Hero Motocorp
   HOME

TheInfoList



OR:

Hero MotoCorp Limited (formerly Hero Honda) is an Indian multinational
motorcycle A motorcycle (motorbike, bike, or trike (if three-wheeled)) is a two or three-wheeled motor vehicle steered by a handlebar. Motorcycle design varies greatly to suit a range of different purposes: long-distance travel, commuting, cruising ...
and scooter manufacturer headquartered in
New Delhi New Delhi (, , ''Naī Dillī'') is the capital of India and a part of the National Capital Territory of Delhi (NCT). New Delhi is the seat of all three branches of the government of India, hosting the Rashtrapati Bhavan, Parliament House ...
. The company is one of the largest two-wheeler manufacturers in the world, as well as in India, where it has a market share of about 37.1% in the two-wheeler industry. , the
market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by t ...
of the company was .


History

Hero Honda started its operations in 1984 as a joint venture between
Hero Cycles Hero Cycles Limited, based in Ludhiana, Punjab, India, Punjab, is an Indian company that manufactures bicycles and bicycle related products. Pankaj M Munjal is the chairman and managing director of Hero Cycles. History Hero Cycles was estab ...
of India and
Honda is a Japanese public multinational conglomerate manufacturer of automobiles, motorcycles, and power equipment, headquartered in Minato, Tokyo, Japan. Honda has been the world's largest motorcycle manufacturer since 1959, reaching a product ...
of
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
. In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. with the automaker. This decision came 18 months after its split from Hero 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 Dharuhera is a census town located, just 19 km from Rewari city in Rewari district of the state of Haryana, India. Dharuhera comes under Delhi NCR region and it is a big Industrial hub in Rewari District. Dharuhera is the new growth corridor of ...
, India. Munjal family and Honda group both owned a 26% stake in the company. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it – Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. In 2001, the company became the largest two-wheeler manufacturing company in India and globally. It maintains global industry leadership to date. The technology in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come from the Japanese counterpart Honda.


Termination of Honda joint venture and the renaming

By December 2010, the board of directors of the Hero Honda Group had decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture, Hero Group could not export to international markets (except
Nepal Nepal (; ne, नेपाल ), formerly the Federal Democratic Republic of Nepal ( ne, सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल ), is a landlocked country in South Asia. It is mai ...
, Bangladesh and
Sri Lanka Sri Lanka (, ; si, ශ්‍රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
) and the termination would mean that Hero Group could now export. From the beginning, the Hero Group relied on their Japanese partner Honda for technology. Honda exited the joint venture through a series of off-market transactions by giving the Munjal family, which held a 26% stake in the company. Honda, wanting to focus only on its independent fully owned two-wheeler subsidiary, Honda Motorcycle and Scooter India (HMSI), exited Hero Honda at a discount and get over for its stake. The discount was between 30% and 50% to the current value of Honda's stake as per the price of the stock after the market closed on 16 December 2010. The rising differences between the two partners gradually emerged as an irritant. Differences had been brewing for a few years before the split over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expired in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda, (mainly managed by the Munjal family), to merge the company's spare parts business with Honda's new fully owned subsidiary, HMSI. As per the arrangement, it was a two-leg deal: In the first part, the Munjal family, led by Brijmohan Lal Munjal group, formed an overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake, which was backed by bridge loans. This SPV was eventually opened for private equity participation, and those included
Warburg Pincus Warburg Pincus LLC is a global private equity firm, headquartered in New York, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. Warburg has been a private equity investor since 1966. The firm currently has over ...
,
Kohlberg Kravis Roberts KKR & Co. Inc., also known as Kohlberg Kravis Roberts & Co., is an American global investment company that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strate ...
(KKR), TPG,
Bain Capital Bain Capital is an American private investment firm based in Boston. It specializes in private equity, venture capital, credit, public equity, impact investing, life sciences, and real estate. Bain Capital invests across a range of industry se ...
and
Carlyle Group The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, real assets, and pri ...
.


