Term Paper Report

on
Hero MotoCorp.
Submitted to: Ms. Manika Sharma
Amity University Uttar Pradesh

In partial fulfilment of the requirements for the award of the degree

of
Bachelor of Business Administration
by
Shubh Taneja
A3906418274
Under The Guidance Of
Ms. Manika Sharma
DEPARTMENT OF AMITY SCHOOL OF BUSINESS
AMITY UNIVERSITY UTTAR PRADESH
 Declaration

I, Shubh Taneja, student of BBA hereby declare that the project titled “Hero
MotoCorp.’ which is submitted by me to Department of Amity School of Business,
Amity University Uttar Pradesh, Noida, in partial fulfilment of requirement for the
award of the degree of Bachelor Of Business Administration, has not been previously
formed the basis for the award of any degree, diploma or other similar title or
recognition.

The Author attests that permission has been obtained for the use of any copyrighted
material appearing in the Dissertation / Project report other than brief excerpts
requiring only proper acknowledgement in scholarly writing and all such use is
acknowledged.

Date: 17-06-19
 CERTIFICATE

This is to certify that Mr. Shubh Taneja, student of BBA has carried out work
presented in the project of the Term paper entitle “Hero MotoCorp.” as a part of First
year program of Bachelor of Business Administration from Amity University, Uttar
Pradesh, Noida under my supervision.

_________________________

Name: Ms. Manika Sharma

Department of Amity School Of Business

ASB, Noida
 ACKNOWLEDGEMENT

The satisfaction that accompanies that the successful completion of any task would be
incomplete without the mention of people whose ceaseless cooperation made it possible,
whose constant guidance and encouragement crown all efforts with success. I would
like to thank Dr JK Sharma, Head of Department- ASB, and Amity University for
giving me the opportunity to undertake this project. I would like to thank my faculty
guide Ms. Manika Sharma who is the biggest driving force behind my successful
completion of the project. She has been always there to solve any query of mine and
also guided me in the right direction regarding the project. Without her help and
inspiration, I would not have been able to complete the project. Also I would like to
thank my batch mates who guided me, helped me and gave ideas and motivation at
each step.

Shubh Taneja
 Table Of Contents

CONTENT PAGE

INTRODUCTION 6

HISTORY 7

OPERATING INDUSTRY 8

PRODUCTS 10

BOARD OF MEMBERS 11

COMPETITORS 12

CONTRIBUTION TO GDP 13

FINANCIAL ANALYSIS 14

KEY POLICIES 15

MARKETING TACTICS 17

SWOT ANALYSIS 18

CONCLUSION 19
 INTRODUCTION

Hero Moto Corp, formerly Hero Honda, is Indian motorcycle and scooter manufacturer

based in New Delhi, India. The company is the largest two-wheeler manufacturer in the
world, and also in India, where it has a market share of about 46% in the two-wheeler
category. Hero Honda started its operations in 1984 as a joint venture between HeroCycles
(sometimes called Hero Group, not to be confused with the Hero Group food company of
Switzerland) of India and Honda of Japan. In 2010, when Honda decided to move out of the
joint venture, Hero Group bought the shares held by Honda. "Hero" is the brand name used
by the Munjal brothers for their flagship company, Hero Cycles Ltd. A joint venture between
the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda
Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake
in the Company.
 HISTORY

Hero MotoCorp is the World's single largest two–wheeler motorcycle company. Motor
Company of Japan and the Hero Group entered a joint venture to setup Hero Motors Limited
in 1984. The joint venture between India's Hero Group and 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 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 sold millions of bikes purely on the commitment of
increased mileage. Over 20 million Hero two wheelers tread Indian roads today. These are
almost as many as the number of people in Finland, Ireland and Sweden put together. Hero
has consistently grown at double digits since inception; and today, every second motorcycle
sold in the country is a Hero. Every 30 seconds, someone in India buys Hero's top –selling
motorcycle – Splendor. This festive season, the company sold half a million two wheelers in
a single month—a feat unparalleled in global automotive history. Hero became the first
company in the country to introduce four–stroke motorcycles and set the standards for fuel
efficiency, pollution control and quality. It has an excellent distribution and service network
spread throughout the country. Hero 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. Having reached an unassailable pole position in the Indian two wheeler
market, Hero 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
mainstream. This would provide the growth ballast that would sustain Hero in the years to
come. As Brijmohan Lall Munjal, the Chairman, Hero 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.''
 OPERATING INDUSTRY

