Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.

) is the world's largest

manufacturer of two - wheelers, based in India. In 2001, the company achieved the

coveted position of being the largest two-wheeler manufacturing company in India

and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a

calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.

Today, every second motorcycle sold in the country is a Hero MotoCorp bike. Every

30 seconds, someone in India buys Hero MotoCorp's top-selling motorcycle

Splendor.

VISION

The Hero Honda story began with a simple vision the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero Hondas

commitment to customer, quality and excellence, and while doing so, maintaining the

highest standards of ethics and societal responsibilities. Hero MotoCorp believes that

the fastest way to turn that dream into a reality is by remaining focused on that vision.

STRATEGY

Hero MotoCorps key strategy has been driven by innovation in every sphere of

activity building a robust product portfolio across categories, exploring new

markets, aggressively expanding the network and continuing to invest in brand

building activities.

MANUFACTURING

Hero MotoCorp bikes are manufactured across three globally benchmarked

manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are
located in the state of Haryana in northern India. The third and the latest

manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.

TECHNOLOGY

In the 1980s Hero Honda pioneered the introduction of fuel-efficient, environment

friendly four-stroke motorcycles in the country. Today, Hero MotoCorp continues to

be technology pioneer. It became the first company to launch the Fuel Injection (FI)

technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.

PRODUCTS

Hero MotoCorp's product range includes variety of motorcycles that have set the

industry standards across all the market segments. The company also started

manufacturing scooter in 2006. Hero MotoCorp offers large no. of products and caters

to wide variety of requirements across all the segments.

DISTRIBUTION

The Companys growth in the two wheeler market in India is the result of an intrinsic

ability to increase reach in new geographies and growth markets. Hero MotoCorp's

extensive sales and service network now spans close to 4500 customer touch points.

These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and

dealer-appointed outlets across the country.

BRAND

The company has been continuously investing in brand building utilizing not only the

new product launch and new campaign launch opportunities but also through

innovative marketing initiatives revolving around cricket, entertainment and ground-

level activation.
Hero MotoCorp has been actively promoting various sports such as hockey, cricket

and golf. Hero MotoCorp was the title sponsor of the Hero MotoCorp FIH Hockey

World Cup that was played in Delhi during Feb-March 2010. Hero MotoCorp also

partners the Commonwealth Games Delhi 2010.

TERMINATION OF HONDA JOINT VENTURE

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. Since the beginning, the Hero Group relied on

their Japanese partner Honda for the technology in their bikes.

The Japanese auto maker will exit the joint venture through a series of offmarket

transactions by giving the Munjal familywhich held a 26% stake in the company

an additional 26%. Honda, which also has an independent fully owned two-wheeler

subsidiaryHonda Motorcycle and Scooter India (HMSI)will exit Hero Honda at a

discount and get over 6,400 crore 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.

FORMATION OF HERO MOTOCORP

The name of the company was changed from Hero Honda Motors Limited to Hero

MotoCorp Limited on 29 July 2011.[4] The new brand identity and logo of Hero

MotoCorp were developed by the British firm Wolff Olins.[18] 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.[18] Hero is

free to use any vendor for its components instead of just Honda-approved vendors.

On 21 April 2014, Hero MotoCorp announced their plan on a 254 crore (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 18.2 crore (US$2.8 million).

OPERATIONS

Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurgaon,

Neemrana, Haridwar and Halol under Green Field stage. These plants together have a

production capacity of 76 lakh+ 2-wheelers per year. 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.

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 64,000 crore (US$10 billion)

and volumes of 10 lakh two-wheelers by 201617. 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.

CURRENT PRODUCTS

Scooters

Pleasure

Duet

Maestro Edge
MOTORCYCLES

HF Deluxe

HF Deluxe Eco

Splendor+

Splendor Pro

Splendor ismart 110

Super Splendor

Passion Pro

Passion i3s

Glamour

New Glamour

New Glamour FI i3s

New Glamour i3s

Glamour FI

Glamour Pro FI

Achiever

Xtreme Sports

Karizma ZMR

DISCONTINUED

Motorcycles Hero Honda CD100

Hero Honda CD100 Deluxe Hero Honda CD100SS

Hero Honda CD Dawn 100 Hero Honda CD Deluxe 100

Hero Honda Dawn 100 Hero Honda Joy 100

Hero Honda Sleek 100 Hero Honda Street 100

Hero Honda Passion 100 Hero Honda Passion Plus 100

Hero Honda CBZ 150 Hero Honda CBZ Star 150

Hero Honda CBZ Xtreme 150 Hero Honda Ambition 135

Hero Splender NXG 100 Hero Impluse 150

Hero Splendor ismart 100 Hero Splendor Classic 100

Hero HF Dawn 100 Hero Passion Pro TR 100

Hero Passion XPro 110 Hero Ignitor 125

Hero Hunk 150 Hero Xtreme 150

Hero Karizma 220 Hero Majestic/Hero Puch

Hero Effy Hero Panther

Hero Panther 4s Hero Pacer

Hero Gizmo Hero Power

Hero Ankur Hero Student

Hero Stepmatic Hero Stalion

Hero Puch Automatic Hero Puch Winner

Hero Puch Winner SL Hero Puch Winner SLX

Hero Puch Sheriif Hero Puch TurboSport

Hero Puch Shakti 2G Hero Puch Maxwell

The company has sold over 4.7 crore 2-wheelers since its inception in 1984 till March

2013.[4] It sold 60.7 lakh 2-wheelers in 2012, out of which 55 lakh 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 ten lakh units per year.

In 2013, Hero MotoCorp registered best ever calendar year performance of more than

61 lakh unit sales. By selling 6,25,000 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 16 lakh

units, while in non festive time in AprilMay 2013, it managed to sell out quite good

numbers of units11 lakh.

LISTINGS AND SHAREHOLDING

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

Promoter Group 39.92%

Foreign Institutional Investors (FII) 30.63%

Individual shareholders 06.44%

Insurance companies 05.38%

Mutual Funds / UTI 02.56%

Bodies Corporate 01.60%

Financial Institutions / Banks 00.53%

Others 00.60%

Total 100.0%

Employees

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.[4] The company spent 821

crore (US$130 million) on employee benefits during the FY 2012-13.[4]

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.[33]

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:

1. Raman Munjal Vidya Mandir (an educational institution)

2. Raman Munjal Memorial Hospital

3. BML Munjal University

During the financial year, the company spent 1.4 crore on corporate social

responsibility.