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TABLE OF CONTENTSDeclaration Acknowledgement The Indian Cycle Industry The beginning Profile Vision & Mission Career Company Profile 3 4 5 6 7 8 9 10

Hero Group Companies Hero Group Quality Milestones Hero Cycle continues on Growth Joint Ventures Key Financial Indicators Growth in revenue Movement of Return on Equity Rating History Of Bicycles

11 13 15 16 21 25 27 28 29 30 33

The lndian Cycle IndustryBicycle was seen in India in the year 1890. Import of cycles, however, started in 1905 and continued for more than 50 years. Complete ban on imports was announced by the Government in July, 1953, but cycle kept on simmering in the country till 1961. In 1890, selling price of an imported bicycle was arround Rs. 45/-; in 1917, during the First World War the price jumped to Rs. 500/ - but dropped considerably, month by month and came down to Rs. 35/ - or so (U. K. makes) and Rs. 15/- or so (Japanese models). It would be interesting to mention that in 1919, five persons in Punjab imported cycles and used them on The Mall, Simla. These included one Bishop, Two military men and two contractors including S. Pala Singh Bhogal (Grand Father of Mr. M.S. Bhogal of Ludhiana). Under special permission of the Governor, they were allowed to use cycles on 'The Mall' only for one hour in a day. They imported B.S.A. Cross Bar Cycle from U.K. and it used to be a kind of Mela at that particular hour on the Mall in Simla, the scen e watched by hundreds of people everyday. Later, a firm was formed under the name of Singh & Co. with shops on Railway Road, Jalandhar and Bazar Vakillan, Hoshiarpur, which imported bicycles in the year 1930 onwards.

The Beginning

We look over our shoulders, we see the past. We use it to make a better present and a beautiful tomorrow, as tomorrow isnt just another day, its another chance for us to better ourselves and to excel. Hero Cycles is a product of this philosophy. The philosophy that instills commitment, team work and foresight. Heros colossal journey started before independence. The four Munjal brothers, hailing from a small town called Kamalia, now in Pakistan, are the men who are behind the mission. Brotherhood apart, what knit the men together was the wealth of will, integrity, ambition & determination. In the year 1944, they decided to start a business of bicycle spare parts in Amritsar. Its is modest beginning and t he next 3 years saw the business grow rapidly.But the dark clouds of partition eclipsed their plans of the future. With renewed vigour and optimism, the operational base was shifted to Ludhiana. By 1956, the brothers had began manufacturing key components of bicycles and as a logical way forward, began to assemble the entire cycle at their manufacturing plant in Ludhiana. In the early days, the plant had a capacity for 25 cycles per day. Over the next few years, the Bicycle Unit started growing in stature and size, attracting skilled engineers, technocrats, administrators and entrepreneurs. From a modest beginning of mere 639 bicycles in the year 1956, Hero Cycles products over 18500 cycles a day today, the highest in global reckoning. With the 48% share of the Indian market, this volume has catapulted Hero in the Guinness Books of World Records in 1986 and edge over global players is being maintained since then. A tiny acorn has now become a mighty Oak. From cycle to two - wheelers was a natural step, and the Hero Group came into being. The Hero Group, today, is a vast conglomerate of companies, either in the form of collaborations, joint ventures or fully owned subsidiaries, with more than Rs. 10000 Crore turnover annually. Hero Group, besides being the wo rlds largest manufacturers of bicycles, motorcycles and chains to this date, has diversified into newer segments like Information Technology, IT Enabled Services and Financial Services.

Profile"Hero", the brand name symbolizing the steely ambition of the Munjal brothers, came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today, the odyssey was fueled by one vision - to build long-lasting relationships with everyone, including workers, dealers and vendors. This philosophy has paid rich dividends through the years. Hero, a name synonymous with two wheelers in India is today a multi -unit, multi-product, geographically diversified Group of companies. Through fully integrated operations, the Munjals roll their own steel, make critical components such as free wheels for their bicycles, and have the foresight to simultaneously diversify into myriad ventures, l ike product designing, IT enabled services, finance and insurance, just to name a few. Like every success story, Hero's saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. Throughout its success trail, the Hero Group and its members have displayed unwavering passion of setting higher standards for themselves and delivering simply the best to their customers. The Hero Group philosophy is: "To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity." Thus apart from being customer -centric, the Hero Group also provides its employees with a fine quality of life and its business associates with a total sense of belonging. "Engineering Satisfaction" is the prime motive of the Hero Group and it has become a way of life and a part of the work culture of the Group. This is what drives the Group to seek newer vistas, adopt faster technology an d create quality driven products to the utmost satisfaction of customers, partners, dealers and vendors. Today the Hero Group has a number of accolades and achievements to its credit yet consumer requirements and newer technologies provide fresh challeng es every day, and at Hero the wheels of progress continue to turn .. .

Vision"We, at the Hero Group are continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance, and price aspirations of the customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keeps the momentum going to take the group to excellence in everything we do."

The Mission Statement"Its our mission to strive for synergy between technology, systems and human resources, to produce 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 societal responsibilities. " This mission is what drives us to new heights in excellence and helps us forge a unique and mutually beneficial relationship with all our stakeholders. We are committed to move ahead resolutely on this path, shown to us by vis ionaries like Mr. Satyanand Munjal, Mr. Om Prakash Munjal, the late Mr. Dayanand Munjal and late Mr. Raman Kant Munjal. Mr Brijmohan Lall Munjal, Chairman & MD - THE HERO GROUP.

CareerHero has continuously strived for synergy between technology, systems and human resources, to provide products and services that meet the quality, performance and price aspirations of its customers. While doing so, it has maintained the highest standards of ethics and social responsibility, has constantly innovated products and processes and developed teams that keep the momentum in order to take the Group to new heights. In the forefront of the two -wheeler and auto-components industry in India, the Hero Group is driven by the vision of providing technolo gically advanced and affordable transport solutions. In doing so its employs and scouts for state -of-the-art technology and systems. At Hero, new management strategies, techniques and manufacturing processes are constantly adapted. The work culture at th e Hero Group revolves around building relationships - be it with workers, vendors or dealers. All those who come to work within the fold of the Hero Group are offered job security and growth opportunities, both personally and professionally .

Company Profile

Incorporated in 1966, Hero Cycles Limited (Hero Cycles) is the oldest company of the Hero Group of companies. Till the recent restructuring of the businesses amongst the four tranches of the Munjal family, the company was closely held with shareholding equally divided among the four families of the firstgeneration of Munjals. Hero Cycles main business activities include manufacturing of bicycles, cold rolled (CR) strips and auto components with bic ycles contributing over 58% of its revenues. Hero Cycles has a manufacturing capacity of 55 lac bicycles annually, with facilities located in Ludhiana and Mangli in Punjab. The company also has 135,000T CR mill, and an auto -component manufacturing facility located at the same facility in Ludhiana. Post the family settlement, Mr. O.P Munjal & family own 100% stake in the company. For 2009-10, the company reported a net profit of Rs. 300.3 crore on a turnover of Rs. 1,707.8 crore compared to R s. 57.7 crore and Rs. 1,490.5 crore, respectively

Hero Group CompaniesHero Group ranks amongst the Top 10 Indian Business Houses comprising 18

companies, with an estimated turnover of US$1.8 bil lion during the fiscal year 200-2004.

Hero Cycles Limited

Hero Honda Motors Limited

Hero Cold Rolling Division

Hero Motors Limited

Hero Exports



Majestic Auto Limited

Rockman Cycle Industries



Highway Cycle Industries



Sunbeam Auto Limited

LOGOMunjal Auto Industries Limited

Munjal Showa Limited