Hero Group > Profile

"Hero", the brand name symbolizing the steely ambition of the Munjal brothers, came into being in the
year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest
bicycle manufacturer today, the odyssey was fueled by one vision - to build long-lasting relationships with
everyone, including workers, dealers and vendors. This philosophy has paid rich dividends through the
years.

Hero, a name synonymous with two wheelers in India is today a multi-unit, multi-product, geographically
diversified Group of companies. Through fully integrated operations, the Munjals roll their own steel, make
critical components such as free wheels for their bicycles, and have the foresight to simultaneously
diversify into myriad ventures, like product designing, IT enabled services, finance and insurance, just to
name a few.

Like every success story, Hero's saga contains an element of spirit and enterprise; of achievement through
grit and determination, coupled with vision and meticulous planning. Throughout its success trail, the Hero
Group and its members have displayed unwavering passion of setting higher standards for themselves and
delivering simply the best to their customers.

The Hero Group philosophy is: "To provide excellent transportation to the common man at easily
affordable prices and to provide total satisfaction in all its spheres of activity." Thus apart from
being customer-centric, the Hero Group also provides its employees with a fine quality of life and its
business associates with a total sense of belonging.

"Engineering Satisfaction" is the prime motive of the Hero Group and it has become a way of life and a
part of the work culture of the Group. This is what drives the Group to seek newer vistas, adopt faster
technology and create quality driven products to the utmost satisfaction of customers, partners, dealers
and vendors.

Today the Hero Group has a number of accolades and achievements to its credit … yet consumer
requirements and newer technologies provide fresh challenges every day, and at Hero the wheels of
progress continue to turn ...
Hero Group > Achievements
Hero Group ranks amongst the Top 10 Indian Business Houses comprising 20 companies, with an
estimated turnover of US$ 3.2 billion during the fiscal year 2005-2006. The Group and its management
have acquired a number of accolades and achievements over the years:

Hero Group Management style has been acclaimed internationally by World Bank and BBC, UK.Hero
Group is discussed as a case study at London Business School, UK and INSEAD, France. World Bank
has acclaimed Hero Cycles as a role model in vendor development based on a world-wide
study. The London Business School, UK, has done a case study on the Group as model of
entrepreneurship.

Boston Consulting Group has ranked Hero Group as one of the top ten Business Houses on Economic
value, in India.

The Hero Group is recognized as a long term partner and an ideal employer:

-- Hero Group's partnership with Honda Motors, Japan is over 21 years old

-- Hero Group's Partnership with Showa Manufacturing Corporation, Japan is over 19 years old.

Group Chairman, Mr Brijmohan Lall Munjal received the coveted "Ernst & Young Entrepreneur of the
Year" award for 2001.

Hero Honda Motors was ranked 3rd amongst top Indian companies Review 2000 - Asia's leading
companies award (2004) by Far Eastern Economic Review.

Hero Honda Motors is the World's largest manufacturer of two-wheelers with annual sales volume of
over 3.0 million motorcycles.

Hero Honda Motors has been awarded the highest rating for Corporate Governance (2003) by CRISIL -
India's Leading Ratings, Risk & Advisory Company and as the Best Governed Company in private
sector(Dec 2004).

Hero Honda ranked Number One in the two-wheeler category on Environmental Performance by the
Centre for Science and Environment.

Hero Cycles Limited is a Guinness Book Record holder since 1986 as the world's largest
manufacturer of bicycles, with annual sales volume of 5 million bicycles in FY 2006.

Engineering Exports Promotion Council has awarded Hero Cycles with the Best Exporter Award for the
last 28 years in succession.
Hero Group > Marketing Strategy
A thorough understanding of the fast-changing consumer behaviour, new market segments and
product opportunities along with sensitivity to changing customer needs, form the core of Hero's
marketing strategy and philosophy.

At Hero we essentially have a completely customer-driven approach. A nation-wide dealer

network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchise
holders for motorcycles, ensures convenient access to the Group's products across the country.

With a deep sense of belonging to the Hero fraternity, the Group's dealer network has catalysed
growth and acted as a strong bridge between the customers and the Group.

Conventionally, very few Indian bicycle manufacturers were interested in exports. However, the
Hero Group's foray into the overseas markets pioneered Indian exports in the bicycle segment as
early as 1963. It was a move prompted primarily by the need to be attuned to the global
marketplace.

While initial exports were restricted to Africa and the Middle East, today more than 50 percent of
the Group's bicycle exports meet the demands of sophisticated markets in Europe and America.
This is primarily because of appropriate product development and excellent quality that Hero
offers.

The Group has undertaken a steady upgradation of technologies and there has been
diversifications and setting up of newer establishments to meet stringent international standards.

At the core of it all is a customer-centric scheme of policies and production ... and the bottom
line is to "Add Value while Engineering Satisfaction."
Men of Steel

The success of the Hero Group lies in the determination and foresight of the Munjal brothers, who shared
their vision with their workers and led the Group to a position where its name has become synonymous
with top-quality two wheelers.

