|Traded as||BSE: 500182
BSE SENSEX Constituent
|Founded||January 19, 1984|
|Founder||Dr. Brijmohan Lall Munjal|
|Dr. Brijmohan Lall Munjal (Chairman Emeritus) (Died 2015)
Pawan Munjal (Chairman, MD & CEO)
|Revenue||₹241.66 billion (US$3.6 billion) (2013)|
|₹33.22 billion (US$490 million) (2013)|
|₹21.18 billion (US$310 million) (2013)|
|Total assets||₹53.08 billion (US$790 million) (2013)|
Number of employees
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle (<250cc) and scooter manufacturer based in New Delhi, India. The company is the largest two wheeler manufacturer in India. In India, it has a market share of about 46% share in 2-wheeler category. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at #108. On 31 March 2013, the market capitalisation of the company was ₹308 billion (US$4.6 billion).
- 1 History
- 2 Company timeline
- 3 Termination of Honda joint venture
- 4 Sports Association
- 5 Formation of Hero MotoCorp
- 6 49% stake in Erik Buell Racing
- 7 Operations
- 8 Products
- 9 Company performance
- 10 Listings and shareholding
- 11 Employees
- 12 Awards and recognition
- 13 Initiatives
- 14 See also
- 15 References
- 16 External links
Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes called Hero Group, not to be confused with the Hero Group food company of Switzerland) of India and Honda of Japan. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity.
In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. with the automaker. The decision comes 18 months after its split from Hero Honda.
"Hero" is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in the Company.
During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it – Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. In 2001, the company became the largest two-wheeler manufacturing company in India and globally. It maintains global industry leadership to date. The technology in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come from the Japanese counterpart Honda.
- 1956—Formation of Hero Cycles in Ludhiana(hero majestic auto limited)
- 1975—Hero Cycles becomes largest bicycle manufacturer in India
- 1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed
- 1984—Hero Honda Motors Ltd. incorporated
- 1985—Hero Honda motorcycle CD 100 launched.
- 1989—Hero Honda motorcycle Sleek launched
- 1991—Hero Honda motorcycle CD 100 SS launched
- 1994—Hero Honda motorcycle Splendor launched
- 1997—Hero Honda motorcycle Street launched
- 1999—Hero Honda motorcycle CBZ launched
- 2001—Hero Honda motorcycle Passion and Hero Honda Joy launched
- 2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched
- 2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched
- 2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ Star launched
- 2005—Hero Motocorp SuperSplendor, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure
- 2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched
- 2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched
- 2009—New Models of Hero Honda motorcycle Karizma:Karizma – ZMR and limited edition of Hero Honda motorcycle Hunk launched
- 2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched
- 2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma launched. New licensing arrangement signed between Hero and Honda. In August Hero and Honda parted company, thus forming Hero MotoCorp and Honda moving out of the Hero Honda joint venture. In November, Hero launched its first ever Off Road Bike Named Hero "Impulse".
- 2012—New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the young generation bike were launched
- 2013—Hero MotoCorp unveiled line-up of 15 updated products including Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero Motocorp SuperSplendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It also introduced three new technologies- Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart
- 2014—Hero MotoCorp Launched Splendor Pro Classic, Xtreme Sports and new models of Karizma ZMR, Karizma R, Maestro and Pleasure.
- 2014—In October 2014, Hero updated its 100cc engine range on Passion Pro and Splendor Pro Classic
- 2014—Hero invests $25 million into American motorcycle manufacturer EBR(Erik Buell Racing)
- 2016-New Models of Hero Motocorp Duet the Musculine scooter were launched
Termination of Honda joint venture
In 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 can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the joint venture alone.
The Japanese auto maker will exit the joint venture through a series of offmarket transactions by giving the Munjal family—that held a 26% stake in the company—an additional 26%. Honda, which also has an independent fully owned twowheeler subsidiary—Honda Motorcycle and Scooter India (HMSI)—will exit Hero Honda at a discount and get over $1 billion for its stake. The discount will be between 30% and 50% to the current value of Honda's stake as per the price of the stock after the market closed on December 16, 2010.
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 expires 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 Honda Motorcycle and Scooter India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would eventually be thrown open for private equity participation and those in the fray include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future models.
