TITLE OF THE PROJECT

HERO MotO
Corp. Ltd
Submitted to
SHRI ROHIT VERMA
(ASSISTANT PROFESSOR)
Dept of MBA
ROYAL SCHOOL OF BUSINESS

SUBMITTED BY
ABHISHEK SARMA
HIMANSHU BARMAN
MRINALJIT BORAH
PRITAM DUTTA

IN PARTIAL FULFILMENT OF CLASS PROJECT OF

MBA DEPT
MONTH (SEPTEMBER – DECEMBER, 2018)

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 CONTENTS
SL
NO. TOPIC PAGE NO.

A Declaration from Students

B Certificate from our Guide

C Acknowledgement

1 INTRODUCTION

1.1 History

1.2 Company Profile

1.3 Objectives of the Study

2 RESEARCH METHODOLOGY

2.1 SWOT ANALYSIS

2.2 PORTARS MODEL

3 SUMMARY

DECLARATION

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We, ______________________________________________________________________
__________ _hereby declare that this Project Report entitled [ HERO MOTOR.CORP ]
submitted by us to the ROYAL GLOBAL UNIVERSITY in partial fulfilment of the
requirement for Class Assignment under the guidance of Assistant Professor
[ Shri Rohit Verma ] is our Original work and the conclusions drawn therein are based on
the material collected by our team.
The Report submitted is our own work and has not been duplicated from any other source.
We shall be responsible for any unpleasure situation.

Signature
Name of the students

Date

CERTIFICATE

3
This is to certify that Mr. ______________________________________________________
Are bonafide students of ROYAL SCHOOL OF BUSINESS (ROYAL GLOBAL
UNIVERSITY, GUWAHATI )
has successfully completed the PROJECT REPORT as prescribed by the University
Guidelines in the partial fulfilment of the requirement of Class Project for the Academic year
2018-2020

The Project Title as [HERO MOTOR CORP LTD]

PROJECT GUIDE DEAN

SHRI ROHIT VERMA SHRI MANOJ JAIN

ACKNOWLEDGEMENT

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A successful Project is the result of the team work and Co-ordination that includes not only
the group of developers who put forth ideas, logic and efforts but also those who guide them.
So, at the completion of the project, we feel obliged to extend our gratitude towards all those
who made valuable contribution throughout the project period.

We are thankful for all the Knowledge, Guidance and Support imparted by Shri Rohit Verma
Sir who gave us invaluable knowledge during the project period.

We are thankful to our parents, our team mates and friends for their continuous support

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 INTRODUCTION

HISTORY
Hero MotoCorp Ltd. (Formerly known as Hero Honda Motors Ltd) is world’s largest manufacturer of
two-wheeler based in India. Motor Company of Japan and the Hero Group entered a joint venture to
setup Hero Motors Limited in 1984. The joint venture between India's Hero Group and Motor
Company, Japan has not only created the world's single largest two wheeler company but also one of

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the most successful joint ventures worldwide. During the 80s, Hero 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 sold millions of bikes purely on the commitment of increased mileage. Over 20
million Hero two wheelers tread Indian roads today. These are almost as many as the number of
people in Finland, Ireland and Sweden put together. Hero has consistently grown at double digits
since inception; and today, every second motorcycle sold in the country is a Hero. Every 30 seconds,
someone in India buys Hero's top – selling motorcycle – SPLENDOUR. This festive season, the
company sold half a million two wheelers in a single month—a feat unparalleled in global automotive
history. Hero became the first company in the country to introduce four–stroke motorcycles and set
the standards for fuel efficiency, pollution control and quality. It has an excellent distribution and
service network spread throughout the country. Hero 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 inaugurated at Haridwar, Uttrakhand in April this year. These plants together
are capable of producing out 4.4 million units per year. Having reached an unassailable pole position
in the Indian two wheeler market, Hero 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.

