R.

SNEHAPRIYA
1st MBA
INTRODUCTION:
• Hero Moto Corp Limited (formerly Hero Honda)
• Indian multinational motorcycle and scooter
manufacturer headquartered in New Delhi. The
company is one of the largest two-wheeler
manufacturers in the world, as well as in India
• where it has a market share of about 34.51% in the
two-wheeler industry.
Termination of Honda joint venture and the renaming:

• By December 2010, the board of directors of the Hero

Honda Group had decided to terminate the joint
venture between Hero Group of India and Honda of
Japan in a phased manner. The Hero Group would
buy out the 26% stake of the Honda in JV Hero
Honda.Under the joint venture, Hero Group could not
export to international markets (except Nepal,
Bangladesh and Sri Lanka) and the termination would
mean that Hero Group could now export. From the
beginning, the Hero Group relied on their Japanese
partner Honda for technology.
• The rising differences between the two partners
gradually emerged as an irritant. Differences had been
brewing for a few years before the split over a variety
of issues, ranging from Honda's reluctance to fully
and freely share technology with Hero (despite a 10-
year technology tie-up that expired in 2014) as well
as Indian partner's uneasiness over high royalty
payouts to the Japanese company. Another major
irritant for Honda was the refusal of Hero Honda,
(mainly managed by the Munjal family), to merge the
company's spare parts business with Honda's new
fully owned subsidiary, HMSI
CHAIRMAN EMERITUS:
Formation of the new company:

• The name of the company was changed from Hero

Honda Motors Limited to Hero Moto Corp Limited on
29 July 2011.The new brand identity and logo of Hero
Moto Corp were developed by the British firm
Wolff Olins.The logo was revealed on 9 August 2011 in
London, to coincide with the third test match between
England and India.
• Hero MotoCorp can now export to Latin America,
Africa, and West Asia.Hero is free to use any vendor
for its components instead of just Honda-approved
vendors.
• On 21 April 2014, Hero MotoCorp announced its
plan on a ₹254 crore (equivalent to ₹345 crore or
US$43 million in 2020) joint venture with
Bangladesh's Nitol-Niloy Group in the next five years
to set up a manufacturing plant in Bangladesh. The
plant started production in 2017 under the name
"HMCL Niloy Bangladesh Limited". Hero MotoCorp
owns 55% of the manufacturing company and the rest
45% is owned by Niloy Motors (A subsidiary of
Nitol-Niloy Group).[15] Hero also updated its 100cc
engine range in 2014 for 110cc bikes except for Hero
Dawn
Equity investments:

• In July 2013, HMC acquired 49.2%shareholding in

Erik Buell Racing, a motorcycle sport company which
produced street and racing motorcycles based in
East Troy, Wisconsin, United States. EBR filed for
bankruptcy in 2015and Hero MotoCorp proceed to acquire
certain assets for ₹18.2 crore (equivalent to ₹26 crore or
US$3.3 million in 2020).
• HMC invested ₹205 crores (US$30.5 million) as a Series B
round of funding in October 2016 and gained a 32.31%
stake in Ather Energy, a start-up company manufacturing
electric scooters. It invested a further ₹130 crores (US$19
million) in 2018.HMC's share in Ather Energy has grown up
to 34.58% since 2016.
Awards and recognition:

• The 2006 Forbes list of the 200 World's Most

Respected Companies had Hero Honda Motors
ranked at No. 108.
• The Brand Trust Report published by Trust Research
Advisory has ranked Hero Honda in the 7th position
among the most trusted brands in India.
Initiatives:

• The company started Raman Kant Munjal Foundation

(RKMF), in 1992 when it was known as Hero Honda
Motors Ltd., which looks after:
• Raman Munjal Vidya Mandir (Educational
Institution)
• BML Munjal University
• During the financial year, the company spent ₹1.4
crores) on corporate social responsibility.
SHARE PRICE:
Type Public

Traded as •BSE: 500182

•NSE: HEROMOTOCO
•NSE NIFTY 50 Constituent

ISIN INE158A01026

Industry Automotive

Founded 19 January 1984; 38 years ago

Founder Brijmohan Lall Munjal

Headquarters New Delhi, India

Key people •Pawan Munjal (Chairman, MD & CEO)[1]

Products •Motorcycles
•Scooters

Production output 7,587,130 units (2018)

Revenue ₹31,517 crore (US$3.9 billion) (2021)[2]

Operating income ₹3,895 crore (US$490 million) (2021)[2]

Net income ₹2,982 crore (US$370 million) (2021)[2]

Total assets ₹22,161 crore (US$2.8 billion) (2021)[2]

Total equity ₹15,198 crore (US$1.9 billion) (2021)[2]

Number of employees 8,599 (2020)[2]

Parent Hero Motors Company

Website www.heromotocorp.com
PRODUCTS:
MILESTONES(2020):
AWARDS(2021):
Services:

• We provide end-to-end two-wheeler services

OUR VISION:
OUR MISSION:
OUR VALUES:
 SWOT ANALYSIS
Strengths
Hero Motocorp enjoys various competitive advantages and strengths
that have contributed to its success and immense growth for more than
three decades.

