CHAPTER-II

INDUSTRY PROFILE
&
COMPANY PROFILE

The automobile industry is one of India’s most vibrant and growing industries. This industry
accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). The auto
sector is one of the biggest job creators, both directly and indirectly. It is estimated that every job
created in an auto company leads to three to five indirect ancillary jobs.
India's domestic market and its growth potential have been a big attraction for many global
automakers. India is presently the world's third largest exporter of two-wheelers after China and
Japan. According to a report by Standard Chartered Bank, India is likely to overtake Thailand in
global auto-export market share by the year 2020.
The next few years are projected to show solid but cautious growth due to improved
affordability, rising incomes and untapped markets. With the government’s backing, and trends
in the international scenario such as the decline in prices of natural rubber, the Indian automobile
industry is slated to witness some major growth.
Market size
The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry
during the period April 2000 – August 2017 was recorded at US$ 10,119.68 million, as per data
by Department of Industrial Policy and Promotion (DIPP).
Data from industry body Society of Indian Automobile Manufacturers (SIAM) showed that
157,873 passenger cars were sold in July 2017 compared to 151,257 units during the
corresponding month of 2016. Among the auto makers, Maruti Suzuki, Hyundai Motor India and
Honda Cars India emerged the top three gainers with sales growth of 17.45 per cent, 14 per cent
and 11 per cent, respectively.
The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of increased
demands from the urban market. Total sales across different vehicle segments grew 14 per cent
year on year (y-o-y) to 1,586,143 units.
Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per cent of the
total two-wheeler market from just 8 per cent a decade back. The ever-rising demand for
scooters, which has far outstripped supply, has prompted Honda to set up its first dedicated
scooter plant in Ahmadabad.
Tractor sales in the country are expected to grow at a compound annual growth rate (CAGR) of
8–9 per cent in the next five years making India a high-potential market for many international
brands.

Investments
To match production with demand, many auto makers have started to invest heavily in various
segments in the industry in the last few months. Some of the major investments and
developments in the automobile sector in India are as follows:
 Ashok Leyland plans to invest Rs 450–500 crore (US$ 73.54–81.71 million) in India, by
way of capital expenditure (capex) and investment during FY17. The company is
required to manage Rs 6,000 crore (US$ 980.56 million) of assets in seven locations
across the world, for which maintenance capex is needed.

 Honda Motors plans to set up the world's largest scooter plant in Gujarat to roll out 1.2
million units annually and achieve leadership position in the Indian two-wheeler market.
The company plans to spend around Rs 1,100 crore (US$ 199.76 million) on the new
plant in Ahmedabad, and expand its range with a few more offerings.

 Yamaha Motor Co has restructured its business in India. Now, Yamaha Motor India
(YMI) will take care of its India operations. “The restructuring is part of Yamaha’s mid-
term plan aimed at improving organizational efficiency,” as per Mr Hiroyuki Suzuki,
Chief Executive and Managing Director. YMI would be responsible for corporate
planning and strategy, business planning and business expansion, quality control, and
regional control of Yamaha India Business.

 HERO Motors plans to use the 'hub-and-spoke' model in which India will be the key
manufacturing base while it will have mini-hubs in overseas markets. The company also
plans to set up mini hubs in potential markets like Africa, Middle-East and South East
Asia.

 Hero Cycles through its unit OPM Global has acquired a majority stake in German
bicycle company Mitteldeutsche Fahrradwerke AG (MIFA) for €17 million (US$ 19.11
million). The company plans to invest an additional €4 million (US$ 5.09 million) as
capital expenses in restructuring the acquired company.
The growth story for the Indian automobile industry in 2017 rode on the two-wheeler segment
and not on passenger cars or commercial vehicles, as high interest rates and a stuttering
manufacturing industry kept a check on demand.

When other segments like passenger cars and commercial vehicles logged negative growth, the
two-wheeler makers registered around 15 percent growth between January and October. Riding
on the two-wheeler sector's growth, the automotive industry grew 9.8 percent by volume year-
on-year (YoY) between January and October.

In India," Vijay Kakade, vice president for automotive and transportation practice at Frost &
Sullivan, told IANS. He said the light commercial vehicle (LCV) segment has been the worst hit,
with sales reducing to approximately 330,000 units -- an 18.9 percent YoY fall over 2016.

