicated to developing innovative technologies and

efficient processes that create new markets, enrich people's lives,

and continue to make Samsung a digital leader.

To learn more about the performance of our company, download the

annual reports issued by Samsung Group and Samsung Electronics.

For more than 70 years, Samsung has been at the forefront of

innovation. Our discoveries, inventions and breakthrough products

have helped shape the history of the digital revolution.


12/70

Samsung India is the hub for Samsungs South West Asia Regional

operations. The South West Asia Regional Headquarters looks after

the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and

Bhutan besides India. Samsung India which commenced its

operations in India in December 1995, today enjoys a sales turnover

of over US$ 1Bn in just a decade of operations in the country.

Headquartered in New Delhi, Samsung India has a network of 19

Branch Offices located all over the country. The Samsung

manufacturing complex housing manufacturing facilities for Colour

Televisions, Colour Monitors, Refrigerators and Washing Machines is

located at Noida, near Delhi. Samsung Made in India products like

Colour Televisions, Colour Monitors and Refrigerators are being

exported to Middle East, CIS and SAARC countries from its Noida

manufacturing complex.

Samsung India currently employs over 1600 employees, with around

18% of its employees working in Research & Development.


13/70

2.2 EVENTS

200

8

Named Yoon-Woo Lee as a Vice Chairman & CEO of

Samsung Electronics

Launched OMNIA phone

Completed establishing TV manufactory in Russia Kaluga

Became the official sponsor of 2010 Guangzhou Asian

Game

Developed the world's first 2Gb 50 NANO

Samsung takes No. 1 spot in U.S. cellphone market

Opened Global Brand PR Centre Samsung D'light'

No.1 worldwide market share position for TVs achieved for

the 9th quarter in a row

200

7

No.1 worldwide market share position for TVs achieved for

the seventh quarter in a row

Developed the world's first 30nm-class 64Gb NAND Flash

memory

BlackJack bestowed the Best Smart Phone award at CTIA in

the U.S.

Attained No.1 worldwide market share position for LCD for

the sixth year in a row

200

6

Developed the world's first real double-sided LCD

Developed the worlds' first 50nm 1G DRAM

Unveiled 10M pixel camera phone

Launched "Stealth Vacuum," a vacuum cleaner with the

world's lowest level of noises

Launched the worlds' first Blu-Ray Disc Player

Developed 1.72"Super-Reflective LCD Screen

200 Developed the largest Flexible LCD Panel


14/70

5

Ranked 27th in "the World's Most Admired Company" of

Fortune

Became the official sponsor of Chelsea, the renowned

English soccer club

Released the world's first 7 mega pixel camera phone

Developed the world's first OLED for 40" TV

Became the official sponsor of Chelsea, the renowned

English soccer club

Developed the first-ever speech recognition phone

200

4

Produced the first wrinkle-free steam washer

Sold more than 20 million cellular phones in the U.S

Developed the world's first 60-nano 8GB NAND Flash

memory chip

Ranked top in mobile phone sales in Russia

Released new PDP TV featuring the highest contrast ratio

in the world

Developed a 3rd Generation Optical Blu-Ray Disc Recorder

Developed cellular phone chip for satellite DMB system

Released 46" LCD TV for the first time in the world

200

3

Samsung brand value ranked 25th in the world by

Interbrand

Ranked 5th on the "Most Admired Electronics Company"

list released by the Fortune Magazine

Released the first HD DVD combo

2002

Development of the 54"TFT-LCD, the largest digital TVmonitor in the world

Launches PDP-TV, the slimmest in the world

Launch of colour mobile phones in which the new concept

UFB-LCD is introduced


15/70

Launched new high-definition TFT-LCD colour cellular

phone

200

1

Ranked No. 1 of world's Top 100 IT Companies by

BusinessWeek Unveils 16 Chord Progression Melody Phone

Begins Mass Production of 512Mb Flash Memory Device

Unveils Industry's First Ultra-Slim Handset

Develops World's first 40 inch TFT-LCD

200

0

Unveils TFT-LCD with Record-breaking Definition

Launches PDA phone

Samsung Olympic Games Phone selected as the official

mobile phone of the Sydney 2000 Olympic Games

TV Phone and Watch Phone Make Guinness Book of World

Records

Unveils the Worlds Fastest Graphics Memory Chip

Samsung Electronics and Yahoo! Form Strategic Alliance

Develops Unique All-in-one DVD Player

Developed world's first 512Mb DRAM

Developed world's first 512Mb DRAM


16/70

2.3. INITIATIVES

After establishing its presence in the consumer electronics field,

Samsung India is now putting increased focus on its existing as well

as new customers to build and retain customer loyalty.

Our Customer Relationship Management (CRM) through the Digital

World Customer Club will be a major initiative within Samsung India

in 2002. Samsung is a market-oriented company and we intend to

offer value-added services to our customer through the CRM

programme, Mr R Zutshi, VP, sales, Samsung India, told The

Financial Express.

As part of the CRM programme, Samsung aims at providing greater

value to its loyal customers in the coming year. It will help the

customers avail priority on service and discounts on annual

maintenance contracts (AMCs), Mr Zutshi said. Our CRM

programme will also offer a lot of co-branded offers along with the

purchase of our products, he added.

For instance, the company has also worked out special shopping

benefits for Samsung Digital World Members like special discounts

on stay at five-star properties and strategic partnerships with

microwave cookware companies among other things.

