Download - PROJECT ON HERO HONDA LTD.doc

7/28/2019 PROJECT ON HERO HONDA LTD.doc

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TRANSFER TO GENERAL RESERVE A sum of Rs. 97 crores have been transferred to the General Reserve of the Company. This reaffirmsthe inherent financial strength of the Company.

MATERIAL CHANGES AND COMMITMENTS No material changes and commitments affecting the financial position of the Company have occurred between April 1, 2008 and the date on whichthis Report has been signed .

BOARD OF DIRECTORSDuring the period under review, Mr. Tatsuhiro Oyama resigned fromdirectorship on May 11, 2007 and Mr. Takashi Nagai was appointed as anAdditional Director in Non-Executive Category on May 11, 2007. Further,Dr. Vijay Laxman Kelkar has resigned from directorship on

December 31, 2007. Mr. Satoshi Matsuzawa was appointed as anAlternate Director to Mr. Takashi Nagai w.e.f. April 24, 2008. Mr. YutakaKudo, Whole-time Director of the Company resigned from both theoffices i.e. Director & Whole-time Director W.e.f. May 31, 2008. Mr.Sumihisa Fukuda was appointed as an Additional and Technical Director in the whole-time employment of the Company in his stead on June 1,2008. Mr. M. Damodaran was appointed as an Additional Director in the

Non-Executive and Independent Category w.e.f. June 16, 2008. Mr. Narinder Nath Vohra has resigned from Directorship w.e.f. June 24, 2008.The Board place on record their sincere appreciation and gratitude for thework put in by the out going members, and wishes them arewarding and satisfying career ahead. The Directors also welcome thenew members on the Board and wish them a successful and fruitful tenurewith the Company.At the ensuing Annual General Meeting, Ms. Shobhana Bhartia, Mr. SunilBharti Mittal, Mr. Masahiro Takedagawa and Mr. PradeepDinodia will retire by rotation and being eligible, offer themselves for re-appointment in terms of provisions of Articles of Association of theCompany. The brief resume/details relating to Directors, who are to be

appointed and re-appointed has been furnished after the ExplanatoryStatement to the Notice of the ensuing Annual General Meeting. Your Directors recommend their re-appointment at the ensuing Annual GeneralMeeting .

DIRECTORS' RESPONSIBILITY STATEMENT

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To the best of their knowledge and belief and according to the informationand explanations obtained by them, your Directors makethe following statement in terms of Section 217(2AA) of the CompaniesAct, 1956:1. That in the preparation of the annual accounts for the year ended March

31, 2008, the applicable accounting standards have been followed;2. that appropriate accounting policies have been selected and appliedconsistently and judgments and estimates that are reasonable and prudenthave been made so as to give a true and fair view of the state of affairs asat March 31, 2008 and of the profit of the Company for the financial year ended March 31, 2008;3. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisionsOf the Companies Act, 1956 for safeguarding the assets of the Companyand for preventing and detecting fraud and other irregularities;4. That the annual accounts for the year ended March 31, 2008 have been

prepared on a going concern basis.

MANAGEMENT DISCUSSION & ANALYSISREPORTA detailed chapter on, 'Management Discussion and Analysis'(MDA),

pursuant to Clause 49 of the Listing Agreement forms part of this Report.

CORPORATE GOVERNANCEAt Hero Honda, it is our firm belief that the essence of CorporateGovernance lies in the phrase 'Your Company'. It is 'Your' Company

because it belongs to you - the shareholders. The Chairman and Directorsare 'Your' fiduciaries and trustees. Their objective is to take the

business forward in such a way that it maximises 'Your' long-term value.Your Company is committed to benchmark itself with global standards for

providing good Corporate Governance and has put in place anEffective Corporate Governance System which ensures that the provisionsof Clause 49 of the Listing Agreement are duly complied

with. The Board has also evolved and adopted a Code of Conduct basedon the principles of Good Corporate Governance and bestManagement practices being followed globally. The Code is available onthe website of the Company www.herohonda.com. A report onCorporate Governance along with the Auditors' Certificate on itscompliance is annexed hereto as Annexure - I.

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Hero Honda Motors Ltd. vs...

Action Company Close (Rs)Compare + Mahi. & Mahi (Sensex) 550.55

Compare +

Maruti Suzuki India (Sensex)718.45

Compare + Tata Motors Ltd. (Sensex) 414.80

Compare + Ashok Leyland (A) 29.20

Compare + Bajaj Auto Ltd. (A) 617.90

Compare + Bajaj Holdings & Inv (A) 450.20

Compare + Eicher Motors (B) 262.65

Compare + Escorts Ltd. (B) 66.90

Compare + Hind. Motor (B) 20.65

Compare + LML Ltd. (B) 9.64

Hero Honda Pleasure

ENGINEEngine 4 Stroke, Single Cylinder, Air Cooled

Displacement 102 cc

Bore and Stroke 50 X 52

Compression Ratio 9:1

Max. Power 7.1 PS (5.22 KW) @ 7000rpm

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Max. Torque 7.85 Nm @ 5500rpm

Transmission Variomatic

Clutch Dry Automatic Centrifugal

Ignition CDI

Fuel Supply Carburettor

CHASSISChassis Type High rididity Underbone Type

Suspension (Front) Bottom link with spring loaded hydraulic damper

Suspension (Rear) Swing arm with spring loaded hydraulic damper

Brakes Front - 130mm Drum / Rear - 130mm Drum

Tyres Front - 3.50 X 10 / Rear - 3.50 X 10

ELECTRICALSBattery 12V 5Ah

Head Lamp 35W/35W Halogen MFR

Tail / Stop Lamp 5/21W

DIMENSIONSSeat Height 750mm

Wheelbase 1240mm

Ground Clearance 125mm

Weight 104 Kg

Fuel Tank Capacity 5 Litres

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0

10

20

30

40

50

MARKET SHARE OF

HERO HONDA

HERO HONDA

BAJAJ

YAMAHA

OTHER

Price on Road

Individual : Rs. 44,150

Company : Rs. 49,400

Fuel Efficiency (Kmpl)

