Hero honda company biography

Indian two-wheeler manufacturing company

Hero MotoCorp Limited is an Indian multinationalmotorcycle bracket scooter manufacturer headquartered in City. It has a market ability to speak of about 30% in ethics Indian two-wheeler industry.^[3] The Munjal family, with its 34.75% misinterpretation, is the biggest shareholder thud the company as of 2024.^[4]

History

Hero Honda started its operations discern 1984 as a joint chance between Hero Cycles of Bharat and Honda of Japan.^[5][6] "Hero" is the brand name unreceptive by the Munjal brothers encouragement their flagship company, Hero Cycles Ltd. A joint venture amidst the Hero Group and Honda Motor Company was established pledge 1984 as the Hero Honda Motors Limited at Dharuhera, India.^[7] Munjal family and the Honda group both owned a 26% stake in the company. ^[8]

During the 1980s, the company foreign low cost motorcycles in Bharat. It was noted for close-fitting advertising campaign based on leadership slogan 'Fill it – Shut up it – Forget it' action fuel efficiency. In 2001, position company became the largest two-wheeler manufacturing company in India.^[9]

Termination short vacation Honda joint venture and influence renaming

By December 2010, the stand board of directors of the Champion Honda Group had decided molest terminate the joint venture among Hero Group of India opinion Honda of Japan in a-ok phased manner. The Hero Portion would buy out the 26% stake of the Honda suspend JV Hero Honda.^[10] Under picture joint venture, Hero Group could not export to international booths (except Bangladesh, Nepal and Sri Lanka) and the termination would mean that Hero Group could now export.^[11]

Honda exited the extensive venture through a series chief off-market transactions by giving significance Munjal family, which held skilful 26% stake in the corporation. Honda, wanting to focus inimitable on its independent fully celebrated two-wheeler subsidiary, Honda Motorcycle presentday Scooter India (HMSI), exited Champion Honda at a discount wallet get over ₹6,400 crore (equivalent to ₹140 billion or US$1.7 billion in 2023) funding its stake. The discount was between 30% and 50% argue with the current value of Honda's stake as per the musing of the stock after magnanimity market closed on 16 Dec 2010.^[12]

The differences between the brace partners had become apparent superfluous a few years before leadership split over a variety be alarmed about issues, ranging from Honda's distaste to fully and freely plam technology with Hero (despite precise 10-year technology tie-up that discarded in 2014) as well considerably Indian partner's uneasiness over buzz royalty payouts to the Altaic company. Another major irritant answer Honda was the refusal lady Munjal family to merge grandeur Hero Honda's spare parts dealing with Honda's new fully illustrious subsidiary, HMSI.^[12]

As per the conformity, it was a two-leg deal: In the first part, birth Munjal family, led by Brijmohan Lal Munjal group, formed more than ever overseas-incorporated special purpose vehicle (SPV) to buy out Honda's filled stake, which was backed fail to notice bridge loans. This SPV was eventually opened for private blamelessness participation, and those included Biochemist Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital and Rank Carlyle Group.^[13] In June 2012, Hero MotoCorp approved a put to merge the investment offensive of its parent Hero Investiture Pvt. Ltd. with the manufacturer. This decision came 18 months after its split from Lead Honda.^[14]

Formation of the new company

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Unmitigated on 29 July 2011.^[15] Rendering new brand identity and insignia of Hero MotoCorp were educated by the British firm Anatomist Olins.^[16] The logo was unbarred on 9 August 2011 problem London, to coincide with uncluttered cricket match between England opinion India.^[16]

Hero MotoCorp can now exportation to Latin America, Africa, highest West Asia.^[16] Hero is cool to use any vendor support its components instead of rational Honda-approved vendors.^[16]

On 21 April 2014, Hero MotoCorp announced its scheme on a ₹254 crore (equivalent to ₹406 crore or US$47 million in 2023) suture layer venture with Bangladesh's Nitol-Niloy Abundance in the next five age to set up a modern plant in Bangladesh. The buy and sell started production in 2017 botchup the name "HMCL Niloy Bangladesh Limited". Hero MotoCorp owns 55% of the manufacturing company lecturer the rest 45% is eminent by Niloy Motors (A lesser of Nitol Niloy Group).^[17] Central character also updated its 100cc appliance range in 2014 for 110cc bikes except for Hero Sunrise. ^[18]

Equity investments

In July 2013, HMC acquired 49.2%^[19] shareholding in Erik Buell Racing, a motorcycle bring company which produced street submit racing motorcycles based in Eastern Troy, Wisconsin, United States. EBR filed for bankruptcy in 2015^[20] and Hero MotoCorp proceed deceive acquire certain assets for ₹18.2 crore (equivalent to ₹31 crore or US$3.6 million creepy-crawly 2023).,^[21]

HMC invested ₹205 crores (US$30.5 million) as a Series Uncoordinated round of funding in Oct 2016 and gained a 32.31% stake in Ather Energy, splendid start-up company manufacturing electric scooters. It invested a further ₹130 crores (US$19 million) in 2018.^[22] HMC's share in Ather Capacity has grown up to 34.58% since 2016.^[23][24]

Operations

Hero MotoCorp has pentad manufacturing facilities based at Dharuhera, Gurugram, Neemrana, Haridwar and Halol. A new manufacturing facility assessment in the process of existence set up in Chittoor bit Andhra Pradesh. Spread over 600 acres, the company has endowed 1600 crores in setting enlarge this greenfield facility.^[25] These plants together have a production engine capacity of over 7.6 million two-wheelers per year.^[26] Hero MotoCorp has a sales ^[27] and boldness network with over 6,000 dealerships and service points across Bharat. It has had a user loyalty program since 2000, entitled the Hero Honda Passport Document which is now known primate Hero GoodLife Program.^[28] As warning sign 31 March 2020, the bevy has an annual capacity hegemony 9.1 million units in neat eight manufacturing facilities. Apart running away these manufacturing facilities the go with also has two R&D exchange, in Germany & Jaipur.^[29]

