Empowered by strategic corporate policy and business acumen of the founders, the Hero Motors group was grew

at an accelerated rate and marked its remarkable presence with a diverse product portfolio. Today, Hero Group has displayed impeccable credentials with a turnover of 2300 Cr. Currently, the company is producing as many as 19,000 bicycles per day and exporting them to more than 75 countries worldwide.

Companys Profile

Type : Public Company Industry : Automotive Founded : 19 january 1984 ( Gurgaon) Founders : Brijmohan Lall Munjal Headquarters : New Delhi, India Products : Motorcycles, Scooters, Three wheelers and spare parts Revenue : Rs. 19,669.90 crore Parent : Hero Group

Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India.

Business Performance

During the year company notched 17.44% growth in sales, with volumes of 54,02,444 units compared to 46,00,130 units in 2009-10.

In value terms total sales (net of excise duty) increased by 22.13% to Rs. 19,245.03 crores in 2010-11 from Rs. 15,758.18 crores in 2009-10. Company continued to lead the domestic motor cycle market with 54.6% market share.

The Company successfully launched six new models including variants during the year under review. Total income of the Company grew by 22.18%, from Rs. 16,098.79 crores to Rs. 19,669.90 crores in 2010-11. The Companys Profit After Tax (PAT) declined by 13.62% to Rs. 1,927.90 crores from Rs. 2,231.83 crores in the previous fiscal.

Total income of the Company grew by 22.18%, from Rs 16,098.79 crores to Rs 19,669.90 crores in 2010-11.
The Companys Profit After Tax (PAT) declined by 13.62% to Rs. 1,927.90 crores from Rs. 2,231.83 crores in the previous fiscal.

Market Capital in Crores

346.86
69.28

2,389.69

36.91

Bajaj Auto

Hero Motocorp TVS Motor

40,192.10 50,585.70

Mah Scooters LML

Hero Motors Limited and Kiriu Corporation, a Company from Sumitomo Group of Japan formed a Joint Venture Company, Munjal Kiriu Industries (P) Ltd. to manufacture Brakes Discs, Brakes Drums, Cylinder block, Pressure plate, Brake plate and Steering Knuckles for automotive original equipment manufacturers in the Indian and overseas market. ZF Hero Chassis Systems is a joint venture company of Hero Motors Limited with ZF Lemfrder of Germany. The company secures European technology and expertise in chassis technology for small car segment in India. It is a full service supplier for car chassis technology to car makers in the high growth Indian market.

Hero Motors is manufacturing top-notch gears and transmission systems in its world-class plants with the most modern machinery. The company has been successfully catering to the needs of its esteemed customers like Rotax, BMW etc.

Sumitomo Kiriu, Japan:

Sumitomo Kiriu is a part of Sumitomo Corporation, Japan. The company is engaged in multifaceted business activities benefitting from its Integrated Corporate Strength. The company is in the business of a wide range of products and services, conducting import/ export and trilateral business transactions, providing domestic and international business investment. The company is also participating in numerous other business activities facilitated by its global network and the relationships of trust built with corporate business partners and consumers in various industrial sectors across the globe.

ZF Lemfrder

ZF is a global leader in the automotive industry. With 13 production companies in 27 countries, the company develops, produces and services driveline and chassis technologies all over the world. It's one of the prominent automotive suppliers of the world. Empowered by consistent focus on customer needs, the company aims to build and expand its presence in established markets.

MAGNA STEYR

With a rich heritage spanning over 100 years, MAGNA STEYR is the most diversified automotive supplier in the world. It's a leading, brand-independent engineering and manufacturing partner for OEMs and provider of innovative solutions for mobility. It is a premium supplier of vehicle roof systems. With engineering and assembly of complete vehicles, development and manufacturing of components and systems, the company has established itself as a name to reckon with.

Key extracts

Demand outlook remains robust, especially in the rural India. Maintain industry growth estimate of ~15% for FY12. Current capacity is 6.4mn units. Company is looking to further increase the capacity over next 6 months. It has a capacity to assemble 7 mn units p.a.. Haridwar production stands at ~8,000 units per day which can be increased to ~9,500 units per day in the next 6 months.

Exports The cross functional team for exports has finalized three things understanding of target markets (LatAm, SEA, Africa) in terms of prices points, segments, product gaps, etc. IT has been approached for distribution/assembly. Finalized the strategic roadmap for entry and distribution of exports.

The company have set a target of 1 mn units (10% of total volumes) over next 5 to 6 years. Does not expect to provide support to the distribution partners in export markets, except for investment in assembly operations.

Hero Group aspires to deliver the best and the most cost-effective products & solutions empowered by superior technologies. The Group is committed to ensure value for money by developing high-quality, environment-friendly and efficient solutions that fulfill the diverse needs of customers.

At Hero Motors, we are committed to give our best and achieve the highest standards in Performance, Quality, Systems, Care and Relationships. And then we want to beat these high standards and go furtherbecause anything that can be done, can be done better. Pankaj Munjal (M.D.), Hero Motors Ltd.