About
Hero MotoCorp Ltd
Hero MotoCorp Limited is the world's largest manufacturer of two wheelers'. The Company is engaged in the manufacturing and selling of motorised two-wheelers, spare parts and related services. The Company has over 9.50 million annual production capacity across 8 manufacturing facilities i.e., 6 in India and one each in Colombia and Bangladesh.
The Company offers a range of bikes starting from CD Dawn, CD Deluxe, Splendor Plus, Splendor NXG, Passion and Passion Pro. The 125 cubic centimeter segment offers Glamour, Super Splendor and Glamour F1. It has an offering called Achiever in 135 cubic centimeter segment. In the 150 cubic centimeter and above the company offers brands like Hunk, CBZ X-treme, Karizma and the Karizma ZMR. It also offers a 100 cubic centimeter scooter, Pleasure.
Hero MotoCorp Limited was incorporated in January 19th, 1984 under the name 'Hero Honda Motors Ltd.' The Company was established as a Joint Venture Company between Honda Motor Company of Japan and Hero Group. In year 1983, they signed a Joint Collaboration Agreement and formed the Company. 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.
In the year 1985, the Company commenced their commercial production at Dharuhera plant in Haryana and introduced their first motorcycle, CD 100 in the market. In the year 1989, they launched the new motorcycle model, Sleek in the market and in the year 1991, they introduced new motorcycle model, CD 100 SS in the market. In the year 1995, the company introduced their extraordinary product, Splendor in the market.
In the year 1997, the Company inaugurated their second manufacturing facility at Gurgaon in Haryana. Also, they introduced new motorcycle model, Street in the market. In the year 1999, they launched Hero Honda CBZ, the first 150cc motorcycle in the Indian two wheeler industry. In the year 2001, the company introduced new models, Passion and Joy in the market. In the next year, they introduced new models, Dawn and Ambition in the market.
In the year 2003, the company launched new motorcycle models namely, CD Dawn, Splendor+ and Passion Plus in the market. Also, they launched Hero Honda Karizma, the industry's first 223cc motorcycle. In the year 2004, they introduced new models, Ambition 135 and CBZ* in the market. During the year, they renewed the joint technical agreement with the Honda Motors Company, Japan.
In the year 2005, the company launched Super Splendor, CD Deluxe, Glamour and Achiever in the market. In the year 2006, the company forayed into scotter segment and launched 100cc gearless scotter, Pleasure in the market. In the year 2007, the company launched Splendor NXG, CD Deluxe, Passion Plus and Hunk in the market.
During the year 2007-08, the company commissioned their third plant at Haridwar in Uttarakhand with an initial installed capacity of 500,000 units. This plant had lean manufacturing and practices that ensure efficiency. During the year, the company launched new models (including variants) including Splendor NXG, Hunk, New Super Splendor, New Passion Plus, Commemorative Splendor+ and a refreshed version of Pleasure.
During the year 2008-09, the company increased the installed capacity of Motorised 2 wheelers upto 350CC engine by 1800000 Nos to 5200000 Nos. Also, they launched eight models: Passion Pro (100 cubic capacity-4 Stroke), CBZ-Extreme (150 cubic capacity - 4 Stroke), Pleasure New Aesthetics, Splendor NXG (Self Start), CD Deluxe (Self Start), Glamour FI, Glamour (Carb) and HUNK Special Edition. Also, they launched new motorcycle model, Karizma - ZMR in the market.
During the year 2009-10, the company increased the installed capacity of Motorised 2 wheelers upto 350CC engine by 200000 Nos to 5400000 Nos. The company launched nine new models during the year.
During the year 2010-11, the company launched six new models including variants of existing models successfully. They refreshed Glamour and Glamour FI. They introduced the New Hunk, Super Splendor and Splendor Pro. The company launched the new upgraded versions of CBZ Xtreme and Karizma. Also, they breached the landmark 5 million figure cumulative sales in a single year.
During the year, the Indian Promoter Group of the company, which comprised of Hero Investments Pvt Ltd (HIPL), Bahadur Chand Investment Pvt Ltd (BCIPL) and Hero Cycles Limited (Hero Cycles) re-aligned the shareholding in the company, following a family agreement. As a result, Hero Cycles transferred its shareholding in the company to HIPL on May 28, 2010. As a result of these transactions, the Indian Promoter Group of the company now comprises of HIPL and BCIPL owned and controlled entirely by the Munjal Family headed by Brijmohan Lall Munjal.
Also, during the year, the Indian Promoter Group and Honda Motor Co Ltd, Japan (Honda) entered into a Share Transfer Agreement (the Agreement) on January 22, 2011. As per the terms of the Agreement, Honda had agreed to transfer its entire shareholding of 26% in the Company to the Indian Promoter Group, bringing an end to the joint venture between the two promoter groups of the company. The acquisition was completed on March 22, 2011 and the shares held by Honda were transferred to the Indian joint venture partner.
In addition to the Agreement, the Indian Promoter Group and Honda also entered into a License Agreement on January 1, 2011. As per this agreement, Honda has given to the company, the right and license to manufacture, assemble, sell and distribute certain products and their service parts under their Intellectual Property Rights.
In July 2011, the company changed their name from Hero Honda Motors Ltd to Hero MotoCorp Ltd.
In February 2012, the company entered into a strategic partnership with Erik Buell Racing (EBR) of USA for contemporary technology and design inputs to enable the company to launch high end bikes for the domestic and international markets.
In 2013, Hero Motocorp commenced construction of its new plant & Global Parts Centre. The company Commences Construction of Its 'GAME-CHANGING' Centre of Global Innovation And Research & Design.
