Aadi FinCorp Project

TABLE OF CONTENTSPAGE
1. Declaration by the Student 01

2. Certificate from the Supervisor / Company 02
3. Acknowledgments
4. Introduction to the study 05-06
5. Explanation of the subject
6. Company Profile / Industry Profile07-21
7. About the Company / Industry
8. The relation of work done in your study to the industry
9. Literature Review 22-40
10. Related to the work done in your study
11. Research Methodology 41-49
I. Objectives
II. Research Plan
III. Sampling Plan
IV. Data Collection
V. Descriptive Statistics
VI. Data Tabulation, Analysis and Results 50-70
VII. Type of Analysis used and Why
VIII. Results of the Analysis
12.Findings of the study 71-87
13.Recommendations 88-89
14.Limitations 90-91
15.Conclusions 92-94
16.References95-99
17.Appendices99-110
I. Research Progress Report

II. Questionnaire used
INTRODUCTION
Introduction of Study
Selling of any product, there is needed to build relationship with customer. For building a
Relationship there is need for knowing the customer behavior and how will be they satisfied?
This project is undertaken to know the customer behavior & satisfaction level for
Hero Fin Corpin HERO. Also through this project get awareness that which factors affect
on the selling of bike mainly in the rural area. Because the area where project was
undergoing, it is almost rural area and most population income depends on agriculture or its
products.
There were some limitations while doing the project. The data was collected by
personal interviews of the respondents. It was very challenging to fill up the questionnaire as
most of the population comes from rural back ground. As it was the rural area we were
supposed to explain each and every question of the questionnaire. Also many of them did not
show any interest in filling questionnaires..
This study will help Hero Fin Corp to know the most popular way by which they are
providing services and quality to the customers and to know various customers Perceptions.
From the study, we found that, the customers were highly satisfied with the products and
service of Hero Fin Corp, but there were some complaints regarding after sales service and
staff of Hero Fin Corp.
It was found that Hero Fin CorpMotor cycle is having a good brand image in the
market. Most of the respondents considered Hero Fin Corpshowroom is one of the best places
to purchase of Motor cycle.
The present is the era of customers. Customers are more knowledgeable than ever
before and because the customer is more knowledgeable, companies must be faster, more
agile and more creative than few years ago. So companies should strive to enhance customer
satisfaction through knowing their expectations regarding products.
Hero Fin Corp should improve on their after sales support, and have knowledgeable
support staff. Also Hero Fin Corp should increase the range of its targeted market.
COMPANY PROFILE
HISTORY OF FIN CORP COMPANY
Hero Fin Corp is the World's single largest two-wheeler motorcycle company. Honda Motor
Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors
Limited in 1984. The joint venture between India's Hero Group and Honda Motor Company,
Japan has not only created the world's single largest two wheeler company but also one of the
most successful joint ventures worldwide.
Hero Fin corp Ltd. formerly known as Hero Honda is world’s largest Two-Wheeler
company having its registered office in India. The company started with a joint venture
between the Japanese Two Wheeler manufacturing company Honda in 1984, but in 2010
Honda decided to move out and Hero Cycle bought their shares and became a new
independent identity.
The new company which was renamed Hero Fin corp in August 2011 is now the
world’s largest manufacturer of two – wheelers. The company has been working intelligently
and trying to utilise every opportunity to promote its new brand identity.
The Company started with a vision of empowering India by its bikes and making it a
mobile and much more empowered country by taking it to global market with its world class
bikes In the 1980’s Hero Honda introduced low cost and fuel efficient bikes in India. The
Japanese technology which came from their Japanese partner “Honda” in the Hero
motorcycles made it a huge hit in Indian market. The company continued to use the same
technology till they parted ways with Honda. The company offers wide range of two
wheelers including motorcycles and scooters.
With its three manufacturing plants located at Haridwar, Gurgaon and Dharuhera,
Hero churns out approx 3 million bikes in a year. Not only in manufacturing the company is a
real “Hero” in customer service also with a huge network of about 3000 dealerships and
service centers across country.
MILESTONES
 1983
 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed.
 Shareholders Agreement signed.
 1984
 Hero Honda Fin Crop 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 MunjalVidyaMandir inaugurated -A School in the memory of founder
ManagingDirector, 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
 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 ManagingDirector, Mr. Raman Kant Munjal.
 2000
 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.
 2001
 New motorcycle model - 'Passion' introduced.
 One million production in one single year .
 New motorcycle model - 'Joy' introduced.
 2002
 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 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 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
 15 million production milestone achieved.
 2007
 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 launched with power start feature.
 New motorcycle model 'Passion Pro' launched.
2009
 Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched.

 Splendor completed 11 million production landmark .
 New motorcycle model 'Karizma - ZMR' launched.
 Silver jubilee celebrations.
 2010
 New model Splendor Pro launched.
 Launch of new Super Splendor and New Hunk.
 2011
 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 .
 July 29, 2011 - Hero Honda Motors changed its name to Hero MotoCorp
following the exit of its erstwhile Japanese promoter, Honda, from the
company.
Hero Honda is now Hero Fin Corp On 11 sept. 2011 the name of company was
enhanced to Hero Fin Corp Ltd. From Hero Honda Motors and its known as Hero Fin
Corp Ltd.
COMPANY PROFILE
Hero Fin Corp Ltd. (Formerly Hero Honda Fin corp 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 inIndia and also, the ‘World No.1’ two-wheeler Company in terms
of unit volume sales in a calendar year. HeroFin Corp Ltd. continues to maintain this position
till date.
Vision
The story began with a simple vision – the vision of a mobile and an empowered India,
powered by its bikes. HeroFin Corp Ltd., company’s new identity, reflects its commitment
towards providing world class mobility solutionswith renewed focus on expanding
company’s footprint in the global arena.
Mission
Hero Fin Corp’s mission is to become a global enterprise fulfilling its customers’ needs and
aspirations formobility, setting benchmarks in technology, styling and quality so that it
converts its customers into its brandadvocates. The Company will provide an engaging
environment for its people to perform to their true potential. Itwill continue its focus on value
creation and enduring relationships with its partners.
Strategy
Hero Fin Corp’s key strategies are to build a robust product portfolio across categories,
explore growthopportunities 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 Honda bikes are manufactured across three globally benchmarked manufacturing
facilities. Two of these arebased at Gurgaon and Dharuhera which are located in the state of
Haryana in northern India. The third and the latestmanufacturing plant is based at Haridwar,
in the hill state of Uttarakhand.
Technology
In the 1980’s the Company pioneered the introduction of fuel-efficient, environment friendly
four-strokemotorcycles in the country. It became the first Company to launch the Fuel
Injection (FI) technology in Indianmotorcycles, with the launch of the Glamour FI in June
2006.
Its plants use world class equipment and processes and have become a benchmark in leanness
and productivity.Hero Fin Corp, in its endeavor to remain technology pioneer, will continue
to innovate and develop cutting edgeproducts and processes.
Products
Hero Honda's product range includes variety of motorcycles that have set the industry
standards across all themarket segments. The Company also started manufacturing scooter in
2005. Hero Honda offers large no. of productsand 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 innew geographies and growth markets. Hero Fin Corp’s extensive sales
and service network now spans over to5000 customer touch points. These comprise a mix of
authorized dealerships, Service & Spare Parts outlets, anddealer-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 FinCorp Ltd.” Istruly reflective of its vision to strengthen focus on mobility and
technology and creating global footprint. Buildingand promoting new brand identity will be
central to all its initiatives, utilizing every opportunity and leveraging itsstrong presence
across sports, entertainment and ground- level activation.
2020-21 Performance
Total unit sales of 54, 02,444 two-wheelers, (growth of 17.44 per cent)
Total net operating income of Rs. 19,401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1,927.90 Crores
Total dividend of 5250% or Rs. 105 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
What is Hero the company?
Hero FinCorp Limited (formerly Hero Honda) is Indian multinational motorcycle and
scooter manufacturer headquartered in New Delhi. 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.
When did hero company started in India?
January 19, 1984
The company was founded by BrijmohanLallMunjal on January 19, 1984 and is

