Project Report On Hero Honda By Yoonaf Ishtiaq

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Project report On Hero Honda

Submitted to:-

Submitted by:-

Miss payal bassi

Yoonaf ishtiaq

Lect of Seminar

BBA 2nd YEAR Roll no: - 17

Desh Bhagat Institute Of Management And Computer Sciences 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 4

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, "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 5

level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.

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

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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

PROMINENT AWARDS AND ACCOLADES Awards and Accolades Year 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

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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.

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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. 10

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 11

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.

BOARD OF DIRECTORS

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No. 1 2 3 4 5 6 7 8

Name of the Directors Designation Mr. Brijmohan Lall Munjal Chairman & Whole-time Mr. Pawan Munjal Mr. Mr. Mr. Mr. Mr. Mr.

Director Managing Director &

CEO Toshiaki Nakagawa Joint Managing Director Sumihisa Fukuda Technical Director Om Prakash Munjal Non-executive Director Sunil Kant Munjal Non-executive Director Masahiro Takedagawa Non-executive Director Satoshi Matsuzawa Non-executive Director

(Alternate Director to Mr. Takashi Nagai) Mr. Pradeep Dinodia

Non-executive &

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Gen.(Retd.) Ved Prakash

Independent Director Non-executive &

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Malik Mr. Analjit Singh

Independent Director Non-executive &

Dr. Pritam Singh

Independent Director Non-executive &

Ms. Shobhana Bhartia

Independent Director Non-executive &

Mr. Sunil Bharti Mittal

Independent Director Non-executive &

Mr. Meleveetil

Independent Director Non-executive &

Damodaran

Independent Director

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12 13 14 15.

BRIEF PROFILE OF DIRECTORS 13

MR. BRIJMOHAN LALL MUNJAL Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $ 2.8 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India ). In recognition of his contribution to industry, Mr. Lall was conferred the Padma Bhushan Award by the Union Government. Mr. Brijmohan Lall Munjal is currently on the board of the following companies: No Name of Company

Nature of Office

. 1

Hero Honda Motors Limited

Chairman and Whole-

2 3 4 5 6 7

time Director Hero Cycles Limited Chairman and Hero Honda Finlease Limited Chairman and Munjal Showa Limited Chairman and Sunbeam Auto Limited Chairman and Easy Bill Limited Director Hero Financial Services Director

8

Limited Munjal Auto Industries

Director

Limited 9 Shivam Autotech Limited 10 Daimler Hero Commercial

Director Director

Director Director Director Director

Vehicles Limited 14

MR. PAWAN MUNJAL Mr. Pawan Munjal is the Managing Director and CEO of the Company. He is responsible for growth and strategic planning for the entire Group. A graduate in mechanical engineering, Mr. Munjal has been instrumental in bringing about technological and managerial excellence in the Company's operations. He has been the Chairman of several Committees of CII. He is also on the board of Indian Institute of Management, Lucknow . An avid golfer, Mr. Munjal is Past Chairman of the Asian PGA Tour Board of Directors and the Past President of Professional Golfers Association of India (PGAI). Under his guidance, Hero Honda launched the Hero Indian Sports Academy (HISA) in collaboration with Laureus Foundation to provide equal opportunities in sports to various communities and to reward talent in the country. Mr. Pawan Munjal is currently on the Board of the following companies:

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No Name of Company

Nature of

. 1

Hero Honda Motors Limited

Office Managing

Hero Honda Finlease Limited Daimler Hero Commercial Vehicles

Director Director Director

2 3

Limited

SALES PERFORMANCE

Total Sales Exports (incl in above)