In 2014, Hero Motocorp Heralds A New Era Of Technology Leadership. The company Sets New Benchmark For The Global Two Wheeler Industry. The company Launches Splendor Ismart With Game Changing I3s Technology. The company also rides Into A Greener Tomorrow With 'GARDEN Factory'
In 2015, Hero MotoCorp launched a new entry level commuter, the HF Dawn. During the year, the company has been allocated a 592-acre site to facilitate development of its Rs 1600-crore Greenfield manufacturing unit in Andhra Pradesh. HMCL Americas INC enters into 'Settlement Agreement' to Acquire EBR's Consulting Business. The company commences operation in their first ever plant outside India established in Villa Rica, Colombia.
On 29 September 2015, Hero MotoCorp launched two scooters under the brands Maestro Edge and Duet.
In February 2016, Hero MotoCorp showcased three new bikes Splendor iSmart 110, the Xtreme 200 S, the XF3R and an electric scooter the Duet E at Auto Expo, a trade show in New Delhi. On 10 March 2016, Hero MotoCorp formally inaugurated its world-class Global Centre of Innovation and Technology' (CIT) in Jaipur, Rajasthan. Built with an investment of Rs 850 crore, the CIT will design and develop world-class products for global markets.
In April 2016, Hero MotoCorp launched a drive against unscrupulous traders selling counterfeit Hero spare parts. On 14 July 2016, Hero MotoCorp launched the new Splendor iSmart 110, the first motorcycle to be developed completely in-house with Hero's own technology. To commemorate the landmark 70 million in cumulative production of two-wheelers, Hero MotoCorp on 26 September 2016 launched a Limited Edition of a new premium motorcycle Achiever 150.
The Board of Directors of Hero MotoCorp at its meeting held on 26 October 2016 approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30% shareholding in Ather Energy Private Limited. Ather is a Bangalore-based technology start-up engaged in the business of designing and manufacturing smart Electric Vehicles (EV) and associated charging infrastructure.
On 10 November 2016, Hero MotoCorp unveiled its new Dawn 125 motorcycle at the EICMA Motorcycle show in Milan, Italy. As part of Hero MotoCorp's market-specific product strategy, the Dawn 125 motorcycle has been developed specifically for the Africa region.
On 12 January 2017, Hero MotoCorp launched new Glamour motorcycle in Argentina, its first-ever global launch of a new product outside India. On 3 April 2017, Hero MotoCorp announced that the company clocked its highest-ever sales in a financial year at 66,63,903 units in FY 2017 compared to 66,32,322 units it had sold in the previous fiscal (FY 2016).
In May 2017, Hero MotoCorp commenced commercial production at the second global manufacturing facility in Bangladesh. On 3 October 2017, Hero MotoCorp announced that it has set a new global benchmark in the two-wheeler industry, surpassing the seven lakh sales mark in any month. Riding on robust demand for its range of two-wheelers, the company registered its highest-ever sales for any month, despatching 720,739 units in September 2017.
On 11 October 2017, Hero MotoCorp announced that it has set a new global record, clocking 2 million unit sales in Q2 September 2017. Hero MotoCorp sold 20,22,805 units of two-wheelers in Q2 September 2017, recording 11% growth over the corresponding quarter in the previous fiscal.
On 7 November 2017, Hero MotoCorp unveiled the Xpulse Concept motorcycle as a world premier at the EICMA annual trade show in Milan, Italy. On 21 December 2017, Hero MotoCorp unveiled three new motorcycles - the 125cc Super Splendor, the 110cc Passion PRO and the 110cc Passion XPRO - to further augment its dominant leadership in the domestic market. On 22 December 2017, Hero MotoCorp announced that it will be increasing the ex-showroom prices of its motorcycles by about Rs 400 per model with effect from 1 January 2018 to partially off-set rising input costs.
Hero MotoCorp surpassed the landmark seven million units in cumulative sales in a calendar year in 2017. The company sold a record 7,207,363 units of two-wheelers in the calendar year in 2017.
During FY 2017-18, construction of sixth manufacturing facility at Sricity in Chittoor District in the state of Andhra Pradesh has commenced with a proposed capacity of 1.8 million units per annum. The company will invest Rs 1,600 crore in setting up this manufacturing facility. The plant is expected to be operational in FY 2019-20.
During FY 2017-18, the second overseas plant of the company at Jessore in Bangladesh started commercial production during the first quarter.
During the year 2017-18,the Company added two markets - Trinidad & Tobago and Guyana - to grow the countries in which HMCL is present in, to 37.
As on 31 March 2018,the Company has 6 subsidiaries including step down subsidiaries and 3 associate companies.
During FY 2018-19, construction of sixth manufacturing facility at Sricity in Chittoor District in the state of Andhra Pradesh has reached at an advanced stage with an annual installed capacity of 1.8 million units.The Company has invested approx. Rs 650 crore in Phase I out of total projected investment of Rs 1,600 crore in setting up the manufacturing facility. Phase I is expected to be operational by October 2019.
Further, the overseas plant of your Company at Jessore in Bangladesh achieved its designed production capacity of 1.5 lakh units during FY 2018-19 and consolidated decent market share.
As on 31 March 2019,the Company has 7 subsidiaries including step down subsidiaries and 3 associate companies. During the FY2019,the Company has set up a Tech Center in Germany as its wholly owned subsidiary under the name, Hero Tech Center Germany GmbH.
The Company sold over 78.21 lakh vehicles during the financial year 2018-19, the highest by any two-wheeler company in the world.
During FY 2019-20, the Company's sixth manufacturing facility in Chittoor District in the state of Andhra Pradesh was commissioned with Phase I installed capacity of 0.4 million units. The total Phase I investment is approximately Rs 700 crore out of total projected investment of Rs 1,600 crore in setting up the manufacturing facility. Transition from BSIV to BSVI emission norms has been successfully accomplished well in time across all platforms in FY 2019-20.
