ICE HERO

MOTOCORP
 INDUSTRY

Largest two-wheeler manufacturer in India

Market share of about 46% in the two-wheeler category.
Market capitalization of the company about 308 billion (US$4.8 billion).
Sold 2.5 crore unit of Splendor. That shows how robust and desirable product is being developed by
Hero.
After termination of the joint venture between Hero Group of India and Honda of Japan, Hero Group
can now expand to international market which was restricted earlier.
COMPANY

Among 200 World's Most Respected Companies.

Innovative ways of selling through SnapDeal.
Sold over 100,000 two-wheelers on Snapdeal.
Launched robust models like 'Passion Pro and Xtreme Sports'
Advertisement: Became the title sponsor of Hero Caribbean Premier League T20 tournament
Splendor crossed yet another milestone by surpassing 25 million (2.5 crores) units mark in cumulative
sales since its launch in 1994
Hero has less brand recognition as compared to Hero Honda.
COMPANY

Presence:
Commencement of commercial production at Bangladesh plant.

Recognition: (2015-16)
1. Awarded the TIME India 'Manufacturing Innovator of the Year 2016
2. Won the best two-wheeler pavilion award at the CNB Auto
3. Expo Awards for the second consecutive year
Continuous Implementation of Strategies:
Commenced operations of our Centre of Innovation and Technology (CIT) in Jaipur, Rajasthan

Innovation:
Unveiled at the Auto Expo- 2016, 'Splendor iSmart 110CC, Xtreme 200S, XF3R and Duet E
 COMPANY

Hero will face technology crunch after termination of joint venture with Honda.
Concerns: Hero Group might not be able to sustain the performance as earlier.

STANDALONE *Mar'17 *Dec'16 Sep'16 Jun'16

Net Sales 6,915.20 6,245.90 7,669.53 7,289.59
Other Income 118.23 131.93 152.36 120.38
PBDIT 957.56 1,079.74 1,368.87 1,230.08
Net Profit 714.19 772.05 1,004.22 883.10

Above snapshot shows company is improving its net sales revenue and profit QoQ.

*Dec16 and Mar17 profit went down due to Demonization in India.

 ECONOMY

Threats:
Baring use of BS III vehicles by Indian government made Hero MotoCorp to sell there inventory at
huge discount.

Monsoon Effect:
Forecast of normal rains this year, the industry is expecting a boost in demand and consumption in the rural
markets.

International Presence:
Hero MotoCorp also commenced commercial production today in the manufacturing facility at its
subsidiary HMCL Niloy Bangladesh Ltd. This plant, located at Jessore in Bangladesh, has an installed
capacity of 150,000 vehicles per annum.

Cheap Public Transport and Costly Fuel price is a clear threat to Hero.