Members will also receive information on new product introduction

and special offers, a single customer contact number across selectcities and an e-mail response management system for queries and

other customer contact programmes.

Samsung India plans to double its CRM membership of Digital World

Customer Club to one lakh this year from the current level of 50,000


17/70

as part of its increased focus on customers. The company has set

aside Rs 2 crore for its CRM activities, up from Rs 1 crore spent this

year.

CRM is a focused direct activity to serve its customers and has been

preferred by more and more companies these days in addition to

after-sales service and service through personal contact.

Samsung Digital Worldlaunched last year to build and enhance

long-term personalised relationship with Samsung customers and

reinforce brand loyalty amongst Samsung product ownersoffers a

host of special privileges across Planet, Galaxy and Universe

categories.

The benefits include priority on service; varying discounts on spares

and AMC for service, depending on the category of the customer;

invitations for company events/exhibitions and special co-branded

offers.

Last year, during Diwali in the north, Onam in Kerala and Pongal in

TN, the company carried our free service of products for select

Samsung customers, who were given special gifts as well.


18/70

3.1. products

Scooters

o Hero Honda Pleasure:

Motorcycles

Hero Honda Pleasure

Manufacturer Hero Honda motorcycle Ltd.

Production

Price Rs. 37990

Engine 102 cc, 7bhp@ 7000 rpm,torque,0.78 kgm @5000 rpm

Hero Honda CD 100 Deluxe

Manufacturer Hero Honda motorcycle Ltd

Production 2001-present

Price Rs. 35642

Engine 97.cc,7.5bhp@8000rpm,4strokeengine, singal cylinder


19/70

o Hero Honda CD 100 Deluxe:

o Hero Honda Ambition

135cc:

Hero Honda Ambition 135cc



Price Rs, 49000

Engine 135 cc , four-stroke engin,

single piston, kick start11 bhp


20/70

o Hero Honda CBZ

Extreme:

o Hero Honda Passion

Plus:

Hero Honda CBZ Extreme



Price Rs. 59213

Engine 149.2 cc , four-stroke cycle, single piston, kick startPower: 14.2 bhp hp @ 8500 rpmTorque: 1.26 kgm @ 6500rpm

Hero Honda Passion Plus



Price Rs. 44265

Engine 97 CC, 4-stroke engine, singalecylinder. 7.4 bhp @8000 rpm


21/70

o Hero Honda CD

Dawn:

o Hero Honda

Karizma 225:

Hero Honda CD Dawn



Price Rs. 33542

Engine 97 CC,7.5 bhp @8500 rpm, 4 strokeengine, torque of 8.05 Nm at 5,500rpm

Hero Honda Karizma 225

Manufacturer Hero Honda motorcycle Ltd.


Price Rs. 76393

Engine 4 Stroke,12.68 KW (17

PS) @ 7000 rpm,223 cc


22/70

o Hero Honda

Glamour:

o Hero Honda

Achiever:

Hero Honda Glamour



Price Rs 49777-56529

Engine 124.7 cc , four-stroke cycle,single piston, kick start, 9 bhp@7000 rpm

Hero Honda Achiever



Price Rs. 51298-56022

Engine 149.1 CC, 4-stroke engine, singlecylinder.13.4 bhp @ 8000 rpm


23/70

o Hero Honda Splendor NXG:Hero Honda Splendor NXG



Price Rs. 46500

Engine 124.7 CC,9 bhp @ 7000 rpm, 4stroke engine,, torque of 8.05 Nmat 5,500 rpm


24/70

3.2 SERVICES

HHML has constituted one the best after-sales service network in the industry.Apart from improving the quality of service and easy availability of spare

parts, HHML has also focused on cleanliness and other aesthetics of theservice stations and added amenities such as air-conditioned waiting area,internet browsing and coffee shops etc. to enhance the in-house experience ofthe consumers at those customer touch-points.To ensure that millions of customers in the rural areas are not left waiting foradequate service as it is impossible for HHML to introduce service stations atevery nook & corner of the country, mobile service stations are regularlyarranged with prior intimation to public about the route that the mobileworkshop would take when passing through that region, so that consumers can

come and get their two-wheelers serviced. All these activities are aimed toincrease the customer loyalty and thus retaining customers.The value activities done by HHML in its value chain (both primary &support activities) are given in Fig. IA1. The unique value activities of HHMLthat is at the heart of its competitive advantages


25/70


26/70


27/70

4.2. OFFICERS & DIRECTORS

Board of directors of Hero Honda Motorcycles Ltd.

Mr. Brijmohan Lall Munjal

(Chairman and Whole -Time Director)

Mr. Brijmohan Lall Munjal is thefounder Director and Chairman of the

Company and the $ 2.8 billion HeroGroup. He is the Past President ofConfederation of Indian Industry (CII),Society of Indian AutomobileManufacturers (SIAM) and was aMember of the Board of the Country'sCentral Bank (Reserve Bank of India).In recognition of his contribution toindustry, Mr Lall was conferred thePadma Bhushan Award by the UnionGovernment.

MR. PAWAN MUNJAL

(Managing Director)

Mr Pawan Munjal is the Chief Executive of theCompany. He is responsible for growth and strategicplanning for the entire Group. A graduate in mechanicalengineering, Mr. Munjal has been instrumental in bringingabout technological and managerial excellence in theCompany's operations. He has been the Chairman of

several Committees of CII.He is also on the board of Indian Institute of

Management, Lucknow. An avid golfer, Mr Munjal is PastChairman of the Asian PGA Tour Board of Directors andthe Past President of Professional Golfers Association ofIndia (PGAI). Under his guidance, Hero Honda launchedthe Hero Indian Sports Academy (HISA) in collaboration

Mr. Brijmohan Lall Munjal

Chairman and Whole Time

director

Hero Honda MotorsLimited

Mr. Pawan Munjal

Managing Director



28/70

with Laureus Foundation to provide equal opportunities in sports to various communitiesand to reward talent in the country.