Hero MotoCorp has manufacturing facilities located at five locations in India. The five
manufacturing plants of Hero MotoCorp have a combined production capacity of more than 9
million vehicles annually.

 Satyavedu, Andhra Pradesh

 Dharuhera, Haryana
 Gurgaon, Haryana
 Neemrana, Rajasthan
 Haridwar, Uttarakhand

Hero MotoCorp has over 7,000 dealership and service centre units in 29 states and four union
territories of India.
 PRODUCTS

Being the largest manufacturer of two-wheelers in India and the world, Hero MotoCorp
produces a diversified range of models and variants to cater to the needs and demands of its
customers.

Following are the current models.

Scooters

 Pleasure
 Maestro Edge
 Duet
Motorcycles
 HF Dawn
 HF Deluxe
 HF Deluxe Eco
 Splendor+
 Splendor Pro
 Splendor Pro Classic
 Splendor iSmart
 Splendor ismart 110cc
 Passion Pro
 Passion Pro TR
 Passion XPro
 Super Splendor
 Glamour
 Achiever
 Impulse
 Hunk
 Xtreme
 Xtreme Sports
 Karizma
 BOARD OF MEMBERS
Name
Mr. Pawan Munjal
Mr. Pradeep Dinodia
Mr. Suman Kant Munjal
Mr. Paul Edgerly
Dr Anand C. Burman
Ms. Shobana Kamineni
Mr. Vikram Kasbekar
Prof. Jagmohan Singh Raju
Designation
Chairman & Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive & Independent Director
Non-Executive & Independent Director
Non-Executive & Independent Director
Executive Director Operations (Plants)
Additional & Independent Director
 COMPETITORS

Below are the 7 main Hero Moto Corp competitors :

 Yamaha.
 Bajaj Auto Limited.
 TVS Motors.
 Suzuki Motors.
 Harley Davidson.
 Royal Enfield.
 Ducati Superbike.
 CONTRIBUTION TO GDP

India, one of the fastest growing major economies, has recently emerged as the world’s sixth
largest manufacturing country as well. India’s GDP for FY 2016-17 touched 7.1%,
demonstrating the fact that India’s economic fundamentals continue to be strong. While
emerging urban clusters are driving this growth, rural India is seeing a recovery after around
3-4 years. Such a scenario is likely to generate momentum for India Inc. The country’s
economic prospects appear optimistic with policymakers creating enablers for strong and
sustainable growth for the medium to long-term.
India’s GDP grow (%)
2013-14 2014-15 2015-16 2016-17
6.9 7.3 7.6 7.1

Financial Analysis
Key Policies
A company that believes in maintaining ecological standards along with business standards.
"We must do something for the community from whose land we generate our wealth." -
Chairman Dr.Brijmohan Lall Munjal.

At Hero MotoCorp, our goal isn't limited to business but encompasses the broader spectrum
of serving humanity through social initiatives. Hero MotoCorp takes a stand as a socially
responsible enterprise respectful of its environment.

Hero MotoCorp has been strongly devoted not only to environmental conservation programs
but also expresses the increasingly inseparable balance between economic concerns,
environmental and social issues faced by business. A business must not grow at the expense
of mankind but must serve humankind at large.

Environment Policy

We at Hero MotoCorp have been committed to demonstrate excellence in our environmental

performance on a continuous basis, as an intrinsic element of our corporate philosophy

To achieve this we commit ourselves to:

 Integrate environmental attributes and cleaner production in all our business processes
and practices with specific consideration to substitution of hazardous chemicals and
strengthening the greening of supply chain.

