Dear Partners in Progress.

Warmest Festive Greetings, Do hope you had a splendid Diwali with friends and
family. Keeping my word of regularly keeping in touch with you, I am reaching out
to update you about a bonanza of good news and information about the group
which will reinforce Heros commitment and passion to constantly strive towards a
greater good for us as long-standing partners.

Constant Connect - A key success metric:

The success of any business is people and I truly believe that a constant and
continuous two-way communication is imperative to achieve the dreams we both
jointly pursue. I am personally leading by example and extensively travelling across
the length and breadth of the country to reach out and connect with each one of
you. I have recently concluded a market visit and partners meet in Pune and assure
you of similar meets across regions soon. These trips in particular are very special,
as I speak to most dealers to better understand issues, challenges and
opportunities. Once identified, all these points irrespective of big or small are being
addressed by the respective teams. To further ensure this we now have a front-end
team based out of Delhi led by Manish in the role of the National Sales Head,
additionally N Anantha Naarayanan based in Ludhiana is solely designated to take
care of you. He and his agile team of representatives from each region have been
deputed to maintain a continuous dialogue. Here is the list of the representatives
from each zone, so please free and keep in touch on an ongoing basis.

Zone Name Contact Email

Number
North Minakshi 88720 01845 minakshisharma@herocycles.com
Sharma
South Shakun 88720 01846 shakunsharma@herocycles.com
Sharma
East Sangeeta 88720 01843 sangeeta@herocycles.com
West Khushboo 88720 01844 kgupta@herocycles.com
Gupta

(ANU/ ANANTHA PLEASE FILL IN THIS TABLE)

As an outcome of the recent and constant interactions with the market, pertinent
issues are fast being resolved. Heres a brief perspective
(ANANTHA PLEASE PUT THE GRAPHS FROM YOUR PRESENTATION)
- shortage complaints are down

- truck delays down

- Mis match/ wrong supply down.

-Day wise Trend of receiving Complaints:

-After Counter Measure Complaints (After implementing Barcoding)

It is steps like these which are transforming us as a company and I urge each one
of you to please reach out to the team or for that matter me in case you have any
queries and feel the need to do so. I can be reached at
ChairmansOffice@HeroCycles.com. I also personally commit to continue my
monthly market visits and assure you of a quarterly regional conference and a mega
annual meet as we continue to charter strong growth and succeed jointly as one
team.

ANANTHA/ GAURAV
PLEASE SHARE PICTURES
OF MKT VISIT/ PUNE
MEET/ KOLKATA MEET
ETC
Growth through world class NPD:
The true definition of a market leader is the one who has the capability to
constantly innovate, reengineer and create new platforms for a futuristic product
range, width and depth. I am proud to share that Hero is well ahead in this game
which is all set to redefine the codes of the category and lay the path for
unprecedented leadership in India and across the globe. Hero Global Design (HGD)
in Manchester, England has been set up with a crystal-clear objective To Create
Unparalleled Product Innovation. With global designers and a team of the best
industrial design personnel, HGD will provide a pipeline of global products in India
and that too much before the category can even think of. Raman and Narayan Jee
are critical and key senior resources in the NPD team. They both bring in
exceptional acumen and technical proficiency to understand and create a
compelling product strategy. To cite an example, the new premium offerings like
Octane Firefly and Zephyr and Sprint Zapper and Explode, Flora & Reeva(
ANANTHA PLEASE ADD ALL NEW MODELS) boldly exemplify the superior and
futuristic range which is going to be a norm from Hero Cycles NPD and HGD. With
a range like this I am sure there are new frontiers to be achieved, Please reach out
to for placing your orders to (Name the person) respective Field Executive. I wish
you all the very best and urge you to come forward and make most of this
opportunity to empower yourself and your business.

GAURAV - PIC OF HGD, OCTANE, ZAPPER AND XPLODE (VIDEO)

Dynamic and Robust Manufacturing Capability:

With the growing demand and immense opportunity to push for more, it ever so
important to have a strong foundation for continuous growth. Our manufacturing
facilities at Hero are ready and have been constantly delivering on global norms of
manufacturing metrics. Like I mentioned last time our key plants across Ludhiana,
Bitha, Ghaziabad and BSH in Sri Lanka have a throughput of close to 21K per day.
This by far is the highest number achieved by any other cycle manufacturer.
Furthermore, I have been personally monitoring the manufacturing facilities and
will shortly share some exciting news on global best practices like SKD, timely
delivery, optimization of orders, and minimization of discrepancies. With all these
changes, I can assure you that the group will soon be setting a new record of
manufacturing the highest number of cycles in a single day. (WOULD YOU LIKE TO
ADD THE PRODUCTION NUMBERS). While manufacturing will ensure timely
readiness of products on demand we must discipline ourselves with best practices.
MRP is one crucial area of focus and improvement. This has to be system driven
and we must comply as a team. The expectation is mutual we at Hero go all out and
deliver on manufacturing, product, pricing and distribution and you reciprocate
with adherence to uniform MRP, minimum 3 days stock, Score min on audit and
VMI ( # days stock) ANU ANU - PLEASE CHECK AND CHANGE>

PICS OF MANUFACTURING HUBS

South Surge Focus on market share gain.

I have been emphasizing on the strategic importance of the south market as I truly
believe it to be trend setter for the rest of the county. The premium cycle segment
is one with a tremendous opportunity and we at Hero are geared up to capitalize
and make most of it. With the newly opened redistribution center in Hosur the sales
and distribution is fast being streamlined and will prove to be a crucial advantage
which you must make most of. Through this redistribution center supplies will
improve 3X and this will be a big boost to sales and distribution and also result in
quick turnaround of stocks, better availability by models and a faster supply chain
and logistics. In addition to the regional warehouse, we will further reinforce our
presence through a surge of new dealerships and also drive a resurrection of
potential dealers. In short South is the new battlefield for Supremacy and we are
here to reign supreme.

GAURAV HOSUR PICS, SOUTH

DEALERSHIPS PICS

Sprint Stores The Future of Cycle Retail Today.

Last month I talked about the news of the first Sprint Store being launched. I must
share the results and response have been overwhelming. Its just been a month and
we are well off with 17 such stores already launched. We plan to open 40 by
December and 150 by march and eventually open 400 such stores. This is my pet
project for more reasons than one as I feel its my moral duty to ensure that I
constantly provide avenues and platforms for growth to all partners like you. The
Sprint Stores are your window to success. Themed around the key format of
modern retail they are a cyclists delight. Well stocked, E-connected and offering a
host of features from accessories, SPA, Expert Advice, Product Demo and Rides,
these stores offer a futuristic experience of selling cycles. I am sharing a concise
concept note on the Sprint Stores, which is attached with this letter. Please do read
and get in touch with the retail and sales team led by Gautam and Manish. I can
assure you that this one step will change the world you look at your existing
business.

The last few weeks have seen a flurry of changes and activities, I reassure you all
this and more is yet to come. We as an organization are undergoing transformation
and without your support, participation and partnership this will not be the dream
I have dreamt of. I call upon each one of you to rise to the occasion and be a part
of the change we all wish to see. Believe me, we as a team can achieve much more
than we can imagine.

Best Wishes
Pankaj Munjal