The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles; Mr. Satyanand
Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal continue to carry the torch and are actively
involved in the day-to-day operations of the Hero Group.

The saga is being continued with the same zeal by the second and third generations of the family and by
the large working force of the Hero Group. The spirit of enterprise which dominates the progress of the
Group is characteristic of the land where it all began - the City of Ludhiana, in Punjab - home to some of
lndia's finest workers and entrepreneurs.

The Hero Group is a thriving example of three generations of a family working and striving together to
ensure quality, satisfaction and extensive growth.

Milestones

Hero's success saga contains an element of spirit and enterprise; of achievement through grit and
determination, coupled with vision and meticulous planning.

1956 Hero Cycles Limited is established.

1961 Rockman Cycles Industries Limited established, which is today the largest
manufacturer of bicycle chains and hubs.

1963 It pioneered bicycle exports from India - a foray into the international
market.

1971 Highway Cycles was set up to meet the demands of Hero Cycles. It is
today the largest manufacturer of single speed and multi-speed
freewheels.

1975 Hero Cycles Limited became the largest manufacturer of bicycles in India.

1978 Majestic Auto Limited was formed and the Hero Majestic Moped was
introduced.

1981 Munjal Castings established.

1984 Hero Honda Motors Limited established in joint venture with Honda
Motors of Japan, to manufacture motorcycles.

1985 Munjal Showa Limited established to manufacture shock absorbers and

struts and is today among the top two shock absorber manufacturing
companies in India.

1985 The 100 cc Hero Honda Motorcycle arrived and by 1988 was the No. 1
among all motorcycles in India.

1986 Hero Cycles Limited entered the Guinness Book of Records as the largest
bicycle manufacturer in the World.

1987 Hero Motors, a division of Majestic Auto Limited set up in collaboration

with Steyr Daimler Puch of Austria.

1987 Gujarat Cycles Limited, now known as Munjal Auto Industries Limited was
established to manufacture and export state-of-the-art bicycles and allied
products in its fully automated plant at Waghodia.

1987 Sunbeam Auto Limited, earlier a unit of Highway Cycles Limited,

established as an ancillary to Hero Honda. It is the largest die casting
plant in India.

1988 Introduced "Hero Puch" from Hero Motors Limited. This revolutionary
machine immediately set new records of petrol efficiency and usable
power in 50 - 65 cc machines.

1990 Hero Cold Rolling Division established and is one of the most modern steel
 cold rolling plants.

1991 Hero Honda receives National Productivity Council's Award.

1991 Hero Honda receives the Economic Times - Harvard Business School
Association Award against 200 contenders.

1992 Munjal Showa Limited receives National Safety Award.

1993 Hero Exports established as the International Trading Division for Group
and non-Group products.

1993 Hero Motors becomes Indias largest exporter of two wheelers

1995 Hero Corporate Services Limited as the service segment for the Hero
Group Companies, ancillaries, suppliers, dealers and other associates.

1996 - Hero Winner, a large-wheeled scooter was introduced by Hero Motors

Limited with a choice of 50 cc and 75 cc engines.

1996 Munjal Showa Limited receives British Council's National Safety Award.

1998 - Hero Briggs and Stratton Auto Private Limited was set up to produce 4-
stroke two-wheeler engines in various cubic capacities.

1998 Munjal Auto Components established to manufacture gear shafts and gear
blanks for motorcycles.

2000 The Hero Group diversifies into IT and IT enabled services through its
service segment - Hero Corporate Services Limited.

2000-2001 Hero Honda emerges as the market leader in motorcycles with sales of
over a million motorcycles and a strong market share of 47%.

2001 Hero Global Design established to offer engineering services in

CAD/CAM/CAE related to New Product Development, Design, Engineering
and Manufacturing.

2002 Hero Cycles ties up with National Bicycle Industries, part of Matsushita
Group to manufacture high-end bicycles.

2002 Fastener World Established.

2002 Easy Bill Established to offer utility bill collection & retail services.

2003 Tie up with Livebridge Inc., USA.

2004 Tie up with Bombardier - Rotax GmbH for scooter engines.

2004 Tie up with Aprilia Scooters, Italy.

2004 Hero Honda continues as the World's largest manufacturer of two-

wheelers with annual sales volume of 2.07 million motorcycles and a
market share of 48%.

2004
Retail Insurance business established.

2004 HeroITES, a division of HeroCorporate Service Limited hived off as a

division of new company Hero Management Service Limited.

2005 HeroITES strengthens its relationship with ACS,USA,USD 5.0 billion

market cap and Fortune 500 company.

2006
Hero Honda enters the scooter segment, launches 100cc "Pleasure"

2006
Hero Honda crosses a unit sales threshold of 3.0 million motorcycles

Hero Group celebrates Golden Jubilee year since inception.It was

2006
commemorated by sales of over 15 million motorcycles & over 100 million
bicycles.
Today, Hero Group comprises of 20 companies, 300 ancillary suppliers, deep market penetration with over
5,000 outlets, 23,000 + employee and has a turnover of US$ 3.20 billion (FY 2006).