July'0 July'0

FY 05-

FY 06-

5 6 23005 23531

06

07

0

4

6900

10575

917617 1068006 36441

39970

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Hero Honda Registers 23% Growth in June'06 Hero Honda Sells Over 2.50 Lakh Units in February 2006 Hero Honda Begins 2006 On A High Note Hero Honda Motors Scales A New High In Cy ’05 Hero Honda Continues On The Growth Path Retail Sales Escalate To An Unprecedented 4 Lakh + Units In October’05 Hero Honda Registers 22.3 Per Cent Growth In September ’05 Hero Honda’s Sales Jump 28.5 Per Cent In August 2005 Hero Honda Registers 12 Per Cent Growth In Sales In July 2005 Hero Honda Registers 13% Growth In Sales In Q1 Of 200506 Hero Honda Motorcycle Sales In May At 2,26,072 Hero Honda Starts The Financial Year With Over 20% Growth

HERO HONDA REGISTERS 23% GROWTH IN JUNE '06 Records a growth of 21% Sales in Q1 Of 2006-07 New Delhi, July 01, 2006: Hero Honda, the 'World No.1' two-wheeler company, continues to strengthen its leadership in the Indian two-wheeler industry, registering impressive growth in sales in the first quarter of the FY 17

2006 - 07. For the quarter ending June 2006, the company achieved cumulative sales of 8,32,692 units, recording a growth of 21.29% compared to the same period last year. During the corresponding period last Financial Year, the company had recorded sales of 6,86,494 units in the first quarter ending June 2005. In June 2006, the company sold 2,78,660 units registering an impressive growth of 23.26% as against 2,26,073 units in June last year. During the month, Hero Honda launched Glamour FI India's first Fuel Injection motorcycle. The new technology eliminates the need for a carburetor, offers the most comfortable drive and the lowest emissions, in addition to a host of other features, which is now available for the first time to Indian two-wheeler riders.

Hero Honda Sells Over 2.50 Lakh Units In February 2006 CUMULATIVE SALES JUMP 14.16 % New Delhi, March 1, 2006: Hero Honda, the ‘World No. 1’ 18

two-wheeler company for the fifth year in a row, has continued to exhibit a leader’s performance in the first couple of months in 2006. During the month of February 2006, the company sold 2,50,695 units, as compared to 2,23,546 motorcycles sold during February 2005. This translates into a growth of 12.14 per cent in sales volume. The cumulative sales of the company for the period April 2005 - February 2006 also witnessed a notable jump of 3,38,632 units, from 23,89,807 to 27,28,439 units during the corresponding period last year. This reflects a growth of 14.16 percent. In January 2006, Hero Honda rolled out its first 100cc gearless scooter the “Pleasure” across India. The company also launched 22 first ever women-exclusive scooter showrooms “Just4her” across the country. “Just4her” is a unique concept pioneered by Hero Honda Motors targeting the women customers. In January 2006, Hero Honda was also conferred the honor of the “Bike Maker of the Year” by NDTV Profit-Bike and Car for the year 2005. Additionally its 150 cc offering Achiever received the coveted ‘Bike of the Year’ award. Achiever and Glamour also received the best bike awards for their respective categories. The most desirable amongst these awards, the ‘NDTV Viewers’ Choice’ award in the bike category was also awarded to Hero Honda Glamour, truly 19

exemplifying the customers’ enduring trust and faith in the company.

Hero Honda Begins 2006 On A High Note CUMULATIVE SALES JUMP 14 % New Delhi, February 1, 2006: Hero Honda, the ‘World No 1’ two-wheeler company for the fifth consecutive year, has continued to exhibit a leader’s performance in the first month of the New Year. During the month of January 2006, the company sold 2,49,450 motorcycles, as compared with 2,30,280 motorcycles sold during January 2005. This translates into an increase of 8.3 % in sales volume. The cumulative sales of the company for the period April 2005 - January 2006 has also increased to 24,77,744 motorcycles, a notable jump from 21,66,261 motorcycles during the corresponding period last year. This reflects a growth of 14.3 %. In the month of January, Hero Honda rolled out its first scooter, the 100cc “Pleasure” and launched 22 womenexclusive scooter showrooms “Just4her” across the country. The cities where “Just4her” showrooms were launched include Lucknow, Delhi, Ahmedabad, Pune (two showrooms), Bangalore, Hyderabad, Baroda, Madgaon, Chennai (two showrooms), Chandigarh, Ludhiana, Jaipur, 20