On December 16, 2010, India-based Hero Group (Hero) and Japan-based Honda MoYAL tor Co.
(Honda) signed an agreement to dissolve their partnership, thus putting an end to one of the most
successful joint ventures in the Indian automobile industry. The companies decided to part ways
owing to unresolved disputes, and their own plans for the Indian and international markets. Honda
decided to exit the venture by selling its 26% stake to the Munjal family, the owners of Hero. Both the
companies decided to part amicably, with Honda continuing to provide technological support to Hero
till 2014, and Hero continuing to pay royalties to Honda.

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 COMPANY PROFILE

FOUNDED 19th January 1984

TYPE PUBLIC LIMITED COMPANY

INDUSTRY Automobile
FOUNDER Dr. Brijmohan Lal Munjal
HEADQUARTERS New Delhi, India
PRODUCT Two Wheeler

VISION- The story of Hero began with a simple vision – MOBILITY and EMPOWERED INDIA
powered by its two-wheelers. Today, Hero MotoCorp continues to reflect its commitment towards
providing world class mobility solutions, with renew strategies and focus on expanding its Company’s
unit not only in India but also across the Geographical Boundaries

MISSION - Hero MotoCorp’s mission is to become a GLOBAL UNIT in fulfilling and its
customers’ needs and aspirations for mobility; setting benchmarks in technology, styling and quality.
In the process converting customers into brand advocates, The Company will provide an engaging
environment for its people to perform to their true potential. It will continue to focus on value creation
and enduring relationships with its partners.

Board of Directors

1. MR. PAWAN MUJAL - Chairman, M D & CEO

2. MR. SUMAN KANT MUNJAL - Non-Executive Director

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 3. MS. SHOBANA KAMINENI - Non-Executive & Independent Director
4. MR. VIKRAM S. KASBEKAR - Executive Director-Operations (Plants)
5. MR. PRADEEP DINODIA - Non-Executive & Independent Director
6. MR. RAVI NATH - Non-Executive & Independent Director
7. MR. PAUL B. EDGERLY - Non-Executive & Independent Director
8. DR. ANAND C. BURMAN - Non-Executive & Independent Director

HERO commenced its journey over 3 years ago, with a bold vision of bringing World Class
Mobility solutions and technologies into India and in the process of making a radiant country.
We are living in a world of rapid socio-economic change, driven by technology and
innovation. The Major Categories of growth such as Manufacturing, Communication and
Transportation etc are going phenomenal changes or transformation due to fast growth of
Science and Technology. Due to globalization there has been ease of doing a business- people
can access to Data easily, breaking down of global barriers. The following are the Strategies
of Global Growth

• Exploring new growth markets

• Continuously improving operational efficiency

• Aggressively expanding our customer reach

• Sustain investments in brand-building activities

• Ensuring customer and shareholder delight

• Build global talent workforce

The Company is also aware about the negative effects of technology – poor air quality,
Emission of Carbon credits and Green house effects. Therefore, in order to reduce the effects
of above ELECTRIC TRANSPORATTION has become an ENVIRONMENT FRIENDLY.
The Govt. is trying to bring down the pollution levels by enforcing Strict Emission Norms,
Levying Heavy Taxes on the purchase of automobiles etc.

Continuous Research and Development by manufactures is also a Driving advancement in

Battery technologies with longer life

Hero has broken the icebergs and has achieved new scaled heights with CUSTOMER
SATISFACTION at the core of our philosophy and practice. It has achieved a NEW
GLOBAL BENCHMARK – 7.59 Million unit sales in the FY 2018-thereby consolidating our
Strong Market Leadership spread over 6,000 customers touch point across the country

MARKET PROMINENCE

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  It occupies the 1 position as a TWO-WHEELER CO. IN THE WORLD FOR THE
LAST 16 YEARS and as per corporate financial report 2017-2018 it is also the
LARGEST PRODUCER.

 The MARKET SHARE in the Domestic Two-Wheeler Market is 36.9%

 The Company has established its units across the world in Colombia, Bolivia,
Ecuador, Peru and more recently Bangladesh.