headquartered in New Delhi, India.After mutually deciding to have a joint venture between
Honda Company of Japan and Hero Cycles of India, Hero Honda formed and started its
operations in 1984. After a smooth running of the business by this joint venture, Hero
FinCorp decided to merge the investment arm of the parent company with the automaker. To
implement this decision, Hero FinCorp passed (later approved it too) a proposal regarding
merging the investment arm of Hero Investment Private Limited, the parent Hero company,
with the Hero automaker company. It is a very interesting fact that this decision from Hero
FinCorp came just 18 months after the split of Hero Honda into two different companies.
At first, Hero was a brand name that was used by the Munjal brothers (founders of Hero
company) for Hero Cycles Limited, the flagship company of the brothers. In the year 1984, a
joint venture to launch the Hero Honda Motors Limited company was established between
Honda Motors company and Hero Limited at Dharuhera, India. Both Honda Motors group
and the Munjal family initially owned an equal share of 26% in the newly formed Hero
Honda FinCorp Limited.
After the formation of Hero Honda Motors Limited company in 1984, the company started
introducing two-wheelers (specifically motorcycles) in the Indian market, which became very
popular among Indians in a very short span of time because of their low cost and fuel
economy. The company wanted to grab all the Indian customer's attention about the cost-
effectiveness and lower-fuel consumption features of their motorcycles, and therefore, it
chose the mass media platform to reach out to the maximum audience. 'Fill it - Shut it -
Forget it', company's popular slogan at that time, was based on company's advertising
strategy to emphasize more on the company's motorcycles fuel efficiency which helped the
company to grow at a double-digit pace since its formation. It not even took two decades for
the company to become the biggest brand in the Indian motorcycle market, and it was the
year 2001 when the company became the largest two-wheeler manufacturing company in
India as well as globally. The company became so successful even after that, and it is still
maintaining the global industry leaders to date. The technology used in the bikes
manufactured by the Hero Fin Corp company (earlier by the name Hero Honda) came from
the Japanese counterpart Honda for almost 26 years (1984-2010) since the formation of this
two-wheeler company.
Renaming of the company and ending of the Joint Venture
From the late 2000s, the news about the termination of the joint venture between Hero
Company and Honda Motors Limited started circulating in the market. It was circulated that
the joint venture between the two companies would be terminated soon so that both
companies could focus on different sectors of the Automobile industry. Finally, an official
confirmation of this news came at the end of 2010 (December 2010), when the board of
directors of the company released a statement in which they stated that Hero Honda group
had decided to terminate the joint venture of the two companies in a phased manner. In this
phased manner of termination, it was decided by the board of directors that Hero Company
would buy out the 26% stake of the Honda in JV Hero Honda. When this joint venture was
formed between the two companies, there was a clause added to the contract, and according
to this clause, Hero Group of India was not allowed to export to international markets except
for some countries. Following is the list of countries in which Hero group of India was
allowed to export their automobile as per the clause of the joint venture between the two
companies:
1. Sri Lanka,
2. Bangladesh,
3. and Nepal
When this joint venture between the two companies was ended, it also meant that this clause
was also stood forfeited, and Hero Group was now able to export its two-wheelers to the
international market. But from the very beginning of the company, Hero Group of India
always relied on its Japanese counterpart Honda Motors Limited for the technology used in
their bikes. That's why the termination of this joint venture would also mean that the Hero
company cannot rely on Honda Motors Limited from now onwards.
Through a complete series of off-market transactions, Honda's counterpart of the Hero Honda

FinCorp Limited company exited the joint venture between the two companies and gave an
additional 26% stake to the Munjal family, who already held a 26% stake in the
company. The main reason stated by Honda Motors Limited for the termination of this joint
venture was that the company now only wanted to focus on its independent, fully owned two-
wheeler subsidiary. And following this plan, HMSI (Honda Motorcycle and Scooter India)
Limited company exited the joint venture of Hero Honda Motors Limited and got over INR
6,400 Crore. The amount 'INR 6,400 Crore' paid for the stakes of Honda Limited in the joint
venture was so huge, and its current value stands for USD 160 Million or INR 120 billion as
of 2020. Even though Honda Motors Limited paid such a huge amount for exiting the joint
venture between the two companies, still the shares of the company held by Honda FinCorp
Limited were sold with a discount between 30% and 50% to the current value of the stake
hold by later in the joint venture as per the price of the stock after the market closed on 16
December 2010.
In the joint venture, many differences were rising between the two partners, and gradually
these differences started emerging in the market as an irritant. Because of a complete variety
of issues, these differences between the two partners started emerging many years before the
joint venture was terminated. Following are some common differences that were started
raising between Hero Company and Honda FinCorp Limited many years before the split:
1. One major difference that gradually raised between the two partners was the
reluctance of Honda Motors Limited for the fully and freely share technology with
Hero even though the company signed a 10-year tie-up (ending in 2014) with the
Hero company.
2. Another major difference that was raised between the two partners over time was the
Indian partner's uneasiness over high royalty payouts to the Japanese company.
3. Other than this, one more irritant for Honda FinCorp to Limited was the refusal of
Hero to merge the company's spare parts business with Honda's new fully owned
subsidiary, HMSI, and it finally led to the major disagreement between the two
partners of the company.
All these differences in later years resulted in multiple disagreements between the two
partners of the joint venture, and finally, these disagreements started to become irritant for
both partners (especially for the Japanese counterpart, Honda Motors Limited). Therefore,
both partners mutually agreed that these differences were only causing a loss of customer
base for both the companies, and that's why these joint ventures should be terminated so that
both partners can effectively run their business.
Therefore, many agreements were made between the two companies to end their joint
venture, and as per the agreement, a two-leg deal was proposed by which the partnership
between the two partners would end strategically. According to the first part of this deal, the
Munjal family, led by BrijmohanLalMunjal group and also leading Hero company, planned
to buy out the entire stakes of the Honda Motors Limited in the joint venture. As per the first
part of the deal, the Munjal group formed an overseas-incorporated SPV (special purpose
vehicle) corporation, which was specially incorporated to buy out the entire stakes of the
Honda Limited. Bridge loans from various financial institutions backed this overseas-
incorporated SPV of the Munjal group, and with the help of this newly incorporated SPV,
Hero company was able to purchase off all the stakes of Honda Fin Corp Limited in the joint
venture. When this SPV was incorporated, it was primarily opened for private equity
participation, and this participation included Carlyle Group, Bain Capital, KKR (Kohlberg
Kravis Roberts), and Warburg Pincus.
New Company Formation and Development
When the joint venture between the two partners ended on December 16th, 2010, it was only
a matter of time before the brand identity would be changed from Hero Honda Motors
Limited. Everyone was waiting for the new name and identity of the company since the
termination of the joint venture became official on the date described above. The Munjal
group, who was managing the Hero Company, was also looking for a new identity and name
along with a new logo for the company. This new identity, along with the name & logo, was
very important because, according to the termination agreement, the company cannot do
business with the Hero Honda name furthermore. Therefore, to continue business in the
market and regain the lost customers, the company was looking for a new identity as soon as
possible. The company was looking for many designers all over the world who could recreate
the company's identity along with a new logo. Finally, the company was able to find a firm
that could do the company's work.
Munjal group finalized Wolff Olins, a Britain-based firm for designing and recreation, for
recreation of the company's identity and a new logo for the company. After a few months'
wait, it was decided that the company's name would change to Hero Fin Corp
Limited. Finally, on July 29th, 2011, the company officially announced that the name was
officially changed to Hero MotoCorp Limited from Hero Honda Motors Limited. The new
logo for the company was also developed at that time, but this logo was officially revealed
after two weeks after the announcement, on August 9th, 2011, in London, UK (United
Kingdom). The official revelation of the company's logo was held to coincide with the third
test match between England and India. With these changes and developments occurring in the
company, many restrictions were also removed from the company with the termination of the
joint venture and the formation of a new identity for the company. Following are some major
changes seen in the company with the formation of the company's new identity:
1. As per the terms and conditionsof the joint venture, Hero company was restricted to
using only Honda-approved vendors, but now the company was free to use any
vendor for its components.
2. Back then, the company was also restricted from exporting to international markets,
but now, Hero FinCorp Limited can export worldwide, including West Asia, Africa,
and Latin America.
Hero FinCorp Limited is now looking for small automaker manufacturers in the neighboring
countries to form a joint venture with them in their native country so that the company can
supply vehicles manufactured by them in that country. Following this plan, the company
announced its plan of INR 254 crore (the current value of this fund equals USD 45 Million or
INR 345 Crore as of 2020) on April 21st, 2014. According to the company's plan, with this
fund, the company would come into a joint venture with Nitol-Niloy Group, an automaker
group in Bangladesh, for the next five years. In this joint venture, Hero FinCorp Limited
would set up their plants in Bangladesh so that they could supply vehicles manufactured by
them in Bangladesh. Even though the plan of incorporation of the manufacturing plant in
Bangladesh was officially announced in 2014, the plant started production three years after
the announcement (in 2017). The plant incorporated by Hero FinCorp Limited started
production of Automobiles under the name "HMCL Niloy Bangladesh Limited". As per their
agreement of Joint Venture, Niloy motors, a subsidiary of the Nitol-Niloy Group, own 45 %
as a secondary stakeholder of the company, and the Hero Fin Corp Limited owns 55% stake
as the major stakeholder. Except for the Hero Dawn model, Hero Fin Corp Limited also
updated its 100cc engine range in the year 2014 to the 110cc engine range.
Hero Fin Corp: Equity Investment
After becoming the sole owner of Hero Fin Corp Limited, mostly managed by the Munjal
family, the company started to invest equity in other automaker companies from multiple
nations. The company's equity investments ranged from very small to major investments in
multiple companies. The company planned to capture maximum automobile markets in
multiple nations through these equity investments in their native automaker company. This
plan of Hero Fin Corp Limited also got success in multiple nations, and working on their
plan; the company gradually invested in many small automaker companies all over the world.
If a list of all equity investments made by Hero Fin Corp Limited is prepared, it will take a lot
of time to prepare and read all the information from the list, and therefore, only the major
investments made by the company will be discussed. Following is the description of two
major equity investments made by the company in other automaker companies:
(1) Buying More than 49% shares in Erik Buell Racing:
Erik Buell Racing, racing and street motorcycles producing motorcycle company based in the
United States, declared itself Bankrupt in 2015. The headquarter of Erik Buell Racing is
located in East Troy, Wisconsin, United States, and it was 2015 when the company filed for
bankruptcy because of multiple reasons and stated that it needed urgent funds for continuing
operations of the company. At that time, Hero Fin Corp Limited acquired certain assets for
INR 18.2 crore (which is roughly equal to USD 3.4 Billion or INR 26 crore as of 2020), and
it also acquired 49.2% shares of Erik Buell Racing back in July 2013.
(2) Gaining Stakes in Arther Energy:

Arther Energy is a start-up automaker company that primarily focuses on manufacturing
electric scooters only. In October 2016, as a series of B rounds of funding, Hero Fin Corp
Limited invested INR 205 crore or USD 30.5 million in Arther Energy and gained nearly
32.31% stakes in the company. In the year 2018, the company further invested USD 19
million or INR 130 crore in Arther Energy, and with this investment, the share of the
company in Arther Energy Limited grew up to 34.58 %
Hero Fin Corp: Operations
Hero Fin Corp Limited has grown strongly over the years since getting its new identity in
2011. The company incorporated its multiple manufacturing plants across the nation to
increase its production. Over the years, the company started many new plants in India and
increased existing plants' capacity. Apart from India, the company is running operations in
various regions across the world, and not just manufacturing plants, but many Research and
Development plants are also set up by the company in multiple nations to work on the latest
technology. Following is the list of some popular Indian cities where Hero Fin Corp Limited's
plants (manufacturing as well as R&D plants) are located:
o Halol
o Haridawar
o Neemrana
o Gurugram
o Dharuhera
o Jaipur (R&D plant which is incorporated in collaboration with Germany's plant of the
company)
These are the cities where the high production plants of the company are located, and now,
most of these manufacturing plants are also working as the research and development center
for the company.
The market of two wheelers is very wide and because of technology, new products (two-
wheeler) with new features are introduced day by day. The level of competition is also
very high in two-wheeler market. Therefore, because of this competition the companies
have to invest much more in research area for survival and success. The invention of the
first two-wheeler is a much-discussable issue. "WHO invented the first motorcycle?" this
seems like a simple question, but the answer is quite complicated.
Two-wheelers originated from the "safety" bicycle that is the bicycles with front and rear
wheels of the same size with a pedal crank mechanism to drive the rear wheel. Those
bicycles, in turn origin from high-wheel bicycles.The high-wheelers origin 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.
Edward Butler, an Englishman, built the first motor tricycle in 1884. The first
gasoline-engine motorcycle to appear publicly was built by Gottlieb Daimler, of Bad
Cannstatt, Germany, in 1885.
Gottlieb Daimler, who later teamed up with Karl Benz to form the Daimler-Benz
Corporation is credited with 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-spoke
wagon-type, and it definitely had a "bone-crusher" chassis! This two-wheeler was
powered by a single-cylinder Otto-cycle engine, and may have had a spray-type
carburetor.One of this type of machine was demonstrated at fairs and circuses in the
eastern US in 1867. The first practical engines and motorcycles were designed by the
French and Belgians, followed by British, German, Italian, and American makers.
The popularity of the vehicle increased, especially after 1910. During World War FIRST,
the motorcycle was used by all branches of the armed forces in Europe, principally for
dispatching. After the war, it enjoyed a sport craze until the Great Depression began in
1929. After World War II, motorcycles are being used for high-speed touring and sport
competitions.During the 1950s with the help of Western Europe and parts of the United
States, the development of a new type of vehicle that is light weighted motorcycle is
become possible, later on it is known as moped. The first moped Originating in Germany
as a 50-cubic-centimetre machine with simple controls and low initial cost, it was largely
free of licensing and insurance regulations except in Great Britain.
The more sophisticated motor scooter originated in Italy after World War II, led by
manufacture of a 125-cubic-centimetre model. Even with strong competition from West
Germany, France, Austria, and Britain, the Italian scooters maintained the leading
position in the diminishing market
India is the second largest manufacturer and producer of two-wheelers in the world. It
stands next only to Japan and China in terms of the number of two-wheelers produced
and domestic sales respectively. This distinction was achieved due to variety of reasons as
if restrictivepolicy followed by the Government of India towards the passenger car
industry, rising demand for personal transport, inefficiency in the public transportation
system etc.The Indian two-wheeler industry made a small beginning in the early 50s
when Automobile Products of India started manufacturing scooters in the country. In
1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally,
in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of
Italy. The agreement expired in 1971.
In the initial stages, the scooter segment was dominated by Automobile Products of India
(API), it was later overtaken by Bajaj Auto. Although various government and private
enterprises entered the fray for scooters, the only new player that has lasted until today is
LML.Under the regulated regime, foreign companies were not allowed to operate in
India. It was a complete seller market with the waiting period for getting a scooter from
Bajaj Auto being as high as 12 years. Because of government regulation, foreign
companies were not allowed to operate in Indian market. It was a complete seller market
with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years.
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. The industry had a smooth ride in the 50s, 60s and 70s when the
Government prohibited new entries and strictly controlled capacity expansion. The
industry saw a sudden growth in the 80s.
The two-wheeler market was opened to foreign competition in the mid-80s. Then the
market leaders - Escorts and Enfield - were caught unaware by the attack of the 100cc
bikes of the four Indo-Japanese joint ventures. With the new feature of fuel-efficient low
power bikes, demand swelled, resulting in Hero Honda - then the only producer of four
stroke bikes (100cc category), gaining a top slot.
The entry of Kinetic Honda in mid-eighties with a barometric scooter helped in

providing ease of use to the scooter owners. This helped in inducing youngsters
and working women, towards buying scooters, who were earlier, inclined
towards moped purchases
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. Excluding Hero Honda, all the major producers suffered
from recession. Hero Honda showed a marginal decline in 1992.The reasons for
recession in the sector were the constant rise in fuel prices, high input costs
and reduced purchasing power due to significant rise in general price level and
credit crisis in consumer financing. Factors like increased production in 1992,
due to new entrants joined with the recession in the industry resulted in
companies either reporting losses or a fall in profits.
BOARD OF DIRECTORS
No. Name of the Directors Designation
1.
Mr. BrijmohanLallMunjal Chairman
2.
Mr. PawanMunjal Managing Director & CEO
3.
Mr. Sunil Kant Munjal Jt. Managing Director
4.
Mr. Suman Kant Munjal Non-Executive Director
5.
Mr. Paul Edgerley Non-Executive Director
6.
Mr. PradeepDinodia Non-Executive
and Independent Director
7.
Gen. (Retd.) V. P. Malik Non-Executive
8.
Mr. Analjit Singh Non-Executive
9.
Dr. Pritam Singh Non-Executive
10.
Mr. M. Damodaran Non-Executive
11.
Mr. Ravi Nath Non-Executive

12.
Dr. Anand C. Burman Non-Executive

PRODUCT OF HERO HONDA MOTORCYCLE
Category Product Name Slogan Engine

Capacity
CD Dawn PUBLIC KA APNA 97.2 cc

TRANSPORT
CD Deluxe Naye IndiankiNayi 97.2 cc

Deluxe Bike
Entry
Pleasure Why should boys have all 97.2 cc
the fun?
MAESTRO The All New 109 cc
Splendor + DESIGNED TO EXCEL 97.2 cc
SPLENDER NXG Yaarikigaadi 97.2 cc
Passion PRO absirf style hi style bolega 97.2 cc
Deluxe
Super splendor All New SIMPLY SUPER 124.7 cc
GLAMOUR SIMPLY MAGNETIC 124.7 cc
Splendor PRO Trusted by millions 97.2 cc
GLAMOUR PGM Fi RIDE THE FUTURE 124.8 cc
Premium Achiever Solid like you 149.2 cc
CBZ XTREME LIVE OFF THE EDGE 149.2 cc
Hunk EVERYBODY 149.2 cc

FOLLOWS THE
KARIZMA ALWAYS GAME 223 cc

KARIZMA ZMR ABOVE ALL 223 cc
IMPULSE 149.2 cc
PankajMunjal- CMD
Hero FinCorp (A Division of Hero Cycles Limited)
Challenges faced by Hero FinCorp Ltd

The two-wheeler industry in India has witnessed a slow demand off-take mainly due to an
increase in petrol prices and a rise in prices of bikes/scooters. In this
regard, the stocks of the top players, including Hero Fin Corp, Bajaj Auto and Eicher Motors,
have been down 13% on average in the past six months.
History of the Hero FinCorp Company
Hero Honda started its operations in 1984 as a joint venture between Hero Cycles of India
and Honda of Japan.In June 2012, Hero Fin Corp 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 Fin Corp Company was
established in 1984 as the Hero Honda Fin Corp Limited at Dharuhera, India. Munjal family
and the 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 its inception. In 2001, the company became the largest two-
wheeler manufacturing company in India and globally. It maintains global industry leaders to
date.The technology in the bikes of Hero Fin corp (earlier Hero Honda) for almost 26 years
(1984–2010) has come from the Japanese counterpart Honda.
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, Bangladesh and
Sri Lanka) 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 ₹6,400 crore (equivalent to ₹120
billion or US$1.5 billion in 2020) 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
BrijmohanLalMunjal 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, Kohlberg Kravis
Roberts (KKR), TPG, Bain Capital and Carlyle Group. Hero Fin Corp Research &
Development Centre in Jaipur, Rajasthan
The name of the company was changed from Hero Honda Fin Corp Limited to Hero Fin Corp
Limited on 29 July 2011. The new brand identity and logo of Hero Fin Corp were developed
by the British firm Wolff Olins.The logo was revealed on 9 August 2011 in London, to
coincide with the third test match between England and India.
Hero Fin Corp can now export to Latin America, Africa, and West Asia.Hero is free to use
any vendor for its components instead of just Honda-approved vendors.
On 21 April 2014, Hero Fin Corp announced its plan on a ₹254 crore (equivalent to ₹345
crore or US$43 million in 2020) 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 Fin Corp 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.
PRODUCT PROFILE
PRICE LIST
MODEL NAME EX. RTO/INS ACC. G.LIFE EXWTY R. OF