Nagpur, Jamshedpur, Bhubaneswar, Guwahati, Coimbatore, Cochin, Indore and Raipur. The month of January also saw Hero Honda being conferred the honour of the “Bike Maker of the Year” by NDTV ProfitBike and Car for the year 2005. Additionally its 150 cc offering Achiever received the coveted ‘Bike of the Year’ award. Achiever and Glamour also received the best bike awards for their respective categories. The most desirable amongst these awards, the ‘NDTV Viewers Choice’ award in the bike category was also awarded to Hero Honda Glamour, truly exemplifying the customers’ enduring trust and faith in the company.

Hero Honda Motors Scales A New High In Cy ’05 CLOSES THE YEAR WITH SALES OF OVER 29 LAC BIKES New Delhi, January 2, 2006: Hero Honda, the ‘World No. 1’ two-wheeler company, set precedence in the industry by registering an unparalleled growth throughout the calendar year (CY) 2005. In the year that logged an impressive growth in the two-wheeler sector, Hero Honda continued to exceed expectations by selling a staggering 29,16,523 motorcycles during the calendar year 2005. This converts to a growth of 15.3 per cent over CY ’04 where the company sold 25,28,699 bikes. 21

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., thanked customers for the company’s continuous brilliant performance. He said “This year has been exciting for us where we crossed significant milestones. We fulfilled our commitment to the customers by providing the latest and global standard products. We launched several new products this calendar year. It is to the complete credit of our customers who have shown continued faith in us and our products that we have achieved the World No. 1 twowheeler company year after year." During CY ’05, the company continued its consistent growth in sales performance. In December 2005, the company sold a total of 2,45,104 motorcycles as compared with 2,30,751 bikes during the same month last year which means an increase of 6.2 per cent. With this, the cumulative tally for the period April-December 2005 stands at 22,31,104 bikes, clocking a growth of 15.2 percent over the year 2004. The company sold 19,35,981 motorcycles during the same period last year. The calendar year 2005 also saw a slew of new launches in various segments by the company. One of the biggest milestones was the launch of ‘Pleasure’- the first scooter by Hero Honda. ‘Pleasure’ which is slated to hit the roads in January is targeted primarily at women. Having established its leadership in the industry, Hero Honda further 22

consolidated its position by launching three new motorcycles - ‘Super Splendour’, ‘Glamour’ and ‘Achiever’. The year also witnessed one of the highest civilian honours, the Padma Bibhushan being awarded to Mr. Brijmohan Lall, Chairman, Hero Honda Motors, for his invaluable contribution to trade, industry and philanthropist activities. Mr. Brijmohan Lall is a first generation entrepreneur who through sheer hard work and perseverance has made his mark on the global business environment. During the year Mr. Brijmohan Lall was also honoured with a Lifetime Achievement Award by the Economic Times. Hero Honda Continues On The Growth Path CUMULATIVE SALES FOR THE PERIOD APR-NOV ’05 GROWS BY OVER 14 PER CENT New Delhi, December 1st, 2005: Hero Honda, the ‘World No. 1’ two-wheeler company, is continuing to ride high on its steady sales performance month after month. During November 2005, the company recorded a sales volume of 2,51,186 motorcycles as compared with 2,35,836 motorcycles sold during the same month last year. This translates into an increase of 6.5 per cent. 23