•Brand Recognition: Hero MotoCorp is a strong brand that is

synonymous with reliability and fuel-efficient two-wheelers.
According to The Brand Trust Report published by Trust Research
Advisory, the conglomerate surged 223 places to rank 33 as one of
India's most trusted brands in 2018. It was ranked 6 in the automobile
category, the highest of any Indian two-wheeler manufacturer on the
shortlist.

•Extensive Domestic Network: Hero MotoCorp has over 6,500

dealerships and service points across India. A large number of service
points has allowed it to roll out its Express Service scheme, where it
Strong Global Presence: Ever since the termination of the joint
venture between Hero Group of India and Honda of Japan, Hero
MotoCorp began to establish its global footprint. As of late 2018,
its two-wheelers are being sold in over 37 countries, and has 8
manufacturing plants in 3 countries.
• Large Product Portfolio: Not only does Hero MotoCorp
provide a large variety of two-wheelers, but it is also moving
rapidly alongside current market trends as well.
• Weaknesses
• Poor Gender Diversification: As of late 2018, Hero
MotoCorp had only 256 female employees out of 8266.
Although the figure has tripled from a mere 1% in 2014, much
more still can be done to address gender inequality and
diversification.
• Global Exports: Hero MotoCorp is still largely focused on
India. In 2017, only 12% of the units sold by all two-wheeler
manufacturers in India contributed to exports. This is greatly
eclipsed by China, which had exported more than 46% of
units sold, more than 4 times the amount. As more
competitors are looking to jump on the two-wheeler market in
India, it would be unwise for the company to solely focus on
its home ground.
• Declining Service Quality: In a study conducted by the
International Journal of Innovative Research in Science,
Engineering, and Technology in 2015, the overall
service quality for Hero MotoCorp fell below the
expectations of end consumers. According to the study
based using the SERVQUAL model of service quality,
Bajaj Auto, one of its closest competitors, was deemed
to have better overall service and appeal.
• Opportunities
• Joint Ventures and Acquisitions: Despite the terminated joint
venture with Honda Japan, it is crucial to note that for many
years, technology in its two-wheelers came from Honda.
Acquiring start-ups or going into joint ventures will allow the
conglomerate to obtain more valuable technology and tap into
other market segments. A good example is its 49.2% stake
buyout of Erik Buell Racing, which allows Hero MotoCorp to
synergize motor technologies and extend sales into the North
American market.
• Electric Two Wheelers: The electric bike and scooter market
is booming globally and it would be an opportunity for Hero
MotoCorp to leverage. The e-bike market is expected to reach
about 24.3 billion U.S. dollars by 2025. According to Prescient
and Strategic Intelligence, the electric scooter and motorcycles
market in India alone will surge past $617.7 million by 2025
• Threats
• Strong Competition: Hero MotoCorp faces strong
competition domestically despite its strong foothold in India.
The two-wheeler market in India is very competitive and is
dominated by three other major players, TVS Motors, Honda,
and Bajaj Auto. In 2012, Honda launched made-in-China two-
wheelers which are priced lower than equivalent cost-efficient
models. Honda has been expanding aggressively since the
joint venture was terminated in 2010. It began enticing Hero
dealers to join the Honda network under its subsidiary in
India, Honda Motorcycles and Scooters India Pvt. Ltd
(HSMI). Similarly, TVS Motors has collaborated with BMW
to establish its presence in the premium motorcycle market in
direct competition with Hero's Xtreme series. The competition
will continue to remain strong as India is an extremely large
market to delve into.
• Public Transport Infrastructure: The government of India is
striving to improve on its public transport infrastructure. Projects
such as the National Highways Development Project (NHDP)
under the ambitious Bharatmala Pariyojana will add on more than
80,000 km of highways in India. In early 2019, India's Union
Minister Nitin Gadkari announced that India's public transport will
be based on the London model with an MoU with Transport for
London (TFL) being signed in the previous year. Government
initiatives will reduce the demand for automobiles if public
transport becomes more reliable.
Webliography:

• https://www.heromotocorp.com/en-in/about-us/
awards.html
THANK YOU