CSR Details of Hero Honda Motors Ltd. , New Delhi , DL Hero Honda Motors Ltd.

- Corporate Social Responsibility Activities are as follows Company Profile Company Slogan: Company's Vision Statement: Company's Mission Statement:

25 years of success. None 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. Private Sector (operating in India only) Automobiles 1. Motorised two wheelers upto 350cc engine capacity 4513 Plant locations: Gurgaon, Dharuhera (both in Haryana), Haridwar (Uttrakhand) April 2008 - March 2009 Rs. 13543 Crores Rs. 1781 Crores Rs. 1282 Crores Not Disclosed Raman Kant Munjal Foundation 1. Education 2. Healthcare 3. Vocational Training a) Vocational Training b) Healthcare c) Education No No

Type of Company: Industry Sector: Products / Services: No. of employees: Other locations of factories / offices: Financial result for time period: - Sales - Profit before tax - Net profit after tax - CSR Budget CSR Activities Trust / Foundation for CSR: CSR Areas:

Three main CSR activities:

Publish Sustainability Report: Member of Global Compact: CSR activities in brief:

Pg. 43, Annual Report

We Care about How Hero Honda has continuously aspired to become one of India's most environmentally sustainable firms, and it strives to strike the right balance between business, mankind and nature. It is the company's endeavour to create a culture of minimum waste across the business. As part of this philosophy, Hero Honda seeks to institutionalize resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals, and

finally, usage of paper in various company offices round the country. The company fully complies with all applicable environmental regulations and practices. Periodic energy audits are conducted by internal and external experts. These ensure continuous improvement in areas related to manufacturing processes and energy conservation. The company has trained energy managers who focus on curbing the wasteful usage of energy. They also implement and encourage usage of equipment with better energy efficiency. In the coming years, Hero Honda seeks to become a zero-discharge company. Towards this end, the company is also evaluating various proposals for buying renewable energy from various sources. The company has also initiated the process of putting together a policy to offset carbon credits, in order to mitigate global warming.

Green technology Constant adoption of innovative green practices at Hero Honda has resulted in the introduction of a special Acrylic Cathodic Electro Deposition (ACED) painting process for the frame body. This new process results in 99 per cent paint transfer efficiency and minimizes effluents. The water soluble paint used is environment friendly and delivers better quality and productivity. At another level, the fluidized bed system, a thermal cleaning process for paint hangers, is more environment friendly than any other conventional cleaning method. The incinerator used for sludge burning, along with a pollution monitoring and control system, provides proper treatment of flue gases before releasing it to the atmosphere. Last year, the company successfully developed primer from waste paint sludge which had passed all quality parameters and was at par with the virgin primer. This ecologically friendly and cost effective re-cycling process is now an integral part of the manufacturing operations.

Safe manufacturing Over the last few years, the company has progressively eliminated the use of a large
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number of harmful substances. Today, every raw material and chemical is thoroughly evaluated for its environmental impact before it is introduced in a production process. The company has been successful in eliminating toxic substances. For example, leadbased balancers used for cast wheels have been changed to zinc. Hexavalent chrome has been replaced by trivalent chrome in all plated parts and asbestos has been completely eliminated from all product parts and manufacturing operations.

Conserving energy In the area of energy conservation, the heat recovery unit installed in the incinerator exhaust is used for preheating the boiler feed water and furnace oil. This resulted in a cost saving of Rs. 60 lakh per year. The boiler systems have also been reengineered and optimised to save fuel, energy and steam losses which have helped prune energy costs considerably. Dedicated power supply to respective shop floors, forced draft ventilation system and use of CFLs also helped bring down energy costs. Hero Honda also ensures complete reuse of treated water in cooling towers. This saves up to 300 kilo litres of water in a day.

Rain Water Harvesting Over the years, Hero Honda has been involved in rainwater harvesting projects to protect, preserve and enhance the environment. The company has implemented the various recommendations of an extensive study that was done to assess the scope of Ground Water Recharge in the factory premises through Rooftop Harvesting, Storm water Harvesting & Open area Harvesting.

Green Roof The green roof at the Haridwar plant was one of the major environment friendly initiatives during the year. Besides restoring ecological and aesthetic value, it helps in substantial amount of energy saving by moderating temperature of roof and surrounding areas. It also helps in reducing storm water runoff volume and peak flow

rate, and increases the service life of water proofing membrane.

The Green Supply Chain Hero Honda believes the process of sustainable development is incomplete without involving the company's supply chain. With this in mind, the company has put together a Green Vendor Development Program for the front end and a Green Dealer Development Program for the back end of the supply chain. In each of these programs, the partners' are expected to manage their environment involving material resources, industrial wastes, energy resource, pollution and other effluents based on a number of pre-determined parameters. Hero Honda plans to support all its partners in the Green Supply Chain venture by developing required competencies, sharing knowledge, and by providing technical support. 31 vendors enrolled under this program in 2007-08 underwent requisite training and were certified as green vendors during 2008-09. A fresh lot of 40 vendors were inducted during the year for the program ----------------Pg. 46, Annual Report SUSTAINABLE BUSINESSES, MAKING A DIFFERENCE TO THE LIVES OF STAKEHOLDERS

Behaving responsibly and contributing to the communities in which we operate is an essential part of our heritage. Hero Honda takes considerable pride in its community relationships, especially the ones at grassroots level that have evolved over time. The company has played a pivotal role in bringing an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream through direct interventions in education, healthcare, vocational training, creation of social and physical infrastructure, and environment management. Most of the group's social activities are planned and executed by the Raman Kant Munjal Foundation, which was set up in memory of Hero Honda's founder managing director. We have identified three priority areas for our community development initiatives
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where we focus our efforts and help make a difference: Sustainable Enterprise/Vocational Training, Healthcare and Education

