Hero Motocorp Ltd.

(BSE: 500182, NSE: HEROMOTOCO) formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan.[3] The company is the largest two wheeler manufacturer in India.[4] The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.[5]

In 2010, When Honda decided to move out of the joint venture,[6] Hero Group bought the shares held by Honda.[7] Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity.[ Company profile

“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.

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 emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda [9]

Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.[10] Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000,[11] called the Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million twowheelers by 2016-17. This in conjunction with new countries where they can now market their twowheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built. [12]

The Indian manufacturing Industry that has tremendous cost pressures is adopting information technology in a big way to remain cost competitive and improve efficiencies..han twenty two years of experience in industry and consulting environment and prior to Hero MotoCorp Ltd.Tech.100 in 2008.T. Now CIOs only have to focus on organizational needs while .2010. management adequately supports these initiatives. IT has become an integral part of the life of users. has some of the leading edge technologies that are supporting business achieve its goals. Apart from this. DRIVERS FOR ADOPTION OF TECHNOLOGY AT Hero Motocorp Ltd. Enterprise Award . has worked with M/s Ranbaxy Laboratories Limited and M/s Tata Consultancy Services.) in Industrial Engineering. Academically. Indian School of Business (ISB) and IIM Ahmedabad. Some of the recent awards include India’s Best CIOs 2010. another factor for rapidly growing adoption has been the increasing penetration of IT in the daily life of people. India’s Best IT Managers – 2009. 2009 and 2010. This includes APICS certification in the area of Supply Chain and CISA certification in the area of Information Systems Audit. With things like internet banking. Today Hero MotoCorp Ltd. he has a Masters Degree (M. He is a regular speaker at various forums both in India and across the globe. an MBA in Materials Management and an Engineering Degree (B. world’s largest two wheeler company. on-line bookings or the advent of social networking. the need to push the deployment of technology in the organization has seen a phenomenal change with a major pull now coming from users to deploy IT based solutions and automation so as to enable them to utilize their time better in delivering business goals. Yet another driver of adopting emerging technologies is the easy availability of skill sets with the service providers and consultants. CIO . The key role of the CIO and the other members of the senior management team is to nurture an environment where people are not averse to taking risk in early adoption of technologies.Tech.) in Mechanical Engineering. As long as it makes business sense and the initiatives are within agreed parameters. While the users have realized the immense benefits of technology in an official set-up. the organizational culture of exploration and espousal of new technology has played an important role in driving technology adoption. he has a number of certifications in various areas of management and IT. Mr. CIO Green Edge Awards 2008 and 2009 and Top 10 Green I. Apart from the business benefits of implementing any technology being the key driver. Sethi is member of various forums including IT committees of CII and SIAM. He has also attended training programs organized by leading institutes including Harvard Business School (HBS). He has won several prestigious awards. He has also been the jury member for some of the leading IT and telecom awards in India. Over the years. He is also the Board member and North India Region Head of INDUS (SAP India User Group).

data protection. information security. strengths of the vendor and how the technology and vendor fits into our own IT strategy. as. the technical strengths of the product. etc. the final decision is driven by a set of factors including the likely business benefits. factors like exit terms. there are cases where outsourcing becomes the only viable option because of shortage of technical manpower in areas where technical resource cannot be attracted by a manufacturing organization. The selection of cloud technologies becomes complex because apart from factors such as basic functionality and commercial and licensing terms. This gives us our business differentiation and hence we do not outsource these activities at all and the resources are internal to the organization. On the other extreme are the service areas like hardware maintenance. Another technological area that is gaining ground globally is Cloud Computing which has to be dealt differently while selecting technologies. In fact the cost of running IT can be even higher if it is totally outsourced as compared to when a mixed or balanced approach is taken. TECHNOLOGY SELECTION PROCESS While we do take inputs from consultants. Outsourcing some part of the IT operations aids in catapulting IT to the next level of service as the internal team can concentrate on the ‘vital few’ activities. network maintenance. Outsourcing today is a need and not a luxury. I feel there is a myth that in Indian context outsourcing can significantly reduce cost of operations. The first is the core competency . Running a totally internal based IT in today’s context is not a viable option in the manufacturing industry – both from the perspective of developing skill sets and also retaining manpower. where we do not want to hire and retain resources internally as we cannot offer a career path for them and also because there are mature companies who provide these services very . etc. risk mitigation. FACTORS INFLUENCING OUTSOURCING OF TECHNOLOGY IN MANUFACTURING On Outsourcing – I feel the question is not that of ‘if’ but ‘how-much’. for an Indian organization IT outsourcing does not provide the cost arbitrage which an American or an European organization might achieve. Outsourcing for us forms an important part of our strategy on how to manage our IT set up rather than being an initiative directed towards cost savings. also have to be considered. CIOs now have an option of adopting futuristic technologies right away or they can also wait till the time they become relevant for their business context. In spite of the cost considerations.the ‘core’ part as we refer to it. vendors and research analysts to gain understanding of the technology offerings and get insights on the comparisons of the choices available in the market. facility management. With the availability of skilled expertise. Our strategy of outsourcing revolves around three competency areas.selecting a new technology rather than delving into the nuts and bolts of the implementation.

Even in cases of niche technologies. It is also important that we are transparent with them in our selection process as this helps in maintaining the relationship beyond only specific transactions Home | About Us | The Company .well. which forms a very large and significant part of our IT services. rather it is the way one organization treats the other. the provider’s liability is limited to what has been contractually agreed whereas for us it is much more. hence these areas are completely outsourced. ENGAGING THE TECHNOLOGY PROVIDERS We give a lot of importance to the relationship which we develop with our providers as we believe that they should be treated more as partners rather than just as vendors. the selection process should not just be based on quantitative scores. This is an area where we need expert services which either we do not have or do not want to build. is the business solutions which are handled as individual projects. In case the project fails. A partnership is not a function of size or duration of the engagement. An important aspect in this area is that the overall accountability and responsibility of the project delivery remains with us as we firmly believe that these cannot be delegated to a third party. This culture of treating our service providers as partners has been embedded deeply into the organization and has enabled us to build a very strong relationship with our service providers. For a strong partnership. We perform project management and governance and we take the overall responsibility. Apart from these two extreme ends. while we do have consultants with specific skill sets working for us. but they work under our IT team and the accountability and responsibility is with the internal IT though we may not have skill sets on those technologies. hence for this we hire consultants on a project basis. in fact what also needs to considered is how well we bond with the technology provider. the third area.

Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. (Formerly Hero Honda Motors Ltd. Strategy Hero MotoCorp's key strategies are to build a robust product portfolio across categories.) is the world's largest manufacturer of two wheelers. It will continue its focus on value creation and enduring relationships with its partners. The company will provide an engaging environment for its people to perform to their true potential. . company's new identity. In 2001. Mission Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility. based in India. Hero MotoCorp two wheelers are manufactured across three globally benchmarked manufacturing facilities. the 'World No. aggressively expand its reach to customers.The Company Hero MotoCorp Ltd.. styling and quality so that it converts its customers into its brand advocates. in the hill state of Uttrakhand.the vision of a mobile and an empowered India. Hero MotoCorp Ltd. setting benchmarks in technology. continue to invest in brand building activities and ensure customer and shareholder delight.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena. continuously improve its operational efficiency. continues to maintain this position till date. powered by its bikes. Vision The story of Hero Honda began with a simple vision . the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also. The third and the latest manufacturing plant is based at Haridwar. explore growth opportunities globally.

Sign up to vote on this title
UsefulNot useful