INDUSTRY PROFILE

Automobile industry in India

The automobile industry in India is the ninth largest in the world with an annual production
of over 4.2 million units in 2017In 2012, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki
and Mahindra and Mahindra, expanded their domestic and international operations. India's
robust economic growth led to the further expansion of its domestic automobile market which
attracted significant India-specific investment by multinational automobile manufacturers. In
February 2015, monthly sales of passenger cars in India exceeded 160,000 units. bryonic
automotive industry emerged in India in the 1940s. Following the independence, in 1947, the
Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the
growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj
which hampered the Indian private sector. After 1970, the automotive industry started to
grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars
were still a major luxury. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint
ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government
chose Suzuki for its joint-venture to manufacture small cars. Following the economic
liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and
multi-national car companies launched operations. Since then, automotive component and
automobile manufacturing growth has accelerated to meet domestic and export demands.
HISTORY OF THE TWO WHEELERS:
The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an
internal –combustion engine (or, less often by an electric engine). The automobile was the
reply to the 19th –century reams of self-propelling the horse-drawn bikeriage. Similarly, the
invention of the motorcycle created the self –propelling bicycle. The first commercial design
was three-wheeler built by Edward Butler in Great Britain in 1884. This employed a
horizontal single-cylinder gasoline engine mounted between two steer able front wheels and
connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles
or pedal cycles by adding small, centrally mounted spark ignition engine engines. There was
then felt the need for reliable constructions. This led to road trial tests and competition
between manufacturers. Tourist Trophy (TT) races were held on the Isle of main in 1907 as
reliability or endurance races. Such were the proving ground for many new ideas from early
two-stroke-cycle designs to supercharged multivalent engines mounted on aerodynamic,
bikebon fiber reinforced bodywork.

INVENTION OF TWO WHEELERS:

The invention of two wheelers is a much-debated issue. “Who invented the first
motorcycle?” May seem like a simple question, “safety”, bicycle, i.e., bicycle with front and
rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel. Those
bicycles in turn described from high-wheel bicycles. The high –wheelers descended from an
early type of pushbike, without pedals, propelled by the rider’s feet pushing against the
ground. These appeared around 1800, used iron banded wagon wheels, and were called
“bone-crushers”, both for their jarring ride, and their tendency to toss their riders. Gottiieb
Daimler (who credited with the building the first motorcycle in 1885, one wheel in the front
and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It
was constructed mostly of wood, the wheels were of the iron-banded wooden-spooked
wagon-type and it definitely had a “bone-crusher” chassis!

FURTHER DEVELOPMENTS:
Most of the developments during the early phase concentrated on three and four-wheeled
design since it was complex enough to get the machines running with out having to worry
about them falling over. The next notable two-wheeler though was the Hildebrand & Wolf
Mueller, patented in Munich in 1894. In 1895, the French firm of DeDion-button built and
engine that was to make the mass production and common use of motorcycle possible. The
first motorcycle with electric start and a fully modem electrical system; the Hence special
from the Indian Motorcycle Company astounded the industry in 1931. Before World War 1,
IMC was the largest motorcycle manufacturer in the world producing over 20000 bikes per
year.
INCREASING POPULARITY:
The popularity of the vehicle grew especially after 1916, in 1916; the Indian
motorcycle company introduced the model H racer, and placed it on sale. During World War
1, all branches of the armed forces in Europe used motorcycles principally for dispatching.
After the war, it enjoyed a sport vogue until the Great Depression began in motorcycles lasted
into the late 20th century; weight the vehicle being used for high-speed touring and sport
competitions. The more sophisticated of a 125cc model. Since then, an increasing number of
powerful bikes have blazed the roads.
HISTORICAL INDUSTRY DEVELOPMENTS:
Indian is the second largest manufacturer and producer to two wheelers in the World.
It stands next only to Japan and China in terms of the number of V produced and domestic
sales respectively. This destination was achieved due to variety of reason like restrictive
policy followed by the government of India towards the passenger bike industry, rising
demand for personal transport, inefficiency in the public transportation system etc. The
Indian two-wheelers industry made a small beginning in the early 50s when Automobile
products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.