Formation of the new company

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Limited on 29 July 2011. The new brand identity and logo of Hero MotoCorp were developed by the British firm
Wolff Olins Wolff Olins is a British advertising agency and corporate identity consultancy. It was started in 1965 and has offices in London, New York City and San Francisco. It now employs some 150 designers, strategists, technologists, programme managers ...
. The logo was revealed on 9 August 2011 in London, to coincide with the third
test match Test match in some sports refers to a sporting contest between national representative teams and may refer to: * Test cricket * Test match (indoor cricket) * Test match (rugby union) * Test match (rugby league) * Test match (association football) ...
between England and India. Hero MotoCorp can now export to
Latin America Latin America or * french: Amérique Latine, link=no * ht, Amerik Latin, link=no * pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
,
Africa Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
and
West Asia Western Asia, West Asia, or Southwest Asia, is the westernmost subregion of the larger geographical region of Asia, as defined by some academics, UN bodies and other institutions. It is almost entirely a part of the Middle East, and includes Ana ...
. Hero is free to use any vendor for its components instead of just Honda-approved vendors. On 21 April 2014, Hero MotoCorp announced its plan on a joint venture with Bangladesh's Nitol-Niloy Group in the next five years to set up a manufacturing plant in Bangladesh. The plant started production in 2017 under the name "HMCL Niloy Bangladesh Limited". Hero MotoCorp owns 55% of the manufacturing company and the rest 45% is owned by Niloy Motors (A subsidiary of Nitol-Niloy Group). Hero also updated its 100cc engine range in 2014 for 110cc bikes except for Hero Dawn.


Equity investments

In July 2013, HMC acquired 49.2% shareholding in
Erik Buell Racing Erik Buell Racing (EBR) is an American motorcycle sport company which produces street and racing motorcycles, based in East Troy, Wisconsin, USA. The business entered receivership in April 2015. After two previous attempts, the business remnants ...
, a
motorcycle sport Motorcycle sport is a broad field that encompasses all sporting aspects of motorcycling. The disciplines are not all races or timed-speed events, as several disciplines test a competitor's various riding skills. Motorcycle racing Motorcycle rac ...
company which produced street and racing motorcycles based in
East Troy, Wisconsin East Troy is a village in Walworth County, Wisconsin, Walworth County, Wisconsin, United States. The population was 4,687 at the 2020 United States Census, 2020 census. The village is located southwest of the East Troy (town), Wisconsin, Town of ...
, United States. EBR filed for bankruptcy in 2015 and Hero MotoCorp proceed to acquire certain assets for ., HMC invested 205 crore (US$30.5 million) as Series B round of funding in October 2016 and gained a 32.31% stake in Ather Energy, a start-up company manufacturing electric scooters. It invested a further 130 crore (US$19 million) in 2018. HMC's share in Ather Energy has grown up to 34.58% since 2016.


