Hero Moto Corp: The model for sustainability

Submitted by Alok Saurabh 03

Contents
Industry................................................................................................................. 3
History................................................................................................................... 3
Argument - Counter Argument.............................................................................. 3
Real time comparison for emission........................................................................5
Recent strategic decisions..................................................................................... 7
R&D center in Jaipur........................................................................................... 7
Green Drive in Delhi........................................................................................... 8
The Green Manufacturing Initiative....................................................................8
Goals and priorities for 2016................................................................................. 9
Industry
Automobile industry today is a seen as a devil that will consume everything
green across the globe. Other than a few recent exceptions almost every
automobile company is perceived as a petroleum gushing giant that produces a
large amount of offsprings every year which further consume plants fossil
corpses and contribute more than 24% to global warming. In fact according to a
report published by environment defense back in 2003 this was the estimate.
The industry has seen a major boom after that thus the percentage is much
higher now.

History
However Hero moto Corp has been an outlier in this sector. The group was
founded in 1956 in Ludhiana as a bicycle company. Thats as ecofriendly as
walking as a means of transport, if not more. Due to Indias stringent laws at the
time Suzuki had to tie up with Hero to form a collaboration called Hero Honda.
Hero Honda launched its first CD 100 in 1985 which was a significant
improvement over its counterparts in the market at the time like Bajaj Chetak,
Rajdoot and RX 100 which were launched in 1972, 1983 and 1986 respectively.
No actual real time emission comparison data could be found for them but if you
remember these vehicles the Hero Honda had a visibly low emission and a
considerable high mileage. I still remember my old Chetak used to leave a tail of
white smoke. Same can be observed from many refurbished RX 100s. Right from
start Hero Moto Corp has cared for the environment. While the RX and others
boosted of a 350 cc engine Hero Honda had a max of 125 cc which provided a
higher fuel efficiency.
Argument - Counter Argument
But how can two wheelers company be pro-environment? Doesnt that defy
logic?
Well Not really. The Indian population immediately after independence was
mostly comprised of lower class and lower middle class. As the average
population is moving towards higher middle class there are a few basic
necessities. Personal means of transport being one of them. So as the salary of n
average Indian has increased we have seen an exponential growth in personal
vehicles. Now imagine if all of these vehicles were cars.
The point that I am trying to make here is a two-wheeler fills the void between a
cycle and a car.
So
Amount of emission reduced = (average emission from a four wheeler- average
emission from a two wheeler) * number of two wheelers sold
And the first part of the equation is highest for Hero Moto. Even today the
highest displacement offered by Hero Moto Corp is from Karizma ZMR is 223cc
which is much less than half of other two wheelers in the similar price range
(bullet500, cbr1000 and FZ1000).
Real time comparison for emission
According to a study in late 2014 which compared 11 vehicles for actual
emissions Hero Honda vehicles contributed the lowest to global warming gases.
Recent strategic decisions
R&D center in Jaipur
Hero Moto Corp has invested 850 crores in an R&D center in Jaipur. Its more than
500 engineers from around the globe and state of the art laboratories and design
studios under one roof. In the center it has also invested significantly on the 16
km long race tracks which 45 different surfaces simulating Indian and
International conditions.
Within the center the company boosts of its Green technology and design
elements like
The 11-storey ICONIC TOWER designed in a manner that each floor plate
orientation is different to have maximum view and light
WATER & ENERGY OPTIMISATION through design innovations
The orientation of the buildings aligned with the wind direction, thus ensuring
NATURAL VENTILATION and reduced load on cooling systems
Advanced & more efficient BIG FOOT air handlers, which also cool the cafeteria
with smart mode.
22 PONDS created at site to ensure maximum recharge through rain water
Special 'GREEN MACHINE' concept in the Boulevard area - Special Flex piping
concealed within the Boulevard flooring and intergraded with Big Foot handlers,
reduces the load on cooling systems. The heat of boulevard area is transferred
through close loop water system through these pipes to a pond, where the earth
natural cooling at 8 mts depth absorbs the heat & again cools the water through
the natural process.
Green Drive in Delhi
Mr. Sethi, the Chief Information Officer of Hero Moto Corp recently led Heros
efforts in planting 1.2 lakh trees in Delhi as part of Hero TOI Green drive. When
asked Which are the main pillars of your CSR and sustainability strategy? he
said Last year, we reconceptualised our CSR strategy, strengthened the
sustainability team, and consolidated all our social and environmental activities
under the We Care umbrella. We Care has four main pillars, or four main
programmes. The first is Happy Earth, wherein a multiple projects are running
towards environment protection and conservation. The primary focus of Happy
Earth is to ensure environmental sustainability beyond compliance and beyond
the newly formed CSR laws. The second pillar of We Care is Hamari Pari. It is
focused on empowering underprivileged girls through multiple interventions in
partnerships with credible non-profit organisations and social businesses. The
third pillar is Educate to Empower (E2). This is primarily focused at supporting
education and skilling promising youngsters across the country. The idea is to
ensure that each beneficiary of this programme is educated in a way that that he
or she becomes an independent and conscious citizen of the country. The fourth
pillar, Ride Safe India, has been conceptualised keeping in mind our core
business and fundamental responsibility towards ensuring safety of commuters
on Indias roads.

The Green Manufacturing Initiative

To ensure a low carbon footprint, the company has, in the last few years,
eliminated harmful substances like Hexavalent Chromium, Asbestos and Phenolic
Substances. They carry out production and manufacturing through Green
Infrastructure like
Green Roof
A 45000 sq meter roof has been set up to conserve energy by moderating the
temperature
Sewage Treatment Plant
A treatment plant designed to accommodate up to 6 hours of holding and
ensuring 100% treated and recycled water.
Effluent Treatment Plant
The degreasing chemicals, acidic/ alkaline nature, plating waste, heavy metals
and waste oil that is generated out of processes is treated in this plant
Waste Food Recycling
An organic waste converter treats the waste and makes it odor free which in turn
is converted to manure.
Paint Conservation
The company recycles about 120 tons of paint sludge and additives and turns it
into paint primer.
Energy Conservation
Oil Conservation
Water Conservation
The details of all these and several other initiatives are mentioned on Hero
Corps Website.

Goals and priorities for 2016

In the words of Mr. Sethi himself We will continue to focus on all the four areas
and further strengthen and broad base our initiatives by taking more locations
and communities. As regards environmental sustainability, each year we have
been able to reduce our energy consumption and we will continue our focus on
that. We will also strengthen our efforts to sensitize our eco system employees,
shareholders, vendors and consumers towards environment conservation