"The passenger car, medium and heavy commercial vehicle segments contracted by 0.8 and 6.5
percent respectively during the period, compared to 2016. The reduction in sales can be
attributed to the slowdown and the high interest rates set by the RBI (Reserve Bank of India)
reducing the availability of finance options to the public," Kakade added.
"These segments have shown positive signs over the past few months, which is expected to lead
to growth in the next year."
"The year 2017 has been a year of stagnation, which is a positive sign as the decline has stopped.
The industry has shown signs of growth, albeit slower than expected, over the past few months,"
Kakade remarked.
P. Balendran, vice president, General Motors India, had similar views to share with IANS: "Of
late, we have seen some movements in new entries driven by novelty factors and some select
manufacturers have been getting the benefits too."

He said the market has not shown any movement forward, despite the excise duty reduction,
while the customer sentiment has not picked up due to sticky interest rates, which remain at high
levels.
"Although fuel prices have started coming down significantly, the enquiry levels at showrooms
have come down and conversions are not taking place at all. The sales of diesel vehicles are also
tapering off because of the narrowing price gap vis-a-vis petrol," Balendran added.
Expecting the government to continue with a lower excise duty regime for small/mid-sized/big
cars and sports utility vehicles (SUV) till March 2017, Balendran said the rates should be
continued till the Goods and Services Tax ( GST) is introduced -- aiding the turnaround of the
auto sector.

Highlights of India's automobile industry 2017:

* Overall growth was 9.8 percent by volume year-on-year (YoY) between January and October.
* Two-wheeler sector grew 14.9 percemt
* Passenger car, medium and heavy commercial vehicle segments contracted by 0.8 and 6.5 till
October
* LCV segment worst hit, with sales falling 18.9 percent YoY fall over 2016 till October
* Excise duty reduction on automobiles
* Competition Commission of India (CCI) fines 16 car-makers Rs.2,544.65 crore for restrictive
trade practices.

Auto manufacturers have been trying to cope with economical rough patch in last two years.
Trying to boost sales and implementing cost effective schemes just wasn’t enough. They also
had to cut many of their employees loose to stay somewhat balanced, in some cases. On a
fashionable note, senior employees were asked to take voluntary retirement (not sure what
‘voluntary’ is doing in that sentence).
HERO Motors apart from giving customers attractive offers, gave 600 of their employees early
retirement offers, last month. Ashok Leyland too offered 500 of their employees with irresistible
retirement schemes, last year (pun intended).

Sales of Cars, SUVs, Vans, pick-ups, and entire commercial vehicle segment went south, with
passenger vehicle market encountering first decline in the decade. But what saved the overall
scenario was the two-wheeler market. It took 7.31% hike with motorcycle sales going 3.91% up
and scooter sales riding 23% north. Export sales figures also contributed to somewhat saving the
year with rise of 7.21%.

The downtrend left auto manufacturers with piled up inventory and stagnation. The interim
budget announced in February, gave a minor boost as all vehicles prices were reduced
marginally, but it hasn’t exactly helped boost sales yet. Automakers are expecting aid from the
government’s new budget by way of further tax cuts.

Sales figures of March 2017 shows 14.83% overall growth also by means of increased two-
wheeler sales. Commercial Vehicles have further dipped compared to March 2016 and passenger
cars stagnating below the graph. However, overall production has increased by 9.95% comparing
March figures of both years, suggesting auto makers’ confidence in ongoing fiscal to make
better.

Launch of new A segment compact cars by various auto majors seems to be helpful in this
economy, for customers as well as value chain entities. Maruti Suzuki finished top on podium
with 42% share in overall car sales, followed by Hyundai with 17% share.
Society of Indian Automobile Manufacturers (SIAM) expects a 6% growth over in the fiscal
2016-17, with boost in manufacturing sector, new investment and fresh capacities in the industry.
Vikram Kirloskar, president of SIAM says, “Whichever government comes in…I am looking for
stability in excise duty and some reduction in taxes. We are an over-taxed industry.”
 'Hum Main Hai Hero'

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.

Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered
India, powered by its two wheelers. Hero MotoCorp Ltd., company's new identity, reflects its
commitment towards providing world class mobility solutions with renewed focus on expanding
company's footprint in the global arena.

Mission
Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts
its customers into its brand advocates. The company will provide an engaging environment for
its people to perform to their true potential. It will continue its focus on value creation and
enduring relationships with its partners

Strategy
Hero MotoCorp’s key strategies are to build a robust product portfolio across categories, explore
growth opportunities globally, continuously improve its operational efficiency, aggressively
expand its reach to customers, continue to invest in brand building activities and ensure customer
and shareholder delight.

Manufacturing
Hero MotoCorp two wheelers are manufactured across 3 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.

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 MotoCorp’s extensive sales and
service network now spans over to 6000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.

Brand
The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero
MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology
and creating global footprint. Building and promoting new brand identity will be central to all its
initiatives, utilizing every opportunity and leveraging its strong presence across sports,
entertainment and ground-level activation

  HERO'S MANDATE  

Hero 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
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

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

Director

11 Mr. Analjit Singh Non-executive & Independent

Director
 14 Dr. Pritam Singh Non-executive & Independent
Director

15 Ms. Shobhana Bhartia Non-executive & Independent

Director

16. Mr. M. Damodaran Non-executive & Independent

Director

17. Mr. Ravi Nath Non-executive & Independent

Director

18. 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 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 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-16001 by DNV
Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-16001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler model
"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

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

2002 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

2003 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

2004 New motorcycle model - "Ambition 155" 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 10 million motorcycles

2005 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

2006 Hero Honda is the World No. 1 for the 5th year in a row

17 million production milestone achieved

2007 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

2008 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

2009 Hunk' (Limited Edition) launched

Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched
2010 Silver jubilee celebrations

New model Splendor Pro launched

2011
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

2014 Migration of all products to Brand Hero.

Launch of Impulse, Maestro and Ignitor.

Debut in the AMA Superbike Racing in the US.

Strategic partnership with Erik Buell Racing (EBR) of USA.

2015 Neemrana Plant Foundation Stone laid.

Global Parts Centre Foundation Stone laid.

50 Million cumulative 2 wheelers production.

2016
New plant establishment in Gujarat

New R&D team for Indian roads

New lanch of XTREME.

PROMINENT AWARDS TO THE COMPANY  

Year Awards & Recognitions

2016  Green Pioneer leader in india-2016

 Green Supply Chain Management Program-2016.

 Green Pioneer Award - 2015

2015
 "Business Leader of the Year" Award by Hon'ble President of India, Shri. Pranab
Mukherjee, at the AlMA Managing India Awards 2015 on April 11, 2015
(Conferred on Mr. Pawan Munjal)
 "Business Leader of the Year" Award in the Auto (Two Wheelers) category by
Deputy Chairman of the Planning Commission Mr. Montek Singh Ahluwalia, at
the NDTV Business Leadership Awards 2015 (Conferred on Mr. Pawan Munjal)
2014
 CFO of the year Award (Conferred on Mr. Ravi Sud)

 Business Leader in Automobiles (two-wheelers) at the NDTV Profit Business

Leadership Awards 2014 (Conferred upon Mr. Pawan Munjal)
 Best value for Money Bike Maker and Best Advertising in Two Wheelers Category at
the Auto India Best Brand Awards 2014
  Digital Advertiser of the year at the Indian Digital Media Awards (IDMA) 2014
 Three awards (Launch Event of the year, Rural Engagement Progamme and Live
Patron Award for Marketing Excellence) at the WOW Awards organised by EventFAQs
Two-wheeler Manufacturer of the Year award by Bike India magazine.
Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car
2011 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
2010 -  "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
Trusted Brand" 2011 survey

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

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 -

 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 2009

2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009 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

2008 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

2007 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 170 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.

2006 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
2006:
 Splendor Plus (Executive)
 CD Deluxe (Entry)

 Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity
Survey 2006.
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 2006.
Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz
Consumer Awards 2006.
Certificate of Export Excellence for outstanding export performance during 2003-04 for
two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion
Council.
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 1400 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 100 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 28 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 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
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. 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 21 st 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.