Her Oh on Darn
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Transcript of Her Oh on Darn
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Presented By Roll No.
4
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Hero Honda Motors Limited, based in Delhi, is theworld's Largest manufacturer of motorcycles .
A joint venture that began in 1984 betweenthe Hero Group of India and Honda of Japan.
Hero Honda's Splendor is the world's largest sellingmotorcycle.
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Type : Public company BSE:HEROHONDA M
Founded:January 19, 1984in Gurgaon,Haryana, India
Headquarters : New Delhi, India
Key people: Brijmohan Lal Munjal (chairman &founder)
Toshiaki Nakagawa (joint managingdirector)
Pawan Munjal (CEO)
Industry: Automotive
Products: Motorcycles, Scooters
Revenue: U$ 2.8 billion 33
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Hero Honda is worlds third largest 2-wheeler maker.
THE LICENSE RAJ : Customers in India were forced
to wait 12 years to buy a scooter from Bajaj.
In the mid-1980s, Foreign companies permitted to
enter the Indian market through minority joint
ventures.
Four Indo-Japanese joint ventures: Hero Honda, TVS
Suzuki, Bajaj Kawasaki and Kinetic Motor Company
(Kinetic Honda)
The 2006 Forbes 200 Most Respected companies listhas Hero Honda Motors ranked at 108.
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Company Profile
Hero is the brand name used by theHero is the brand name used by the
Munjal brothers for their flagshipMunjal brothers for their flagship
company Hero Cycles Ltd. A jointcompany Hero Cycles Ltd. A jointventure between the Hero Group andventure between the Hero Group and
Honda Motor Company wasHonda Motor Company was
established in 1984 as the Hero Hondaestablished in 1984 as the Hero Honda
company, India.company, India. During the 1980s, theDuring the 1980s, thecompany introduced motorcycles that werecompany introduced motorcycles that were
popular in India for their fuel economy andpopular in India for their fuel economy and
low cost. A popular advertising campaignlow cost. A popular advertising campaign
based on the slogan 'Fill it - Shut it -based on the slogan 'Fill it - Shut it -For et it' that em hasized theFor et it' that emp
hasized the
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By 2002 Hero Group had sold 86 million
bicycles .
Today Hero Honda has an assembly line
of 9 different models of motorcycles .
Currently the largest producer of
Two Wheelers in the world.
Sold 3 million bikes in the year 2005-06.
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Hero Honda Ambition 133,135
Hero Honda CD 100,CD SS, CD Dawn
Hero Honda Splendor , Splendor+ , SuperSplendor, Splendor NXG
Hero Honda CBZ , CBZ Xtreme
Hero Honda Passion , Passion+ , Passion Pro
Hero Honda Karizma
Hero Honda HunkHero Honda Pleasure
Hero Honda Glamour
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1983 : Joint Collaboration Agreement with Honda
Motor Co. Ltd. Japan signed 1984: Hero Honda Motors Ltd. incorporated
1985 :First motorcycle "CD 100" rolled out
1987:100,000th motorcycle produced
1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir inaugurated -
1994 : New motorcycle model - "Splendor"introduced
2000: 4,000,000th motorcycle producedSplendor declared 'World No. 1' - largest selling
single two- wheeler model
2001: One million production in a single year :5,000,000th motorcycle
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2003: Becomes the 1st Indian Company to cross the 7 millionsales
Splendor has emerged as the World's largest sellingmodel for the third calendar year in a row (2000, 2001,2002)
New motorcycle model - "Karizma" introduced 2005 : Hero Honda is the World No. 1 for the 4th year in a
rowSuper Splendor , CD Deluxe , Glamour ,Achiever
introduced
First Scooter model from Hero Honda - "Pleasure"introduced
2006 : Hero Honda is the World No. 199
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Hero Honda
Bajaj
TVS
Yamaha
LML
Kinetic
Royal EnfieldMajetic
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1111
Management introduced new ideas coupled withManagement introduced new ideas coupled withimproved terms of agreement for their joint ventureimproved terms of agreement for their joint venture
Two primary goals in mindTwo primary goals in mind
Continuing their successContinuing their success
Maintaining their existing market shareMaintaining their existing market share
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Environment Policy Integrate environmental attributes and cleaner
production in all business processes
Substitution of hazardous chemicals where viable
and strengthen the greening of supply chain.