The cumulative sales of the company for the period AprilNovember 2005 has also jumped by 14.7 per cent, increasing from 17,05,230 motorcycles sold during April– November 2004 to 19,56,416 motorcycles sold during the same period in 2005. The month of November also witnessed the 5th Hero Honda Indian Television Academy Awards, the first and only television awards in the country. Retail Sales Escalate To An Unprecedented 4 Lakh + Units In October ’05 DESPATCH CROSSES THE 3-LAKH LANDMARK New Delhi, October 31, 2005: Hero Honda, the ‘World No.1’ two wheeler manufacturer, has set yet another precedent for the Indian two-wheeler industry by recording incredible sales in October 2005. The company’s retail sales crossed the 4-lakh milestone, for the first time ever in the Indian two-wheeler industry. Additionally, dispatch during the month also reached an unprecedented high of 3,02,000 units, marking a remarkable jump of 23.02% as compared with the corresponding month in 2004. The company had recorded dispatch of 2,45,475 units in October 2004. Hero Honda’s achievement of the landmark 4 lakh plus retail sales and 3 lakh plus dispatch, within a single month, 24

is an extraordinary feat considering the growing competition in the two-wheeler market and is certain to redefine industry standards. The company’s sales performance during October 2005 is a testimony to the success of its customer centric business philosophy. Month over month, the company has been recording increasing sales, also signifying the success of its new models launched in the current year. The company’s sales (dispatch) during the month is up by 13.5%, as compared with the previous month (September 2005), when the company had recorded sales of 2,66,071 units. With the first festive month ending, Hero Honda’s cumulative sales (dispatch) for the period April-October 2005 has also registered a significant growth of 17.87% over the corresponding period in the previous year. The company’s cumulative sales tally has thereby increased to 17,31,992 units, a jump from 14,69,394 units in 2004. With the recent launch of Achiever in end-October and the forthcoming launch of Pleasure in mid-November, the company is confident of continuing its upward movement on the sales chart. The company’s festive promotion, which offers Rs.1001/- off on each of its models, has also met with huge success, across the country. 25

Hero Honda Registers 22.3 Per Cent Growth In September ’05 CLOSES HALF YEAR WITH IMPRESSIVE NUMBERS New Delhi, 1st October 2005: Hero Honda, the ‘World No.1’ two-wheeler company, for the fourth consecutive year, continued its upswing during the month of September 2005. The September sales of Hero Honda mark an impressive growth of 22.3 per cent over last year. The company sold 2,66,071 bikes in September 2005 as against 2,17,507 bikes in the corresponding month during the previous year. Sales during the month have also jumped by 9.6 per cent over the previous month (August 2005), when the company sold 2,46,304 motorcycles. The cumulative sales of the company for the period April September 2005 have also shown a growth of 16.84 per cent over the corresponding period last year. The cumulative sales during the period have increased to 14,29,992 motorcycles from 12,23,919 motorcycles during April-September 2004. Hero Honda's Sales Jump 28.5 Per Cent In August 2005 26

PHASED LAUNCH OF 'GLAMOUR' COMPLETED; OVER 45,000 UNITS SOLD ALREADY New Delhi, September 01, 2005: Hero Honda Motors Ltd., the ‘World No.1’ two-wheeler company for the fourth consecutive year, is continuing with its robust performance month after month. The company’s emphasis on proactive understanding and satisfaction of customer needs and desires along with new product offerings has resulted in the company consolidating its leadership in the industry. The company sold a total of 2,46,304 motorcycles during August 2005, thereby registering an impressive growth of 28.5 per cent in sales over the corresponding month last year. The company had sold a total of 1,91,635 motorcycles in August 2004. At the end of August 2005, the cumulative sales of the company for the period April - August 2005 stood at 11,63,921 motorcycles, translating into a growth of 15.6 per cent. The company had sold 10,06,412 motorcycles during the corresponding period (April-August 2004) last year. Also during the month, Hero Honda completed the phased launch of ‘Glamour’- its new offering in the 125 cc segment. The bike comes powered with the futuristic and exemplary Quantum Core engine, which has been perfected after a series of refinements and offers customers an unprecedented combination of top-class fuel-efficiency and high power. The company has already sold over 45,000 27

units of Glamour since its first launch in South India towards the end of June, demonstrating a tremendous response from customers.

