A complete presentation on hero moto corp, with financial analysis and future trends , ideal presentation for management students , preapred by kunal khamesra, COLLEGE OF TECHNOLOGY AND ENGINEERING , MPUAT UNIVERSITY , M.B.A(TECH) , hope you will like it

1. PRESENTED BY
KUNAL KHAMESRA

2. * Hero Moto Corp Ltd. ( formerly Hero Honda Motors
Ltd) is the world’s largest two wheeler manufacturer
based in India
* World’s No.1 two wheeler company in terms of unit
volume sales in a calendar year.
* The company was a joint venture between India's
Hero Group and Honda Motor Company, Japan that
began in 1984 later in 2011 it turn into Hero Motors
Limited.

3. * Today, every second motorcycle sold in the country
is a Hero bike. Every 30 seconds, someone in India
buys Hero splendor which is India’s selling
motor cycle.
* 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. The
technology in the bikes of Hero for almost 26 years
(1984–2010) has come from the Japanese
counterpart Honda

5. M
AC Damodaran
Suman Burman
Yuji Munjal Shobhana
Bhartia
Shiga
MD & CEO
CHAIRMAN JOINT
MD
Brijmohan Lall Pawan
Munjal Toshiak Munjal
Nakagawa Ravi
Nath
Takashi
Nagai
Sunil VP Pradeep
Pritam Dinodiya
Munjal Singh Malik

6. DHARUHERA
, Haryana
GURGAON ,
Haryana
HARIDWAR,
Uttarakhand

7.  Hero product range includes variety of motor cycles
that have set the industry standards across all the
market segments. The company also started
manufacturing scooter in2006.Hero offers large no.
of products and caters to wide variety of
requirements across all the segments.

8. Super
Karizma Splendor
Splendor
Hunk NXG
Splendor+
CBZ Xtreme
Passion Pro
Achiever
Passion Plus
Glamour FI CD Deluxe
Glamour Pleasure

9. The Company's growth in the two wheeler market in
India is the result of an intrinsic ability to increase
reach in new geographies and growth markets. Hero
Monocarp's extensive sales and service network
now spans over to 5000 customer touch points.
These comprise a mix of authorized dealerships,
service & spare parts outlets, and dealer-appointed
outlets across the country.

10. *PRODUCT :
CDDawn, Splendor, Passion, Glamour, CBZ,
Karizma etc.
* PRICE :
Price of Hero Honda bikes start from Rs.30000 to
Rs.90000

11. * PLACE :
All over INDIA
* PROMOTION:
 T.V. Add.
 News paper Add.
 Magazine Add.
 FM Radio
 Hoardings etc.

12. * SEGMENTATION & TARGETING
Splendor – Price oriented people
Glamour – Price as well as tech.
oriented people
Karizma – Status oriented
people
* POSITIONING :
World’s largest motorcycle manufacture
company. It was commemorated by sales of over
15 million motorcycles.

13. Hero Honda
Bajaj
TVS
Yamaha
LML
Kinetic
Royal Enfield
Majetic

14. 15.4 Million (Approx.)
Motor cycles Scooters Moped
10 Million 2.7 Million 0.78 Million
Hero MotoCorp
6.23 Million
Motor cycles Scooters
58% market share 15.2% market share
5.79 Million 0.41 Million
Hero Moto Corp Ltd.
Source:

15. Share Price
10 % since
2011
1713-1905

17. RATIO ANALYSIS AND ITS COMPARISION WITH
BAJAJ AUTO
LIQUIDITY RATIO
1.CURRENT RATIO = CURRENT ASSETS /CURRENT LIABILITIES
CURRENT ASSETS = WORK IN PROGRESS + INVENTORIES +
SUNDRY DEBTORS + CASH AT BANK
CURRENT RATIO, 2010 = (48.14+436.40+108.39+1,907.21)/ 3,965.69 =
0.63
CURRENT RATIO, 2011 = (125.14+524.93+130.59+71.52)/ 5,316.40 = 0.16
CURRENT RATIO, 2012 = (193.95+675.57+272.31+76.82)/ 3,520.66 = 0.34
Current ratio of all the 3 years are below
the bench mark i.e. 2 which indicates that the liquidity position of
the company is not good and the firm shall not be able to pay its
current liabilities in time without facing difficulties.
Bajaj Auto has a current ratio of 0.88 in 2012 as against
Hero Motocorp’s 0.34. It means the liquidity of Bajaj Auto is
more as compared to Hero Motocrop.