SHOW TTL
PLEASURE 42663 4250 2400 250 550 50110
MAESTRO 47511 4600 2400 250 54760
CD-DOWN 37137 4000 900 250 550 42840
DC-DELUX SPK 39593 4150 900 250 550 45440
CD-DELUX-CW 41384 4200 900 250 550 47290
CD-DELUX S.W. –SELF 41998 4250 900 250 550 47950
CD-DELUX C.W. –SELF 42920 4300 900 250 550 48920
SPLENDOR 10 SPOKE 43937 4400 900 250 550 50040
SPLENDOR 10 CAST 44961 4450 900 250 550 51110
SPLENDOR PRO KIK SPK 44858 4450 900 250 550 51010
SPLENDOR PRO KIK CAST 45882 4500 900 250 550 52080
SPLENDOR PRO SELF SPK 46905 4550 900 250 550 53160
SPLENDOR PRO SELF CAST 47929 4600 900 250 550 54230
SPL NXG KIK SPOKE 42914 4300 900 250 550 48910
SPL NXG KIK CAST 44449 4400 900 250 550 50550
SPL NXG S.W – SELF 45677 4500 900 250 550 51880
SPL NXG C.W. SELF 46701 4550 900 250 550 52950
PASSION PRO(S.W.) KIK 46598 4600 900 250 550 52900
PASSION PRO(C.W.) KIK 48135 4700 900 250 550 54540
PASSION PRO(S.W.) SELF 48645 4750 900 250 550 55100
PASSION PRO(C.W.) SELF 49669 4800 900 250 550 56170
PASSION PRO(DSC) SELF 51716 5000 900 250 550 58420
GLAMOUR C.W. – SELF(NEW) 53430 5250 900 250 570 60400
GLAMOUR C.W. – SELF DISK 55477 5400 900 250 570 62600
GLAMOUR DISCW-KIK-FI 58624 5550 900 250 570 65890
GLAMOUR DISCW-SLF-FI 62769 5650 900 250 570 70140
SUPER SPLENDOR CW NEW 51613 4900 900 250 570 58240
CBZ XTREEM (REAR DISK) 70341 6500 350 250 570 78010
CBZ XTREEM(REAR DRUM) 67270 6000 350 250 570 74440
HUNK SELF (NEW) (fr /disk) 66095 5900 350 250 570 73160
HUNK SELF(NEW)(fr&redisc) 69166 6150 350 250 570 76490
IMPULS 70803 6300 350 250 570 78270
KARIZMA-R 80107 6850 350 250 610 88170
KARIZMA-10 100781 7900 350 250 610 109890
NOTE:- Price can be change time to time.
COLOURS OF BIKE
No MODELS COLOURS COMBINATION

.
1 Black With Gold Stripes, Black With Purple Stripes, Boon Silver
CD Dawn Metallic, Candy Blazing Red, Classy Maroon Metallic
2 Boon Silver Metallic, Candy Blazing Red, Classy Maroon Metallic,
CD Deluxe Black With Red Stripes, Black With Purple Stripes
3 Dream Orange, Candy Blazing, Aqua Green, Sports Red, Evony

Pleasure Grey, Light Purple
4 Electric Blue, Harvest Green, Blazing Red, Pearl White, Panther

MAESTRO Black, Force Silver
5 Excellent Blue, Hi Granite Blue, Black With Purple Stripe 1, Purple

Splendor + Stripe 2, Purple Stripe 3, Black With Silver Stripe, Cloud Silver,
Candy Red
6 Vibrant Blue, Black With Red Stripes, Black With Purple Stripes,
SPLENDER NXG Black With Silver Stripes, Force Silver Metallic, Candy Blazing Red
7 Sport Red, Black With Sports Red, Vibrant Blue, Black With Heavy
Passion PRO Grey, Black With Frost Blue, Leaf Green Metallic, Force Silver
8 Cloud Silver, Candy Blazing Red, Heavy Grey, Graphite Black,

Super splendor Vibrant Blue, Black With Fiery Red, Black With Electric Purple
9 Black With Tornado Grey Metallic, Black With Frost Blue Metallic,
GLAMOUR Candy Blazing Red, Black With Vibrant Orange, Black With Sports
Red
10 Excellent Blue, Black Monotone, Black Purple, Candy Blazing Red,

Splendor PRO Heavy Grey, Hi Granite Blue, Cloud Silver, Palace Maroon
11 Black With Sport Red, Candy Blazing Red, Shield Bold Metallic
GLAMOUR PGM Fi
12 Sport Red, Digital Silver, Max Brown Metallic, Flaming Orange,
CBZ XTREME Panther Black Metallic
13 Panther Black, Ebony Grey, Force Silver, Bold Brown, Marine

Hunk Green, Sports Red, Blazing Red
14 Power Black, Ebony Grey, Daring Yellow, Spotlight White, Sport

KARIZMA Red
15 Panther Black Metallic, Vibrant Orange, Blazing Red, Spotlight

KARIZMA ZMR White
16 Grassland Green, Deep Sea Blue, Terra Rossa, Canyon Orange

IMPULSE
GOOD LIFE PROGRAMME
The Hero Fin CorpGoodLife Program is designed to compliment your good life in
every way. It brings you an easy to use privilege card packed with special rewards and
benefits. And it doesn’t end here. It also provides you with a free riders’ insurance worth 1
Lakh to ensure your peace of mind. What’s more, your Hero Fin CorpGoodLife Program
membership rewards you with points on all your spends. So make the best use of your card
and redeem your points for fabulous rewards!
Winner of the month:-All members enrolled in a month get a chance ot participate in an

exciting lucky draw and 4 lucky winners get a chance to win a Splendor+.
Referral Points :-Earn additional 3000 points on referring a Hero Fin Corp two-wheeler to
your friends-n-family members and 6000 points on upgrading your own two-wheeler.
First Transaction Benefit :-You can earn the ‘First Transaction Gift’ on your first program
transaction through the card and also earn 500 points as first transaction benefit.
Discount on Spares &Accessories :-Start receiving a special discount of 5% on the purchase

of spares and accessories on your successful enrollment and free wash coupon (with limited
validity period).
Points Earned on Money Spent :-Accumulate points on the purchase of service, spares and
accessories at an authorized Hero Fin Corp dealership or service centre. Each rupee spent
gets translated into one point earned.
Free Rider's Personal Insurance:-Get a free Personal Accidental Insurance worth Rs. 1
lakh on your successful enrolment.
Go Green:-Get 50 Green Reward points for every Pollution Under Control check of your
vehicle. Present the Pollution Under Control certificate to the dealer and earn your points.
Service Bonus :-Get 100 points per service and 500 as continuity bonus on every 6th regular
service
Bonus Points On Birthday :-Earn bonus double points for every transaction done on your
birthday and get special greetings too. *Terms & Conditions Apply
Special Value Offers :-Exclusive invities to events and special value offers from our
partners, selected especially for you.
Redeem points, take home your gifts
As you continue your journey with us, you can redeem your points for fabulous gifts.
DEALER PROFILE
JAI HERO was established in the year 1992 at Rajnandgaon (C.G.) . Three entrepreneurs as
a partner have started HERO SHOW ROOM.
DEALERS NAME (PARTNERS)

1.MR.LAXMINARAYAN SINGH
2. MR.DEVWRATH SINGH
3.MR.RATNESH SINGH
HERO is authorized dealer of HERO FIN CORP LTD. At Rajnandgaon (C.G.) .

DEPARTMENT :-
1. Sales
2.Spares
3.Services(pre delivery inspection,good life,extended warranty)
FINANCE AVAILABLE FROM :-

1.INDUSIND BANK LTD
2.HDFC
3.ICICI
4.SHRI RAM CITY FINANCE
5.UNION FINANCE
PRIVATE FINANCE available from:-

1.RISHAB FINANCE
2.DHANESH FINANCE
3.BEARER FINANCE
COMPETITORS
1. BAJAJ
2. HONDA
3. TVS
4. SUZUKI
5. YAMHA
6. ROYAL ENFIELD
7. MAHINDRA
8. KINATIC
DEALER’S ORGANIZATION STRUCTURE
OWNER
Show Room Service Station
GodownIncharge Floor Line Suplier Front Line suplier

incharge
Delivery bike
Mechanics Helper Wash boy
P.D.I. Incharge
Account Manager
Delivery incharge Mechanics
boy
Cashier Bill Booking Executive
Parts supplier
Finance Executive
Sales P.D.I. Incharge
Executive
R.T.o. Service
insInsurance Adviser
REVIEW OF LITERATURE
CONSUMER BUYING BEHVIOUR
The main aim of marketing is meet and satisfy target customers need and wants buyer
behavior refers to the peoples or organization conduct activities and together with the impact
of various influence on them towards making decision on purchase of product and service in
a market. The field of consumer behavior studies how individuals, groups and organization
select, buy, use and dispse of goods, service, ideas, or experience to satisfy their needs and
desires understanding consumer behavior and knowing customer are never simple. The
wealth of products and service produced in a country make our economy strong. The
behavior of human being during the purchase is being termed as ―Buyer Behavior.
Customer says one thing but do another. They may not be in touch with their deeper
motivations. They are responding to influences that change their mind at the last minute. A
buyer makes take a decision whether save or spend the money.
Definition of Buyer Behavior:-
Buyer behavior is ―all psychological, Social and physical behaviors of potential customers
as they become aware of evaluate, purchase, consume and tell others about product &
service.
CONSUMER BUYING DECISION PROCESS
There are following five stages in consumer buying decision process.
(i) Problem identification:-

The buying process starts when the buyer recognizes a problem or need. The need can
be triggered by internal or external stimuli. Marketers need to identify the circumstances that
trigger a particular need. By gathering information from a number of consumers, Marketers
can identify the most frequent stimuli that spark an interest in a product category. They can
then develop marketing strategies that trigger consumer interest.
(ii) Information Search:-

The consumer tries to collect information regarding various products/service. Through
gathering information, the consumer learns about completing brands and their features.
Information may be collected form magazines, catalogues, retailers, friends, family members,
business association, commercial, chamber of commerce, telephone directory, tradefair etc.
Marketers should find out the source of information and their relative degree of importance to
the consumes.
Personal Sources: Family, friends, neighbor, as quittances.

