These slides have information about hero and honda joint venture

1. Presented By:-
Akash
Mishra
MBA

2. INTRODUCTION
 Hero Moto Corp Ltd. is the world’s largest manufacturer
of two-wheeler, based in India.
 In 2001,the company achieved the best position of being
the largest two-wheeler manufacturer in India and also,
the “World’s No.1” two-wheeler company in terms of unit
volume sales in a calendar year. Hero Moto Corp Ltd.
continues to maintain this position till date.
 Company continues to lead the domestic motor cycle
market with 54.6% market share

3. IMPORTANT PEOPLE
Founder:- B.M MUNJAL
Director:- BRIJ MOHANLAL
Managing Director:- PAWAN
MUNJAL
(C.E.O)

4. products
 Hero product range includes variety of motor cycles that
have set the industry standards across all the market
segments.
 The company also started manufacturing scooter in 2006.
 Hero offers large number of product and serve to wide
variety of requirement across all the segments.

6. Key strategies
 To build a strong product portfolio.
 Explore growth opportunities globally.
 Improve its operational efficiency continuously.
 Aggressively expand its reach to customers.
 Continue to invest in brand building activities.
 Ensure customer and shareholder delight.

7. competitors
1. Bajaj Auto
2. TVS Motor
3. Mahindra
4. LML ( Lohia Machinery Limited)

8. Market presence
PRODUCT :
CD Dawn, Splendor, Passion, Glamour , CBZ,
Karizma etc.
PRICE :
Price of Hero Bikes starts from Rs.39478 to
Rs.1,10655.

9. SEGMENTATION and
TARGETING :
Splendor- Price oriented people.
Glamour- Price as well as Tech oriented people.
Karizma- Status oriented people.
POSITIONING :
Worlds largest motor cycle manufacture company.
It is known by its sale of over 15 million bikes.

10. missions
 Hero Moto Corp’s mission is to become a global
enterprise fulfilling its customer’s needs and
aspirations for mobility.
 Setting benchmarks in technology, styling and quality
so that it converts customers into brand advocate.

11. Organisation Structure
 Provide friendly environment to employees.
 Encourage its employees to put in their best.
 Embedded with humanity and honesty to achieve
mutual respect.

12. JOINT VENTURE

13. HERO BEFORE JOINT VENTURE
 Hero cycles manufactured 16000 cycles per
day.
 Sold about 86 million bicycles till 2002.
 Nurtured an excellent network of dealers to
serve India's expansive market.

14. HONDA STRATEGIES
 Honda motor company initially planned to enter two wheeler
segment and electric generator segment
 Honda first chose kinetic engineering ltd. and formed Kinetic
Honda Motors Ltd. joint venture for scooter manufacturing
 It chose Hero Group for motor cycle
manufacturing as joint venture.

15. WHY HERO FOR JOINT VENTURE
Wide
Distribution
Network
Through
Dealers
Better
Understandin
g Of The
Market
Dynamics
Limited
options with
Honda
Wide
Experience In
Manufacturin
g of Vehicles
Commitment
To Quality
Focus On
Financial And
Raw Material
Processes
Engineering
Capabilities

16. DEAL IS DONE!
 Joint Venture came up in June 1984 -Hero Honda Motors
Ltd.
 Honda would provide technical know how and assist in setting
manufacturing facilities,
 Honda agreed for $500000 as one time wage sum fees and 4%
loyalty
 Joint Venture had 26% equity each with 26% to the public and rest

17. THE SPLIT...
HERO HONDA1984 - 2010
HERO MOTOCORP LTD
Paid 2,479 crore for
assembly,
manufacture, selling
which have been
reduce over a period of
42 month
HONDA
- Entered into a share
transfer agreement
- Entire share holding
of 26% transferred to
Hero, bringing an end
to the joint venture

18. REASONS FOR SPLIT
• Higher Royalty Payments
Reason 1
• Refusal of Hero Honda to
merge the company's spare
parts business with HMSI
Reason 2
• Partners turning into
CompetitorsReason 3

19. After Splitting
New logo
PUNCHLINE
Hum Mein Hai Hero

20. Thank
You