The two –wheelers market was opened were opened to foreign competition in the
mid-80s. And the then market leaders-Escorts and Enfield – were caught unaware by the
onslaught of the 160cc bikes of the four Indo- Japanese joint ventures. With the availability
of fuel-efficiency low power bikes, demand swelled, resulting in Hero Honda –then the only
producer of four stroke bikes (160cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD Kits, and later on progressed to
indigenous manufacturing.
The industry had a smooth ride in the 50s, 60s and 70s when government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth in
the 80s. The industry witnessed a steady of 14% leading to a peak volume of 1.9 mn vehicles
in 1990.
In 1990 the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.
The reason for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant like increased production in 1992, due
to new entrants coupled with recession in the industry resulted in companies either reporting
losses or a fall in profits.
CONCLUSION:
The two-wheelers market has had a perceptible shift from a buyers market to a sellers
market with a variety of choice, players will have compete on various fronts viz. pricing,
technology product design, productivity after sale service, marketing and distribution. In the
short term, market shares of individual manufacturers are going to be sensitive to capacity,
product acceptance, pricing and competitive pressures from other manufacturers.
As incomes grow and people grow and people feel the need to own a private means of
transport, sales of two-wheelers will rise. Penetration is expected to increase to
approximately to more than 25% by 2005.

The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sale is expected to increase by 20% yoy as compared to 1%
growth in the scooter market and 3% by moped sales respectively for the next two years.

The four-stroke scooters will add new dimension to the two-wheeler segment in the coming
future.

The Asian continent is that largest user of the two-wheelers in the world. This is due to poor
road infrastructure and low per capita income, restrictive policy on bike industry. This is due
to oligopoly between top five players in the segment, compared to thirsty manufacturers in
the bike industry.

Hero Honda motors LTd., is one of the leading companies in the two-wheeler
industry. At present it is the market leader in the motorcycle segment with around 47% the
market share during FY 2000 –01. During the year, company posted a 41.15% yoy rise in
turnover to Rs.31, 686.5mn in motorcycles which driven by a 35.17% yoy rise in Motorcycle
sales volumes. The company has emerged as one of the most successful players, much ahead
of its competitions an account of its superior and reliable product quality complemented with
excellent marketing techniques. The company has been consistently addressing the growing
demand for motorcycles and has been cumulative customer base of over 4 million customers,
which is expected to reach 5min mark with rural and semi-urban segment being the new class
of consumers.
COMPANY PROFILE
CORPORATE PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer
of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds,
someone in India buys Hero Honda's top-selling motorcycle – Splendor.

Vision
The Hero Honda story began with a simple vision – the vision of a mobile and an empowered
India, powered by Hero Honda. This vision was driven by Hero Honda’s commitment to
customer, quality and excellence, and while doing so, maintaining the highest standards of
ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that
dream into a reality is by remaining focused on that vision.

Strategy
Hero Honda’s key strategy has been driven by innovation in every sphere of activity –
building a robust product portfolio across categories, exploring new markets, aggressively
expanding the network and continuing to invest in brand building activities.

Manufacturing
Hero Honda bikes are manufactured across three globally benchmarked manufacturing
facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of
Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar,
in the hill state of Uttrakhand.

Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. Today, Hero Honda continues to be technology
pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian
motorcycles, with the launch of the Glamour FI in June 2006.

Products
Hero Honda's product range includes variety of motorcycles that have set the industry
standards across all the market segments. The company also started manufacturing scooter in
2006. Hero Honda offers large no. of products and caters to wide variety of requirements
across all the segments.

Distribution
The company's growth in the two wheeler market in India is the result of an intrinsic ability
to increase reach in new geographies and growth markets. Hero Honda's extensive sales and
service network now spans close to 4500 customer touch points. These comprise a mix of
authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the
country.

