COM

PAN

Y A

NAL

YSIS Hero

Honda

1956 1955

1984

“We, at Hero Honda are continuously striving for synergy between systems, technology and human resources to provide products and services that meet the quality performance and price aspirations of our customers. While doing so we maintain the highest standards of ethics and social responsibilities, constantly innovative products and processes and develop teams that keep the momentum going to take the company to excellence in the new millennium.”

MISSION STATEMENT

• CD 100• Fuel Efficient• Stylish• Affordable

• Instant Hit

FIRST PRODUCT

DHARUHERA, Haryana

GURGAON , Haryana

HARIDWAR, Uttarakhand

MANUFACTURING PLANTS

CHAIRMAN

Brijmohan Lall Munjal

JOINT MD

Toshiaki Nakagawa

MD & CEO

Pawan Munjal

YujiShiga

SumanMunjal

TakashiNagai

Sunil Munjal

ACBurman

AnaljitSingh

PritamSingh

VPMalik

PradeepDinodiya

RaviNath

MDamodaran Shobhana

Bhartia

1) Environmental Policy– Committed to demonstrate excellence in environmental

performance on a continual basis

2) Quality Policy– Excellence in Quality is the core value of Hero Honda’s

Philosophy

3) Safety Policy– Committed to safety and Health of its Employees &

customers

KEY POLICIES

• Integrated Rural Development at ‘Dharuhera’– Bore wells, Roads, Drainage, Primary Schools

• Raman Munjal Memorial Hospital• Adult Literacy Mission• Marriages of Underprivileged girls• Rural Health Care• Vocational Training Centre

CORPORATE SOCIAL RESPONSIBILITY (CSR)

• Largest Selling two-wheeler company in the World (7 years)

• Introduced Fuel Injection Technology in India

• 150cc and 223cc bikes in India• CRM initiative in the Indian 2-wheeler

Industry

HERO HONDA-THE PIONEERS

Karizma

Hunk

CBZ Xtreme

Glamour FI

Achiever

Glamour

Super Splendor

Splendor NXG

Splendor+

Passion Pro

Passion Plus

CD Deluxe

Pleasure

PRODUCTS

• Fuel Efficient– “Fill It - Shut IT – Forget It”

• Affordable• Better Service/Distribution• Innovation & Modification• Customer Satisfaction– “ Hero Honda – Desh Ki Dhadkan”

FEATURES OF HERO HONDA

• “Just For Her”• Brand Ambassadors• Sponsoring TV shows– Mtv Roadies– Sa Re Ga Ma Pa– Campus Rock Idols– Terra quiz ‘07

PROMOTION

• The yellow pages • Press release • Sponsoring a civic event or activity • The newspaper • Billboards or posters • Flyers or handbills • Direct mail advertising • The radio • Television

ADVERTISING

• Bajaj Auto• TVS Motors• Yamaha Motors• Honda Motors• Suzuki• Kinetic• Mahindra

COMPETITORS

TOP 2 WHEELER COMPANIES IN INDIA

2006 2007 2008 2009 2010

Hero Honda 950 808 894 1797 2094

Bajaj Auto NaN NaN 945 1800 3045

TVS Auto 186 87 79 68 151

250750

12501750225027503250

Share Prices (in Rs.)

Cost

Of S

hare

sCOMPETITORS SHARE PRICES

• HONDA deciding to discontinue collaboration– Hero is dependent on HONDA for technology– Hero will have to START From SCRATCH

• Bajaj Automobiles and TVS Motors have their own technology and quality products

• Slowly they are eating into Hero Honda’s market share

THREATS FROM COMPETITORS

Mar ’06 Mar ’07 Mar ’08 Mar ’09 Mar ‘10

EPS 48.64 42.96 48.47 64.19 111.77

Book Value 100.62 123.70 149.55 190.33 173.52

Debt Equity 0.09 0.07 0.04 0.02 0.02

Profit Operating Margin 15.84 12.13 13.22 14.22 17.32

Face Value 2 2 2 2 2

Divident / Share 20 17 19 20 110

P/E 15.90 16.20 13.20 15.40 16.94

RATIOS

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Sales Turnover

SALES TURNOVER

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Sales TurnoverReported net profit

Power & Fuel CostEmployee CostOther Mfg ExpSelling & AdminMisc

Excise Duty (14.2%)

SALES TURNOVER / PROFIT

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100

2000

4000

6000

8000

10000

12000

14000

16000

18000

Other IncomeNet Sales

OTHER INCOME / NET SALES

2986.24

39.94

132

Mar ‘08

2470.06

39.94

165.17

Mar ‘07

3800.75 78.49

39.94

Mar ‘09

3465.02

66.03

39.94

Mar ‘10

TOTAL LIABILITIES

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100

50

100

150

200

250

300

350

400

450

CAPITAL WIP

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100

50

100

150

200

250

300

350

400

450

INVENTORIES

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100

50

100

150

200

250

300

350

Use of Credit Deferral Policy (Liberal Policy)

Dealers Mgmt System (DMS)Factoring

SUNDRY DEBTORS

• NDTV news channel• Hero Honda Authorised Dealers• www.herohonda.com• www.moneycontrol.com• www.wikipedia.com• www.bseindia.com• Hero Honda Annual Report 2009-10• www.finance.yahoo.com• www.gaadi.com

BIBLIOGRAPHY

Thank You