As on 31 March 2020, Company has 6 subsidiaries including step down subsidiaries and 2 associate companies and regularly monitors the performance of these companies. During the year, the Company's wholly-owned subsidiary, HMCL (NA) Inc. which had invested in Erik Buell Racing, Inc. was dissolved and thus, Erik Buell Racing, Inc. also ceased to be the associate of the company.
In July 2020, the Company invested H 84 crore in Ather Energy, taking up its shareholding in the Company to 34.58%.
In November 2020, Company again invested in Series D round in the Electric Vehicle startup.
In October 2020, the Company signed a distribution agreement with HarleyDavidson (H-D), under which the Company will sell and service H-D motorcycles, and sell parts and accessories and general merchandise riding gear and apparel in India. The Company has inducted 11 dealers of Harley-Davidson into its own distribution network. Starting 01 January 2021, Hero MotoCorp Ltd. has become the distributor for Harley-Davidson in India. Hero MotoCorp Ltd. and Harley-Davidson also signed a Licensing agreement under which the Company will develop and sell a range of premium motorcycles under the H-D brand name.
During the FY2021, the company also entered into a strategic partnership with Gogoror Inc. to accelerate the shift from fuel based mobility to sustainable electric mobility in India.
During FY 2020-21, the company entered into Mexico market and the footprint of the company reached 41 markets outside India.
On 04 February 2021,the company declared a special dividendof Rs 10 per share to mark the achievement of historic milestone of achieving 100 Million cumulative production of two wheelers.
The company proactively paused its operations temporarily during the second wave at all of its manufacturing facilities across the country, including its Global Parts Center (GPC) in Neemrana and its R&D facility - the Centre of Innovation and Technology (CIT), Jaipur due to the Operations escalation of Covid-19 cases across the country. The company gradually resumed its operations from 17 May 2021 by starting single shift production at three of its plants - Gurugram and Dharuhera in Haryana and at Haridwar in the northern hill state of Uttarakhand.The company resumed production at all its manufacturing plants in India from 24 May 2021.
During the second quarter of FY2022, Hero MotoCorp achieved two consecutive recognitions from the Guinness World Record for creating the Largest Motorcycle Logo' in August 2021 and for creating the Largest Online Photo Album of People Planting Plants' in September 2021.
During the third quarter of FY2022,the company inaugurated a flagship dealership in Dubai to expand presence in the Gulf market to 10 customer touchpoints in 5 countries.Also Partnered with Gilera Motors in Argentina to expand Hero's presence in the country - inaugurated a flagship dealership in Buenos Aires under the partnership.
The Company has 6 subsidiaries including step down subsidiaries and 2 associate companies as on March 31, 2022.
During FY 2021-22, the Company commenced retail sales in Mexico and introduced an extensive portfolio of products. It relaunched the Hero brand in markets like Argentina, Kenya, Honduras and Nicaragua. It strengthened presence in Gulf region, expanding network
of touchpoints, including dealerships, service centres and spare parts outlets; it entered into another exclusive dealership in Dubai. It reinvigorated strategy for the Nigerian market, leading to a 978% dispatch growth. It also launched a new motorcycle, Hunter,'
developed especially for the market. In March 2022, Company launched a new brand Vida'-Powered by Hero, an in-house electric vehicle brand. It forayed into the pre-owned two-wheeler business under the brand Hero Sure - Powered by Wheels of Trust'. It expanded the network by adding super stockists, authorized representatives of dealers, Hero Sure network and HGPD. It launched Xpulse 200 4V in October, 2021. It launched the new Stealth variant, Xtreme 160R, a fast-pick up bike. During the year 2022, 45 new outlets were added, which increased their footprint to 43 markets outside India. It launched the official Hero merchandise business in August, 2021.
During the year 2023, Company launched VIDA V1- India's first fullyintegrated electric scooter in Delhi, Jaipur and Bengaluru. It commenced the expansion plan of reaching eight more cities in FY 2022-23. It launched 9 new models. It expanded global presence to 47 in FY 2022-23; launched Harley-Davidson X440 motorcycle and thereafter, launched the Hero Sure - Powered by Wheels of Trust' platform.
Hero MotoCorp Ltd
Chairman Speech
Inspiring the Future of Mobility
The current fiscal year is a milestone year for everyone in the Hero
ecosystem. July 1, 2023, marked the 100th birth anniversary of our Founder Chairman and my
beloved father, Dr. Brijmohan Lall Munjal.
| Dr. Pawan Munjal |
| Executive Chairman, Hero MotoCorp |
Dear Stakeholders,
I am delighted to present to you our Annual Report for the Financial
Year (FY) 2022-23. Before I reflect on the year gone by, I must mention that July 1, 2023,
marked the centenary birth anniversary of Dr. Brijmohan Lall Munjal. An
entrepreneur-par-excellence, an institution builder, a philanthropist, an innovator, a
statesman, a spiritual soul, and above all, a proud Indian, he continues to be an
inspiration to everyone in the Hero family and beyond. While we embark on this journey
celebrating his legacy, this Annual Report also pays a heartfelt tribute to him.
Reflections on the year gone by
I feel proud of the way Hero MotoCorp has navigated through a volatile
and challenging environment in FY 2022-_23. Despite slackening demand in the two-wheeler
industry, the Company has been focused and resilient, and delivered double-digit growth
over the previous year, successfully retaining its coveted position of being the
world's largest manufacturer of motorcycles and scooters for 22 consecutive years.
This performance is a testament to the trust the consumer has reposed on Brand Hero –
a conviction built on the unwavering commitment to quality and value that our products and
services offer.
Guided by our Vision – ‘Be the Future of Mobility',
we envisage Hero MotoCorp as a catalyst in bringing advanced mobility solutions that
exceed the ever-evolving requirements of a diverse set of customers. Additionally, we are
also launching new and innovative products, developing a worry-free ecosystem for green
mobility, nurturing the market through better customer connect, and increasing the
affordability of our products and services.