18.  LIQUID RATIO = LIQUID ASSETS/LIQUID LIABILITIES
 LIQUID ASSETS = CURRENT ASSETS – INVENTORIES
 LIQUID RATIO, 2010 =( 2500.14-436.40)/ 3965.69 = 0.52
 LIQUID RATIO, 2011 = (852.18 - 524.93)/ 5,316.40 = 0.06
 LIQUID RATIO, 2012 = (1,218.65 - 675.57)/3,520.66 = 0.15
 INTERPRETATION : - The bench mark for liquid ratio is 1. But
the company has liquid ratio below 1 which indicates that the
company is too much relies too much on inventory or other assets to
pay its short-term liabilities.
 Bajaj Auto has a liquid ratio of 0.72 as against Hero
Motocrop’s 0.15 in 2012. Though both the company has to depend too
much on inventory or other assets to pay its short-term liabilities still
Bajaj Auto has the upper hand as compared to Hero Motocrop

19. SOLVENCY RATIO:
 DEBT EQUITY RATIO = OUTSIDER’S FUND/SHARE
HOLDER’S FUND
 SHARE HOLDER’S FUND = SHARE CAPITAL + RESERVES AND
SURPLUSES
 DEBT EQUITY RATIO, 2010 = (0.00+66.03)/( 39.94+3,425.08) = 0.02
 DEBT EQUITY RATIO, 2011 = (1,458.45+32.71)/( 39.94+2,916.12) =
0.50
 DEBT EQUITY RATIO, 2012 = (994.85+0)/(39.94+4249.89) = 0.23
 INTERPRETATION :- The ratio of all the three years are less
than 1 which means the company has more share capital with
respect to outsider’s fund. A higher ratio demonstrate that the
company has aggressively financed its growth through outsider’s
fund. Ultimately it helps in saving tax.
 Here, both the company Hero Motocorp and Bajaj Auto
has their ratio lower than 1 i.e. 0.23 and 0.02 respectively. The
higher the debt equity ratio the better it is for the company as it
helps in saving tax

20.  DEBTORS TURNOVER RATIO = NET CREDIT
ANNUAL SALES/ AVERAGE DEBTOR
 AVG. DEBTOR = (OPENING DEBTOR + CLOSING
DEBTOR)/2
 FOR 2010 = 16856.43/108.39 = 155.5
 FOR 2011 = 20787.27/119.49 = 173.9
 FOR 2012 = 25252.98/201.45 = 125.3
 INTERPRETATION: - Debtor turnover ratio is on the higher
end. After considering the reputation a higher ratio indicates
efficient management of debtor or sales and liquidity of debtors.
 Bajaj Auto’s debtor turnover ratio is 52.10. Though it’s a
good ratio still it is way below Hero Motocorp’s 125.3.

21.  INVENTORY TURNOVER RATIO = COST OF
GOODS SOLD / AVERAGE INVENTORY
 COST OF GOODS SOLD = SALES – GROSS PROFIT
 AVERAGE INVENTORY =( OPENING INVENTORY +
CLOSING )/2
 FOR 2010 ITO RATIO = (16856.43 – 2743.65)/436.40 = 32.33
 FOR 2011 ITO RATIO = (20787.27 – 2597.07)/480.665 = 37.84
 FOR 2012 ITO RATIO = (25252.98 – 3648.032)/ 600.25 = 35.99
 INTERPRETION: - Inventory turnover ratio in 2012 is on
the higher end as compared to 2010 which indicates efficient
management of inventory because more frequently the stocks
are sold the lesser money is required to finance the inventory.
 Bajaj Auto has 27.11 as inventory turnover ratio
which is 8.88 less than Hero Motocorp.

