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1 ProjectProject reportreport OnOn HeroHero HondaHonda Submitted to:- Submitted by:- BBA 2nd YEAR Roll no: - 17 2 Hero Honda's company profile The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage. Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together! Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle – Splendor. This festive season, the company sold half a million two wheelers i n a single month—a feat unparalleled in global automotive history. 3 Hero Honda bikes currently roll out from its three globally benchmarked manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and the third state of the art manufacturing facility was inaugurated at Haridwar, Uttrakhand in April this year. These plants together are capable of producing out 4.4 million units per year. Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized representatives of dealers located across different geographies. Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors. Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, 4 "We pioneered India's motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.'' HERO HONDA. 'S MISSION Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders. HERO HONDA'S MANDATE Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status. 5 FROM THE CHAIRMAN'S DESK LEADING WITH A DREAM We had a dream. The dream of making motorcycles that would touch and transform the lives of our customers by giving them a mode of transport that was fuel-efficient, comfortable and environment friendly. One that would enhance their efficiency at work, enable them to share moments of joy with their families and add up to a better quality of life. In a scenario where the customer had a few choices, our vision was to offer the highest quality at a reasonable price, to meet our customer’s expectations, and to exceed them. Behind the success of Hero Honda, is the saga of team-work. We would like to acknowledge the role played by our JV partners, Honda Motor Company, Japan, and all our business associates, shareholders and employees 6 PROMINENT AWARDS AND ACCOLADES TO THE CHAIRMAN Reality by The Institute of Company Secretaries of India 2006 'Lifetime Achievement Award' for Translating Excellence in Corporate Governance into PROMINENTYear AWARDS AND ACCOLADES Awards and Accolades TO THE CHAIRMAN 2005 Indian Automotive Hall of Pride by Overdrive CNBC TV18 Commendation of Business Leadership displaying extraordinary Corporate Leadership and Entrepreneurial Spirit Padma Bhushan by Government of India Doctor of Letters (Honoris Causa) by Hemwati Nandan Bahuguna Garhwal University, Srinagar Garhwal Lifetime Achievement Award by ET Awards for Corporate Excellence 2004 Life Time Achievement Award for Management by All India Management Association D. Litt. (Honoris Causa) by Banaras Hindu University Lifetime Achievement Award by Amity Business School Lifetime Achievement Award by HT Power Jobs 2002 Entrepreneur of the Year Award by Business Standard Giants International Award to the Chairman in the field of Business & Industry Business Leadership Award by Madras Management Association 2001 Entrepreneur of the Year Award by Ernst & Young 2000 Sir Jehangir Ghandy Medal for Industrial Peace - by XLRI, Jamshedpur 1998 Business Leader of the Year by Business Baron 1997 Distinguished Entrepreneurship Award by PHD Chambers of Commerce & Industry 1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India) 1994 Businessman of the Year by Business India Group of Publications 1992 Honorary Membership - Indian Institution of Industrial Engineering Award 7 ABOUT THE CHAIRMAN Brijmohan Lall Munjal – Seeding a Dream "Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. The founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation entrepreneur. He is a man who started small, dreamt big and used a combination of grit and perseverance to create one of the country's largest corporate groups and the World's No.1 Two Wheeler Company. Instinctive from a young age, Brijmohan Lall made a rather unusual start in life. Around the time when the freedom movement in India was taking shape in the late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was only six years old then. Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a company that provided poor people with basic transport (cycles). Three decades later, as India evolved, he added a second crucial chapter - which visualized affordable and technologically superior transport to millions of middle class Indians. The rest is history. 8 Building Relationships When Brijmohan and his brothers started out, there was no concept of organized dealer networks. Companies just produced, and most dealers functioned like traders. Brijmohan changed the rules of the business by trusting his gut instincts; introducing business norms that were ahead of their time, and by investing in strategic relationships. Brijmohan built a series of bonds and networks with hundreds of family members, vendors, dealers and employees. Much like the Japanese keiretsu system, these networks are now the glue that holds the Hero Group together. "Thanks to the relationships that we have nurtured so passionately in the Hero Family, the younger generations of some of our bicycle dealers have become dealers of Hero Honda. These relationships have survived through generations - through bad times and good times'' the patriarch now reminiscences. Besides bonding with his vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of entrepreneurship amongst his employees, and today, 40 of his former employees are successful entrepreneurs. 9 Staying Ahead Though not technically qualified in the conventional sense, few of his contemporaries have understood the dynamics of technology better than Brijmohan Lall has. He could always visualize the applicability of technology before others could. For example, in the 1980s, when all two-wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a four-stoke engine - a technology that dramatically increased fuel efficiency and reduced maintenance costs. This technology was one of the biggest reasons for Hero Honda's stupendous success. Time and again, Brijmohan managed to steal a march over his industry peers. For example, when Honda Motors of Japan was looking for a collaborator in the 1980s, the Hero Group was not high up the pecking order initially as there were other more eligible and established suitors. Yet it didn't take long for the astute Japanese to realize that the Hero Group and Honda had much more in common than earlier perceived; there a sharp focus on financial and raw material management, and employee turnover was low. Honda officials were also amazed to find that the Munjals were already practicing "Just-in-time-inventory" at the time (JIT). It turned out that Brijmohan Lall's aspiration to provide cheap transportation to India's poor by default ensured lean and cost-effective operations. This in turn increased vendor efficiency and led to near-zero inventories. 10 BOARD OF DIRECTORS No. Name of the Directors Designation 1 Mr.

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