 Cumulative Sales goes to 70 million since its inception

The implementation of Demonetization and GST was one of the boldest steps taken by the
Govt. of India. It was a game changing move. In the initial stages it deed face a problem but
were willing to go through that phase for the betterment of the country. Speedy measures
were taken to bounce back for e.g. the industry had to pass through uncertain times on
account of emission regulations but it was sorted out. This is why it has patented its I3S (idle
stop start system). It is an environmental friendly technology that reduces emissions by
automatically shutting off the engines at traffic points also by [providing convenience to the
customers.

In 2016-2017, the Company surpasses the Landmark of 70 million units in cumulative sale.
This year was even significant as many achievements were done.

 Introduction of Splendor ISMART 110, ACHIEVER 150 and the GLAMOUR 125- 3
new models were designed establishing HEROs capabilities in developing products.
 In 2016-2017, TWO NEW HERO PRODUCTS were launched globally at
ARGENTINA i.e. GLAMOUR 125 and HF DAWN
 PLANTS were set up at Gujarat, Bangladesh and Colombia
 New unit set up at Chitoor, Andhra Pradesh
 Project on E-bike ( The Research and Development centre at Jaipur are working on it
)
 Promotion of HERO CARIBBEAN LEAGUE
 TIGER WOODS, VIRAT KOHLI as the Brand Ambassadors
 Start its investments with ATHER ENERGY

OBJECTIVES OF THE STUDY

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The Main Objective of this Project conducted on HERO MOTOCORP. LTD (A PUBLIC
LIMITED CO.) is to have better analytical view of SWOT ANALYSIS and PORTARS MODEL.

A Study was conducted based on the above to find out the Strength, Weakness, Opportunities and
Threats as well as to find out How HERO have achieve its Goals, Objectives and implementation of
New Strategies. Based on the PORTARS MODEL, we tried to find out the COMPETITIORS,
RIVALRY ENTITIES, BUYERS and SELLERS. The Necessary Measures taken by the Company in
order to be sustainable in the market and also provides satisfaction to the Customers

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 RESEARCH
METHODOLOGY

SWOT ANALYSIS

1. STRENGTHS IN THE SWOT ANALYSIS OF HERO MOTO CORP

Strengths of businessman the areas which help it to grow further and hold its strong position
above all. The strengths of Hero MotoCorp are-

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 Huge Brand Equity– This is really one of the biggest strengths of Hero MotoCorp.
This company is one of the biggest players in the market of two-wheelers.
 Strong Brand Image– A Company can only grow once it is popular by its brand
name. Hero MotoCorp is really one of those companies who can play hard on the
popularity field.
 Excellent Distribution– Hero MotoCorp has more than 3000 dealerships and service
centres which have made it the leading company in the industry.
 Wide Variety of Products– The more products a company launch successfully, the
more popular it becomes. Hero MotoCorp is, therefore, the real hero in the market.
 Awards and Recognition– Customers can rely on a brand when it is acknowledged
with rewards and awards. Hero MotoCorp has received many in all these years.
 Sponsorships– Events, related to sports and racing provide sponsorships to the
company that has made it hugely popular of all its competitors.

2. WEAKNESSES IN THE SWOT ANALYSIS OF HERO MOTO CORP

Weaknesses mean the areas where the business has lagged behind from others. There are
chances to overcome those and get back on to the track. The weaknesses of Hero
MotoCorp are as follows

• Sustain investments in brand-building activities

• Ensuring customer and shareholder delight

• Build global talent workforce

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 Strong Competition– There are lots of national and international players in the
market who give tough competition to the Hero MotoCorp.

 Lack of Innovation– Maximum products of Hero MotoCorp comes with almost

similar features, whether is design and functions.

3. OPPORTUNITIES IN THE SWOT ANALYSIS OF HERO MOTO CROP

These are the factors which play essential roles in gaining revenues. The opportunities
for this company are as follows-

 Growing Industry– The demand for two-wheelers are increasing a lot, and
that brings the opportunity for the company to grow bigger.