22.  GROSS PROFIT RATIO = (GROSS PROFIT/ NET
SALES)*100

 FOR 2010 = (2743.65/16856.43)*100 = 16.27%
 FOR 2011= (2597.07/20787.27)*100 = 12.49%
 FOR2012 = (3648.02/25252.98)*100 = 14.44%
INTERPRETATION : - Though the gross profit has decreased
by 1.83% in 2012 as compared to 2010, it is still in the higher
side indicates that the company can make reasonable profit as
long as it keeps the overhead cost in control. It also indicates
the production efficiency of the company and how efficient
the company is in controlling production cost.
 Gross profit ratio of Bajaj Auto is 18.25% which is
3.81% more than that of Hero Motocrop. It shows that Bajaj
Auto has much better control over production cost.

23.  NET PROFIT RATIO = (NET PROFIT AFTER
TAX/NET SALES)*100
 2010 = (2213.83/16856.43)*100 = 13.13%
 2011 = (1927.90/20787.27)*100 = 9.27%
 2012 = (2378.13/25252.98)*100 = 9.41%
 INTERPRETATION: - There is decrease in net profit by
3.72% in 2012 as compared to 2010. A higher rate of net profit
indicates that how efficient the company is and how well it
controls its overhead cost.
 The net profit ratio of Bajaj Auto is 14.67% as against
Hero Motocrop’s 9.41% showing a difference of 5.26%. It
means Bajaj Auto is more efficient in controlling its overhead
cost as compared to Hero Motocorp.

24. Environment Policy
 Integrate environmental attributes and cleaner
production in all business processes
 Substitution of hazardous chemicals where viable
and strengthen the greening of supply chain.
Quality Policy
 Excellence in quality is the core value of Hero
philosophy.
 Innovation in products, processes and services.
 Continuous improvement in total quality
management systems.

25. Safety Policy
Committed to safety and health of its
employees and other persons.
Ensuring compliance with all applicable
legislative requirements.
Promoting safety and health awareness
amongst suppliers & contractors.
Continuous improvements in safety
performance through precautions besides
participation and training of employees.
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26. Vision :-The story of Hero Honda began with a
simple vision - the vision of a mobile and an
empowered India, powered by its bikes. Hero
MotoCorp Ltd., company's new identity, reflects its
commitment towards providing world class mobility
solutions with renewed focus on expanding
company's footprint in the global arena.

27.  Mission :-Hero MotoCorp's mission is to become a
global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology,
styling and quality so that it converts its customers into its
brand advocates. The company will provide an engaging
environment for its people to perform to their true potential.
It will continue its focus on value creation and enduring
relationships with its partners.
 Statergy :- Hero MotoCorp's key strategies are to build
a robust product portfolio across categories, explore growth
opportunities 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

28. FUTURE PLAN
 The company has a stated aim of achieving revenues of
$10 billion and volumes of 10 million two-wheelers by
2016-17.
 This in conjunction with new countries where they can
now market their two-wheelers following the
disengagement from Honda, Hero MotoCorp hopes to
achieve 10 per cent of their revenues from international
markets.
 To cope with the new demand the company was going
to build their fourth factory in South India and their
fifth factory in Western India.

29.  Integrated Rural Development at ‘Dharuhera’
 Bore wells, Roads, Drainage, Primary Schools
 Raman Munjal Memorial Hospital
 Adult Literacy Mission
 Marriages of Underprivileged girls
 Rural Health Care
 Vocational Training Centre

30.  NDTV Profit Business Leadership Award 2008
 TopGear Design Awards 2008 - Hunk: Bike of the Year
Award
 Asian Retail Congress Award for Retail Excellence - Best
Customer Loyalty Program in Automobile category
 NDTV Profit Car India & Bike India Awards - Bike
Manufacturer of the year
 Overdrive Magazine - Bike Manufacturer of the year
 TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG
No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme
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31. Thank you!