Hero – a partner in the ‘journey of life'
So, what makes Hero an integral part in the lives of millions of our
customers for generations? Since its inception in 1984, Hero has been instrumental in
providing convenient fuel-efficient mobility solutions to its customers, empowering them
to move ahead in life. Brand Hero and the India story have grown together. Hero has played
the role of a catalyst by making a significant contribution to India's rise from a
‘developing' nation to a formidable global power. Beginning with a small plant,
manufacturing bicycle parts in the early 1950s to mopeds in 1974, then moving on to
motorcycles in 1984, and to the present day with a global footprint in 47 countries and
counting, the ‘Made in India' Hero has been a key growth enabler in the
automotive industry.
We have led defining moments in the industry. Our joint venture with
Honda saw the Company take a giant leap in developing products, processes, and
technologies on a global scale. We ushered in the industry's first four-stroke
motorcycle and went on to achieve market leadership through a combination of factors,
including continuous innovation and development of new models. Today, we are on the cusp
of developing new-age products for the future.
The next-gen two-wheelers will address an even broader market in which
the electric vehicle segment, premium motorcycles, and scooters are likely to be the
dominant categories.
Geopolitical turbulence keeps the world on edge
Socio-political and economic developments in any part of the world
today have a ripple effect globally. Just when everyone was expecting a return to normalcy
after the pandemic, the world continues to remain uncertain due to the volatile
geopolitical situation created by the protracted Russia-Ukraine conflict. Central banks of
major economies are continuing their efforts to control inflation that has originated from
this long conflict and to navigate recessionary trends so that the economic slowdown can
be controlled. They have succeeded to a certain extent with global headline inflation
slackening on the back of lower commodity prices. However, the International Monetary Fund
(IMF) predicts that underlying core inflation will likely decline slowly, remaining around
7% levels in FY 2022-231. Understandably, consumption demand remains subdued.
With China alternating between Covid outbreaks, its economy has failed to provide succour
and the US and European economies have limited hope to offer as they face a prolonged
period of low GDP growth that can carry forward into FY 2023-242.
India holds out hope, epitomises resilience
Amid global headwinds, India has emerged as an oasis of economic
resurgence. Well-timed core sector spending, targeted fiscal interventions
1 https://www.imf.org/en/Publications/
WEO/Issues/2023/04/11/world-economic-outlook-april-2023
2 https://www.morganstanley.com/ideas/
economic-outlook-mid-year-2023-global-gdp-slowing from the government, a burgeoning
digital economy and favourable demographics have all led to a healthy revival in
consumption demand. Although inflation remains high, it is gradually entering into the
Reserve Bank of India's (RBI) comfort range. India is currently passing through a
golden phase - aptly called ‘Amrit Kaal' - on the way to becoming a
‘developed' economy when it celebrates its centenary year of independence in
2047.
Several transformational pillars of growth have been identified that
will propel the country forward towards this goal. Measures designed to reduce income
disparity, extend infrastructural reach, enhance prosperity across the length and breadth
of the country, deepen reach and access of technology along with accelerated enterprise
and self-reliance are all going to be the vehicles of this transformation. Much of this is
already underway including massive public infrastructure creation and financial inclusion.
Currently, India has a 145,000 km long road network increasing at the
rate of 40–50 km per day. This is the second longest road network in the world and is
projected to grow to a length of 290,000 km by the end of 2047 and augers very well for
the automotive industry and for our Company. The possibility of accessing every remote
village now no longer seems farfetched. Furthermore, India's stated target of
achieving Net Zero emissions by 2070 is another defining factor towards building a
sustainable future.
A commitment to address diverse mobility needs of the customer
Demand for motorcycles and scooters in India is led by rural and
semi-urban markets – regions that experienced challenging circumstances during the
year. However, the structural growth drivers continue to remain intact. Given the
country's young skilled population, the strong economic growth potential of rural and
semi-urban areas, easier access to consumer credit and a swelling demand for
last-mile-connectivity, we remain confident that Hero MotoCorp will lead the way to a
successful FY 2023-24. During FY 2022-23, we sold 5.4 million units of motorcycles and
scooters, an increase from ~4.9 million units sold in FY 2021-22. Although we recorded
lower sales in the Entry and the Deluxe 125 cc segments, it was offset by the sales in
Deluxe 100/110 cc, and the Premium segments, with an increase in market share in the
below-200cc Premium segment. Furthermore, we kept the excitement levels high across our
product categories with new launches. ‘Premiumisation' of our product portfolio
gained further pace, with the feature rich XTEC series doing well across segments and
gaining market share.
FY 2022-23 also ushered in a new era of sustainable and clean mobility
with the launch of our first electric vehicle (EV) VIDA V1. We commenced customer
deliveries in three cities – Bengaluru, Jaipur, and Delhi with more than 300 VIDA
public charging stations across 50 locations in these cities. We have already expanded to
eight more cities – Pune, Ahmedabad, Nagpur, Nashik, Hyderabad, Chennai, Kozhikode,
and Kochi. In keeping with our vision to democratise green mobility and accelerate the
growth of the EV category, we will be expanding the presence of VIDA V1 to 100+ cities by
the end of the calendar year 2023.
During the year, we also made significant progress in our partnership
with the iconic American motorcycle brand Harley-Davidson, Inc. Our co-developed
Harley-Davidson X440 motorcycle has been launched exemplifying the finest ideals of
passion, creativity, innovation, and collaboration. This will mark a significant chapter
in the Premium journey of Hero MotoCorp. Our Research & Development (R&D)
ecosystem – which includes the Centre for Innovation and Technology at Jaipur in
India and the Hero Tech Centre, Germany – are developing contemporary,
state-of-the-art, and technologically advanced mobility solutions for our customers. The
launch of our first EV product, VIDA V1 and best-in-class featured scooter, the XOOM 110
are outcomes of this ingenuity.