MR. TOSHIAKI NAKAGAWA

(Jt. Managing Director)

Mr. Toshiaki Nakagawa joined the Company asAdditional Director and Joint. Managing Director onFebruary 1, 2006. He joined Honda UK Ltd., as staffmember & later on took various assignments at senior positions at various offices of Honda situated in HongKong, Prague, Czech Republic, France, and Beijing.

Currently, he also holds the position of Manager in theOverseas Operations Office No. 1, Honda Headquarters.His specializations include startup of new overseascompanies and human resource management.

MR. TOSHIAKI NAKAGAWA

Jt. ManagingDirector



29/70

MR. TAKAO EGUCHI

(Whole-Time Director)

Mr. Takao Eguchi was appointed as Additional

Director and Whole-time Director on the Board of theCompany on June 1, 2005. Mr. Eguchi joined HondaMotor Co., Limited, Japan as a Staff Member in HumanResource Department and later on took variousassignments of higher responsibilities for Honda, Japan.Before joining Hero Honda Motors Limited asTechnical Advisor in the year 2003, he was ChiefEngineer - Engine Division at Kumamoto Factory ofHonda Motor Co., Limited, Japan..

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director

3 Mr. Toshiaki Nakagawa Jt. Managing Director

4 Mr. Takao Eguchi Whole-time Director5 Mr. Sunil Kant Munjal Non-executive Director

6 Mr. Om Prakash Munjal Non-executive Director

7 Mr. Tatsuhiro Oyama Non-executive Director

8 Mr.Masahiro Takedagawa Non-executive Director

9 Mr. Narinder Nath Vohra Non-executive & Independent Director

10 Mr. Pradeep Dinodia Non-executive & Independent Director

11 Gen.(Retd.) Ved PrakashMalik

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 Dr. Vijay Laxman Kelkar Non-executive & Independent Director

16 Mr. Sunil Bharti Mittal Non-executive & Independent Director

MR. TAKAO EGUCHI

Whole-Time Director



30/70


31/70


32/70

5.1. FINANCIAL STATEMENT

Hero Honda Motors

Profit & Loss account ------------------- in Rs. Cr. -------------------Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 6,754.47 8,606.62 10,097.17 11,553.47 12,048.30

Excise Duty 916.33 1,178.22 1,377.96 1,647.52 1,703.29

Net Sales 5,838.14 7,428.40 8,719.21 9,905.95 10,345.01

Other Income 166.62 138.20 160.46 197.68 216.30

Stock Adjustments -21.59 14.95 14.97 3.20 -14.14

Total Income 5,983.17 7,581.55 8,894.64 10,106.83 10,547.17

Expenditure

Raw Materials 4,055.36 5,276.42 6,142.78 7,255.66 7,465.36

Power & Fuel Cost 29.75 32.88 46.65 52.45 56.55

Employee Cost 275.52 267.97 320.61 353.81 383.45

Other Manufacturing Expenses 106.72 177.46 238.39 280.17 304.11

Selling and Admin Expenses 277.96 358.03 446.98 558.99 563.27

Miscellaneous Expenses 68.71 144.40 156.79 206.11 190.36

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 4,814.02 6,257.16 7,352.20 8,707.19 8,963.10Mar '04 Mar '05 Mar '06 Mar '07 Mar '08


Operating Profit 1,002.53 1,186.19 1,381.98 1,201.96 1,367.77

PBDIT 1,169.15 1,324.39 1,542.44 1,399.64 1,584.07

Interest 22.95 17.76 15.58 13.76 13.47

PBDT 1,146.20 1,306.63 1,526.86 1,385.88 1,570.60

Depreciation 73.33 89.38 114.62 139.78 160.32

Other Written Off 0.70 0.00 0.00 0.00 0.00

Profit Before Tax 1,072.17 1,217.25 1,412.24 1,246.10 1,410.28

Extra-ordinary items 0.29 0.00 0.00 0.00 0.00

PBT (Post Extra-ord Items) 1,072.46 1,217.25 1,412.24 1,246.10 1,410.28

Tax 344.14 406.78 440.90 388.21 442.40

Reported Net Profit 728.32 810.47 971.34 857.89 967.88

Total Value Addition 758.66 980.74 1,209.42 1,451.53 1,497.74


33/70

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 399.38 399.38 399.38 339.47 379.41

Corporate Dividend Tax 51.16 56.52 56.01 57.69 64.48

Per share data (annualised)

Shares in issue (lakhs) 1,996.88 1,996.88 1,996.88 1,996.88 1,996.88Earning Per Share (Rs) 36.47 40.59 48.64 42.96 48.47

Equity Dividend (%) 1,000.00 1,000.00 1,000.00 850.00 950.00

Book Value (Rs) 57.03 74.79 100.62 123.70 149.55

Hero Honda Motors Previous Years

Balance Sheet ------------------- in Rs. Cr. -------------------


34/70

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09


Sources Of Funds

Total Share Capital 39.94 39.94 39.94 39.94 39.94

Equity Share Capital 39.94 39.94 39.94 39.94 39.94Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 1,098.87 1,453.44 1,969.39 2,430.12 2,946.30