Brand

The company has been continuously investing in brand building utilizing not only the new
product launch and new campaign launch opportunities but also through innovative
marketing initiatives revolving around cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf.
Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played
in Delhi during Feb-March 2016. Hero Honda also partners the Commonwealth Games Delhi
2016.

2016-17 Performance

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1927.90 Crores
Total dividend of 5250% or Rs. 165 per share including Interin Dividend of Rs. 70 per share
on face value of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per cent

EPS of Rs. 96.54

2015-16 Performance

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4 per cent
EPS of Rs. 171.77, growth of 74.1 per cent

HERO HONDA'S MISSION

Hero Honda’s mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standards of ethics and
social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world-class products with cutting edge
technology from Honda Motor Company, Japan. The teamwork and commitment are
manifested in the highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent Director

16 Gen. (Retd.) V. P. Malik Non-executive & Independent Director

17 Mr. Analjit Singh Non-executive & Independent Director

12 Dr. Pritam Singh Non-executive & Independent Director

13 Ms. Shobhana Bhartia Non-executive & Independent Director

14. Mr. M. Damodaran Non-executive & Independent Director

15. Mr. Ravi Nath Non-executive & Independent Director

16. Dr. Anand C. Burman Non-executive & Independent Director

BRIEF PROFILE OF DIRECTORS

MR. BRIJMOHAN LALL MUNJAL
Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $
3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII),
Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the
Country's Central Bank (Reserve Bank of India). In recognition of his contribution to
industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government.
Mr. Brijmohan Lall Munjal is currently on the board of the following companies:
No. Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-time Director

2 Hero Honda Finlease Limited Chairman and Director

3 Munjal Showa Limited Chairman and Director

4 Easy Bill Limited Director

5 Rockman Industries Limited Director

6 Shivam Autotech Limited Director

KEY MILESTONES OF HERO HONDA

Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 160" rolled out

1987 160,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 160 SS" introduced

500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder
Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV
Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal

2006 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler model
 "Hero Honda Passport Programme" - CRM Programme launched

2007 New motorcycle model - "Passion" introduced

One million production in one single year
New motorcycle model - "Joy" introduced
5,000,000th motorcycle produced

2008 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer
Khan as Brand Ambassadors

2009 Becomes the first Indian Company to cross the cumulative 7 million sales mark
Splendor has emerged as the World's largest selling model for the third calendar year in a
row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced

2010 New motorcycle model - "Ambition 135" introduced

Hero Honda became the World No. 1 Company for the third consecutive year.
Crossed sales of over 2 million units in a single year, a global record.
Splendor - World's largest selling motorcycle crossed the 5 million mark
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 16 million motorcycles

2011 Hero Honda is the World No. 1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced

2012 Hero Honda is the World No. 1 for the 5th year in a row
 15 million production milestone achieved

2013 Hero Honda is the World No. 1 for the 6th year in a row
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched
20 million production milestone achieved

2014 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
25 million production milestone achieved
CD Deluxe lauched with power start feature
New 'Glamour' launched

2015 Hunk' (Limited Edition) launched

Splendor completed 17million production landmark
New motorcycle model 'Karizma - ZMR' launched
2016 Silver jubilee celebrations

New model Splendor Pro launched

2017
Launch of new Super Splendor and New Hunk

New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma
Crosses the landmark figure of 5 million cumulative sales in a single year

PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

Two-wheeler Manufacturer of the Year award by Bike India magazine.

2017
Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and
Bike Awards.
 - CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new
corporate entity" by CNBC Awaaz Consumer Awards
- "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer
Awards
- Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero
GoodLife
- "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion
Marketing Award of Asia Order of Merit for Hero GoodLife
- Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most
2016 Trusted Brand" 2017survey

Company of the Year awarded by Economic Times Awards for Corporate Excellence 2008-
09.