4. THREATS IN THE SWOT ANALYSIS OF HERO MOTO CROP

These are the factors where the company is lagged behind its competitors. The areas
are as follows-

 Strong Competition– There is lot of other companies which are emerging

rapidly and give tough competition to the company.

 Betterment of Public Transport– As other modes of transportation has

increased a lot; the use of two-wheelers is not in demand.

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15
 PORTARS
MODEL

1. BARGAINING POWER OF SUPPLIERS

 HIGH COMPETITION AMONG SUPPLIERS (HERO MOTO CORP)

High levels of competition among suppliers act to reduce prices to producers. This is
a positive for HERO MOTO CORP. … "High Competition among Suppliers
(HERO MOTO CORP)" has a significant impact, so an analyst should put more

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 weight into it. These statements will have a short-term positive impact on this entity,
which adds to its value. This qualitative factor will lead to a decrease in costs. "High
Competition among Suppliers (HERO MOTO CORP)" is a difficult qualitative factor
to overcome, so the investment will have to spend a lot of time trying to overcome
this issue.

 DIVERSE DISTRIBUTION CHANNEL (HERO MOTO CORP)

The more diverse distribution channels become the less bargaining power a single
distributor will have. This positively affects HERO MOTO CORP. … "Diverse
Distribution Channel (HERO MOTO CORP)" is a difficult qualitative factor to
defend, so competing institutions will have an easy time overcoming it. "Diverse
Distribution Channel (HERO MOTO CORP)" will have a long-term negative impact
on this entity, which subtracts from the entity's value. These statements will have a
short-term negative impact on this entity, which subtracts from its value. This
qualitative factor will lead to an increase in costs. "Diverse Distribution Channel
(HERO MOTO CORP)" is a difficult qualitative factor to overcome, so the
investment will have to spend a lot of time trying to overcome this issue.

 VOLUME IS CRITICAL TO SUPPLIERS (HERO MOTO CORP)

When suppliers are reliant on high volumes, they have less bargaining power, because
a producer can threaten to cut volumes and hurt the supplier’s profits. This can
positively affect HERO MOTO CORP

 LOW COST OF SWITCHING SUPPLIERS (HERO MOTO CORP)

The easier it is to switch suppliers, the less bargaining power they have. Low supplier
switching costs positively affect HERO MOTO CORP

2. BARGAINING POWER OF THE CUSTOMERS

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 LOW BUYER PRICE SENSITIVITY (HERO MOTO CORP)

When buyers are less sensitive to prices, prices can increase and buyers will still buy the
product. Inelastic demand positively affects HERO MOTO CORP.

 PRODUCT IS IMPORTANT TO CUSTOMER (HERO MOTO CORP)

When customers cherish particular products they end up paying more for that one product.
This positively affects HERO MOTO CORP. … "Product Is Important To Customer (HERO
MOTO CORP)" has a significant impact, so an analyst should put more weight into
it. "Product Is Important to Customer (HERO MOTO CORP)" will have a long-term negative
impact on this entity, which subtracts from the entity's value.

 LARGE NUMBER OF CUSTOMERS (HERO MOTO CORP)

When there are large numbers of customers, no one customer tends to have bargaining
leverage. Limited bargaining leverage helps HERO MOTO CORP.

3. INTENSITY OF EXISTING RIVALRY

 LARGE INDUSTRY SIZE (HERO MOTO CORP)

Large industries allow multiple firms and produces to prosper without having to steal
market share from each other. Large industry size is a positive for HERO MOTO
CORP.

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 RELATIVELY FEW COMPETITORS (HERO MOTO CORP)

Few competitors mean fewer firms are competing for the same customers and
resources, which is a positive for HERO MOTO CORP. … "Relatively Few
Competitors (HERO MOTO CORP)" has a significant impact, so an analyst should
put more weight into it.

 EXIT BARRIERS ARE LOW (HERO MOTO CORP)

When exit barriers are low, weak firms are more likely to leave the market, which will
increase the profits for the remaining firms. Low exit barriers are a positive
for HERO MOTO CORP. … "Exit Barriers Are Low (HERO MOTO CORP)" has a
significant impact, so an analyst should put more weight into it. These statements will
have a short-term positive impact on this entity, which adds to its value. "Exit Barriers
Are Low (HERO MOTO CORP)" will have a long-term negative impact on this
entity, which subtracts from the entity's value. This qualitative factor will lead to an
increase in costs.