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 1,138.81 1,493.38 2,009.33 2,470.06 2,986.24

Secured Loans 0.00 0.00 0.00 0.00 0.00

Unsecured Loans 174.70 201.76 185.78 165.17 132.00

Total Debt 174.70 201.76 185.78 165.17 132.00

Total Liabilities 1,313.51 1,695.14 2,195.11 2,635.23 3,118.24Mar '04 Mar '05 Mar '06 Mar '07 Mar '08


Application Of Funds

Gross Block 916.91 1,104.19 1,471.97 1,800.63 1,938.78

Less: Accum. Depreciation 345.79 429.71 522.60 635.10 782.52

Net Block 571.12 674.48 949.37 1,165.53 1,156.26

Capital Work in Progress 17.69 40.85 44.19 189.92 408.49

Investments 1,565.10 2,026.65 2,061.89 1,973.87 2,566.82

Inventories 188.20 204.26 226.55 275.58 317.10

Sundry Debtors 43.80 89.55 158.66 335.25 297.44

Cash and Bank Balance 36.68 17.14 23.22 35.26 130.58

Total Current Assets 268.68 310.95 408.43 646.09 745.12

Loans and Advances 240.55 243.75 278.63 268.04 196.37

Fixed Deposits 0.44 0.46 135.50 0.52 0.51

Total CA, Loans & Advances 509.67 555.16 822.56 914.65 942.00

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 1,093.88 1,117.29 1,192.98 1,171.50 1,455.57

Provisions 256.19 484.71 489.92 437.24 499.76Total CL & Provisions 1,350.07 1,602.00 1,682.90 1,608.74 1,955.33

Net Current Assets -840.40 -1,046.84 -860.34 -694.09 -1,013.33

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 1,313.51 1,695.14 2,195.11 2,635.23 3,118.24

Contingent Liabilities 106.00 0.00 73.48 165.59 56.37

Book Value (Rs) 57.03 74.79 100.62 123.70 149.55


35/70

CASH FLOW

Hero Honda Motors

Cash Flow ------------------- in Rs. Cr. -------------------



Net Profit Before Tax 1072.46 1217.25 1412.24 1246.10 1410.28

Net Cash From OperatingActivities

972.93 746.83 936.08 625.05 1211.78

Net Cash (used in)/fromInvesting Activities

-376.38 -562.85 -323.49 -273.13 -781.01

Net Cash (used in)/fromFinancing Activities

-583.63 -203.51 -471.23 -474.34 -432.33

Net (decrease)/increase In Cashand Cash Equivalents

12.92 -19.53 141.36 -122.42 -1.56

Opening Cash & CashEquivalents

24.33 37.12 17.60 158.72 16.66

Closing Cash & CashEquivalents

37.25 17.59 158.96 36.30 15.10


36/70

Hero Honda Motors

Key Financial Ratios ------------------- in Rs. Cr. -------------------


Investment Valuation RatiosFace Value 2.00 2.00 2.00 2.00 2.00

Dividend Per Share 20.00 20.00 20.00 17.00 19.00

Operating Profit Per Share (Rs) 50.20 59.40 69.21 60.19 68.50

Net Operating Profit Per Share(Rs)

292.36 372.00 436.64 496.07 518.06

Free Reserves Per Share (Rs) 55.03 72.79 98.62 121.70 147.55

Bonus in Equity Capital 59.98 59.98 59.98 59.98 59.98

Profitability Ratios

Operating Profit Margin(%) 17.17 15.96 15.84 12.13 13.22

Profit Before Interest And TaxMargin(%)

15.77 14.68 14.44 10.63 11.57

Gross Profit Margin(%) 17.88 16.40 16.35 12.85 11.67

Cash Profit Margin(%) 13.60 12.04 12.37 9.98 9.59

Adjusted Cash Margin(%) 11.68 10.74 11.19 8.84 9.59

Net Profit Margin(%) 12.36 10.85 11.06 8.58 9.27

Adjusted Net Profit Margin(%) 10.42 9.54 9.88 7.44 9.27

Return On CapitalEmployed(%)

74.70 67.12 60.31 43.48 41.57

Return On Net Worth(%) 63.95 54.27 48.34 34.73 32.41

Adjusted Return on NetWorth(%)

53.92 47.76 43.16 30.11 28.14

Return on Assets ExcludingRevaluations

57.03 74.79 100.62 123.70 149.55

Return on Assets IncludingRevaluations

57.03 74.79 100.62 123.70 149.55

Return on Long TermFunds(%)

