Submitted by:

1. Mayur Bhor

2. Vivek Bhowmik

3. Vishal ahuja

4. Pravin Bulbule

5. Nimidha Bumb
Introduction
Introduction

Joint venture between Hero group of India and Honda Motors of

Japan sterted in 1984.

Largest two- wheeler seller in world.

Deals in bikes and scooters

Bike sector accumulates 81.5% of total 2-wheeler market of Hero

Honda in India.
Market
Market Share
Share 2009-10
2009-10

Company Hero honda Bajaj TVS Others

Name

Market Share 47% 34% 7.5% 12.5%

Market Share 2010

Hero honda Bajaj TVS Others

12%

7%

47%

34%
Share
Share holding
holding pattern
pattern (2009-10)
(2009-10)
 Vision
Vision

The vision of a mobile and an empowered India, powered by Hero Honda.

Through commitment to customer, quality and excellence

Along with maintaining highest standards of ethics and societal responsibilities.

 Mission
Mission

or synergy between technolog

hat meet the quality, perform
ntain the highest standards of
 Last
Last 55 Years
Years Activities
Activities

2006: 15 million production milestone achieved

2007:New 'Splendor NXG' , 'CD Deluxe' 'Passion Plus' and new motorcycle
model 'Hunk' launched
20 million production milestone achieved.

2008:Hero Honda Haridwar Plant inaugurated.

:New 'Pleasure' ‘Splendor NXG’ 'Passion Pro' 'CBZ Xtreme' launched
:‘CD Deluxe’ launched with power start feature
:New 'Glamour' and 'Glamour Fi' launched
Last
Last 55 Years
Years Activities
Activities (Cont…)
(Cont…)

2009: Hero Honda GoodLife Program launched

:Hunk' (Limited Edition) & 'Karizma - ZMR' launched
:Silver jubilee celebrations

2010: New model ‘Splendor Pro’ & ‘New Hunk’ launched.

Key
Key Strategies
Strategies

Innovation
Innovation

Building
Building aa robust
robust product
product portfolio
portfolio across
across categories,
categories,

Exploring
Exploring new
new markets,
markets,

Aggressively
Aggressively expanding
expanding the
the network
network

Continuing
Continuing to
to invest
invest in
in brand
brand building
building activities. 
activities. 
Types
Types of
of strategies:
strategies:

Manufacturing Strategy:

Three globally benchmarked manufacturing

facilities.

Two of these are based at Gurgaon and Dharuhera

in Haryana and the third is in Haridwar.
Product Strategy:
Wide
Wide range
range of
of products
products which
which have
have set
set benchmarks
benchmarks in
in the
the industry.
industry.

Manufacturing
Manufacturing scooter
scooter since
since 2006.
2006.

Catering
Catering to
to all
all the
the segments
segments of
of the
the market.
market.
Brand Strategy ::

New product launch and new campaign launch

Innovative marketing initiatives revolving around cricket, entertainment and

ground- level activation. 

Actively promoting various sports such as hockey, cricket,golf and common

wealth games 2010.

Sponsoring different entertainment programs like Hero Honda roadies.

Key
Key Policies
Policies

AN ENVIRONMENTALLY AND SOCIALLY,

AWARE COMPANY

Their
Their motto
motto is
is “ a
“ a business
business must
must not
not grow
grow at
at the
the expense
expense of
of mankind
mankind and
and man's
man's
future
future but
but rather
rather must
must serve
serve mankind.”
mankind.”
 Key Policies (contd…)
  Environment Policy: Hero Honda is committed
to demonstrate excellence in their environmental
performance on a continual basis, as an intrinsic element of
their corporate philosophy. 
  Quality Policy: Excellence in quality is the core value of
Hero Honda's philosophy.

 Safety Policy : Hero Honda is committed to safety and

health of its employees and other persons who may be
affected by its operations. They believe that the safe work
practices lead to better business performance, motivated
workforce and higher productivity. 
 Corporate social responsibility: It is
one of the key policies of the company.
 The steps taken by them are:
1. Opening schools and colleges.
2. Opening Hospitals
3. Sports complex
4. Vocational training centres
5. Rural health care
 Financials
Financials at
at aa glance
glance

Scrip code: 500182 Company Name: HERO HONDA MOTORS LTD.