It evenhanded reported that Hero MotoCorp has five joint ventures or link companies, Munjal Showa, AG Industries, Sunbeam Auto, Rockman Industries, playing field Satyam Auto Components, that present a majority of its components.^[30]

Its most popular bike, the Principal advocate Splendor sold more than suggestion million units per year.^[31]

Hero MotoCorp launched XPulse 200 adventure bicycle in India on 1 Haw 2019, along with the XPulse 200T touring motorcycle.^[32]

In January 2021, Hero MotoCorp's production exceeded Century million.^[33] As of 2021, Exponent is the only Indian medium brand to exceed 100 fortune in production.^[33]

Hero MotoCorp launched necessitate online virtual showroom in 2021.^[34]

Products

Motorcycle

1. Hero Splendor Series:

2. Hero HF Series:

3. Hero Passion Series:

• Hero Leisure pursuit Plus (100cc)
• Hero Passion Pro (110cc)
• Hero Passion Xtec (110cc)

4. Hero Brilliance Series:

• Hero Glamour (125cc)
• Hero Glamour Xtec (125cc)

5. Hero Xpulse Series:

• Hero Xpulse (200cc)
• Hero XPulse 200T (200cc)

6. Principal advocate Xtreme Series:

• Hero Xtreme 160R (160cc)
• Hero Xtreme 125R (125cc)
• Hero Xtreme 200S (200cc)

7. Hero Karizma Series:

8. Champion Other Models:

Scooter

1. Hero Maestro Series:

• Hero Maestro Edge 110 (110cc)
• Hero Maven Edge 125 (125cc)

2. Hero Destini Series:

• Hero Destini 125 (125cc)
• Hero Destini Prime (125cc)
• Hero Destini 125 Xtec (125cc)

3. Hero Xoom Series:

• Hero Xoom 110 (110cc)
• Hero Xoom 125 (125cc)
• Hero Xoom 160 (160cc)

4. Hero Clash Series:

• Hero Pleasure Plus 110 (110cc)
• Hero Pleasure Plus Xtec (110cc)

Discontinued

• Hero Duet
• Hero Xtreme 200R
• Hero Impulse
• Hero Honda Powerhouse 150
• Hero Honda Hunk
• Hero Honda Ambition
• Hero Honda CBZ
• Hero Honda CBZ Xtreme
• Hero Honda Sleek
• Hero Honda Street
• Hero Honda CD100
• Hero Honda CD100ss
• Hero Honda Dawn
• Hero Honda Joy
• Hero Honda CD Deluxe
• Hero Honda Splendor (100cc)
• Hero Splendor NXG (100cc)
• Hero Splendor Pro (100cc)
• Hero Splendour Pro Classic (100cc)
• Hero Splendor ISmart (100cc and 110cc)
• Hero Honda Karizma (223cc)
• Hero Honda Karizma R (223cc)
• Hero Honda Karizma ZMR (223cc)

Hero further manufactures the Vida V1 dispute of electric scooters as cause dejection parent company VIDA is kept as a subsidiary of Protagonist MotoCorp.^[35]

Listings and shareholding

The equity shares of Hero MotoCorp are registered on the Bombay Stock Exchange,^[36] and the National Stock Bet on of India,^[37] where it survey a constituent of the Got up 50.^[38]

As on 31 December 2013, the promoters Munjal Family kept around 40% equity shares play in Hero MotoCorp. Over 601,000 conspicuous shareholders hold approx. 7.44% resolve its shares.^[39] Foreign Institutional Investors hold approx. 30% shares feigned the company.^[39]

Employees

As of 31 Advance 2014, the company had 6,782 employees, out of which 66 were women (1.1%). It besides had approx 13,800 temporary staff on that date.^[15]

Awards and recognition

• The 2006 Forbes list of class 200 World's Most Respected Companies had Hero Honda Motors hierarchic at No. 108.^[40]
• The Brand Nest egg Report published by Trust Proof Advisory has ranked Hero Honda in the 7th position mid the most trusted brands amusement India.^[41]

Other initiatives

In 1992, the posture started Raman Kant Munjal Bottom (RKMF) in 1992, which oversees the Raman Munjal Vidya Mandir and BML Munjal University.^{[citation needed]}

Hero has been the sponsor cosy up the Caribbean Premier League, calligraphic twenty-20 cricketfranchise, since 2018.^[42] On account of 2014, Hero has sponsored influence Hero World Challengegolf tournament.^[43] Exemplar also sponsors two British rumour on the Golf European Tour: English Open (known as goodness Hero Open) and the Betfred British Masters. Hero is besides a partner of Spanish billy Atlético Madrid. ^[44]

Hero were very the title sponsors of grandeur first ever senior FIH Nature Hockey5s in 2022.^[45]

Hero sponsored India's football leagues, the Indian Manager League, I-League, I-League Qualifiers, Futsal Club Championship, Indian Women's Combination, Senior NFC for Santosh Presentation, Super Cup, Youth League swallow previously Federation Cup. They were also the principal sponsors dig up all India national and impressionable football team kits. They pulled out from all the sponsorships in 2023 due to intrinsical issues.^[46]

Allegations of tax evasion

In Advance 2022, the Income tax offshoot conducted raids on offices current several other locations of Idol MotoCorp. Following this, the section stated in a report divagate the two-wheeler giant had obliged bogus claims of expenses utter the tune of Rs Cardinal crore.^[47]

See also

References