Operations

Hero MotoCorp has five manufacturing facilities based at
Dharuhera Dharuhera is a census town located, just 19 km from Rewari city in Rewari district of the state of Haryana, India. Dharuhera comes under Delhi NCR region and it is a big Industrial hub in Rewari District. Dharuhera is the new growth corridor of ...
,
Gurugram Gurgaon (pronunciation: ʊɽɡãːw, officially named Gurugram (pronunciation: ʊɾʊɡɾaːm, is a city located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest of the nationa ...
,
Neemrana Neemrana is an ancient historical town in Alwar district of Rajasthan, India, from Alwar city, from New Delhi and from Jaipur on the Delhi-Jaipur highway in Neemrana tehsil. It is between Behror and Shahajahanpur. Neemrana is an industria ...
,
Haridwar Haridwar (; ) is a city and municipal corporation in the Haridwar district of Uttarakhand, India. With a population of 228,832 in 2011, it is the second-largest city in the state and the largest in the district. The city is situated on the righ ...
and
Halol Halol is a city and a municipality (tehsil) in Panchmahal district in the Indian state of Gujarat. Located in western India, it has an average elevation of 499 metres (1637 feet). Halol is a major manufacturing hub of Western India, ...
. A new manufacturing facility is in the process of being set up in Chittor in Andhra Pradesh. Spread over 600 acres, the company has invested 1600 crores for setting up this greenfield facility. These plants together have a production capacity of over 76
lakh A lakh (; abbreviated L; sometimes written lac) is a unit in the Indian numbering system equal to one hundred thousand (100,000; scientific notation: 105). In the Indian 2,2,3 convention of digit grouping, it is written as 1,00,000. For ex ...
(7.6 million) 2-wheelers per year. Hero MotoCorp has a sales and service network with over 6,000 dealerships and service points across India. It has had a customer loyalty program since 2000, called the Hero Honda Passport Program which is now known as Hero GoodLife Program. As of 31 March 2020, the company has an annual capacity of 9.1 million units in its eight manufacturing facilities. Apart from these manufacturing facilities the company also has two R&D facilities, in Germany & Jaipur. It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa, AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a majority of its components. As of March 2013, the company has sold over 7 crore (70 million) 2-wheelers since its inception in 1984. It sold 60.7 lakh (6.07 million) 2-wheelers in 2012, out of which 55 lakh (5.5 million) were motorcycles. Hero MotoCorp sells more two-wheelers than the second, third, and fourth-placed two-wheeler companies put together. Its most popular bike, the
Hero Splendor The Hero Splendor+ is an entry level motorcycle manufactured in India by Hero motocorp. It has an electronic ignition and a tubular double cradle type frame with a engine. The engine is based on the Honda Cub C100EX with a similar bore and str ...
sells more than 10 lakh units per year. The company has a stated aim of achieving revenues of and volumes of 10 lakh two-wheelers by 2016–17. This is in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve 10% of its revenues from international markets, and they expected to launch sales in
Nigeria Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...
by end-2011 or early-2012. Hero MotoCorp launched XPulse 200 adventure motorcycle in India on 1 May 2019, along with the XPulse 200T touring motorcycle. In 2019, Hero MotoCorp sold more than 78 lakh (7.8 million) units, which is the highest by any two-wheeler company in the world. It registered its best-ever monthly performance by selling 7,69,000 units in the month of September 2018. In the April - June 2018 quarter (non-festive time), the company registered its best-ever quarterly performance by selling more than 21 lakh (2.1 million) units. In January 2021, Hero MotoCorp's production exceeded 100 million. As of 2021, Hero is the only Indian automobile brand to exceed 100 million in production. In February 2021, Hero MotoCorp sold 484,405 units with 0.9 percent growth. Hero MotoCorp has launched an online virtual showroom.


Listings and shareholding

The equity shares of Hero MotoCorp are listed on the
Bombay Stock Exchange BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange. It is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a Jain businessman, it is the oldest stock exchange in ...
, and the
National Stock Exchange of India National Stock Exchange of India Limited (NSE) is the leading stock exchange under the ownership of various group of domestic and global financial institutions, public and privately owned entities and individuals. It is located in Mumbai, Mah ...
, where it is a constituent of the
NIFTY 50 The NIFTY 50 is a benchmark Indian stock market index In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels ...
. As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero MotoCorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares. Foreign Institutional Investors hold approx. 30% shares in the company.


Employees

As of 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%). It also had approx. 13,800 temporary employees on that date. The company had an attrition rate of 5.1% in the FY 2012–13. The company spent on employee benefits during the FY 2012–13.


Awards and recognition

* The 2006 Forbes list of the 200 World's Most Respected Companies had Hero Honda Motors ranked at No. 108. * The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 7th position among the most trusted brands in India.


Initiatives

The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as Hero Honda Motors Ltd., that looks after: * Raman Munjal Vidya Mandir (Educational Institution) * BML Munjal University During the financial year, the company spent ₹1.4 crores) on
corporate social responsibility Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...
.