Expanding choices, ensuring accessibility and affordability
Customer-centricity has always been the hallmark of our Company's
vision and strategy. In keeping with this philosophy, our product development strategy
maintains a sharp focus on the needs of the customer. We deploy innovative outreach
programmes and surveys, including conducting focus group sessions to gain in depth
insights into evolving consumer aspirations. During the year, we launched the
‘Hero Sure - Powered by Wheels of Trust' platform to tap
the replacement market effectively. The platform will enable buying, selling and exchange
of pre-owned two-wheelers in a convenient, hassle-free way. The service will help the
customer to get the best price for their vehicle through a transparent evaluation process,
with the option of upgrading to a new Hero product.
Digital strategy
With massive digital transformation underway across functions within
the organisation, digitalisation is playing a significant role in our customer outreach,
thereby directly contributing to our growth. We have invested significantly in upgrading
our Information Technology systems, adopting advanced analytics and Artificial
Intelligence (AI) tools, and in implementing cutting-edge automation technologies. The
wide array of digital platforms and solutions we offer enable our customers to
effortlessly engage with our products and services from discovery to purchase and beyond.
We have set an ambitious goal of achieving 30% of our sales through digital channels by
the year 2030. We have augmented the user interface of our digital channels, which have
emerged as a preferred destination for our customers pre-and-post purchase needs. This has
led to better customer engagement, resulting in a 10% increase in organic traffic via the
corporate website and a 22% rise in product-related queries via digital channels.
To optimise our digital workflows, we have introduced Internet of
Things (IoT) systems for real-time monitoring of our shop floors. These systems are
instrumental in providing immediate insights and enabling prompt actions based on early
warning signals. Our flagship project ‘Digital Factory Lighthouse' installed in
the manufacturing facility at Tirupati in Andhra Pradesh targets boosting productivity by
20% by the end of the current fiscal.
Building a sustainable world is a collective responsibility
Creating a sustainable world requires synchronised efforts at various
levels. We have joined forces with India's drive towards decarbonisation through our
green mobility solutions. Our project ‘Hero NEXT' is an initiative to
make our operations more sustainable. We have set a target of becoming 100% carbon neutral
operation by 2030, 500% water positive facilities and 100% waste neutral facilities in
India by 2025. Our ‘beyond-the-fence' initiatives accelerate our efforts on
sustainability. Through the Sustainable Partner Development Programme (SPDP), we
have been conducting sustainability assessments of all our supply chain partners. It is
imperative that our suppliers and vendors adhere to our Manufacturing Codes of Conduct and
they wish to continue to partner with us on this sustainable manufacturing journey. Our
teams continuously engage with our suppliers to support them to make the shift.
We are also working towards transitioning our existing authorised
dealer networks to 100% green dealerships by 2030.
The development of VIDA V1 is a step towards making sustainable product
offerings. In addition, we have partnered with ZERO Motorcycles, the California-based
manufacturer of premium electric motorcycles and powertrains. The collaboration combines
the expertise of Zero with the scale of manufacturing, sourcing, and marketing of Hero
MotoCorp.
Being a responsible corporate citizen has always been integral to our
business strategy. Aligned with the UN Sustainable Development Goals, our initiatives
under the Corporate Social Responsibility (CSR) umbrella ‘Hero WeCare'
strive to make a lasting impact on the communities around our operational areas and
beyond.
Our people are our greatest asset. As an organisation, we make every
effort to provide them with a conducive workplace to nurture their full potential. As a
part of our Diversity, Equity, and Inclusion (DE&I) commitment, we have set a target
of achieving 30% gender diversity by the year 2030. It gives us an immense sense of
satisfaction that this initiative has been recognised by the Bloomberg Gender Equality
Index for 2023.
Exciting future ahead with new possibilities
With its immense potential and possibilities, the future is exciting
for Hero. As India moves closer to realising its ambition of becoming a US$ 5 trillion3
economy by the year 2027, incredible opportunities have emerged, which will have
significant growth
3 As per the Chief Economic Advisor to the Govt. of India, Dr. V
Anantha Nageswaran impact for businesses, both big and small. With India's transition
to green energy gaining momentum, demand for sustainable solutions, including for mobility
– will grow exponentially. As we move forward, we remain committed to delighting our
customers by delivering new and technologically advanced products; to our employees by
providing them with growth opportunities and to our shareholders by delivering long-term
value.
I thank our valued shareholders, dealers, distributors, supply chain
partners, associates, our entire workforce, our customers in India and across the world,
for their unstinted support and faith in our Company, our people and our products. I wish
everyone a healthy, safe, and prosperous FY 2023-24.
| Dr. Pawan Munjal |
| Executive Chairman |
| Hero MotoCorp |
  Â
Hero MotoCorp Ltd
Company History
Hero MotoCorp Limited is the world's largest manufacturer of two wheelers'. The Company is engaged in the manufacturing and selling of motorised two-wheelers, spare parts and related services. The Company has over 9.50 million annual production capacity across 8 manufacturing facilities i.e., 6 in India and one each in Colombia and Bangladesh.
The Company offers a range of bikes starting from CD Dawn, CD Deluxe, Splendor Plus, Splendor NXG, Passion and Passion Pro. The 125 cubic centimeter segment offers Glamour, Super Splendor and Glamour F1. It has an offering called Achiever in 135 cubic centimeter segment. In the 150 cubic centimeter and above the company offers brands like Hunk, CBZ X-treme, Karizma and the Karizma ZMR. It also offers a 100 cubic centimeter scooter, Pleasure.
