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SFAS of Indian Two-Wheeler

Industry Hero MotoCorp
Submitted By:
Dayanidhi kar-358
Kumar Anand-376
Manish Ranjan Singh-383
Mitesh Lalwani-384
Navya Lavanya Ekkirala-392

Facts and Figures on the Indian
Two-Wheeler Market

India is the largest two-wheeler market in the world.
Domestic market expected to grow at a CAGR of 9-10 per cent
till FY17.

Rural Market is expected to be a major driver for the demand of
Two-Wheeler Industry.

Investments of around Rs 3,500-4,000 Crores are expected in
next 2 years.


Preferred Export destinations are Africa and Asian countries**.
Sales growth has been at 2.9% in 2012-13 over previous year as
against 13.9% growth over the past 5 years.

.India as a market place for twowheeler Industry • Past 3 years (2010-2013) has seen a consumption squeeze in the two-wheeler market. consumer durables’ ownership and two-wheeler penetration levels suggests that two-wheeler penetration levels will improve sharply in some of the lower-penetration states. • The direct correlation between infrastructure development.7% when compared to CAGR increase of 27% for the past 5 years. • The right regional mix of distribution network will hold the key to the future growth of the Indian two-wheeler Industry. incomes . • Exports have seen a downward trend of -0.

Spending patterns highly linked to twowheeler sales .Road development.

. Bihar. although overall ownership of two-wheelers remains low as compared to more developed states.Infra-structure development versus two wheeler ownership • Evidence of infrastructure development driving ownership of durables in less-penetrated states is also already visible. • In Rajasthan. Orissa and Uttar Pradesh. ownership has more than doubled. • Better road connectivity in several states (measured by growth in length of roads under the Pradhan Mantri Gram Sadak Yojana – PMGSY) has sharply driven up twowheeler ownership during 2004-05 to 2009-10.

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YoY Growth(%) .

.Cost Analysis • Softening in raw material prices provided a respite to the manufacturers in FY13 . transportation cost increased. • Selling and distribution witness a substantial rise in FY13 • Efficiency measures have led industry to control its employee cost during past 2-3 years • Power.The major raw materials worth to be mentioned under this discussion are Steel and Rubber.

Regulations in Industry • Change in technology for meeting various emission norms • Custom duty trend for two wheelers and key raw materials • Excise duty trend for two wheelers and key raw materials .

Threats to 2W Industry • Good Public transport • Poor Finance • Unfavorable regulations • Infrastructure projects pending • Unfavorable RBI measures to tame inflation. • Labor strike .

225cc and scooter categories. respect for the brand among Hero’s clients and . 125cc.Facts and Figures-Hero Motorcorp •  Hero Honda sells more two wheelers than the second. •  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. • Hero Warranty : India’s 1st company to offer a 5-year warranty on all two-wheelers. • Offers one of the widest range of two-wheelers with over 19 different products across the 100cc. 150cc. third and fourth placed two-wheeler companies put together. This warranty has earned immense trust and customers.

Hero Moto Corp Standing .

while its scooter model 'Pleasure' will be armed with the IBS. • also coming up with scooters equipped with integrated braking system (IBS).which will debut on its flagship model Splendor as the 'iSplendor. .Preparation for sustainability Newer Technology: • Investing 2-3 per cent of its annual revenue on R&D. • electronic immobiliser . • Coming with engine stop-start system a technology called as micro hybrid in top-end cars and SUVs.‘ • firm's 150-cc bike 'Extreme' will be equipped with the electronic immobiliser. • applied for a patent for its i3S technology -. is a security device that prevents the engine from running without the correct key. • Using TQHRM : to attain brilliance in their work by improving and empowering employees.ideal stop-start system -.