City : +/- 10%

Normal : +/- 10%

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INFLUENCING MEDIA

6 0

2 0

1 5

5

0 10 20 30 40 50 60 70

TV

MAGAZINES

NEWSPAPER

OTHER

Series1

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FACTOR THAT AFFECTINGPURCHASING DECISION

Q U A L I T Y

B R A N D N

A M E

P R I C

I N G

O T H E R

4 0

3 5

1 5

5 0

5

10

15

20

25

30

35

40

Series1

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LEVEL OF CUSTOMERSATISFACTION

YES NO

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CHART SHOWING SATISFACTIONOF CUSTOMER RGGARDING

MILEAGE

0 10 20 30 40

EXCELLENT

VERYGOOD

GOOD

AVERAGE

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LIMITATIONS

1. As the medium of questionnaire was in English

the respondents had a difficulty in understandingit. This took lot of time to make themunderstand the questionnaire in Hindi.

2. There was possibility of no reply with manyrespondents, as they have no interest in this concern.

3. There aroused a lot of problems in collectingthe theory matter, as the dealer was unable to

provide full information regarding brand of detergent.

4. People do not take much interest in filling up thequestionnaire.

5. There is a lack of understanding between

respondents and investigators because of educationaland different cultural background.

6. Various respondents neglected for answering thequestions.

7. Consumers and distributors quite busy in their own work and dont have enough time to spare tothe investigators to answer and satisfy them.

8. There is also a lot of wastage of time and moneywhile traveling from one sample unit to another.

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SuggestionCompany every time effort is to maximize the sales through

various activities. Therefore company should consider all the Ps

i.e. product, price, place, promotion. All these features should be

mainly focused & steps should be taken to improve them.

Hero Honda should make their better & different services

from others.

More effective policy to attract the customer to promote the

sales of Hero Honda.

Advertising should be more & more features should be added.

Company should be more flexible regarding their marketing

policy.

Distribution network should be developed & strength evened.

More then one authorized dealer should be made by company

to ensure proper distribution & availability.

Effort should be made to make more popular among general people through effective advertising; especially television

advertising.

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Company should go for regular product modification &

innovations to ensure better customer satisfaction.

More incentives in the form of free gifts, commission, &

discount should be provided to dealer as well as customer.

The frequency of advertisement should be increased to have

greater impact on customers. Effort should be made to ensure

customer satisfaction.

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ConclusionThe survey of customer satisfaction of Hero Honda is based on

opinion of customers as well as dealer of Hero Honda turn out

some significant conclusion.

o The data also revealed that media also play a very

important role to influence the customer.

o The data showed that the customers buying decision is

affected by quality, pricing, brand name, and advertising.

o After filling the questionnaires it is found suggest focusing

on the particular features of the product i.e. quality,

innovativeness, price, etc.

o Hero Honda is leader according to dealer due to thereasonable price & long lasting durability & mileage.

o As comparison to other Hero Honda yield on more profit.

o Most of the customers looked satisfied with after sales

services offered by company.

o Splendor is most preferred bike due to mileage & other

features.

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o Hunk & Karizma is also able to attract the customer it has

a unique look.

o Hero Honda motor launches bikes for all ages groups &

income groups.

o Bajaj is close competitor of Hero Honda.

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Bibliography

Method of primary data collection page No. 90

Marketing Research Principle Application & Cases Sharma Dr.

D.D.

Edition, Published by sultan chand & sons .

Websites:

Www. askme.com

www.hero honda.com

www.wikipedia .com

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APPENDIXAN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

We at Hero Honda are committed to demonstrate excellence in our

environmental performance on a continual basis , as an intrinsic element of our

corporate philosophy.

To achieve this we commit ourselves to: Integrate environmental attributes and cleaner production in all our business

processes and practices with specific consideration to substitution of

hazardous chemicals, where viable and strengthen the greening of supply

chain. Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling our

environmental discharges through the principles of "alara" (as low as

reasonably achievable). Institutionalise resource conservation, in particular, in the areas of oil, water,

electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors,

while promoting their involvement in ensuring sound environmental

management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy .

We are committed at all levels to achieve high quality in whatever we do,

particularly in our products and services which will meet and exceed customer's

growing aspirations through: Innovation in products, processes and services.

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Continuous improvement in our total quality management system.

Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who

may be affected by its operations. We believe that the safe work practices lead to better

business performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by: Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements. Empowering employees to ensure safety in their respective work places. Promoting safety and health awareness amongst employees, suppliers and

contractors.

Continuous improvements in safety performance through precautions besides

participation and training of employees.

KEY MILESTONES OF HERO HONDA

Year Event

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated1998 2,000,000th motorcycle produced1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with ISO-14001

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by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of

founder Managing Director, Mr. Raman Kant Munjal2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by

DNV Holland

Splendor declared 'World No. 1' - largest selling single two-wheeler model

"Hero Honda Passport Programme" - CRM Programme launched2001 New motorcycle model - "Passion" introduced

One million production in one single year

New motorcycle model - "Joy" introduced5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh

and Zaheer Khan as Brand Ambassadors2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark

Splendor has emerged as the World's largest selling model for the third calendar

year in a row (2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introducedHero Honda became the World No. 1 Company for the third consecutive year.

Crossed sales of over 2 million units in a single year, a global record.

Splendor - World's largest selling motorcycle crossed the 5 million mark

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New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced2006 Hero Honda is the World No. 1 for the 5th year in a row