Hero MotoCorp Limited was incorporated in January 19th, 1984 under the name 'Hero Honda Motors Ltd.' The Company was established as a Joint Venture Company between Honda Motor Company of Japan and Hero Group. In year 1983, they signed a Joint Collaboration Agreement and formed the Company. 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.
In the year 1985, the Company commenced their commercial production at Dharuhera plant in Haryana and introduced their first motorcycle, CD 100 in the market. In the year 1989, they launched the new motorcycle model, Sleek in the market and in the year 1991, they introduced new motorcycle model, CD 100 SS in the market. In the year 1995, the company introduced their extraordinary product, Splendor in the market.
In the year 1997, the Company inaugurated their second manufacturing facility at Gurgaon in Haryana. Also, they introduced new motorcycle model, Street in the market. In the year 1999, they launched Hero Honda CBZ, the first 150cc motorcycle in the Indian two wheeler industry. In the year 2001, the company introduced new models, Passion and Joy in the market. In the next year, they introduced new models, Dawn and Ambition in the market.
In the year 2003, the company launched new motorcycle models namely, CD Dawn, Splendor+ and Passion Plus in the market. Also, they launched Hero Honda Karizma, the industry's first 223cc motorcycle. In the year 2004, they introduced new models, Ambition 135 and CBZ* in the market. During the year, they renewed the joint technical agreement with the Honda Motors Company, Japan.
In the year 2005, the company launched Super Splendor, CD Deluxe, Glamour and Achiever in the market. In the year 2006, the company forayed into scotter segment and launched 100cc gearless scotter, Pleasure in the market. In the year 2007, the company launched Splendor NXG, CD Deluxe, Passion Plus and Hunk in the market.
During the year 2007-08, the company commissioned their third plant at Haridwar in Uttarakhand with an initial installed capacity of 500,000 units. This plant had lean manufacturing and practices that ensure efficiency. During the year, the company launched new models (including variants) including Splendor NXG, Hunk, New Super Splendor, New Passion Plus, Commemorative Splendor+ and a refreshed version of Pleasure.
During the year 2008-09, the company increased the installed capacity of Motorised 2 wheelers upto 350CC engine by 1800000 Nos to 5200000 Nos. Also, they launched eight models: Passion Pro (100 cubic capacity-4 Stroke), CBZ-Extreme (150 cubic capacity - 4 Stroke), Pleasure New Aesthetics, Splendor NXG (Self Start), CD Deluxe (Self Start), Glamour FI, Glamour (Carb) and HUNK Special Edition. Also, they launched new motorcycle model, Karizma - ZMR in the market.
During the year 2009-10, the company increased the installed capacity of Motorised 2 wheelers upto 350CC engine by 200000 Nos to 5400000 Nos. The company launched nine new models during the year.
During the year 2010-11, the company launched six new models including variants of existing models successfully. They refreshed Glamour and Glamour FI. They introduced the New Hunk, Super Splendor and Splendor Pro. The company launched the new upgraded versions of CBZ Xtreme and Karizma. Also, they breached the landmark 5 million figure cumulative sales in a single year.
During the year, the Indian Promoter Group of the company, which comprised of Hero Investments Pvt Ltd (HIPL), Bahadur Chand Investment Pvt Ltd (BCIPL) and Hero Cycles Limited (Hero Cycles) re-aligned the shareholding in the company, following a family agreement. As a result, Hero Cycles transferred its shareholding in the company to HIPL on May 28, 2010. As a result of these transactions, the Indian Promoter Group of the company now comprises of HIPL and BCIPL owned and controlled entirely by the Munjal Family headed by Brijmohan Lall Munjal.
Also, during the year, the Indian Promoter Group and Honda Motor Co Ltd, Japan (Honda) entered into a Share Transfer Agreement (the Agreement) on January 22, 2011. As per the terms of the Agreement, Honda had agreed to transfer its entire shareholding of 26% in the Company to the Indian Promoter Group, bringing an end to the joint venture between the two promoter groups of the company. The acquisition was completed on March 22, 2011 and the shares held by Honda were transferred to the Indian joint venture partner.
In addition to the Agreement, the Indian Promoter Group and Honda also entered into a License Agreement on January 1, 2011. As per this agreement, Honda has given to the company, the right and license to manufacture, assemble, sell and distribute certain products and their service parts under their Intellectual Property Rights.
In July 2011, the company changed their name from Hero Honda Motors Ltd to Hero MotoCorp Ltd.
In February 2012, the company entered into a strategic partnership with Erik Buell Racing (EBR) of USA for contemporary technology and design inputs to enable the company to launch high end bikes for the domestic and international markets.
In 2013, Hero Motocorp commenced construction of its new plant & Global Parts Centre. The company Commences Construction of Its 'GAME-CHANGING' Centre of Global Innovation And Research & Design.
In 2014, Hero Motocorp Heralds A New Era Of Technology Leadership. The company Sets New Benchmark For The Global Two Wheeler Industry. The company Launches Splendor Ismart With Game Changing I3s Technology. The company also rides Into A Greener Tomorrow With 'GARDEN Factory'
In 2015, Hero MotoCorp launched a new entry level commuter, the HF Dawn. During the year, the company has been allocated a 592-acre site to facilitate development of its Rs 1600-crore Greenfield manufacturing unit in Andhra Pradesh. HMCL Americas INC enters into 'Settlement Agreement' to Acquire EBR's Consulting Business. The company commences operation in their first ever plant outside India established in Villa Rica, Colombia.
On 29 September 2015, Hero MotoCorp launched two scooters under the brands Maestro Edge and Duet.
In February 2016, Hero MotoCorp showcased three new bikes Splendor iSmart 110, the Xtreme 200 S, the XF3R and an electric scooter the Duet E at Auto Expo, a trade show in New Delhi. On 10 March 2016, Hero MotoCorp formally inaugurated its world-class Global Centre of Innovation and Technology' (CIT) in Jaipur, Rajasthan. Built with an investment of Rs 850 crore, the CIT will design and develop world-class products for global markets.