Commercial Source: Advertising, sales persons, dealers, packaging, displays.
Public sources: mass media, consumer, rating organizations.
Experimental sources: Handling. Examine, using the product.
(iii) Evaluation of alternative:-

There is no single process used by all consumers by one consumer in all buying
situations. There is several First, the consumer processes, some basic concepts are:
First, the consumer is trying to satisfy need.
Second, the consumer is looking for certain benefits from the product solutions.
The marketer must know which criteria the consumer will use in the purchase decision.
(iv) Choice of purchasing decision:-

From among the purchase of alternatives the consumer makes the solution. It may be
to buy or not to buy. If the decision is to buy. The other additional decisions are:
Which types of bike he must buy?

From whom to buy a bike?
How the payment to be made? And so on.
The marketer up to this stage has tried every means to influence the purchase
behavior, but the choice is properly consumers. In the evaluation stage the consumer forms
preferences among the brands in the choice set. The consumer may also form an intention to
but the most preferred brand.
(v) Post Purchase Behavior:-

After purchase the product, the consumer will experience the same level of product.
The Marketer‘s job not end when the product is buying must monitor post-purchase
satisfaction, post-purchase action, post-purchase use and disposal
Post Purchase Satisfaction:-

The buyer, S satisfaction is a function Of closeness between the buyer, S expectation
and the products Perceiver performance. The larger the gap between expectation and
performance, the greater the consumer dissatisfaction.
Post purchase Action:-

The Consumer, S satisfaction or dissatisfaction with the product influence subsequent
behavior. If the consumer satisfied, he or she will exhibit a higher probability of
purchasing the product again. Dissatisfaction consumer may abandon and return the
product.
Post-Purchase Use or Disposal:-

The marketer should also monitor new buyers use and dispose of the product. If the
consumer store the product in a close, the product is probably not very satisfying. If
the consumer throws the product away, the marketer needs to know how they dispose
of it; especially it can be hurt the environment.
Characteristic of Buyer Behaviors
The chief characteristics of the buyers behaviors are as follow:-
(1) It consists of mental and physical activities which consumers undertake to get goods and
services and obtain satisfaction from them.
(2) It includes both observable activities such as walking through the market to examine
merchandise and making a purchase and mental activities-such as forming attitudes,
perceiving advertising material, and learning to prefer particular brands.
(3) Consumer behaviors are very complex and dynamic to constantly changing. And
therefore, management need to adjust with the change otherwise market may be lot.
(4) The individuals specific behaviors in the market place is affected by internal factor, such
as need , motives, perception, and attitudes, as well as by external of enviourmenatal
influences such as the family social groups, culture, economics and bu
RESEARCH METHODOLOGY
Research Methodology:-
Section A: - Objective
1. To know customer behavior for purchase of herofincorp bike.

2. To identify the factor which influences on customer decision.
3. To know which medium play important role for purchasing bike.
Section B:- Research Plan
RESEARCH PLAN
Research Design: Descriptive
Research Method Used Survey
Research Technique Used Questionnaire
Data Collection (location) Rajnandgaon (c.g.)
Sampling Plan convenience
Sample Size 100

Research Objective
3.2 Research Hypothesis
3.3 Scope of the Study
3.4 Research Design and Methodology
3.5 Limitation of the Study

OBJECTIVE
This paper aims to evaluate the financial performance of selected two-wheeler company i.e.
Bajaj auto and Hero FinCorp for the period from 2018 to 2020. The following are the
objectives of the study:
1. To compare and analyse the financial statements for the past three financial years.
2. To know the profitability position of Bajaj and Hero Fin Corp.
3. To forecast the annual growth rate of income of the company with the help of Trend
analysis.
4. To provide suggestions for improving the overall finance performance of Bajaj and Hero
Fin Corp.
3.2 RESEARCH HYPOTHESIS
There is no significant difference in financial performance of selected two-wheeler company.
SCOPE OF THE STUDY
The current research has a very wide and broad scope. The scope of this report is restricted to
profitability analysis, liquidity analysis, short-term financial strength analysis through
working capital management, and long-term financial strength analysis through solvency
ratios analysis. The current research focuses specifically on monetary issues. The present
study did not cover non-monetary factors that could have a direct effect on the financial
output of the two-wheeler industry and selected two-wheeler firms. Other financial issues
such as capital budgeting, the effect of social, economic, and political conditions on the two-
wheeler industry, the impact of government policies on trade and industry, and so on are not
covered in this report.
3.4 Research Design
The design of a research topic explains the type of research (experimental, survey,
correlation, semiexperimental, review) and also its sub-type (experimental design, research
problem, descriptive case-study).
Tools used for data analysis:
The type of research problem an organization is facing will determine the research design
and not vice-versa. The design phase of a study determines which tools to use and how they
are used. The last 3 years annual report of the company is compiled and tabulated for the
purpose of study.
The techniques used are:
 Comparative study of Balance sheet
 Comparative study of Profit and loss account for the FY 2013-14& 2021-22.
 Trend Analysis
 Ratio Analysis
 Profitability ratio.
 Turnover ratio.
 Solvency ratio.
 Research design is the framework of research methods and techniques chosen

by a researcher. The design allows researchers to hone in on research methods that are
suitable for the subject matter and set up their studies up for success.

 The research design use in the study is analytical research has to analysis the
financial statement which is historical data derive conclusion form it.
 Current ratio.
data collection tools
 For the success of the present study data was collected mainly from secondary
sources like annual reports of Bajaj and Hero Fin Corp from the FY 2017-18 to FY
2020-21, newsletter, magazines and journals of the company. Research involves
gathering data that describe events and then organizes, tabulates, depicts and
describes the data collection it often uses visual aids such as graphs and charts to aid
the reader in understanding the data.
Period of study:
 The data for a period of 3 years from 2017-18 to 2021-22 has been taken into
consideration to assess the financial strength and weaknesses of the company
3.5 LIMITATION
1. TheHero Fin Corp industry was studied using secondary data from published reports and
journal articles from 2018 to 2020. The information gathered from the above sources may not
contain all of the necessary details. As a result, the current research would take into account
all of the shortcomings that are inherent in the secondary data from financial reports.
2. The sample size for the current study is very small. Only two two- wheeler companies are
included in the sample. Therefore, the limitation of the small sample is also applicable to the
present study.
3. Different companies use the different business processes. The process of manufacturing
may also be different. For the purpose of this study, it is assumed that all the companies
engaged in two- wheeler production use the same business process. But in actual practice
different companies adopt different business process therefore the conclusion derived from
the present study may not be that accurate.
Data Representation and Analysis
Data Representation and Interpretation
Analysis-1
Analysis-2
Hypothesis Testing
Data representation & Analysis
A. MEANING OF RATIO AND ACCOUNTING RATIO

Accounting ratio may be expressed as an arithmetical relationship between two accounting
variables.
RATIO’ is an arithmetical expression of relationship between two interdependent or related

items. Ratios, when calculated on the basis of accounting information are called accounting
ratio.
B. METHOD OF EXPRESSING ACCOUNTING RATIO
The analysis of financial statements can be presented by one of the following methods:
1. TERMS OF NUMBERS (Rates or in time)

According to this method, relationship between two figures is presented in terms of rates or
in time ratio. For example, sales are Rs.100000 and stock is Rs. 20000, then it will be said
that stock turnover is 5 times [2000 ]
2. PERCENTAGE
If the quotient obtained by dividing one item by another is multiplied by one hundred, it
becomes the ‘percentage’ form of expression. Fr example, if sale is 400000 and gross profit is
120000 then
Gross profit ratio will be 30% [120000400000 × 10

CLASSIFICATION OF ACCOUNTING RATIOS:
Classification of accounting ratios depends upon the objectives for which they are calculated.
It may also depend upon availability of data, analysis of financial statements is made with a
view to ascertain the efficiency and financial soundness of the company accounting ratio
must be classified on the basis of profitability ratios, activity or performance or turnover
ratios and financial ratios (i.e., liquidity ratios and solvency ratios).
Analysis-1
To compare and analyze the financial statements for the past three financial years.
A. Total current assets and liabilities
(Amount in crore of INR)
2020 2021 2022
Bajaj Hero Bajaj Hero Bajaj Hero
Non-current 15,890.17 8,394.50 21,761.25 10,091.15 19,894.00 11,024.87

assets
Current Assets 9,250.83 9,002.23 7,073.16 8,413.21 6,616.02 8,649.20
Total Assets 25,141.00 17,396.73 28,834.41 18,504.36 26,510.02 19,674.07
Equity 20,425.26 12,064.67 23,233.82 13,236.52 21,662.09 14,546.88
Non-current 604.34 850.7 726.81 858.66 594.6 848.12
liabilities
Current liabilities 4,111.40 4,481.36 4,873.78 4,409.18 4,253.33 4,279.07
Total Equity and 25,141.00 17,396.73 28,834.41 18,504.36 26,510.02 19,674.07

Liabilities
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
2020 2021 2022
Non-current assets Current Assets Equity Non-current liabilities Current liabilities
Source: Financial statement of Bajaj and Hero company
B. Revenue & expenses & Net profit of 3 consecutive years
2020 2021 2022
Total revenue 26,775.53 33,624.11 31,702.12 34,658.96 31,443.22 29,985.88
Total Expenses 22556.58 29909.2 26,774.52 31207.59 26,231.31 26344.76
Net Profit 4218.95 3714.91 4927.6 3451.37 5211.91 3641.12

(AMOUNT IN CRORE OF INR)
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
2020 2021 2022
Total revenue Total Expenses