74.70 67.12 60.31 43.48 41.57

Liquidity And Solvency Ratios

Current Ratio 0.38 0.35 0.49 0.57 0.48

Quick Ratio 0.24 0.22 0.35 0.40 0.32Debt Equity Ratio 0.15 0.14 0.09 0.07 0.04

Long Term Debt Equity Ratio 0.15 0.14 0.09 0.07 0.04

Debt Coverage Ratios

Interest Cover 570.47 589.56 453.39 711.75 648.15

Total Debt to Owners Fund 0.15 0.14 0.09 0.07 0.04

Financial Charges Coverage 45.98 69.10 92.33 93.44 108.14


37/70

Ratio

Financial Charges CoverageRatio Post Tax

35.96 51.67 70.70 73.51 84.76

Management Efficiency Ratios

Inventory Turnover Ratio 31.30 36.57 38.74 36.25 42.82

Debtors Turnover Ratio 63.02 111.41 70.26 40.11 32.70

Investments Turnover Ratio 41.05 47.59 50.65 47.48 42.82

Fixed Assets Turnover Ratio 11.23 12.32 11.41 9.54 5.89

Total Assets Turnover Ratio 4.58 4.54 4.20 3.99 3.52

Asset Turnover Ratio 6.65 7.11 6.45 6.01 5.89

Average Raw Material Holding 11.42 8.94 7.96 8.46 10.69

Average Finished Goods Held 2.37 2.69 2.99 2.49 1.87

Number of Days In Working

Capital

-51.82 -50.73 -35.52 -25.22 -35.26

Profit & Loss Account Ratios

Material Cost Composition 69.46 71.03 70.45 73.24 72.16

Imported Composition of RawMaterials Consumed

3.18 2.32 1.69 1.10 0.67

Selling Distribution CostComposition

4.26 4.26 4.63 5.11 4.86

Expenses as Composition ofTotal Sales

2.02 2.44 2.90 2.66 2.35

Cash Flow Indicator Ratios

Dividend Payout Ratio Net

Profit 61.86 56.25 46.88 46.29 45.86Dividend Payout Ratio CashProfit

56.15 50.66 41.93 39.80 39.34

Earning Retention Ratio 26.64 36.09 47.51 46.62 47.19

Cash Earning Retention Ratio 34.53 43.21 53.63 55.06 55.65

AdjustedCash Flow Times 0.25 0.25 0.19 0.19 0.13


Earnings Per Share 36.47 40.59 48.64 42.96 48.47

Book Value 57.03 74.79 100.62 123.70 149.55


38/70


39/70


40/70

7.7.8.


41/70

7.7.

Share application money

Preference share capital

Reserves & surplus132.

135.124.85.74.

Loan fundsSecured loans

149.230.300.176.118.

Unsecured loans1.6.7.7.8.

Total

291.

379.

440.

277.

210.

Uses of fundsFixed assets

Gross block280.386.333.282.


42/70

199.Less : revaluation reserve

1.1.2.

2.2.Less : accumulated depreciation

126.158.129.104.85.

Net block152.226.

201.175.110.

Capital work-in-progress3.

12.23.11.29.

Investments9.2.2.3.3.

Net current assetsCurrent assets, loans & advances

280.287.354.214.160.

Less : current liabilities & provisions154.149.141.128.94.

Total net current assets125.


43/70

137.213.86.65.

Miscellaneous expenses not written

0.Total

291.

379.

440.

277.

210.

Notes:Book value of unquoted investments7.0.0.2.2.

Market value of quoted investments2.3.4.6.4.

Contingent liabilities18.19.27.42.35.

Number of equity sharesoutstanding (Lacs)784.784.841.786.786.


44/70


45/70

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 0


46/70

Profit before tax 8.50 14.86 31.16 22.15 24.0Net cashflow-operating activity 93.99 48.09 27.87 29.72 36.0Net cash used in investing activity 51.38 -43.56 -52.42 -64.32 -72.1Netcash used in fin. activity -113.01 -105.92 121.04 33.58 45.6Net inc/dec in cash and equivlnt 32.35 -101.38 96.49 -1.02 9.4

Cash and equivalnt begin of year 5.28 106.67 10.18 11.20 1.9Cash and equivalnt end of year 37.64 5.28 106.67 10.18 11.4


47/70

5.2. RATIO ANALYSIS

Ratios (Rs crore)Mar '

09

Mar '

08Mar ' 07 Mar ' 06 Mar ' 0

Per share ratiosAdjusted EPS (Rs) 0.78 1.93 2.41 1.62 1.8Adjusted cash EPS (Rs) 3.43 5.62 5.40 4.07 3.8Reported EPS (Rs) 4.07 1.89 2.73 1.73 2.1Reported cash EPS (Rs) 6.71 5.58 5.72 4.18 4.1Dividend per share 0.60 0.35 0.50 0.30 0.8Operating profit per share

(Rs)6.92 9.29 8.79 7.36 6.5

Book value (excl rev res) pershare (Rs)

17.87 18.23 15.84 11.86 10.4

Book value (incl rev res) per

share (Rs.)18.05 18.46 16.10 12.18 10.8

Net operating income per

share (Rs)64.68 70.06 56.52 52.94 46.7

Free reserves per share (Rs) 16.87 17.23 14.84 10.86 8.9Profitability ratiosOperating margin (%) 10.69 13.26 15.55 13.89 13.9Gross profit margin (%) 6.61 7.99 10.26 9.29 9.5

Net profit margin (%) 6.25 2.69 4.80 3.24 4.4Adjusted cash margin (%) 5.26 7.98 9.50 7.63 8.2Adjusted return on net worth

(%)4.41 10.60 15.18 13.65 17.2

Reported return on net worth

(%)22.77 10.38 17.22 14.58 20.0

Return on long term funds (%) 12.83 16.36 15.53 22.47 25.0Leverage ratiosLong term debt / Equity 1.04 0.98 1.45 0.95 0.7 Total debt/equity 1.08 1.65 2.31 1.97

Owners fund as % of total

source48.06 37.67 30.22 33.64 39.1

Fixed assets turnover ratio 1.83 1.43 1.44 1.48 1.8Liquidity ratiosCurrent ratio 1.81 1.92 2.52 1.67 1.7Current ratio (inc. st loans) 1.70 0.84 0.96 0.67 0.6Quick ratio 1.11 1.04 1.64 0.94 0.8