Hero Honda Registers 12 Per Cent Growth In Sales In July 2005 CUMULATIVE SALES CROSS NINE LAKH BIKES IN FOUR MONTHS New Delhi, August 01, 2005: Hero Honda Motors Ltd., the ‘World No.1’ two-wheeler company has come to epitomize consistent performance. The company has, month on month, managed to stand up against all odds and maintained its leadership in the increasingly competitive 2wheeler segment. During the month of July 2005, the company sold 2,30,050 bikes, as against 2,05,654 bikes in the corresponding period last year, thus registering a sales growth of 12 per cent. For the period April - July 2005, the cumulative sale of the company stood at 9,17,617 units, translating into a growth of 12.6% per cent. The company had sold 8,14,777 units during the corresponding period last year. 28

The company was able to achieve this impressive growth in the face of continuing supply constraints of components caused by the volatile labour situation prevailing in parts of the state of Haryana, where both the manufacturing plants of the company are located. The adverse situation impacted other industries in the region as well. Thanks to the initiative taken by the Haryana government, the situation has improved and production is expected to be back on track. Market demand for Hero Honda products remains buoyant and the company launched ‘Glamour’- a new entry by the company in the premium deluxe segment, in Western India during this month. The bike was very successfully launched in South India in the previous month and has been very well received by the customers in that region. With this new product in its portfolio, the company is now looking at consolidating its indisputable leadership in the market. Hero Honda Registers 13% Growth In Sales In Q1 Of 2005-06 New Delhi, July 01, 2005: Hero Honda, the ‘World No.1’ two-wheeler company, continues to strengthen its leadership in the Indian two-wheeler industry, registering impressive growth in sales in the first quarter of 2005 – 06. For the quarter ending June 2005, the company achieved 29

cumulative sales of 6,86,494 units, recording a growth of 13 per cent. During the corresponding period last Financial Year, the company had recorded sales of 6,09,123 units. In June 2005, the company sold 2,26,073 bikes registering a growth of 12.5% as against 2,00,922 units in June last year. This impressive growth was achieved in the face of continuing supply constraints of components caused by the volatile situation prevailing in parts of the state of Haryana, where both the manufacturing plants of the company are located. The adverse situation has impacted other industries in the region as well. However, market demand for Hero Honda products remains buoyant and production is expected to be back on track to meet this demand. With the steady progress of monsoon, the outcome also remains positive. Hero Honda Motorcycle Sales In May At 2,26,072 New Delhi, June 1, 2005: Hero Honda, the ‘World No. 1’ two-wheeler company, sold 2,26,072 units in May 2005. The impressive figure was achieved despite some supply constraints. With the huge demand for Hero Honda bikes in the market and supplies now back to normal, sales are set to get a boost in June. During the month of May, Hero Honda also announced auditions for Hero Honda MTV Roadies- 3, a reality show that the company has been associated with for the last two 30

years. This year the Hero Honda MTV Roadies journey will begin on June 12th from Jaisalmer to Leh with 13 bikers on Hero Honda Karizma, the only premium sports bike in India. The show aims at testing the participants’ endurance and bringing out the real riders in them.

Hero Honda Starts The Financial Year With Over 20% Growth New Delhi, May 2, 2005: Hero Honda, the ‘World No. 1’ two-wheeler company, has started the year with a bang. The company sold impressive peak capacity 2,35,422 motorcycles during April 2005, a jump of 20.09% per cent as compared with the corresponding period in the previous FY. The company had sold 1,96,024 motorcycles in April 2004. The month also saw the launch of CD Deluxe, the stylish, true value, 100cc motorcycle from Hero Honda, encompassing the legendary Hero Honda values of fuelefficiency, economy and rock-solid dependability. The new model comes with a unique suspension, which smoothens and absorbs bumps on rough roads. Also, its double tubularcradle frame imparts extra stability to the motorcycle. CD Deluxe is available at an ex-showroom price of 31

Rs.33,900/- across India, in five attractive colours - Candy Blazing Red, Black (2 stripes), Candy Tahitian Blue, Cloud Silver, Amaranth Maroon and Cool Mint Green. The new model is a part of the company’s efforts to offer enhanced value-for-money to its customers.