Sponsorship

Hero has been the sponsor of the
Caribbean Premier League The Caribbean Premier League (abbreviated to CPL or CPLT20) is an annual Twenty20 cricket tournament held in the Caribbean. It was founded by Cricket West Indies in 2013 to replace the Caribbean Twenty20 as the premier Twenty20 competition in t ...
, a
twenty-20 cricket Short form cricket is a collective term for several modified forms of the sport of cricket, with playing times significantly shorter than more traditional forms of the game. A typical short form cricket match can be completed within two to three ...
franchise Franchise may refer to: Business and law * Franchising, a business method that involves licensing of trademarks and methods of doing business to franchisees * Franchise, a privilege to operate a type of business such as a cable television p ...
, since 2018. Hero also sponsors India's top men's
football Football is a family of team sports that involve, to varying degrees, kicking a ball to score a goal. Unqualified, the word ''football'' normally means the form of football that is the most popular where the word is used. Sports commonly c ...
leagues (
Indian Super League The Indian Super League (ISL) is an Indian professional league for men's association football clubs. At the top of the Indian football league system, it is the country's primary football competition. Organised by the All India Football Federat ...
and
I-League The I-League (known as Hero I-League for sponsorship ties with Hero MotoCorp) is the second-tier men's professional football competition of the Indian football league system. It is currently contested by 12 clubs across the country with the w ...
),
I-League Qualifiers I-League 2, previously known as I-League 2nd Division and officially known as or Hero I-League 2 (for sponsorship ties with Hero MotoCorp), is an Indian men's professional football league. It is the 3rd tier of Indian football, behind India ...
,
Futsal Club Championship The Futsal Club Championship, also referred as Hero Futsal Club Championship for sponsorship ties, is the highest level futsal club competition in India, organised by the All India Football Federation (AIFF). The inaugural edition kicked off ...
, women's top-tier
Indian Women's League The Indian Women's League, known as ''Hero Indian Women's League'' for sponsorship ties with Hero MotoCorp is the women's top tier professional football league in Indian football. Founded in 2016, currently a total of 18 teams from across the ...
, Senior NFC for Santosh Trophy, Super Cup, Youth League and previously
Federation Cup Federation Cup or Fed Cup is the former name of the premier world team competition in women's tennis. Federation Cup may also refer to: * Capital Football Federation Cup, an Australian territory-based association football tournament *Federation Cup ...
. They are also the principal sponsors of all India national and developmental football teams kits. Since 2014, Hero has sponsored the
Hero World Challenge The Hero World Challenge is a golf tournament hosted by Tiger Woods, which takes place each December. It features a small number (currently 20) of top-ranked golf pros. The tournament is a benefit for the Tiger Woods Foundation. The event is part ...
golf tournament. Hero also sponsors two British events on the
Golf Golf is a club-and-ball sport in which players use various clubs to hit balls into a series of holes on a course in as few strokes as possible. Golf, unlike most ball games, cannot and does not use a standardized playing area, and coping wi ...
European Tour: English Open (known as the Hero Open) and the Betfred British Masters.


Allegations of tax evasion

In March 2022, the Income tax department conducted raids on offices and several other locations of Hero MotoCorp. Following this the department stated in a report that the two wheeler giant had made bogus claims of expenses to the tune of Rs 1000 crore.


See also

* Ather Energy *
Bajaj Auto Bajaj Auto Limited () is an Indian multinational automotive manufacturing company based in Pune. It manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj (1889–1942) ...
*
Okinawa Autotech Okinawa Autotech is an Indian company that produces electric scooters. The company was founded by Jeetender Sharma and Dr Rupali Sharma, and has its headquarters in Gurgaon. History The company was formed in 2015 by husband and wife Jeetend ...
*
Ola Electric Ola Electric Mobility is an Indian electric two-wheeler manufacturer, based in Bengaluru. Its manufacturing plant is located in Krishnagiri, Tamil Nadu, India. History 2017-2019 Ola Electric was established in 2017 as a wholly-owned subsidiary ...
*
TVS Motor Company TVS Motor Company (commonly known as TVS) is an Indian multinational motorcycle manufacturer headquartered in Chennai, Tamil Nadu, India. It is the third largest motorcycle company in India with a revenue of over in 2018–19. The company has ...
*
List of companies of India India is a country in South Asia. It is the seventh-largest country by area, the second-most populous country (with over 1.2 billion people), and the most populous democracy in the world. In 2019, the Indian economy was the world's fifth ...


References

{{Automotive industry in India Vehicle manufacturing companies established in 1984 Companies based in New Delhi Manufacturing companies based in Delhi Motorcycle manufacturers of India Indian brands NIFTY 50 Indian companies established in 1984 Electric vehicle manufacturers of India Hero Group 1984 establishments in Delhi Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange Multinational companies headquartered in India *