48/70

Inventory turnover ratio 5.60 5.24 4.84 5.75 5.5Payout ratiosDividend payout ratio (net

profit)17.24 21.62 21.43 19.77 43.2

Dividend payout ratio (cash

profit) 10.46 7.33 10.22 8.18 21.7

Earning retention ratio 11.11 78.83 75.69 78.87 49.8Cash earnings retention ratio 79.52 92.72 89.16 91.59 76.6Coverage ratiosAdjusted cash flow time total

debt5.64 5.36 6.78 5.75 4.2

Financial charges coverage

ratio2.33 2.69 3.40 3.06 3.4

Fin. charges cov.ratio (post

tax) 3.13 2.56 3.16 2.67 3.1Component ratiosMaterial cost component (%

earnings)58.17 58.01 59.70 57.51 60.0

Selling cost Component 6.65 6.17 5.89 5.10 5.1Exports as percent of total

sales12.02 8.00 7.77 8.13 5.9

Import comp. in raw mat.

consumed9.70 2.62 4.65 1.05 2.8

Long term assets / total

Assets0.36 0.45 0.38 0.46 0.4

Bonus component in equity

capital (%)76.63 76.63 71.48 76.51 76.5

5.3. CURRENT FINANCIAL

Capital structure (Rs crore

From Year To Year Class Of ShareAuthorized

Capital

Issued

Capital

Paid Up

Shares (Nos)

Paid Up

Face Value

Paid U

Capita

2008 2009 Equity Share 12.00 8.41 78481034 1 7.2007 2008 Equity Share 12.00 8.41 78481034 1 7.2006 2007 Equity Share 12.00 8.41 84139034 1 8.2005 2006 Equity Share 12.00 7.86 78606320 1 7.


49/70

2004 2005 Equity Share 12.00 7.86 78606320 1 7.2003 2004 Equity Share 12.00 7.86 78606320 1 7.2002 2003 Equity Share 4.00 3.93 3930316 10 3.2001 2002 Equity Share 4.00 3.93 3930316 10 3.2000 2001 Equity Share 4.00 3.93 3930316 10 3.

1999 2000 Equity Share 4.00 3.93 3930316 10 3.1998 1999 Equity Share 4.00 3.93 3930316 10 3.1997 1998 Equity Share 4.00 3.13 3132316 10 3.1996 1997 Equity Share 12.00 3.13 3132316 10 3.1994 1996 Equity Share 4.00 3.13 3131960 10 3.1993 1994 Equity Share 3.00 1.50 1500000 10 1.1992 1993 Equity Share 2.00 1.00 1000000 10 1.1991 1992 Equity Share 1.50 1.00 1000000 10 1.


50/70

Share holding

Share holding pattern as on : 31/03/2009 31/12/2008 30/09/2

Face value 1.00 1.00

No. Of Shares% HoldingNo. Of Shares%

HoldingNo. Of Shares

%

HoldPromoter's holding

Indian Promoters 36225949 46.16 34997305 44.59 34645941 4Sub total 36225949 46.16 34997305 44.59 34645941 4

Non promoter's holdingInstitutional investors

Banks Fin. Inst. and Insurance 151980 0.19 151980 0.19 151980FII's 8031058 10.23 8731058 11.13 8731058 1Sub total 8183038 10.43 8883038 11.32 8883038 1

Other investorsPrivate Corporate Bodies 1977930 2.52 2253812 2.87 2480449

NRI's/OCB's/Foreign Others 172541 0.22 170611 0.22 180045Direcctors/Employees 87820 0.11 77820 0.10 77820Others 766491 0.98 721560 0.92 776152Sub total 3004782 3.83 3223803 4.11 3514466

General public 31067265 39.59 31376888 39.98 31437589 4Grand total 78481034 100.00 78481034 100.00 78481034 10


51/70

Marketing arm of HHML started the hugely successful Fill it, Shut it, Forgetit campaign years ago to pitch for its better fuel efficiency and thus lowerowning cost. It has been a constant strive for HHMLs marketing efforts (inadvertisements, in promos) to focus the value for money and reliability of its

products and thus attracting new customers and retaining customers as well.To ensure customer loyalty, HHML has come up with Hero Honda PassportProgram which gives special privileges to its customers. HHML does notindulge in price wars in an effort to maintain the perception of enduringquality among present & potential customers. Of late, there were complaintsfrom customers that HHML is not dynamic enough to present newer, flashier& more powerful bike models in the premium segment that competitors likerecharged Bajaj is offering. Another complaint was that many of the variantsoffered by HHML have little or insignificant product differentiation which can

justify the price difference. HHML has paid heed to these stated & unstated

needs of its customers and improved the 4Ps (Product, Price, Place &Promotion). Its offerings now are well accepted in the market.

HHML has roped in popular heartthrob Hrithik Roshan as its brandambassador to give impetus to its marketing efforts. It has been a constantendeavor of HHML to cater to both urban and rural markets with similar zest,with advertising campaigns and promotional events clearly focusing on thetwo markets Har Gaon, Har Angaan is the recent rural connect initiativeto cover ~ 23,360 villages with a population of 5000 or more by 500 speciallytrained rural sales executives.

HHML has a conscious strategy of penetrating new markets andunrepresented territories through its distribution network which is made up ofdealers, authorized representatives, stockists and SSPs. In March 2001, thecompany had 826 such customers points in India. By March 2008, thisnumber went up to over 3500. On an all India basis, 50 dealers, 150 SSPs, 267dealers and 45 city work agents were added within this period.