CNBC TV18 Overdrive Awards 2016 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2016 -

 Two-wheeler Manufacturer of the Year

 CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2015

2015 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2015 and
Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun & Bradstreet-
Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

2014 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted "NDTV
Profit Business Leadership Award 2008"
TopGear Design Awards 2008 - Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards - NDTV “Viewers’ Choice Award” to Hunk in
Bike category
IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards -
“Customer and Brand Loyalty Award” in Automobile (two-wheeler) sector
 Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business
innovation and transformation) - Best Customer Loyalty Program in Automobile category

NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:
 No.1 executive motorcycle Splendor NXG
 No.1 standard motorcycle CD Deluxe
 No. premium motorcycle CBZ Xtreme

2013 The NDTV Profit Car India & Bike India Awards 2007 in the following category:
 Overall "Bike of the Year" - CBZ X-treme
 "Bike of the Year" - CBZ X-treme (up to 150 cc category)
 "Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.

"Bike of the Year" - CBZ X-treme by Overdrive Magazine.
Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine
“Most Trusted Company” , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards
2006.

2012 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler
Company).
One of the 8 Indian companies to enter the Forbes top 200 list of world’s most reputed
companies.
No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2011:
 Splendor Plus (Executive)
 CD Deluxe (Entry)
 Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey
2011. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
 Wheeler Company).Top Indian company in the Automobile - Two Wheeler sector by Dun &
Bradstreet - American Express Corporate Awards 2011.
Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz
Consumer Awards 2011.

Certificate of Export Excellence for outstanding export performance during 2003-04 for two-
wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council.

The NDTV Profit Car India & Bike India Awards 2006 in the following category:
 Bike Maker of the Year
 Bike of the Year - Achiever
 Bike of the Year - Achiever (up to 150 cc category)
 Bike of the Year - Glamour (up to 125 cc category)
 NDTV Viewers' Choice Award to Glamour in the bike category

CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones
developed at the grassroots. The Company believes it has managed to bring an economically
and socially backward region in Dharuhera, Haryana, into the national economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-
Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education
facilities for both adults and children-now nurtures a vibrant, educated and healthy
community.

The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:

 Installation of deep bore hand pumps to provide clean drinking water.

 Constructing metalled roads and connecting these villages to the National Highway
(NH -8).
  Renovating primary school buildings and providing hygienic water and toilet
facilities.
 Ensuring a proper drainage system at each of these villages to prevent water-logging.
 Promoting non-conventional sources of energy by providing a 50 per cent subsidy on
biogas plants.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students
from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-
educational school with over 1200 students and 61 teachers. The school has a spacious
playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room,
a well-stocked library and a computer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and
football grounds are used by the local villagers. In the near future, sports academies are
planned for volley ball and basket ball, in collaboration with National Sports Authority of
India.

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational
Training Centre. So far 26 batches comprising of nearly 625 women have been trained in
tailoring, embroidery and knitting. The Company has helped women trained at this centre to
set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of
the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults.
Hero Honda is now in the process of imparting Adult Literacy Capsules to another 160 adults
by getting village heads and other prominent villagers to motivate illiterate adults.
Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by
the Foundation by providing financial help and other support to the families.

Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health
care services to the local community. Free health care and medical camps are now a regular
feature in the Hero Group's community outreach program
KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY
At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the
way in making your world a better place to live in. Besides its will to provide a high-quality
service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise
respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation
programmers but also expresses the increasingly inseparable balance between the economic
concerns and the environmental and social issues faced by a business. A business must not
grow at the expense of mankind and man's future but rather must serve mankind.
"We must do something for the community from whose land we generate our wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
Environment Policy
We at Hero Honda are committed to demonstrate excellence in our environmental
performance on a continual 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,
where viable and strengthen 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).
 Institutionalise resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals.
 Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's 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

Hero Honda is committed to safety and health of its employees and other persons who may
be affected by its operations. We believe that the 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.

 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.
 Promoting safety and health awareness amongst employees, suppliers and contractors.
 Continuous improvements in safety performance through precautions besides
participation and training of employees.

INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX MOTORS)

PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS PVT

LTD. is established on 21st march 2003. The business is running by only one man. The owner

name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.

Generally the sale will be either on cash basis or on institutional basis. Bank

like ICICI, HDFC and CENTURION are providing loans to customers.

Advertising strategy of phoenix motors:

They are giving the ads through newspapers, wall paintings, hoardings and

field staff. They are upgrading sales by introducing the schemes, group bookings,

institutional sales and customer door-to-door activities.

Categorization of Staff members:

Staff members are categorized for technicians, 25 members are allotted

for field staff, 5 members are recruited for sales for persons, 5 persons are placed for

evaluating for spare parts, 5 members are allotted for managerial accounts and another 3

persons for cash transaction and other members are allotted for remaining work.

Customer relationship:

They entertain the showroom providing a customer’s huge having pool

game, internet facility and television with home there system. They provide bile maintenance

programs on every week.

According to other dealers PHOENIX motors in first in sales and best in service. They treat

customer, is the very important person at PHOENIX motors customer satisfaction is their

motto, why because, they will satisfied customer is the best advertisement. They provide

better value for the customers and as well as employees also. At PHOENIX motors the

customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS:

Average they are selling 25 vehicles per day. PHOENIX motors PVT L.T.D is

the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify leader through

quality dealer). At PHOENIX motor they gave the quality service to the customers why

because ‘the cost is long forgotten but the quality is remembered for ever”. They treat quality

has a...

Q Quest for excellence

U Understanding customer’s needs

A Action to achieve customer’s appreciation.

L Leadership determined to be a leader

 I involving all the people

T Team spirit to work for a common goal

Y Yard sticks to measure programs.

WARRANTY ON PROPRIETARY ITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will be directly

handled by the respective original manufactures (OEM’s) except AMCO for batteries and

Dunlop and Falcon tires and Tubes. In case of any defect in proprietary items, other than the

above two mentioned OEM’S the dealers must approach the Brach office dealer of the

respective manufacture. For AMCO batteries and Dunlop and falcon tires, tubes claims will

be accepted at our authorized dealerships per the mutually agreed terms and conditions

between HERO HONDA and of these two OEM’s in case the claim is not accepted for

invalid reasons. Then the claim along with the refusal note form the OEM can be sent to the

warranty section at gorgon plan after due to recommendation of the area service engineer. If

any other six services or subsequent paid services is not availed as per the recommended

schedule given in the owner’s manual. If HERO HONDA recommended engine oil is not

used. To normal wear & tear components like bulbs, electric wiring, filters, spark plug,

clutch plates, braded shoes, fasteners, shim washers, oil seals, gaskets, rubber parts (other

than tyre and tube) plastic components, chain$ sprockets and in case of wheel rim

misalignment or bend.

If there is any damage due o modification or fittings of accessories other than ones

recommended by HERO HONDA. If the motor has been used in any competitive events like

tracking races or rallies. If there is any damage to the painted surface due to industrial

pollution or other extraneous factors. For clams made for any consequential damage due to

any previous malfunction. For normal phenomenon like noise, vibration, oil seepage, which

do not affect the performance of the motorcycles.

SOCIAL SERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently the

phoenix motors organized a BLOOD DONATION CAMP for the trust on 21st January

2006.they motivated on the consumers to participated in this camp and also provide

certificate for the customers

THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

CUSTOMER RELATIONSHIP:

To entertain the customers the showroom providing a customers huge having pool game,
Internet facility and television with home theatre system. They provide bike maintenance
programs on every week. According to other dealers PHOENIX motors in first in sales and
best in service. They treat customer, is the very important person at PHOENIX motors
customer satisfaction is their motto, why because, the well satisfied customer is the best
advertisement. They provide better value for the customers and as well as employees also. At
PHONIX motors the customer is the boss.

SOCIAL SERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix motors

organize a BLOOD DONATION CAMP for the trust in every year. They motivated on the
customers to participated in this camp and also provide Certificate for the customers.