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- Hero MotoCorp began its association with the prestigious Indian Open Golf tournament in 2005. The tournament has helped catapult the popularity of golf in India. Illustrious golfers from around the world participate in this annual event, which boasts of the largest prize fund sanctioned solely by the Asian Tour. Hero MotoCorp, the India's largest manufacturer of two-wheelers, took over title sponsorship of the World Challenge Hero World Challenge
- Hero is committed to sponsor Hockey and promote and popularize the sport, which is popular in India(inly after Cricket). In 2010, Hero MotoCorp extended its support to Hockey by sponsoring the 'Hockey World Cup 2010' that was held in India. 2 years after this, Hero Motocorp was also the sponsor of the 'FIH Road to London 2012' tournament. The company is proud to associate with, and will continue to endorse this great sport in the future.
- Our association with cricket goes a long way. Hero MotoCorp has in the past sponsored international cricket tournaments in association with International Cricket Council (ICC), including the cricket World Cup and the Champions Trophy. Hero has also been associated with IPL.
Formation of Hero MotoCorp
The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Limited on 29 July 2011. The new brand identity and logo of Hero MotoCorp 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.
On 21 April 2014, Hero MotoCorp announced their plan on a US$40 million joint venture with Bangladesh's Nitol Niloy Group in the next five years. also hero updated its 100cc engine range in 2014 for 100cc bikes except hero dawn.
49% stake in Erik Buell Racing
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 2015  and Hero Motocorp proceed to acquire certain assets for US$2.8 million.
Hero MotoCorp has four manufacturing facilities based at Dharuhera, Neemrana and Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together have a production capacity of 7.6 million 2-wheelers per year. Read More Hero MotoCorp has a sales and service network with over 6,000 dealerships and service points across India. It has a customer loyalty program since 2000, called the Hero Honda Passport Program which is now known as Hero GoodLife Program. Hero GoodLife
It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa, AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a majority of its components.
The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016–17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012.
- Maestro Edge
- HF Dawn
- HF Deluxe
- HF Deluxe Eco
- Splendor Pro
- Splendor Pro Classic
- Splendor iSmart
- Splendor ismart 110cc
- Passion Pro
- Passion Pro TR
- Passion XPro
- Super Splendor
- Glamour FI
- Xtreme (Thriller in LATAM)
- Xtreme Sports (Thriller Sports in LATAM)
- Karizma R
- Karizma ZMR
- Street 100
- Ambition 135
- CBZ Star, CBZ, CBZ Xtreme
- CD 100, CD 100 SS, CD Dawn (self Start)
- Hero Honda Joy
- HX 250r
- Xtreme Sports 200s
- Duet E
- Hastur 620
The company has sold over 47 million 2-wheelers since its inception in 1984 till March 2013. It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were motorcycles. Hero Motocorp sells more two wheelers than the second, third and fourth placed two-wheeler companies put together. Its most popular bike Hero Honda Splendor sells more than one million units per year.
In 2013, Hero MotoCorp registered best ever calendar year performance of more than 6.1 million unit sales. By selling 625,000 units in the month of October, it became the first-ever manufacturer to cross landmark 6 lakh unit sales in a month. In the last quarter of the year or say in the festive season, the company sold more than 1.6 million units, while in non festive time in April–May 2013, it managed to sell out quite good numbers of units—1.1 million.
The equity shares of Hero Motocorp are listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of the S&P CNX Nifty.
As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero Motocorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares. Foreign Institutional Investors hold approx. 30% shares in the company.
|Shareholders (as on 31-Dec-2013)||Shareholding|
|Foreign Institutional Investors (FII)||30.63%|
|Foreign Corporate Bodies||12.29%|
|Mutual Funds / UTI||02.56%|
|Financial Institutions / Banks||00.53%|
As on 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%). It also had approx. 13,800 temporary employees on that date. The company had an attrition rate of 5.1% in the FY 2012-13. The company spent ₹8.21 billion (US$120 million) on employee benefits during the FY 2012-13.
Awards and recognition
- The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 7th position among the most trusted brands in India.
- It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two Wheelers Category at the Auto India Best Brand Awards 2012.
The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as Hero Honda Motors Ltd., that looks after:
- Raman Munjal Vidya Mandir (an educational institution)
- Raman Munjal Memorial Hospital
During the financial year, the company spent ₹14 million (US$210,000) on corporate social responsibility.
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