52/70


53/70

Market performance

Marketing arm of HHML started the hugely successful Fill it, Shut it, Forgetit campaign years ago to pitch for its better fuel efficiency and thus lowerowning cost. It has been a constant strive for HHMLs marketing efforts (inadvertisements, in promos) to focus the value for money and reliability of its

products and thus attracting new customers and retaining customers as well.To ensure customer loyalty, HHML has come up with Hero Honda PassportProgram which gives special privileges to its customers. HHML does notindulge in price wars in an effort to maintain the perception of enduringquality among present & potential customers. Of late, there were complaintsfrom customers that HHML is not dynamic enough to present newer, flashier& more powerful bike models in the premium segment that competitors likerecharged Bajaj is offering. Another complaint was that many of the variantsoffered by HHML have little or insignificant product differentiation which can

justify the price difference. HHML has paid heed to these stated & unstatedneeds of its customers and improved the 4Ps (Product, Price, Place &Promotion). Its offerings now are well accepted in the market.

HHML has roped in popular heartthrob Hrithik Roshan as its brand

ambassador to give impetus to its marketing efforts. It has been a constantendeavor of HHML to cater to both urban and rural markets with similar zest,with advertising campaigns and promotional events clearly focusing on thetwo markets Har Gaon, Har Angaan is the recent rural connect initiativeto cover ~ 23,360 villages with a population of 5000 or more by 500 speciallytrained rural sales executives.

HHML has a conscious strategy of penetrating new markets andunrepresented territories through its distribution network which is made up ofdealers, authorized representatives, stockists and SSPs. In March 2001, thecompany had 826 such customers points in India. By March 2008, thisnumber went up to over 3500. On an all India basis, 50 dealers, 150 SSPs, 267dealers and 45 city work agents were added within this period.


54/70

The distribution network of HHML is both wide & deep rooted; it is based on both mutual trust & relationship between HHML & its distributors andHHMLs philosophy of ensuring its partners to grow with its own growth.Trust & loyalty of distribution network is very important in maintaining theleadership position in this highly competitive industry. In fact, HHMLsstrength in Supply Chain & distribution network is one of the uniqueintangible resources that it has; superior brand image & reliability perceptionof its brand is the outcome of these intangible & tangible key assets.

6.1. PRICES

Share Prices of Hero Honda Motors Ltd.

From 30-july-2007 to 03-aug-2007

580

600

620

640

660

680

700

720

3-Aug-07

2-Aug-07

1-Aug-07

31-Jul-0730-Jul-07

3-Aug-07 660 666 645 655.45

2-Aug-07 660 675 624.8 652.25

1-Aug-07 670 675 655 668.25

31-Jul-07 685 704 670 674.05

30-Jul-07 673 691 662.05 685.05

Open High Low Close


55/70


56/70


57/70

Marke t share o f tw o w hee le r au

sector

35 .60 27.50

1 6

7 %4 %9.50

H e ro H o n d a

B a ja j M o to r

T V S M o to rs

Y a m a h aM o t o r sH o n d a M o t

O t h e r s


58/70


59/70

0

20

40

60

80

%o

fResponde

nt

Bikes

Model people want to purchas

series

series 65 15 13 5 2

puls App CBZ unic Glad

Inference:-

Out of 100%:65% respondents want to purchase pulsar15% respondents want to purchase apache

13% respondents want to purchase CBZ5% respondents want to purchase unicorn2% respondents want to purchase gladitor


60/70

0

20

40

%.of

Respondent

Price range

most favourable price ranges selected b

the cutomers

series

series 32 35 20 9 4

30- 40- 50- 60- 70-

Inference:-Out of 100%:32% customers have tick on 30-4035% customers have tick on 40-5020% customers have tick on 50-609% customers have tick on 60-704% customers have tick on 70-80

7.1 SWOT ANALYSIS

STRENGTHS:

Hero Honda introduced First stroke bike in the Indian market.

Hero Honda gives 80 Km/Liter Avg.

Huge sale network (3500 Dealers).

Better sale service.

It has the highest share in automobile sector.

It has a good brand image.

It gives better service for customers.


61/70

Best customer preference.

Debt equity ratio is only 0.1.

The company has clarified about its intention of setting a third plant in

addition to its existing two plants. The company has embarked upon a green field

expansion plan and has earmarked Rs 2 bn for the same. It should be noted that the

company has a strong cash flow position; it generated Rs 9 bn from operation in FY04 and

is virtually a debt free company.

WEEKNESS:

Suppose to be very sophisticated.

Not fit for ruler India.

They have big gap between cubic capacities of its products.

Its market share is reducing from last few years.

Spare parts are too costly.

OPPOURTUNITIES:

Hero Hondas the first manufacture to launch eco friendly bikes with 4-

stroke engines. They have attained a stronger good will and popularity in the industry and

the consumers.

They should go in new segments of bikes.


62/70

There is large no. of young consumers in the market. Company has to focus

on them.

They have big opportunities in heavy bike segments.

As government polices are amended against pollution in metro cities, Hero

Honda being 4 stroke bike manufacture have great opportunities to explore its new

innovations and technologies.

THREATS:

Main threats to Hero Honda are their competitors like:-

oBajaj Auto Ltd.

oTVS motors Ltd.

oYamaha Motors India.

oHonda motorcycle and scooter India.