4. THREATS OF SUBSTITUTES

 UNLIMITED NUMBER OF SUBSTITUTES (HERO MOTO CORP)

Please edit this page to add a description… … These statements will have a
short-term positive impact on this entity, which adds to its value. "Unlimited
Number of Substitutes (HERO MOTO CORP)" will have a long-term negative
impact on this entity, which subtracts from the entity's value.

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 SUBSTITUTE PRODUCT IS INFERIOR (HERO MOTO CORP)

An inferior product means a customer is less likely to switch from HERO

MOTO CORP to another product or service.

5.THREAT OF NEW COMPETITORS

 STRONG BRAND NAMES ARE IMPORTANT (HERO MOTO CORP)

If strong brands are critical to compete, then new competitors will have to improve their
brand value in order to effectively compete. Strong brands positively affect HERO MOTO
CORP. … This qualitative factor will lead to a decrease in costs. These statements will have
a short-term negative impact on this entity, which subtracts from its value. "Strong Brand
Names Are Important (HERO MOTO CORP)" is an easy qualitative factor to overcome, so
the investment will not have to spend much time trying to overcome this issue

 STRONG DISTRIBUTION NETWORK REQUIRED (HERO MOTO CORP)

Weak distribution networks mean goods are more expensive to move around and some goods
don’t get to the end customer. The expense of building a strong distribution network
positively affects HERO MOTO CORP. … "Strong Distribution Network Required (HERO
MOTO CORP)" has a significant impact, so an analyst should put more weight into it. These
statements will have a short-term positive impact on this entity, which adds to its
Value. "Strong Distribution Network Required (HERO MOTO CORP)" will have a long-term
negative impact on this entity, which subtracts from the entity's value.

 HIGH CAPITAL REQUIREMENTS (HERO MOTO CORP)

High capital requirements mean a company must spend a lot of money in order to compete in
the market. High capital requirements positively affect HERO MOTO CORP. … "High
Capital Requirements (HERO MOTO CORP)" will have a long-term positive impact
on the entity, which adds to its value. "High Capital Requirements (HERO MOTO CORP)" is
an easy qualitative factor to overcome, so the investment will not have to spend much time
trying to overcome this issue.

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 GEOGRAPHIC FACTORS LIMIT COMPETITION (HERO MOTO CORP)

If existing competitors have the best geographical locations, new competitors will
have a competitive disadvantage. Limiting geographic factors positively affect HERO
MOTO CORP. … "Geographic Factors Limit Competition (HERO MOTO
CORP)" has a significant impact, so an analyst should put more weight into
it. "Geographic Factors Limit Competition (HERO MOTO CORP)" will have a long-
term negative impact on this entity, which subtracts from the entity's value.

 PATENTS LIMIT NEW COMPETITION (HERO MOTO CORP)

Patents that cover vital technologies make it difficult for new competitors, because the
best methods are patented. Patents positively affect HERO MOTO CORP. … These
statements will have a short-term positive impact on this entity, which adds to its
value. This statement will lead to an increase in profits for this entity. This qualitative
factor will lead to an increase in costs. "Patents Limit New Competition (HERO
MOTO CORP)" is a difficult qualitative factor to overcome, so the investment will
have to spend a lot of time trying to overcome this issue.

 CUSTOMERS ARE LOYAL TO EXISTING BRANDS (HERO MOTO CORP)

It takes time and money to build a brand. When companies need to spend resources
building a brand, they have fewer resources to compete in the marketplace. These
costs positively affect HERO MOTO CORP. … "Customers Are Loyal To Existing
Brands (HERO MOTO CORP)" will have a long-term positive impact on the this
entity, which adds to its value.

