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Hero MotoCorp

#1396

Rank

$13.03B

Marketcap

IN India

Country

Hero MotoCorp
Leadership team

Dr. Pawan Kant Munjal B.E. (Mech.) (Chairman & CEO)

Mr. Niranjan Kumar Gupta (Chief Financial Officer)

Mr. Dhiraj Kapoor (Company Sec. & Compliance Officer)

Products/ Services
Automotive, Manufacturing
Number of Employees
1,000 - 20,000
Headquarters
New Delhi, Delhi, India
Established
1984
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
HEROMOTOCO.NS
Social Media
Overview
Location
Summary
Hero MotoCorp Limited manufactures and sells motorized two wheelers, spare parts, and related services in Asia, Central and Latin America, and Africa and Middle East. It offers motorcycles and scooters. The company also provides engines, as well as related parts and accessories. It has a strategic partnership with Gogoro Inc. to enhance the shift to sustainable electric mobility in India. The company was formerly known as Hero Honda Motors Ltd. and changed its name to Hero MotoCorp Limited in July 2011. Hero MotoCorp Limited was incorporated in 1984 and is based in New Delhi, India.
History

Hero Honda started its operations in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. In June 2012, Hero MotoCorp 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 Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and 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 inception. In 2001, the company became the largest two-wheeler manufacturing company in India and globally. It maintains global industry leadership to date. The technology in the bikes of Hero Motocorp for almost 26 years has come from the Japanese counterpart Honda.

Termination of Honda joint venture and the renaming

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 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 , exited Hero Honda at a discount and get over ?6,400 crore 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 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, , 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 Brijmohan Lal Munjal group, formed an overseas-incorporated special purpose vehicle 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 , TPG, Bain Capital and Carlyle Group.

Formation of the new company

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Limited on 29 July 2011. The new brand identity and logo of Hero MotoCorp 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 MotoCorp 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 MotoCorp announced its plan on a ?254 crore 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 MotoCorp owns 55% of the manufacturing company and the rest 45% is owned by Niloy Motors . Hero also updated its 100cc engine range in 2014 for 110cc bikes except for Hero Dawn.

Mission
“A dynamic growth oriented company through market leadership, excellence in quality and service and maximizing export, ensuring attractive returns to equity holders, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the industry, customer satisfaction and protection of the environment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects.”
Vision
Serve people worldwide with the joy of expanding their life s potential - Lead the advancement of mobility and enable people everywhere in the world to improve their daily lives -
Key Team

Mr. Vikram Sitaram Kasbekar IIT (Exec. Director)

Mr. Michael J. P. Clarke (COO & Chief HR Officer)

Mr. Surender Kumar Chhabra (VP of Corp. Fin.)

Dr. Arun Kumar Jaura (Chief Technology Officer)

Ms. Reema Jain (Chief Information & Digital Officer)

Mr. Umang Deep Singh Khurana (Head of Investor Relations)

Mr. Suresh Jagirdar (Gen. Counsel)

Recognition and Awards
Hero MotoCorp has won numerous awards, including the Best Motorcycle Award at the 2018 Auto Expo, the Best Executive Motorcycle award at the Auto Expo 2017, the International Bike of the Year award at the 2014 Motocycle Grand Prix, and the Best Two Wheeler Company in India award at the Bike World Conference 2013.
References
Hero MotoCorp
Leadership team

Dr. Pawan Kant Munjal B.E. (Mech.) (Chairman & CEO)

Mr. Niranjan Kumar Gupta (Chief Financial Officer)

Mr. Dhiraj Kapoor (Company Sec. & Compliance Officer)

Products/ Services
Automotive, Manufacturing
Number of Employees
1,000 - 20,000
Headquarters
New Delhi, Delhi, India
Established
1984
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
HEROMOTOCO.NS
Social Media