C. Cash Inflows
2020 2021 2022

Net cash flow from 4,327.84 4,017.21 2,486.86 1,032.27 3,850.44 5,518.13
operating Activities
Net cash flow from -2,053.09 -1,858.21 -338.44 1,297.63 1,556.09 -2,819.14
Investing Activities
Net cash flow from -1,885.26 -2,102.45 -2,074.05 -2,252.40 -6,246.51 -2,601.80
Financing Activities
Net cash flow from operating Activities Net cash flow from Investing Activities
Net cash flow from Financing Activities
6,000.00
5,000.00
4,000.00
OF INR)
3,000.00
CRORE
2,000.00
IN
1,000.00
(AMOUNT
0.00
BAJAJ HERO BAJAJ HERO BAJAJ HERO
-1,000.00 2020 2021 2022
-2,000.00

Analysis-2
To know the profitability position of Bajaj and Hero Fin Corp.
A. Profitability Ratio
Profitability ratios are a class of financial metrics that are used to assess a business's ability to
generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders'
equity over time, using data from a specific point in time.
Profitability ratios can be compared with efficiency ratios, which consider how well a
company uses its assets internally to generate income (as opposed to after-cost profits).
1. Return on Equity
This ratio measures Profitability of equity fund invested the company. It also measures how
profitably owner’s funds have been utilized to generate company’s revenues. A high ratio
represents better the company is.
Formula: Profit after Tax ÷ Net worth Where,
Net worth = Equity share capital, and Reserve and Surplus.
2. Earnings Per Share
This ratio measures profitability from the point of view of the ordinary shareholder. A high
ratio represents better the company is.
Formula: Net Profit ÷ Total no of shares outstanding
3. Cash earnings Per Share
Cash earnings per share (cash EPS), or more commonly called operating cash flow, is a
financial performance measure comparing cash flow to the number of shares outstanding.
4. Return on Capital Employed

This ratio computes percentage return in the company on the funds invested in the business by
its owners. A high ratio represents better the company is.
Formula: Operating Cash Flow ÷ Diluted Shares Outstanding
5. Return on Assets
This ratio measures the earning per rupee of assets invested in the company. A high ratio
represents better the company is.
Formula: Net Profit ÷ Total Assets
6. Net Profit Margin
This ratio measures the overall profitability of company considering all direct as well as
indirect cost. A high ratio represents a positive return in the company and better the company
is.
Formula: Net Profit ÷ Sales × 100
Net Profit = Gross Profit + Indirect Income – Indirect Expenses
Formula: Net Operating Profit ÷ Capital Employed × 100
Capital Employed = Equity share capital, Reserve and Surplus, Debentures and long-term
Loans
Capital Employed = Total Assets – Current Liability
7. Total Debt/Equity (X)
The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and
is calculated by dividing a company’s total liabilities by its shareholder equity.
Formula: Total Liabilities ÷ Total shareholder equit

A. PER SHARE RATIOS
2020 2021 2022
Earnings Per Basic EPS 145.8 186.3 170.3 172.45 180.2 182.15
Share
Diluted 145.8 186.29 170.3 172.44 180.2 182.15
EPS
Cash earnings per share (%) 146.7 212.69 167.38 201.75 177.52 223.81
4
Revenue from Operations/Share 871.5 1,625.3 1,049.0 1,700.6 1,033.9 1,464.5

(Rs.) 1 6 9 7 2 3
Return on Capital Employed (%) 27 40.82 26.16 36.04 28.63 25.62

Interpretation
EPS is an important financial measure, which indicates the profitability of a company. The
higher the earnings per share of a company, the better is the profitability.
The EPS of Bajaj has increased from 145.8 to 180.2 indicating higher profits whereas EPS of
Hero has decreased from 186.3 in 2018 to 172.45 in 2019 then again it showed a further
increase in 2020 that is 180.2
Cash earnings per share (cash EPS), or more commonly called operating cash flow, is a
financial performance measure comparing cash flow to the number of shares outstanding.
The higher a company’s cash EPS, the better it is considered to have performed over a
period. The Cash EPS of Bajaj has increased from 146.7 to 167.38 indicating better
performance whereas Cash EPS of Hero has decreased from 212.69 in 2018 to 201.75 in
2019 then again it showed a further increase in 2020 that is 223.81
Return on capital employed or ROCE measures how efficiently a company can generate profits
from its capital employed by comparing net operating profit to capital employed. This ratio
measures the relationship between profit before interest & tax & capital employed by a business
enterprise. This is one of the most important ratios of measuring of overall utilisations of funds
by business concern. This ratio is generally expressed in terms of percentage. Higher the ratio, the
better will be the position of the business. The ratio of Bajaj has changed from 27 in 2018 to
28.63 in 2020 despite of some up and downs but this shows that overall efficiency and
profitability of company has increased. The ratio of Hero has changed from 40.82 in 2018 to
25.62 in 2020 which shows that overall efficiency and profitability of company has decreased.
B. Profitability Ratio of Bajaj and Hero Fin Corp.
2020 2021 2022
Return on Equity (%) 20.65 31.07 21.2 26.24 24.06 25.25
Return on Assets (%) 16.78 21.38 17.08 18.61 19.66 18.49
Asset Turnover Ratio (%) 100.3 186.57 105.28 183.58 112.85 148.69
Net Profit Margin (%) 15.58 11.31 15.07 10.02 16.34 12.39
Total Debt/Equity (X) 0 0.02 0 0.02 0 0.01

Interpretation
Return on equity capital is very important from the view of equity shareholders because dividend on
equity shares depend upon the profit available for equity shareholders. The return on investment
(ROI) is a metric that calculates both profit and efficiency. A rising ROE means that a corporation is
earning more income by consuming less capital. It also reveals how well a company's management
handles shareholder assets. A return on equity (ROE) is an indicator of management's ability to
produce revenue from the equity allocated to it, similar to return on capital. ROEs of 15–20 percent
are generally regarded as satisfactory.
The ratio of Bajaj has changed from 20.65 in 2018 to 24.06 in 2020 this shows that investor’s
capital is not reinvested effectively whereas ratio of Hero has decreased which means there is
improvement in their performance.
Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
ROA gives a manager, investor or analyst an idea as to how efficient a company's management
is at using its assets to generate earnings. ROA is displayed as a percentage. An ROA of 5% or
better is typically considered a good ratio while 20% or better is considered great. In general, the
higher the ROA, the more efficient the company is at generating profits.
The ROA of Bajaj has increased from 16.78 to 19.66 which show the company is efficient
whereas the ROA of Hero has decreased from 21.38 to 18.49 but there is no significant
difference between the performances of both the companies.
The asset turnover ratio measures the value of a company's sales or revenues relative to the value
of its assets. The asset turnover ratio can be used as an indicator of the efficiency with which a
company is using its assets to generate revenue. The higher the asset turnover ratio, the more
efficient a company is at generating revenue from its assets. Conversely, if a company has a low
asset turnover ratio, it indicates it is not efficiently using its assets to generate sales. The asset
turnover ratio of Bajaj has increased from 100.3 in 2018 to 112.85 which shows the efficiency of
company at generating revenue from its assets whereas ratio of Hero has decreased from 186.57
in 2018 to 112.85 which shows its inefficiency.
business segment. A good margin will vary considerably by industry and size of business, but as
a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is
considered high (or “good”), and a 5% margin is low.
The net profit margin of Bajaj has increased from 15.58 to 16.34 whereas net profit margin of
Hero has decreased from 11.31 in 2018 to 10.02 in 2019 nd then further it has increased to 12.39
in 2020.
Debt equity ratio is calculated to judge the long-term financial position of the business.
Generally, debt equity ratio 2:1 is considered safe. But in modern time, debt ratio 1:1 is preferred
safe. A high debt equity ratio is a sign of danger because it indicates that more funds are invested
in the business by the long-term lenders or the owners are employing relatively less money of
their own. The lower debt equity ratio better will be the long-term solvency position of the
business.
The debt equity ratio of Bajaj is zero which indicates that the firm does not finance increased
operations through borrowing at all, which limits the total return that can be realized and passed on
to shareholders whereas debt equity ratio of hero has changed from 0.01 to 0.02 over years this
shows that long term solvency position of company remained more or less same.
C. LIQUIDITY RATIOS
2020 2021 2022
Current Ratio 2.25 2.01 1.45 1.91 1.56 2.02
Quick Ratio 2.07 1.79 1.25 1.62 1.3 1.72
Dividend Pay-out Ratio (NP) (%) 37.72 45.62 35.23 55.09 99.93 53.25
Inventory Turnover Ratio (X) 33.89 33.72 31.46 27.19 28.13 22.81
Interpretation
Current ratio measures the relationship between current assets and current liabilities. This ratio
judges whether the current assets are sufficient to meet the current liabilities of the business. Current
ratio is required to evaluate the ability of a business enterprise to meet its short-term financial
obligation in time. Higher the ratio, the greater will be the margin of safety and better
will be the short-term solvency position of the business. If current ratio is less than its
benchmark, then it indicates a lack of liquidity and shortage of working capital.
The short-term solvency position of Bajaj has decreased indicating lack of liquidity as ratio has
decreased from 2.25 in 2018 to 1.56 in 2020. Whereas the short-term solvency position of the
firm remains stable as the current ratio decreased initially from 2.01 in 2018 to 1.91 in 2019 but
then it increased to 2.02 in 2020.
Quick ratio establishes relationship between liquid assets and current liabilities. Generally the
benchmark of liquid ratio is 1:1 and it is said to be satisfactory, which means liquid assets are
just equal to current liabilities. Hence, there can be no possibility of default in payment of
current liability by the business concern. Higher ratio shows the better capacity of the business to
meet its current obligations.
The quick ratio of Bajaj was highest in 2018 i.e., 2.07 and then it has decreased to 1.30 in 2020
which shows that the firm's short term solvency position was better than satisfactory whereas
quick ratio of Hero remains constant despite of some ups and downs.
The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders
relative to the net income of the company. A range of 35% to 55% is considered healthy and
appropriate from a dividend investor's point of view.
The dividend payout ratio of Bajaj has increased from 37.72 in 2018 to 99.93 in 2020 which
means that the company is reinvesting less money back into its business, while paying out
relatively more of its earnings in the form of dividends whereas dividend payout ratio of Hero
remained within the benchmark which is considered healthy.
Inventory turnover ratio indicates no. Of times inventory is replaced during the year it shows the
relationship between cost of revenue from operation and average inventory. Higher the ratio, the
better will be the position of the business wherever lower turnover ratio indicates that the
business is not selling its stock quickly, it is kept ideal in the godown.
The inventory turnover ratio of Bajaj was 33.89 in 2018 and then it has decreased to 28.13. The
ratio of company is higher than the ideal ratio that is 5 to 10 which shows that the company is
selling their inventory at low margin of profit whereas the inventory turnover ratio of Hero was
33.72 in 2018 and has decreased to 22.81 in 2020 which shows that the Hero is also selling their
inventory at low margin of profit
D. Coverage Ratio
2020 2021 2022
Interest Coverage 4,335.20 171.21 1,399.18 136.65 2,017.02 84.6