PRINT ADs New Launches:

Glamour

Just4her

Glamour PGMFI

CD Deluxe

CBZ X-Treme

Achiever

Next Generation

Pleasure

Splendar NXG

of Motorcycling

Hunk 32

Campaigns: We got a Good thing Going!

A Lot less Stops One Litre Road Stretch That Litre. Save Petrol

Chartered Accountant

Over-Time

It's the Honda

Best Seller

Economical Honours Others:

World's No.1!

Friends For Life

Nawab of Najafgarh

Designed to Excel Awaaz Consumer Awards '06

Quick Links

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STOCK HISTORY Details of issue of Equity Shares since beginning

37

Date of

Date of

Particulars of Issue

Approva Issue

No. of Shares

l 19.01.84 Subscription shares 09.08.19 19.03.85 Public Issue

150 11999985

84 09.08.19 29.04.87 Issue of Rights Shares 3975000 84 in the ratio of 15:50 09.08.19 07.02.19 Issue of Bonus Shares 3993750 84 95 in the ratio of 1:4 09.08.19 28.09.19 Issue of Bonus Shares 19968750 84 98 in the ratio of 1:1 09.08.19 26.03.20 Sub-division of Equity

199687500

84

*

01

Shares of Rs. 10 each Into 5 Equity Shares of

Rs. 2 each * Equity Shares of Rs. 2 each.

LISTING INFORMATION Hero Honda Motors Ltd. is actively traded on the bourses and is included in the computation of the BSE Sensex, BSE-100, BSE-200, BSE-500, S&P CNX Nifty and S&P CNX 500. The scrip is traded on the nationwide network of terminals of the following Stock Exchanges:

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The Stock Exchange, Mumbai Phiroze Jeejeebhoy Towers , Dalal Street, Mumbai - 400 001 Telephone: 022-2272 1233/34 Facsimile: 022-2272 1552 e-mail: [email protected] Website: www.bseindia.com BSE Code: 500182 National Stock Exchange of India Limited Exchange Plaza , Plot No. C/1, G Block, Bandra-Kurla Complex,Bandra (East), Mumbai - 400 051 Telephone: 022-2659 8100-114, 5641 8100 - 108 Facsimile: 022-2659 8120 e-mail: [email protected] Website: www.nseindia.com NSE Code: HEROHONDA

The Company has paid the annual listing fee to the Stock Exchanges for the financial year 2005-06 in stipulated time.

HEROHONDA BIKE MODELS Model: Achiver ES

Model: Achiver Kick Start

Model: CBZ Xtreme ES

Model: CBZ Xtreme Kick Start

Model: CD Dawn

Model: CD Deluxe

Model: Glamour Electric Start

Model: Glamour FI ES

Model: Glamour FI Kick Start

Model: Glamour Kick Start

Model: Hunk ES

Model: Hunk Kick Start

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Model: New Karizma

Model: Passion Plus

Model: Pleasure

Model: Splendor NXG (Alloy)

Model: Splendor NXG (Spoke)

Model: Splendor Plus

Model: Super Splendor

Model: Ambition

Model: CBZ

Model: CBZ* Kick Start

Model: CBZ* Electric Start

Model: CD 100 SS

Model: Dawn

Model: Karizma

Model: Passion

Model: Splendor

Model: Street Dlx

Model: Super Splendor KS

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HERO HONDA KARIZMA Jet Set Go... Hero Honda Karizma was the first real sports bike in India. The bike addresses to those who have a passion for speed and styling and head-turning looks. It has 17 ps power thrust and picks up 0-60 in 3.8 heart-stopping seconds. The bike is based on power and styling. Disc breaks and Mag wheels makes Karizma the safest jet on the road.

Company

Stroke

Maximum Power

Displacement

Hero Honda Motors Ltd.

4-Stroke

16.8 bhp @ 7000 rpm

223 cc

Striking Features • • • •

Style Sporty position of the seat. It stands on its feet even at speeds reaching up to 130 kmph. Fuel Efficiency.