Quality Policy Excellence in quality is the core value of Hero
Honda's philosophy. Innovation in products, processes and services.
Continuous improvement in total qualitymanagement systems.
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Safety Policy Committed to safety and health of its
employees and other persons.
Ensuring compliance with all applicable
legislative requirements.
Promoting safety and health awareness
amongst suppliers & contractors.
Continuous improvements in safety
performance through precautions besides
participation and training of employees.
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Date ofApproval Date ofIssue Particulars of Issue No. of Shares19.01.84 Subscription shares 150
09.08.1984 19.03.85 Public Issue 11999985
09.08.1984 29.04.87 Issue of Rights Shares in the
ratio of 15:50
3975000
09.08.1984 07.02.1995 Issue of Bonus Shares in the
ratio of 1:4
3993750
09.08.1984 28.09.1998 Issue of Bonus Shares in the
ratio of 1:1
19968750
09.08.1984 26.03.2001 Sub-division of Equity Sharesof Rs. 10 each
Into 5 Equity Shares of Rs. 2
each
199687500*
Details of issue of Equity Shares since beginning
STOCK HISTORYSTOCK HISTORY
* Equity Shares of Rs. 2 each.
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SALES RECORDSSALES RECORDS
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PROFITS ANALYSISPROFITS ANALYSIS
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StrengthsStrengths Ability to understand customers needs and wantsAbility to understand customers needs and wants
Recognized and established brand nameRecognized and established brand name
Effective advertising capabilityEffective advertising capability
WeaknessesWeaknesses R&D is not close to the Hero manufacturing plantR&D is not close to the Hero manufacturing plant
Hero is vulnerable in the joint venture because HondaHero is vulnerable in the joint venture because Honda
Motor Company has so much powerMotor Company has so much power
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OpportunitiesOpportunities Global expansion into the Caribbean and CentralGlobal expansion into the Caribbean and Central
AmericaAmerica
Expansion of target market (include women)Expansion of target market (include women)
Become Indias leader in the scooter marketBecome Indias leader in the scooter market
ThreatsThreats Honda Motorcycles and Scooters India can take awayHonda Motorcycles and Scooters India can take away
market share and cause joint venture to go sourmarket share and cause joint venture to go sour Bajaj Motors is a strong competitorBajaj Motors is a strong competitor
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NDTV Profit Business Leadership Award 2008
TopGear Design Awards 2008 - Hunk: Bike of the YearAward
Asian Retail Congress Award for Retail Excellence -
Best Customer Loyalty Program in Automobile categoryNDTV Profit Car India & Bike India Awards - Bike
Manufacturer of the year
Overdrive Magazine - Bike Manufacturer of the year
TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG
No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme
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25-year old joint venture with Japans Honda Motor ,deadline in 2014
The Munjals of the Hero group and Honda Motors
are equal partners in Hero Honda, Indias largestmotorcycle company.
Honda decided to establish its 100% subsidiary inIndia and produce scooters and motorcycles.
The two partners have also not agreed on the issue
like Hondas desire that the JV firm join its umbrellaparts company Honda Motor India.
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YesYes!! Established name andEstablished name and
dominant market positiondominant market position
Strong Marketing DepartmentStrong Marketing Department
Local KnowledgeLocal Knowledge
Technological AdvancementsTechnological Advancements
Introduction of scooterIntroduction of scooter
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JOURNEY OFJOURNEY OF
HERO HONDAHERO HONDA
1985 CD-1001985 CD-100
1989 SLEEK1989 SLEEK
1994 SPLENDOR1994 SPLENDOR
1999 CBZ1999 CBZ
2001 PASSION2001 PASSION
2002 AMBITION2002 AMBITION
2003 KARIZMA2003 KARIZMA
2005 : GLAMOUR2005 : GLAMOUR
2005: ACHIEVER2005: ACHIEVER
2005: PLEASURE2005: PLEASURE
2007: HUNK2007: HUNK
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ThankThankyou!you!