Sustainable Enterprise/Vocational Training: As part of its outreach and capacity building initiative, the company organised a number of workshops in different areas. There were six fruit preservation workshops, four tie and dye workshops, a handicraft workshop, a training workshop for teachers, and four HIV awareness workshops. The workshops were attended by more than 600 villagers, teachers and schoolchildren in the Hero Honda catchment area. To help local people, especially women, the Raman Kant Munjal Foundation has, in the last decade, set up a vocational training centre which runs diploma courses in Tailoring, Embroidery and carpet weaving etc. Last year, the Centre was upgraded, and it is now possible to train 50 girls per batch. Till date, more than 700 girls have completed their courses at the centre. While most of the trainees have been placed in the garment industry, a number of girls are also self-employed in their respective village and neighboring towns. On an average, their earnings range from Rs. 6000-7000 per month.

Healthcare: Healthcare outreach is an important cog in Hero Honda's social outreach matrix, and during the year, the company organised three cataract surgery camps, three heart check up camps, eleven mental health checkup camps, and one camp each for skin care and the physically challenged. Around 1000 peoplefrom the catchment area benefitted from these camps during the year.

Education: In February 2007, the Foundation had set up a computer training & learning centre in partnership with Microsoft. A total of 9 batches (boys and girls) are run simultaneously, consisting of 18-20 students per batch. Till date, a sizeable number of students have been trained at the centre. To enhance the
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value of rural youth in the job market, a spoken English course was started recently. Currently, the course is being run in three batches during the day. The Raman Kant Munjal Foundation also runs ASHA, an educational programme for village children who are first generation learners and attend Govt. Schools. The objective is to provide these children with additionalsupport to improve their educational standard and to achieve their overall development. The ASHA program was started three years ago and currently, 10 centres are being managed across 8 villages, and more than 385 children have enrolled. To ensure that there is overall personality development of ASHA children, the Foundation organizes recreational activities and soft skills trainings. Regular get togethers are also organised with Raman MunjalVidya Mandir children from time to time. The Foundation also runs an Adult Literacy program, a marriage facilitation service for underprivileged girls, besides doorstep healthcare programs and with medical camps for the local population.

In every CSR Project undertaken, the Foundation always involves either a local NGO preferably the village itself or panchayat members not only during execution but also for sustaining them in the future. In Projects like Hygiene, Sanitation, Safe Drinking Water, Local Government Representatives such as Block Development Officers are also involved for Govt. funding & Technical knowhow of the projects. A number of tree planting initiatives were also carried out in government schools located in surrounding villages, along with maintenance activities like repairing roofs and boundary walls -------------------------(As on 9-02-10, information on CSR on the company website is the same as was available last year)

://www.herohonda.com/co_csr.htm CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The Company believes it has managed to bring an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda factory at Dharuhera for integrated rural development. This includes:

* Installation of deep bore hand pumps to provide clean drinking water. * Constructing metalled roads and connecting these villages to the National Highway (NH -8). * Renovating primary school buildings and providing hygienic water and toilet facilities. * Ensuring a proper drainage system at each of these villages to prevent waterlogging. * Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas plants.

Other key projects taken up by the Foundation include: Raman Munjal Vidya Mandir The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-educational school with over 1200 students and 61 teachers. The school
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has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and a computer centre.

Raman Munjal Memorial Hospital Multi-specialty hospital equipped with the latest diagnostic and surgical technology. The Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-Jaipur highway.

Raman Munjal Sports Complex The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and football grounds are used by the local villagers. In the near future, sports academies are planned for volley ball and basket ball, in collaboration with National Sports Authority of India.

Vocational Training Centre In order to help local rural people, especially women, Hero Honda has set up a Vocational Training Centre. So far 26 batches comprising of nearly 625 women have been trained in tailoring, embroidery and knitting. The Company has helped women trained at this centre to set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of the women are now self-employed.

Adult Literacy Mission This Scheme was launched on 21st September, 1999, covering the nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults.

Marriages of underprivileged girls Marriages are organized from time to time, particularly for girls from backward classes,
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by the Foundation by providing financial help and other support to the families.

Rural Health Care Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care services to the local community. Free health care and medical camps are now a regular feature in the Hero Group's community outreach program -----------------http://www.herohonda.com/co_policy.htm AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a high-quality service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind.

"We must do something for the community from whose land we generate our wealth." A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
CSR Website / Section: Company Contact Information Company Name: Registered Address: http://www.herohonda.com/co_csr.htm

Hero Honda Motors Ltd. 34, Community Centre, Basant Lok, Vasant Vihar New Delhi Delhi 110057

City: State: Pincode:

Phone: Fax: Email Id 1: Website : Year of Establishment: Name of the Chairman / CEO: Designation: Karmayog CSR 2008 Rating: Link: Karmayog CSR 2007 Rating: Link:

011-26142451, 26144121 011-26143321, 26143198 ravisud@... http://www.herohonda.com 1984 Mr. Brijmohan Lall Munjal Chairman 3/5 http://www.karmayog.org/csr1to500/csr1to500_20146.htm 2/5 http://www.karmayog.org/csr500companies/csr500companies_7830.htm

Posted on: 09 Feb, 2010 www.karmayog.org/csr2009

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