Color Variants • • • • •

Pearl Composed Red Myth Gold Metallic Sparkling Silver Turquoise Blue Candy Blazing Red 41

• •

Black Moon Yellow

Price Tag - Rs 79,000 Ex-Showroom in Delhi . (The prices are to the close approximation. Please check the latest prices and variant specifications with your dealer.) Technical Specifications Dimension & Weight Overall height

1160 mm

Overall length

2125 mm

Overall Width

755 mm

Wheelbase

1355 mm

Ground Clearance

150 mm

Kerb weight

150 kg

Fuel Tank Capacity

15 litres

Engine Type

OHC, Air Cooled

Stroke (2/4)

4-stroke

No. of cylinders

Single Cylinder

Displacement

223cc

Electrical

12 V, 7.0 Ah

Transmission No. of Gears

5 speed

Clutch

Multi-plate wet type

Performance Maximum Power

16.8bhp @ 7000rpm

Max. Torque

42

Start

Kick / Electric

Suspensions Front

Telescopic Hydraulic Shock Absorbers

Rear

Swing arm with 5 step adjustable type hydraulic shock absorber

Brakes Front

Disc Brakes, 276 mm diameter

Rear

Internal Expanding Shoe, 130 mm

Tyres Front

2.75 x 18” - 42 P

Rear

100 / 90 x 18” - 56 P

More 150 cc - 500 cc Bikes in India Bajaj Avenger Bajaj Pulsar Bajaj PulsarDTSi Bullet Electra Bullet 350 Hero Honda Achiever Hero Honda CBZ XHero Honda Hunk Honda Unicorn treme Kinetic Comet Thunderbird TVS Apache TVS Apache RTR FI TVS Fiero FX Yamaha R15 160

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Hero Honda-Hunk Hunk, the latest launch from Hero Honda, as the name indicates is a manly bike. Hunk is the fourth product in the 150cc. Hunk is very sporty in looks and performance. The look of the bike is definitely a upright one having a brawny styling. The bike is available in the market in four colors black, blue, red and silver. The cover of air filter and battery are of black and silver colors and the tail extension has a dual black color painted on it. The engine is also not the typical black in color but it has got silver and gray colors on it. The front forks and gas filled rear have copper and gray colors. The bike has got a big tank and black alloy wheels. Available Models of Hunk Model

Price Ex.Showroom(Mumbai) Engine Price

• Hero Honda Hunk 150

149.2 cc

Rs. 59,749

Hero Honda Hunk 150 Price Rs.59,749 Price Ex. Showroom (Mumbai)

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Specifications

Colors

Photos

Dimensions and Weights Length 2080 (mm) Width 765 (mm) Height 1095 (mm) Wheelbase 1235 (mm) Seat Height Ground Clearance 145 (mm) Fuel Tank Capacity 12.4 (L) Reserve Tank 2.2 (L) Capacity Self Kerb weight 146 (kg) Kick Kerb weight 143 (kg) Performance Max Speed Acceleration(0200m) Overtaking Acceleration for 200 m (at 40kmph) Acceleration (0-60 kmph) Mileage (in Indian Mode) Body and Tyre 46

Frame Front Suspension Rear Suspension Front Tyre Rear Tyre Front Brake Drum Front Brake Disc Rear Brake Drum Rear Brake Disc

Telescopic Hydraulic Swing Arm 2.75 X 18 42P 100/90 X 18 - 56P (W 240 (mm) 130 (mm) -

Engine and Transmission Engine Type

Air Cooled, 4 Stroke Single Cylinder O 149.2 cc (cc) 14.4Ps@8500rpm 12.8Nm@6500rpm CV

Engine response Displacement Net Power Torque Air Filter Carburetor ACG Power Generating Capacity Oil Capacity Transmission Gear Shift Pattern Electricals Ignition Battery Start

In

Kick

12V -7 Ah 47

Battery In Self Start Headlamp 12V - 35 / 35 W Tail / Stop lamp 12 V - 5W, 12V 21W

Front Right View

Back View

Metre

Another Colour View

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Hero Honda-Achiever Its new Power Pro 149.1cc 4 stroke air-cooled engine produces power of 13.4 bhp (10 kW). Its petrol tank comes with excellent body graphics. Its masculine and robust structure is really eye-catching to many bikers. Riding here becomes safer due to the presence of multi-reflector headlight with halogen lamp and a position lamp, multi-reflector tail light and winkers, protective visor etc.