In April 2016, Hero MotoCorp launched a drive against unscrupulous traders selling counterfeit Hero spare parts. On 14 July 2016, Hero MotoCorp launched the new Splendor iSmart 110, the first motorcycle to be developed completely in-house with Hero's own technology. To commemorate the landmark 70 million in cumulative production of two-wheelers, Hero MotoCorp on 26 September 2016 launched a Limited Edition of a new premium motorcycle Achiever 150.
The Board of Directors of Hero MotoCorp at its meeting held on 26 October 2016 approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30% shareholding in Ather Energy Private Limited. Ather is a Bangalore-based technology start-up engaged in the business of designing and manufacturing smart Electric Vehicles (EV) and associated charging infrastructure.
On 10 November 2016, Hero MotoCorp unveiled its new Dawn 125 motorcycle at the EICMA Motorcycle show in Milan, Italy. As part of Hero MotoCorp's market-specific product strategy, the Dawn 125 motorcycle has been developed specifically for the Africa region.
On 12 January 2017, Hero MotoCorp launched new Glamour motorcycle in Argentina, its first-ever global launch of a new product outside India. On 3 April 2017, Hero MotoCorp announced that the company clocked its highest-ever sales in a financial year at 66,63,903 units in FY 2017 compared to 66,32,322 units it had sold in the previous fiscal (FY 2016).
In May 2017, Hero MotoCorp commenced commercial production at the second global manufacturing facility in Bangladesh. On 3 October 2017, Hero MotoCorp announced that it has set a new global benchmark in the two-wheeler industry, surpassing the seven lakh sales mark in any month. Riding on robust demand for its range of two-wheelers, the company registered its highest-ever sales for any month, despatching 720,739 units in September 2017.
On 11 October 2017, Hero MotoCorp announced that it has set a new global record, clocking 2 million unit sales in Q2 September 2017. Hero MotoCorp sold 20,22,805 units of two-wheelers in Q2 September 2017, recording 11% growth over the corresponding quarter in the previous fiscal.
On 7 November 2017, Hero MotoCorp unveiled the Xpulse Concept motorcycle as a world premier at the EICMA annual trade show in Milan, Italy. On 21 December 2017, Hero MotoCorp unveiled three new motorcycles - the 125cc Super Splendor, the 110cc Passion PRO and the 110cc Passion XPRO - to further augment its dominant leadership in the domestic market. On 22 December 2017, Hero MotoCorp announced that it will be increasing the ex-showroom prices of its motorcycles by about Rs 400 per model with effect from 1 January 2018 to partially off-set rising input costs.
Hero MotoCorp surpassed the landmark seven million units in cumulative sales in a calendar year in 2017. The company sold a record 7,207,363 units of two-wheelers in the calendar year in 2017.
During FY 2017-18, construction of sixth manufacturing facility at Sricity in Chittoor District in the state of Andhra Pradesh has commenced with a proposed capacity of 1.8 million units per annum. The company will invest Rs 1,600 crore in setting up this manufacturing facility. The plant is expected to be operational in FY 2019-20.
During FY 2017-18, the second overseas plant of the company at Jessore in Bangladesh started commercial production during the first quarter.
During the year 2017-18,the Company added two markets - Trinidad & Tobago and Guyana - to grow the countries in which HMCL is present in, to 37.
As on 31 March 2018,the Company has 6 subsidiaries including step down subsidiaries and 3 associate companies.
During FY 2018-19, construction of sixth manufacturing facility at Sricity in Chittoor District in the state of Andhra Pradesh has reached at an advanced stage with an annual installed capacity of 1.8 million units.The Company has invested approx. Rs 650 crore in Phase I out of total projected investment of Rs 1,600 crore in setting up the manufacturing facility. Phase I is expected to be operational by October 2019.
Further, the overseas plant of your Company at Jessore in Bangladesh achieved its designed production capacity of 1.5 lakh units during FY 2018-19 and consolidated decent market share.
As on 31 March 2019,the Company has 7 subsidiaries including step down subsidiaries and 3 associate companies. During the FY2019,the Company has set up a Tech Center in Germany as its wholly owned subsidiary under the name, Hero Tech Center Germany GmbH.
The Company sold over 78.21 lakh vehicles during the financial year 2018-19, the highest by any two-wheeler company in the world.
During FY 2019-20, the Company's sixth manufacturing facility in Chittoor District in the state of Andhra Pradesh was commissioned with Phase I installed capacity of 0.4 million units. The total Phase I investment is approximately Rs 700 crore out of total projected investment of Rs 1,600 crore in setting up the manufacturing facility. Transition from BSIV to BSVI emission norms has been successfully accomplished well in time across all platforms in FY 2019-20.
As on 31 March 2020, Company has 6 subsidiaries including step down subsidiaries and 2 associate companies and regularly monitors the performance of these companies. During the year, the Company's wholly-owned subsidiary, HMCL (NA) Inc. which had invested in Erik Buell Racing, Inc. was dissolved and thus, Erik Buell Racing, Inc. also ceased to be the associate of the company.
In July 2020, the Company invested H 84 crore in Ather Energy, taking up its shareholding in the Company to 34.58%.
In November 2020, Company again invested in Series D round in the Electric Vehicle startup.
In October 2020, the Company signed a distribution agreement with HarleyDavidson (H-D), under which the Company will sell and service H-D motorcycles, and sell parts and accessories and general merchandise riding gear and apparel in India. The Company has inducted 11 dealers of Harley-Davidson into its own distribution network. Starting 01 January 2021, Hero MotoCorp Ltd. has become the distributor for Harley-Davidson in India. Hero MotoCorp Ltd. and Harley-Davidson also signed a Licensing agreement under which the Company will develop and sell a range of premium motorcycles under the H-D brand name.