2013 after entering into a technology sourcing pact last year. Hero MotoCorp are engaged in promoting several sports. golf.Preparation for sustainability… contd Global tie ups: • Hero MotorCorp picked up a 49. • Entered into an alliance with Austria-based engine developer AVL to enhance capability in various segments • Associated with the AMA Pro Road Racing superbike series. including cricket. hockey and soccer and super bike racings globally. North America's premier motorcycle road-racing championship. . • Diluting its commitment to cricket. with two racing teams called Team Hero and AMSOIL Hero EBR.2 per cent stake in US-based Erik Buell Racing for USD 25 million in July.

Media .

. 22. Rain Water Harvesting and ETP Recycling Plant. Hero introduced its Solar Power Project – 100 KW which has helped to save 1. 56.Done through the solar energy that is captured by the photovoltaic cells during the day. 121 tons of Co2 emissions and 37. Manufacturing.A Mission to maintain High Ecological Standards • Introducing Green initiatives in Production Development. Hexavalent Chromium. Hero initiated the Heat Recovery from Incineration project which has helped to save 1258 tons of Co2 emissions and 16.96 tons on furnace oil. Phenolic Substances • Gurgaon plant has been judged the “Best Maintained Garden” for the year 2013 • In January 2011. • Effectively involved with Water Management. • initiated oil conservation through the installation of Chip Wringer which is capable of recovering neat cutting oil from chips that are generated from m/c operation. in the last few years. 400 units per annum. 000 units per annum. Supply Chain (backward and forward) or even in the operations within the company • To ensure a low carbon footprint. Hero has. This has led to oil recovery of about 56 liters/ day per plant. • In October 2011. proactively eliminated harmful substances like Asbestos.

Jaipur will have innovation labs for component design. on developing products with alternate fuel options. • gearing with The Hero Relationship Program). • R&D's focus will rest on four key planks: on refurnishing existing platforms. which includes investments and merger and acquisition opportunities. MotoCorp GoodLife Program overseas (Customer .Low cost material & R&D Outlook • PLM (Product Life Cycle Management) is already in place and is being used extensively. The Company has incorporated an off-shore investment subsidiary in the Netherlands •  expedite its global expansion plans. on compliance with stringent safety and environment norms and finally. engine and vehicle testing. latest software being used for collaborative design and vehicle simulation. • The TDM (Test Data Management) and Schedule Manager projects went live during the year. on achieving cost competitiveness through VA/VE and innovative cost reduction ideas. • world-class Technology & Integrated R&D Centreat Kukas. Different positioning strategy • "Just 4 her"  like exclusive stores for women • ambitious plan to enter 30 countries.

• The revised weights reflect the priority of each factor as a determinant of the company’s future success. and threats into fewer than ten strategic factors. This is done by reviewing and revising the weight given each factor. weaknesses. • Microsoft Office Excel 2007 Workbook SFAS .SFAS Matrix • The SFAS (Strategic Factors Analysis Summary) Matrix summarizes an organization’s strategic factors by combining the highest weighted external and internal factors from the EFAS & IFAS Tables respectively.EFAS and IFAS for HERO MOTOCORP : . opportunities. • The SFAS Matrix requires the strategic decision maker to condense these strengths.

organizations can look intelligently at how you can best take advantage of the opportunities open to them. • At the same time that you minimize the impact of weaknesses and protect yourself against threats. the only difference between TOWS and SWOT is that TOWS emphasizes on the external environment whereas SWOT emphasizes the internal environment. • At a practical level. •  By using it.TOWS Matrix • The TOWS Matrix is a relatively simple tool for generating strategic options. • TOWS for HERO MOTOCORP : Microsoft Office Excel 2007 Workbook .

Expansion plans are backed by their strong long-term goals • Hero MotoCorp plans to establish 20 manufacturing and assembly facilities to expand its presence across 50 countries by 2020 • Setting up a fourth plant at Neemrana in Rajasthan with an annual installed capacity of 750.2 Million. . Rajasthan. • Setting up a Global Parts Centre (GPC) at Neemrana. with an annual installed capacity of 1.000 units . • Setting up a fifth plant at Halol in Gujarat.

Thank You .