Available Models of Achiever Price Ex. Showroom(Mumbai) Model Engine Price • Hero Honda Achiever 150 149.1 Rs. 53,200

Hero Honda Achiever 150 Price Rs.53,200 Price Ex. Showroom (Mumbai) Specifications

Colors

Photos

Dimensions and Weights Length Width Height Wheelbase Seat Height

1290 (mm) 49

Ground Clearance Fuel Tank 12 (L) Capacity Reserve Tank Capacity Self Kerb weight Kick Kerb weight 134 (kg) Performance Max Speed 101 (kmph) Acceleration(0200m) Overtaking Acceleration for 200 m (at 40kmph) Acceleration (05 (Sec) 60 kmph) Mileage (in Indian Mode) Body and Tyre Frame Diamond Cradle Front Suspension Telescopic hydraulic Rear Suspension Swing Arm Front Tyre 2.75 X 18 - 42 P / 4 Rear Tyre 3.00 X 18 - 52 P / 6 Front Brake Drum Front Brake Disc 240 (mm) 50

Rear Brake Drum 130 (mm) Rear Brake Disc Engine and Transmission Engine Type

4 Stroke, Air Cooled Engine response Displacement 149.1 (cc) Net Power 13.4bhp@6500rpm Torque 12.8nm@5000rpm Air Filter Carburettor ACG Power Generating Capacity Oil Capacity Transmission 5-Speed Gear Shift Pattern Electricals Ignition Battery In Kick Start Battery In Self 12V - 2.5 Ah Start Headlamp 35/35 W Halogen Tail / Stop lamp -

Herohonda-Glamour

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Hero Honda Glamour is equipped with all the required market friendly features. Two models of this bike are based on all the technological advances. It is the bike for every kind of customers and with different choices. This bike comes with all the facilities that all finicky bike lovers really look for in his best possession

Available Models of Glamour Price Ex.Showroom(Mumbai) Model Engine Price • Herohonda Glamour Fi 124.8 Rs. 53,000

Herohonda Glamour Fi Price Rs.53,000 Price Ex. Showroom (Mumbai) Specifications

Colors

Photos

Dimensions and Weights Length 2005 (mm) Width 735 (mm) Height 1070 (mm) Wheelbase 1265 (mm) Seat Height Ground Clearance 150 (mm) Fuel Tank Capacity 12 (L) Reserve Tank 1.5 (L) Capacity Self Kerb weight 129 (kg) Kick Kerb weight 125 (kg) 52

Performance Max Speed Acceleration(0200m) Overtaking Acceleration for 200 m (at 40kmph) Acceleration (0-60 kmph) Mileage (in Indian Mode) Body and Tyre Frame Front Suspension Rear Suspension Front Tyre Rear Tyre Front Brake Drum Front Brake Disc Rear Brake Drum Rear Brake Disc

Telescopic Hydraulic Swing Arm 2.75 x 18 - 42 P 3.0" x 18 - 52 P 240 (mm) 130 (mm) -

Engine and Transmission Engine Type Engine response Displacement Net Power Torque

Air-Cooled, 4stroke OHC 124.8 (cc) 9.0bhp@7000rpm 10.3Nm@4000rpm 53

Air Filter Carburettor ACG Power Generating Capacity Oil Capacity Transmission 4-Speed Gear Shift Pattern Electricals Ignition Battery In Start Battery In Start Headlamp

Kick

Tail / Stop lamp

Self

35W / 35W Halogen -

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