 Continue product innovations to improve environmental compatibility.

 Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).

Quality Policy

Excellence in quality is the core value of Hero MotoCorp philosophy

.
We are committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations through:

 Innovation in products, processes and services.

 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.
Safety Policy

We believe that safe work practices lead to better business performance, motivated workforce
and higher productivity.

We shall create a safety culture in the organization by:

 Integrating safety and health matters in all our activities

.
 Promoting safety and health awareness amongst employees, suppliers and contractors.

 Continuous improvements in safety performance through precautions be sides

participation and training of employees.
 Marketing Tactics

Market Segmentation

Hero MotoCorp caters to a wide consumer base. It has segmented its market based on income
and age. It caters to youth of all income groups. Its highest selling bike Splendor is a
favourite in sub urban and rural areas of India. It potrays itself as the most efficient bike
range to cater to Indian Roads.

Target Market

Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs 37,000
to Rs 95,000 . Each product has multiple optional features. The USP that it uses are : strong,
sturdy and powerful,greater mileage, low maintenance cost, safe to ride, ease and comfort. Its
target market includes lower middle class consumer to upper middle class consumer. Its is
affordable, available and acceptable by all.
Positioning Strategy
 SWOT ANALYSIS

STRENGTHS

 Huge Brand Equity– This is really one of the biggest strengths of Hero Motocorp.

This company is one of the biggest players in the market of two-wheelers.
 Strong Brand Image– A Company can only grow once it is popular by its brand
name. Hero Motocorp is really one of those companies who can play hard on the
popularity field.
 Excellent Distribution– Hero Motocorp has more than 3000 dealerships and service
centers which have made it the leading company in the industry.
 Wide Variety of Products – The more products a company launch successfully, the
more popular it becomes. Hero Motocrop is, therefore, the real hero in the market.
 Awards and Recognition– Customers can rely on a brand when it is acknowledged
with rewards and awards. Hero Motocorp has received many in all these years.
 Sponsorships– Events, related to sports and racing provide sponsorships to the
company that has made it hugely popular of all its competitors.

WEAKNESSES

 Strong Competition– There are lots of national and international players in the

market who give tough competition to the Hero Motocorp.
 Lack of Innovation – Maximum products of Hero Motocorp comes with almost
similar features, whether is design and functions.

OPPORTUNITIES

 Growing Industry– The demand for two-wheelers are increasing a lot, and that

brings the opportunity for the company to grow bigger.

THREATS

 Strong Competition– There are lots of other companies which are emerging rapidly
and give tough competition to the company.
 Betterment of Public Transport– As other modes of transportation have increased a
lot, the use of two-wheelers is not in demand.
 CONCLUSION

Hero MotoCorp remains a debt-free franchise with high return ratios

In both motorcycle & scooter segment, Hero MotoCorp Ltd has faced severe competition
from its peers resulting in a loss of market share. Hero MotoCorp Ltd’s margins have remained
under pressure in the past fiscal years as the product mix deteriorated.

Unlike its other peers Bajaj and TVS, Hero MotoCorp Ltd is heavily dependent on a single
segment. A single market makes it more vulnerable to a demand slowdown. We continue to
believe the 2-W space is likely to face growth challenges, at least in the near to medium term,
with Hero MotoCorp Ltd being no exception to the industry. The response to the new product
launches holds the key to the long-term growth for Hero MotoCorp Ltd in India.

Hero MotoCorp Ltd plans to double its target export markets from currently 29 to 50 countries
over next few years. Hero MotoCorp Ltd being one of the last entrant could find it difficult to
compete against incumbents due to limited scope to differently position its product. This
coupled with turmoil in currencies of these markets would make entry and ramp-up even more
difficult.

Hero MotoCorp Ltd. has been able to maintain a leadership position in the two-wheeler
segment despite stiff competition on the back of higher warranties, established distribution
strength and increasing spends on R&D.

Hero MotoCorp Ltd. need to focus on premium segment where Bajaj TVS, Royal Enfield are
doing great in that area where Hero is not having much market share.