Ratio
Interpretation
The interest coverage ratio is a debt and profitability ratio used to determine how easily a
company can pay interest on its outstanding debt. Intuitively, a lower ratio indicates that less
operating profits are available to meet interest payments and that the company is more
vulnerable to volatile interest rates. Therefore, a higher interest coverage ratio indicates stronger
financial health – the company is more capable of meeting interest obligations.
The Interest Coverage Ratio of Bajaj has decreased from 4335.20 in 2018 to 1399.18 in 2019
and again it has increased to 2017.02 which shows the decline in financial health of a company
and the ratio of Hero has also declined from 171.21 in 2018 to 84.6 in 2020.
Hypothesis Testing
VARIABLE DF t Stat P(T<=t) two-tail Result
Basic EPS 3 -1.34942 0.270003 Not Significant
Diluted EPS 3 -1.34878 0.270185 Not Significant
Cash earnings per share (%) 4 -4.41422 0.011563 Significant
Revenue from Operations/Share (Rs.) 4 -6.80852 0.002432 Not Significant
Return on Capital Employed (%) 2 -1.51721 0.2685 Not Significant
Return on Equity (%) 3 -2.66116 0.076263 Not Significant
Return on Assets (%) 4 -1.25821 0.27675 Not Significant
Asset Turnover Ratio (%) 2 -5.26234 0.034266 Significant
Net Profit Margin (%) 3 5.684765 0.010788 Significant
Total Debt/Equity (X) 2 -5 0.03775 Significant
Current Ratio 2 -0.8966 0.46455 Not Significant
Quick Ratio 2 -0.62977 0.593196 Not Significant
Dividend Pay-out Ratio (NP) (%) 2 0.295235 0.795643 Not Significant
Inventory Turnover Ratio (X) 3 0.908104 0.430772 Not Significant
Interest Coverage Ratio 2 2.743725 0.111128 Not Significant

DATA TABULATION, ANALYSIS AND RESULT
Respondent Profile
1. Gender profile :
Table 1: Indicating gender profile of the respondents
Gender Percent
Male 75
Female 25
Total 100
Interpretation:
75% of the respondents were male and

25% of the respondent s were female.
2. Age profile :
Table 2: Indicating age profile of the respondent
Age Percent
18-19 5
20-29 41
30-39 29
40 & above 25
Total 100
Interpretation:
41% of the respondents fall in the age group of below 20-29,
29% of the respondents fall in the age group of 30-39 and
25% of the respondents fall in the age group of 40 and above.
5% of the respondents fall in the age group of 18-19,
3. Occupation of the respondents :
Table 3: Indicating Occupation of the respondents
Occupation Percent
Business 43
Service 32
Students 5
Agriculture 20
Total 100
Interpretation:
43% of the respondents were business class,

32 % of the respondents were service class,
20 % of the respondents were agriculture,
5 % of the respondents were student.
4. Income of the Respondents :
Table 4: Indicating Income of the respondents.
Income Percent
<10,000 15
10,000-15,000 44
15,000-20,000 30
20,000 & above 11

Total 100
Interpretation:
44% of the respondent fall in the below 10,000-15,000 ,

30% of the respondent fall in the bracket of 15,000-20,000 ,
15% of the respondent fall in the bracket of <10,000,
11% of the respondent fall in the 20,000 & above.
Analysis:-
1.Do you have own bike ?
Percent
Yes 43
No 57
Total 100
Interpretation:
57% respondents don’t have own bike,
43% respondents have own bike.
2. Which medium do you refer to purchasing bike?
Sources Percent
News paper 26
TV advertisement 24
Friends & relatives 38
others 12
Total 100
Interpretation:
38% of the respondents had the knowledge through friends &relatives,
26% of the respondents had the knowledge through newspaper,
24% of the respondents had the knowledge through TV advertisment,
12% of the respondents had the knowledge through others.
3. Who is decision maker for purchasing bike in your family?
Decision maker Percent
Father 46
Mother 8
Self 42
others 4
Total 100
Interpretation:
46% of the respondents take decision by father for purchasing bike,
42% of the respondents take decision by self for purchasing bike,
8% of the respondents take decision by mother for purchasing bike,
4% of the respondents take decision by other for purchasing bike.
4. What is your source of finance?
Source of finance Percent
By Cash 35
By Loan 65
Total 100
Interpretation:
65% respondents purchase bike by Loan,
35% respondents purchase bike by Cash.
Which factors influence you to purchase HERO bike?
Brand reputation
Factor Most More Important Less Least

important important important important
Brand 52 33 12 3 0
Interpretation:
52% of the respondents told that brand is most important,
33% of the respondents told that brand is more important,
12% of the respondents told that brand is important,
3% of the respondents told that brand is less important,
0% of the respondents told that brand is least important.
Style

Style 18 34 45 3 0
Interpretation:
45% of the respondents told that brand is important,
34% of the respondents told that brand is more important,
18% of the respondents told that brand is most important,
3% of the respondents told that brand is less important,
0% of the respondents told that brand is least important.
COLOUR

COLOUR 69 28 3 0 0
Interpretation:
69% of the respondents told told that COLOUR is most important,
28% of the respondents told that COLOUR is more important,
3% of the respondents told told that COLOUR is important,
0% of the respondents told told that COLOUR is less important,
0% of the respondents told told that COLOUR is least important.
FINDING OF STUDY
Finding of Study:
1. The study shows that 57% respondent has already bike.
e study shows that 38% respondent had knowledge through friends &relatives.
2. The study shows that 46% of the respondents take decision by father for purchasing bike.
3. The study shows that 65% respondents purchase bike by Loan.
4. Respondents told that brand 52%, COLOUR 69%, price 57% are most important.
5. Respondents told that mileage 44% is more important.
6. Respondents told that style 45%, pick up 49%, maintenance 67% are important.
RECOMMENDATION
Recommendation:-
1. Brand is the most significant factors so while making promotional activities companies
must focus more on Brand name.
2. Company should try to use more loan facility.

LIMITATIONS OF THE STUDY
Limitations of the Study:-
During conducting period this training I come across the following limitations.
 Very often responded do not express their true feelings. In such case their habit,
preference, practice cannot be assessed correctly.
 Some of the respondents refuse to give the important information best known to them.
 Lack of experience.
However in spite of these limitations all efforts have been put to make the report correct,
genuine, and fulfilling the objectives of the reports.
CONCLUSION
Conclusion:-
1. Mostly people getting knowledge by friend and relatives.
2. Mostly Father is decision maker for purchasing bike in your family.
3. Mostly respondents purchase bike by Loan.
4. Mostly respondents told that brand, COLOUR, price are most important.
5. Mostly respondents told that mileage is more important.
6. Mostly respondents told that style, pick up, maintenance are important.
REFERENCE
REFERENCE:-
WEBSITE:-
www.herofincorp.com
www.scribd.com
www.projects4mba.com
Product and Services
Hero Finance Group is equipped with state-of-the-art manufacturing facilities. All the
units are located at strategic locations for the unique advantages that each place offers. A
workforce of dedicated professionals is efficiently operating and managing the facilities and
leading the organization towards the pinnacle of achievements.

The expertise of Hero Finance is powered by innovations. Making use of the latest technology,
experienced professionals develop unique products that create great demands in the market. It’s
the endeavor of Hero Finance to innovate the best that will facilitate its clients to get the most
sophisticated products at the most reasonable cost.
Gear & Transmission

Established in 2006, Hero Motors’ Gear and Transmissions Unit is located at Ghaziabad. The
unit manufactures transmission and gearing components for high-end motorcycles, Automotive
and off-road vehicles for OEMs and tier-1 suppliers.
Our state of the art gear plant is equipped with world class machines and infrastructure, and we
are constantly upgrading ourselves to keep up with our international clients’ demands and
expectations. Our flexible manufacturing system allows us to serve “low to very high volumes”,
batch productions, and also ensures speedy development to meet client deadlines.
Machine Shop
The facilities include state-of-the-art CNC machines, coupled with highly customised
special-purpose machines for intricate machining requirements. The facilities include state-
of-the-art CNC machines, coupled with highly customized special-purpose machines for
intricate machining requirements.
The array of turning machines comprises HMC Makino, VMC Makino, VMC Fanuc robo
drill, VMC Tongtai Mazak turning centers, ACE turning centers, MICO Fine Bore, Nagal
bore honing, Widma multi-station rotary CNC SPM and Fine ATC multi-station rotary
CNC SPM .
The cutting-edge technology at our disposal enables us to meet all client specifications and
deadlines.
Sheet Metal
The Sheet Metal division is well-equipped with the latest infrastructure and manufacturing
practices for stamping and welding.
The Sheet Metal division is well-equipped with the latest infrastructure and manufacturing
practices for stamping and welding.
We also have sophisticated machines like pneumatic/hydraulic and mechanical presses ranging
from 7 tons to 250 tons, welding like TIG/MIG/spot/projection with manual, SPM, as well as
twin torch robotic MIG welding.
Our press shop has the capacity to produce 1.5 million chain covers per year, while the welding
facility, which has 100 MIG welding machines, can manufacture more than 6,000 swing arms
per day.
Paint Shop
The paint shop consists of powder and liquid coating facilities for Automotive and
Consumer Durable products with different shapes and sizes.