Nos. of Shares – Public = 89938195
Percent of Shares Public = 45.04
Description 31-Mar-06 31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10
Net Sales Income 87139.8 98999.6 103318 123568.8 158605.1
Other Income 1527.3 1898.5 1854.2 1809.2 2356.3
Total Income 88667.1 100898.1 105172.2 125378 160961.4
Expenditure -73459.8 -87269.2 -89824.3 -106073.6 -130935.6
Operating Profit 15207.3 13628.9 15347.9 19304.4 30025.8
Interest 61.3 229.9 358.1 316.8 206.2
Profit Before Depreciation and Tax 15268.6 13858.8 15706 19621.2 30232
Depreciation -1146.2 -1397.8 -1603.2 -1806.6 -1914.7
Profit before Tax 14122.4 12461 14102.8 17814.6 28317.3
Tax -4409 -3882.1 -4424 -4997 -5999
Net Profit 9713.4 8578.9 9678.8 12817.6 22318.3
Equity Capital 399.4 399.4 399.4 399.4 399.4
Reserves 19693.9 24301.2 29462.7 37608.1 34250.8
Basic And Diluted EPS after 48.64 42.96 48.47 64.19 111.77
Extraordinary item
Operating Profit Margin 17.45 13.77 14.86 15.62 18.93
Net Profit Margin 11.15 8.67 9.37 10.37 14.07
 Sales Contribution

31-Mar-10 155226.81 3378.29

31-Mar-09 121085.07 2483.73

100890.03 2427.97 Domestic Sales

Years

31-Mar-08
Export

31-Mar-07 96366.21 2633.39

31-Mar-06 84612.75 2527.05

0.00 50000.00 100000.00150000.00200000.00

Total Sales (In Rs. Millions)
 Exports
Exports

During
The total
the export
year 2009-
of
There
spare
was
10 theparts
gross
a worth
20%
growth
Rs.17.60
were
inwas
97,699
exports
exports
crores
During
The total
the year two
export(23%
2009-
of
There
since
spare
was
last
wheelers.
growth)
10 theparts
gross
ayear.
20%
growth
Rs.17.60
inwas
were 97,699
exports
worth
exports
crores two
(23%
since last year.
wheelers.
growth)
Expenditure
Expenditure
 Expenditure
Expenditure (cont….)
(cont….)

Year 2010 Year 2009 Year 2008 Year 2007 Year 2006

Manuifactur 13096.21 10634.77 8272.462 7993.123 6754.897

ing and
other
expenses

Depreciatio 191.47 180.66 178.326 174.847 157.220

n
Interest 20.62 31.68 35.81 22.99 5.14
(net)
Total 13267.06 10783.75 8486.598 8190.96 6917.257
Profit
Profit

Year Year Year Year Year

2010 2009 2008 2007 2006
Profit 2831.73 1781.46 1410.28 1,246.10 1161.21
before
Tax

Taxes 599.9 499.7 424.397 404.934 451.25

Profit 2231.83 1281.76 985.883 841.166 709.96

after Tax
 Key Ratios
Current ratio =
Current Ratio
0.6
0.56 0.57
0.5
0.48 0.48
0.46
0.4

0.3 Current Ratio

0.2

0.1

0
Year 2006 Year 2007 Year 2008 Year 2009 Year 2010
DEBT EQUITY RATIO= DEBT / EQUITY

Debt Equity Ratio

0.1

0.09
0.09

0.08

0.07
0.07

0.06
Debt Equity Ratio
0.05

0.04
0.04

0.03

0.02
0.02 0.02

0.01

0
2006 2007 2008 2009 2010
 Operating profit margin = Net profit Margin = Net profit * 100/
Operating profit * 100 / Net sales Net sales

Operating Profit Margin Profit Margin

Net Profit Margin
Margin (in %)

20 18.93

18 17.45

16 15.62
14.85
13.76 14.07
14
12 11.15
10.37
10 9.37
8.67
8
6
4
2
0
31-Mar-06 31-Mar-07 31-Mar-08
Years 31-Mar-09 31-Mar-10
 Key
Key Ratios
Ratios

EPS = Net earning s/no. of Dividend Per Share = Dividend / Total No. Of Shares
shares
EPS v/s DIVIDEND
Earning (In Rs)

120.00 EPS Dividend Per Share 111.77

110.00
100.00

80.00
64.19
60.00
48.64 48.47
42.96
40.00

20.00
20.00 17.00 19.00 20.00
0.00
31-Mar-06 31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10
Years
Stock
Stock Prices
Prices at
at aa Glance
Glance
P r ic e in R s. Stock Prices (contd….)

Close Price
Stock Prices Open Price
2000
1800 1865.15
1716.45 1739
1600
1400
1200
1000860 805.1
760
800
762.35 800
600 697.65 698
400
200
0
2006 2007 2008 2009 2010
Years
Dominating
Dominating facts
facts

Brand: Marketing & Technology

Distribution Network : Rural vertical

Believe in “pusuit of excellence” and “value for money”

Access to International Technology

RISKS
RISKS

Increasing competition:R&D by existing & New entrants

Collaboration of Competitors With Foreign Players

Dependency On Honda’s Technology

FUTURE
FUTURE PLANS
PLANS

Dream of Nano bikes

Increase in Production Capacity: 5000 to 7000

Setting up of New Manufacturing Plant

More concentration on not properly tapped rural market

Increase share of exports

CONCLUSIONS:
 Currently in Financially stable condition
 Innovative designs and product qualities.
 Uses Innovative marketing strategies including
indian cinemas and cricket and also appeal to the
patriotic feelings of indians.
 Need to concentrate on foreign markets.
 Need to diversify on the locations of their plants.
THANK YOU
QUERIES?