The cost of the product is very high in comparison to other companies.

Decreasing market share.

7.2. Regulating system/environment factors

We at Hero Honda are committed to demonstrate excellence in our environmentalperformance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:


63/70

Integrate environmental attributes and cleaner production in all our businessprocesses 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 ourenvironmental discharges through the principles of "alara" (as low as reasonablyachievable);

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, whilepromoting their involvement in ensuring sound environmental management;


64/70


65/70

8.1 MANAGEMENT VIEWS

Management discussion & analysis:


66/70


67/70


68/70

8.2 PRESS RELEASES

PRESS RELEASES News 2003 JANUARY:Hero Honda displays leaders' performance

(New Delhi, Friday, January 10, 2003) FEBRUARY:Hero Honda

(The Hindu, Saturday, February 22, 2003)Indian Sports Academy launched

(Indian Express, Wednesday, February 05, 2003)HISA launched

(The Hindu, Wednesday, February 05, 2003)Brand: Hero Honda Medium: Television

(Economic Times, Wednesday, February 05, 2003) Hero Honda sales up 23% in April - Jan(Business Line, Monday, February 03, 2003) MARCH:Hero Honda Crosses Rs 5000 crore (US$ 1 Billion) Sales Turnover Landmark

(Monday, March 31, 2003) APRIL:

Hero Honda - Performance Par Excellence

(New Delhi, Thursday, April 10, 2003)

Hero Honda Motors Ltd. Year 2002-03 Sales Growth

(New Delhi, Tuesday, April 01, 2003)

MAY:

Hero Honda's 223 cc Bike Comes with Rs 79,000 Tag

(The Economic Times, New Delhi, Friday, May 16, 2003)

Hero Honda Prepares Roadmap for New Models

(The Hindu, Friday, May 16, 2003)

Hero Honda Unveils 223-cc Karizma

(Financial Express, Friday, May 16, 2003)
http://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ahttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ahttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Bhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Bhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Chttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Chttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Dhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Dhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ehttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ehttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Fhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Fhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ghttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ghttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Hhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Hhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ihttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ihttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Jhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Jhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Khttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Khttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Lhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Lhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ahttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ahttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Bhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Bhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Chttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Chttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Dhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Dhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ehttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ehttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Fhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Fhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ghttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ghttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Hhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Hhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ihttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ihttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Jhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Jhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Khttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Khttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Lhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_L


69/70

Hero Honda to Invest Rs 100 crore

(Times of India, Friday, May 16, 2003)

Hero Honda Unveils Karizma

(The Hindustan Times, New Delhi, Friday, May 16, 2003)

Hero Honda Rolls Out Karizma

(The Hindu, New Delhi, Friday, May 16, 2003)

Hero's Karizma

(The Pioneer, New Delhi, Friday, May 16, 2003)

Hero Honda to Invest Rs 100 crore in New Models

(The Asian Age, New Delhi, Friday, May 16, 2003)

Hero Honda Launches Karizma(The Tribune, Chandigarh, Friday, May 16, 2003)

Hero Honda Unveils 223-cc Karizma

(Financial Express, New Delhi, Friday, May 16, 2003)

Hero Honda Launches India's First Premium Sports Motorcycle - Karizma (New

Delhi, Thursday, May 15, 2003)

JUNE:

Hero Honda May Sales Up

(The Hindu, Tuesday, June 03, 2003)

JULY:
http://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Mhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Mhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Nhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Nhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ohttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ohttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Phttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Phttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Qhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Qhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Rhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Rhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Shttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Shttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Thttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Thttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Thttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Thttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Uhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Uhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Mhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Mhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Nhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Nhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ohttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Ohttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Phttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Phttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Qhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Qhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Rhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Rhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Shttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Shttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Thttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Thttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Uhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_U


70/70

Team OVERDRIVE & Hero Honda KARIZMA Establish 12 Time & Distance

National Records (Annexure)(Tuesday, July 29, 2003)

Hero Honda Continues To Delight Indian Customer(Friday, July 11, 2003)

OCTOBER:

Hero Honda sets the market on fire

(Friday, October 31, 2003)

Hero Honda Announces Robust Half Yearly Financial Results New Model Launches

Fuel Company's Leadership (Tuesday, October 14, 2003)

Hero Honda Sweeps Entry and Executive Segment Awards with its Splendor and

CD100 SS Models.at the NFO 2003 Total Customer Satisfaction Awards (Thursday,October 09, 2003)

DECEMBER:

Hero Honda's sales to grow 16%

(Economics times, New Delhi, Friday, December 26, 2003)

Hero Honda's Karizma Awarded The BBC Wheels "Bike Of The Year 2003" (NewDelhi, Wednesday, December 24, 2003)

Hero Honda Inks MoU with PNB On Consumer Finance For Bikes

(The Financial Express, New Delhi, Friday, December 19, 2003)
http://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Vhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Vhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Vhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Vhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Whttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Whttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Xhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Xhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Yhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Yhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Yhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Yhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AAhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AAhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_ABhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_ABhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_ABhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_ABhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AChttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AChttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Vhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Vhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Whttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Whttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Xhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Xhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Yhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Yhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_Zhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AAhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AAhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_ABhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_ABhttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AChttp://www.herohonda.com/invest_eventnews_press03.htm#tag_2003_AC

Hero Handa Final

Documents

Transcript of Hero Handa Final