Our expertise is gained by decades of experience in this field.
The paint shop consists of powder and liquid coating facilities for Automotive and Consumer
Durable products with different shapes and sizes.
The Powder Coating Shop has spray pretreatment facilities with 10 tank chemical coating
process with an approximate capacity of 5 lakhs Sq DM per day. The Liquid Painting Process
has a conveyor speed of 3 meters/minute, with a capacity of 3 lakhs parts per month.
Hero Faces Challenging Times In Two-Wheeler Market
The company is working to develop bikes with higher engine efficiency to compete with the
likes of Bajaj’s Avenger and Royal Enfield bikes: Munjal
If it continues to manufacture similar machines, country’s largest two-wheeler maker Hero Fin
Corp might lose its crown in next 8-10 years to its former partner Honda Scooter and Motorcycle
India ltd (HSMI). The company’s market share has declined nearly 5 per cent post the divorce on
the backdrop of bad monsoon and products coming out of its factory unchanged.
FY 2020-21 sales result shows that Honda’s share in the last five since the split has doubled from
a nominal 13 per cent to 26 per cent whereas Hero’s market share slide nearly 5 per cent
percentage points to 39 per cent. In the bike segment,
Hero's market share is above 50 percent.
For fiscal ended March 31, it posted a marginal increase in sales at 66,32,322 units as against
66,31,826 units in previous year. For the fiscal year ended March 31, 2016, the company posted
a marginal increase in total two-wheeler sales at 44,83,459 units as against 44,52,005 units in the
previous fiscal year.
In the last five years, Honda has manufacturing capacity has multiplied many times. From one
manufacturing facility with a capacity to make 1.6 million two-wheelers in 2010-11, the
company now has four facilities where it can produce 5.8 million vehicles a year. Hero has the
capacity to produce 8.1 million units a year.
The Growing Scooter Market

It’s been only six 6 months that Hero has started focusing intensively in the scooter segment.
Scooter’s which now holds 31 per cent of the two wheeler market has remained a forte of its
former partner Honda whose market share is around 50 per cent compared to Hero’s 22 per cent.
Honda was the first company to realize the growing trend of scooter among urban users,
especially the female section. It launched popular model Activa in 2000 and since then it has
been the best-selling model in the country. Hero on the contrary continued to focus in the 100-
125cc category bikes which affected its scooter sales. However it’s latest scooters- Duet and
Maestro Edge has been received well in the market. The company's sold 88,156 units of scooter
in February 2016, a double digit growth compared to last year’s Feb sales.
In the premium commuter segment (150cc-250cc) too, the company has failed to deliver a
landmark model to strengthen its position in this growing segment.
Bad Monsoon
Nearly 45 per cent of Hero’s total sales come from rural India and a bad monsoon can a negative
impact on the company’s growth. PawanMunjal, CMD of HeroMoto Corp says that the
motorcycle industry has been slow over the past two years because the changing rain patterns
have affected demand. He believes that the company’s plan to sell 12 million units annually will
largely depend on this year’s monsoon. He says that if monsoon is good, there will be changes in
the segments in the rural markets.
A bad monsoon in 2016-17 is the last thing the company would wish for as the country has
already witnessed two consecutive droughts.
Honda on the contrary bakes its product for urban population which are least affected by
monsoon cycle and more by economic cycle. Satisfied with the FY16 result, Honda
Motorcycle& Scooter India senior vice president-sales and marketing Yadvinder Singh Guleria
said, "From a strategic perspective, 2021-21 was like a base camp for Honda and now we are
fully armed for the steep climb in 2020-21."
Signs of Improvement
Despite the shortfalls, the company held its tag as the first preference of Indian buyers. Its
economical, fuel efficient and simple looks are still adored by many, especially in ruler India.
But with the changing preference of the buyers, the company has started focusing equally in the
other segments. It recently inaugurated one of the largest R&D centre in Jaipur to expand its
portfolio and meets its target, which is to sell 12 million units in a year by 2012.
Munjal stated that the R&D team is expected to come up with innovative products that will help
to push the firm’s vision as a global brand. He added that the firm is currently present in a few
segments and it needs to strengthen its position especially in the segments where it has lagged
behind.
On the growing scooter segment too, the company launched two popular in-house developed
modes, Duet and Maestro edge which is being well received in the market. As a result the
company has emerged as the second largest player in the segment.
Munjal also said that the market is working to develop bikes with higher engine efficiency to
compete with the likes of Bajaj’s Avenger and Royal Enfield bikes.
The Budget's push to boost the rural economy, especially policies related to improving the road
infrastructure, should help raise overall two-wheeler sales.
Vision & Mission

HMC group of Companies aspires to deliver the best and the most cost-effective products &
solutions empowered by superior technologies.

The Group is committed to ensuring value for money by developing high-quality, environment-
friendly and efficient solutions that fulfil the diverse needs of customers.

“At Hero Finance, we are committed to give our best and achieve the highest standards in
Performance, Quality, Systems, Care and Relationships. And then we want to beat these high
Consolidated financial sheet of Hero Fin Corp.

QUESTIONNAIRE
1. Do you have own bike?
(a) Yes ( ) (b) No ( )
2. Which medium do you refer to purchasing bike?

(a) News paper ( ) (b) TV advertisement ( )
(d) Friends &relatives( ) (d) others ( )
3. Who is decision maker for purchasing bike in your family?

(a) Father ( ) (b) Mother ( )
(c) Self ( ) (d) other ( )
4. What is your source of finance?

(a) By cash ( ) (b) By Loan ( )
5. Which factors influences you to purchase HERO bike?

(1=most important factor and 5=least important factor)
FACTOR Most More Important Less Least

Brand reputation
Style
COLOUR
Price
Pick up
Mileage
Maintenance

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TABLE OF CONTENTSPAGE

1. Declaration by the Student 01

12.Findings of the study 71-87

I. Research Progress Report

 Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched.

When did hero company started in India?

January 19, 1984

The company was founded by BrijmohanLallMunjal on January 19, 1984 and is

Renaming of the company and ending of the Joint Venture

Through a complete series of off-market transactions, Honda's counterpart of the Hero Honda

New Company Formation and Development

Hero Fin Corp: Equity Investment

(1) Buying More than 49% shares in Erik Buell Racing:

(2) Gaining Stakes in Arther Energy:

Hero Fin Corp: Operations

The entry of Kinetic Honda in mid-eighties with a barometric scooter helped in

No. Name of the Directors Designation

and Independent Director

and Independent Director

and Independent Director

and Independent Director

and Independent Director

and Independent Director

and Independent Director

Category Product Name Slogan Engine

CD Dawn PUBLIC KA APNA 97.2 cc

CD Deluxe Naye IndiankiNayi 97.2 cc

MAESTRO The All New 109 cc

Splendor + DESIGNED TO EXCEL 97.2 cc

SPLENDER NXG Yaarikigaadi 97.2 cc

Passion PRO absirf style hi style bolega 97.2 cc

GLAMOUR SIMPLY MAGNETIC 124.7 cc

Splendor PRO Trusted by millions 97.2 cc

GLAMOUR PGM Fi RIDE THE FUTURE 124.8 cc

Premium Achiever Solid like you 149.2 cc

CBZ XTREME LIVE OFF THE EDGE 149.2 cc

Hunk EVERYBODY 149.2 cc

KARIZMA ALWAYS GAME 223 cc

Challenges faced by Hero FinCorp Ltd

MODEL NAME EX. RTO/INS ACC. G.LIFE EXWTY R. OF

NOTE:- Price can be change time to time.

No MODELS COLOURS COMBINATION

3 Dream Orange, Candy Blazing, Aqua Green, Sports Red, Evony

4 Electric Blue, Harvest Green, Blazing Red, Pearl White, Panther

5 Excellent Blue, Hi Granite Blue, Black With Purple Stripe 1, Purple

8 Cloud Silver, Candy Blazing Red, Heavy Grey, Graphite Black,

10 Excellent Blue, Black Monotone, Black Purple, Candy Blazing Red,

13 Panther Black, Ebony Grey, Force Silver, Bold Brown, Marine

14 Power Black, Ebony Grey, Daring Yellow, Spotlight White, Sport

15 Panther Black Metallic, Vibrant Orange, Blazing Red, Spotlight

16 Grassland Green, Deep Sea Blue, Terra Rossa, Canyon Orange

Winner of the month:-All members enrolled in a month get a chance ot participate in an

Discount on Spares &Accessories :-Start receiving a special discount of 5% on the purchase

Redeem points, take home your gifts

DEALERS NAME (PARTNERS)

HERO is authorized dealer of HERO FIN CORP LTD. At Rajnandgaon (C.G.) .

FINANCE AVAILABLE FROM :-

PRIVATE FINANCE available from:-

Show Room Service Station

GodownIncharge Floor Line Suplier Front Line suplier

Definition of Buyer Behavior:-

CONSUMER BUYING DECISION PROCESS

There are following five stages in consumer buying decision process.