During the FY2021, the company also entered into a strategic partnership with Gogoror Inc. to accelerate the shift from fuel based mobility to sustainable electric mobility in India.
During FY 2020-21, the company entered into Mexico market and the footprint of the company reached 41 markets outside India.
On 04 February 2021,the company declared a special dividendof Rs 10 per share to mark the achievement of historic milestone of achieving 100 Million cumulative production of two wheelers.
The company proactively paused its operations temporarily during the second wave at all of its manufacturing facilities across the country, including its Global Parts Center (GPC) in Neemrana and its R&D facility - the Centre of Innovation and Technology (CIT), Jaipur due to the Operations escalation of Covid-19 cases across the country. The company gradually resumed its operations from 17 May 2021 by starting single shift production at three of its plants - Gurugram and Dharuhera in Haryana and at Haridwar in the northern hill state of Uttarakhand.The company resumed production at all its manufacturing plants in India from 24 May 2021.
During the second quarter of FY2022, Hero MotoCorp achieved two consecutive recognitions from the Guinness World Record for creating the Largest Motorcycle Logo' in August 2021 and for creating the Largest Online Photo Album of People Planting Plants' in September 2021.
During the third quarter of FY2022,the company inaugurated a flagship dealership in Dubai to expand presence in the Gulf market to 10 customer touchpoints in 5 countries.Also Partnered with Gilera Motors in Argentina to expand Hero's presence in the country - inaugurated a flagship dealership in Buenos Aires under the partnership.
The Company has 6 subsidiaries including step down subsidiaries and 2 associate companies as on March 31, 2022.
During FY 2021-22, the Company commenced retail sales in Mexico and introduced an extensive portfolio of products. It relaunched the Hero brand in markets like Argentina, Kenya, Honduras and Nicaragua. It strengthened presence in Gulf region, expanding network
of touchpoints, including dealerships, service centres and spare parts outlets; it entered into another exclusive dealership in Dubai. It reinvigorated strategy for the Nigerian market, leading to a 978% dispatch growth. It also launched a new motorcycle, Hunter,'
developed especially for the market. In March 2022, Company launched a new brand Vida'-Powered by Hero, an in-house electric vehicle brand. It forayed into the pre-owned two-wheeler business under the brand Hero Sure - Powered by Wheels of Trust'. It expanded the network by adding super stockists, authorized representatives of dealers, Hero Sure network and HGPD. It launched Xpulse 200 4V in October, 2021. It launched the new Stealth variant, Xtreme 160R, a fast-pick up bike. During the year 2022, 45 new outlets were added, which increased their footprint to 43 markets outside India. It launched the official Hero merchandise business in August, 2021.
During the year 2023, Company launched VIDA V1- India's first fullyintegrated electric scooter in Delhi, Jaipur and Bengaluru. It commenced the expansion plan of reaching eight more cities in FY 2022-23. It launched 9 new models. It expanded global presence to 47 in FY 2022-23; launched Harley-Davidson X440 motorcycle and thereafter, launched the Hero Sure - Powered by Wheels of Trust' platform.
Hero MotoCorp Ltd
Directors Reports
Hero MotoCorp Ltd
Company Background
| Incorporation Year | 1984 |
| Registered Office | The Grand Plaza Plot No 2,Nelson Mandela Road VasantKunj
New Delhi,New Delhi-110070 |
| Telephone | 91-11-46044220,Managing Director |
| Fax | 91-11-46044399 |
Pawan Munjal| Company Secretary | Dhiraj Kapoor |
| Auditor | Deloitte Haskins & Sells LLP |
| Face Value | 2 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
Hero MotoCorp Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Pawan Munjal | Chairman & Wholetime Director | 2023 |
| Pradeep Dinodia | Director | 2023 |
| Suman Kant Munjal | Director | 2023 |
| Vikram S Kasbekar | Whole-time Director | 2023 |
| Jagmohan Singh Raju | Independent Director | 2023 |
| Tina Trikha | Independent Director | 2023 |
| B.S. Dhanoa | Independent Director | 2023 |
| Rajnish Kumar | Independent Director | 2023 |
| Vasudha Dinodia | Director | 2023 |
| Camille Miki Tang | Independent Director | 2023 |
| Dhiraj Kapoor | Company Sec. & Compli. Officer | 2023 |
Hero MotoCorp Ltd
Listing Information
| Listing Information |
|---|
| NIFTY |
| BSE_500 |
| BSE_100 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| BSEAUTO |
| CNX100 |
| CNXCONSUMP |
| CNXAUTO |
| CNX200 |
| CNXDIVIDEN |
| BSECARBONE |
| NIFTY50V20 |
| NI15 |
| NFT100EQWT |
| BSEALLCAP |
| BSELARGECA |
| GOODSSERVI |
| BSEMANUFAC |
| NFTQULTY30 |
| SENSEX50 |
| ESG100 |
| LMI250 |
| BSEDSI |
| NFT50EQWT |
| NFT100LV30 |
| BSE100LTMC |
| NFTYLM250 |
| NFTY100ESG |
| NFTY200Q30 |
| NFTY200M30 |
| NF500M5025 |
| NFTYINDMFG |
| NFTYTOTMKT |
| NMIM503020 |
Hero MotoCorp Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Motor Cycles-Two Wheelers | No | 0 | 0 | 0 | 28115.74 |
| Spares | NA | 0 | 0 | 0 | 4835.23 |
| Income from Services | NA | 0 | 0 | 0 | 455.24 |
| Incentive from State Govt. | NA | 0 | 0 | 0 | 297.41 |
| Other operating revenues | NA | 0 | 0 | 0 | 70.82 |
| DutyDrawback & Other Incentive | NA | 0 | 0 | 0 | 31.21 |