 HIGH SWITCHING COSTS FOR CUSTOMERS (HERO MOTO CORP)

High switching costs make it difficult for customers to change which products they
normally purchase, due to costs. High switching costs positively affect HERO
MOTO CORP. … These statements will have a short-term positive impact on this
entity, which adds to its value.

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22
 OTHER HIGHLIGHTS

 In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the ‘World‘s No. 1’ two-wheeler company
in terms of unit volume sales in calendar year. Hero MotoCorp Ltd Continues to
maintain this position till date.
 Hero Honda started in 1984 as a joint venture between Hero Cycles of India and
Honda of Japan.
 The joint venture between India Hero Group and Honda motors Company, Japan has
not only created the world’s single largest two-wheeler company but also one of the
most successful joint ventures worldwide.
 In Dec 2010, the board of directors of Hero Honda Group have decided to terminate
the joint venture between Hero Group of India and Honda of Japan in a phased
manner.
 Under the joint venture Hero Group could not export to international and the markets
(except Sri Lanka and Nepal) and the termination would mean that Hero Group can
now export.
 Since the beginning, the Hero Group relied on their Japanese partner Honda for the
technology in their bikes.
 Honda will continue to provide technology to Hero Honda motorbikes until 2014 for
existing as well as future models.
 In August 2011 the company was renamed Hero MotoCorp with a new corporate
identity.
 On 12 January 2017, Hero MotoCorp launched its new Glamour motorcycle in
Argentina, its first-ever global launch of a new product outside India.
 In May 2017, Hero MotoCorp commenced commercial production at the second
global manufacturing facility in Bangladesh.
 On 11 October 2017, Hero MotoCorp announced that it has set a new global record,
clocking 2 million unit sales in Q2.
 On 7 November 2017, Hero MotoCorp unveiled the Xpulse concept motorcycle as a
world premiere at the EICMA annual trade show in Milan, Italy.
 Hero MotoCorp surpassed the landmark seven million units in cumulative sales in a
calendar year in 2017. The company sold a record 7,207,363 units of two-wheelers in
the calendar year in 2017.

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RECENT AWARDS & RECOGNITIONS

2018

 Best launch – Two wheeler at the CNB Auto Expo Awards for excellence 2018
 Highest Ranked Executive Motorcycle in Initial Quality – Her Super Splendour – By
JD Power India
 Bike sport award of the year – Times Auto Awards

2017

 Hero Glamour – Commuter Motorcycle of the Year – NDTV Car and Bike Awards
2017
 Creative Television Commercial of The Year – Hero MotoCorp – Play Inspire FIFA –
NDTV Cars and Bikes awards 2017
 Indian MNC of The Year All India Management Association (AIMA)

CONCLUSION

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Hero is India’s Biggest Two-Wheeler Manufacturer and Continued to maintain its top spot by
registering at 11% growth rate in the month of may 2018. The top 3 Best selling Motor cycles
all come from HERO MOTOCORP. LTD
THE SPLENDOUR is the most favourable Bike amongst consumers selling more than 25
lakhs in the entire financial year. It is the most still the top most brand equity
In second place we have HERO HF DELUXE having sales of 15 lakhs followed by HERO
PASSION nearly 9 LAKHS
It is a poised to Global Arena. Due to Globalisation, it has now started its operations across
the world and very soon HERO will be the COMMON NAME in every household
Its New Identity is Reflective although many people are still confused about HERO HONDA
as they still think it to be same but necessary measures are taken through various means of
media advertisement, marketing so that customers are able to differentiated the products
It has follow the Basic rules that has helped them to sustain in the environment
The Company is integrated to ethical and Moral Principles
Avoidance of arrogance and open mind towards new ideas
Excellent Team Work
Responsiveness in all actions
Respect others and the World will respect you

BIBLOGRAPHY

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o CORPORATE FINANCIAL REPORT (2016-2017 and 2018)
o www.heromotocorp.com (official website)
o WWW.MARKETING91.COM
o WWW.WIKIWEALTH.COM
o WWW.GOODRETURNS.IN
o WWW.ZIGWHEELS.COM

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