Report on Industrial Visit at

HERO MOTO CORP DHARUHERA

11TH NOVEMBER, 2017

For. ME Engineering Students

RAO PAHLAD SINGH COLLEGE OF ENGINEERING & TECHNOLOGY

Company Profile

Hero Group, India and Honda Motors, Japan on 19th January 1984 joined their hands together to
createa joint venture known as Hero Honda. Jointly they decided to cater to the two – wheeler
segment of the Indian Automobile Industry.
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer
based in New Delhi, India. The company is the largest two-wheeler manufacturer in the world
and also in India, where it has a market share of about 46% in the two-wheeler category. The
2006 Forbes list of the 200 World's Most Respected Companies has Hero Honda Motors ranked
at 108.On 31 March 2013, the market capitalization of the company was 30,800
crore (US$4.8 billion).

History
Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes
called Hero Group, not to be confused with the Hero Group food company of Switzerland) of
India and Honda of Japan In 2010, when Honda decided to move out of the joint venture, Hero
Group bought the shares held by Honda.Subsequently, in August 2011 the company was
renamed Hero MotoCorp with a new corporate identity.
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 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 emphasised 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 (earlier Hero Honda) for almost 26 years (1984–2010) has come
from the Japanese counterpart Honda.

Termination of Honda joint venture

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 (except Nepal, Bangladesh and Sri Lanka)
and the termination would mean that Hero Group could now export. Since the beginning, the
Hero Group relied on their Japanese partner Honda for the technology in their bikes.
The Japanese auto maker will exit the joint venture through a series of offmarket transactions by
giving the Munjal family—which held a 26% stake in the company—an additional 26%. Honda,
which also has an independent fully owned two-wheeler subsidiary—Honda Motorcycle and
Scooter India (HMSI)—will exit Hero Honda at a discount and get over 6,400 crore for its stake.
The discount will be between 30% and 50% to the current value of Honda's stake as per the price
of the stock after the market closed on December 16, 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 (despite a 10-year technology tie-up
that expires in 2014) 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 (mainly
managed by the Munjal family) to merge the company's spare parts business with Honda's new
fully owned subsidiary Honda Motorcycle and Scooter India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by
Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle (SPV)
to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would
eventually be thrown open for private equity participation, and those in the fray include Warburg
Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Formation of Hero MotoCorp

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 their plan on a 254 crore (US$40 million) joint
venture with Bangladesh's Nitol Niloy Group in the next five years. also hero updated its 100cc
engine range in 2014 for 100cc bikes except hero dawn.

49% stake in Erik Buell Racing

In July 2013, HMC acquired 49.2% shareholding in Erik Buell Racing, a motorcycle
sport company which produced street and racing motorcycles based in East Troy, Wisconsin,
United States. EBR filed for bankruptcy in 2015 and Hero Motocorp proceed to acquire certain
assets for ₹18.2 crore (US$2.8 million).

Operations
Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurgaon, Neemrana,
Haridwar and Halol under Green Field stage. These plants together have a production capacity of
76 lakh+ 2-wheelers per year. Hero MotoCorp has a sales and service network with over 6,000
dealerships and service points across India. It has a customer loyalty program since 2000, called
the Hero Honda Passport Program which is now known as Hero GoodLife Program.
It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa,
AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a
majority of its components.
The company has a stated aim of achieving revenues of 64,000 crore (US$10 billion) and
volumes of 10 lakh 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, and they
expected to launch sales in Nigeria by end-2011 or early-2012.

Current Products
Scooters
 Pleasure
 Duet
 Maestro Edge
Motorcycles
 HF Deluxe
 HF Deluxe Eco
 Splendor+
 Splendor Pro
 Splendor ismart 110
 Super Splendor
 Passion Pro

 Passion i3s
 Glamour
 New Glamour
 New Glamour FI i3s
 New Glamour i3s
 Glamour FI
 Glamour Pro FI
 Achiever
 Xtreme Sports
 Karizma ZMR

Discontinued
Motorcycles
 Hero Honda CD100
 Hero Honda CD100 Deluxe
 Hero Honda CD100SS
 Hero Honda CD Dawn 100
 Hero Honda CD Deluxe 100
 Hero Honda Dawn 100
 Hero Honda Joy 100
 Hero Honda Sleek 100
 Hero Honda Street 100
 Hero Honda Street Smart 100
 Hero Honda Splendor 100
 Hero Honda Passion 100
 Hero Honda Passion Plus 100
 Hero Honda CBZ 150
 Hero Honda CBZ Star 150
 Hero Honda CBZ Xtreme 150
 Hero Honda Ambition 135
 Hero Splender NXG 100
 Hero Impluse 150
 Hero Splendor ismart 100
 Hero Splendor Classic 100
 Hero HF Dawn 100
 Hero Passion Pro TR 100
 Hero Passion XPro 110
 Hero Ignitor 125
 Hero Hunk 150
 Hero Xtreme 150
 Hero Karizma 220
Hero Majestic/Hero Puch(Mopeds & Scooters)
 Hero Effy
 Hero Panther
 Hero Panther 4s
 Hero Pacer
 Hero Gizmo
 Hero Power
 Hero Ankur
 Hero Student
 Hero Stepmatic
 Hero Stalion
 Hero Puch Automatic
 Hero Puch Winner
 Hero Puch Winner SL
 Hero Puch Winner SLX
 Hero Puch Sheriif
 Hero Puch TurboSport
 Hero Puch Shakti 2G
 Hero Puch Maxwell

Company performance
The company has sold over 4.7 crore 2-wheelers since its inception in 1984 till March 2013. It
sold 60.7 lakh 2-wheelers in 2012, out of which 55 lakh were motorcycles. Hero Motocorp sells
more two wheelers than the second, third and fourth placed two-wheeler companies put
together. Its most popular bike Hero Honda Splendor sells more than ten lakh units per year.
In 2013, Hero MotoCorp registered best ever calendar year performance of more than 61 lakh
unit sales. By selling 6,25,000 units in the month of October, it became the first-ever
manufacturer to cross landmark 6 lakh unit sales in a month. In the last quarter of the year or say
in the festive season, the company sold more than 16 lakh units, while in non festive time in
April–May 2013, it managed to sell out quite good numbers of units 11 lakh.

Listings and shareholding

The equity shares of Hero Motocorp are listed on the Bombay Stock Exchange,where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India,where it is a
constituent of the S&P CNX Nifty.
As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero
Motocorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares.Foreign
Institutional Investors hold approx. 30% shares in the company.
Shareholders (as on 31-Dec-2013) Shareholding

Promoter Group 39.92%

Foreign Institutional Investors (FII) 30.63%

Foreign Corporate Bodies 12.29%

Individual shareholders 06.44%

Insurance companies 05.38%

Mutual Funds / UTI 02.56%

Bodies Corporate 01.60%

Financial Institutions / Banks 00.53%

Others 00.60%

Total 100.0%

Employees
As on 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%).
It also had approx. 13,800 temporary employees on that date. The company had an attrition rate
of 5.1% in the FY 2012-13. The company spent ₹821 crore (US$130 million) on employee
benefits during the FY 2012-13.

Awards and recognition

 The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in
the 7th position among the most trusted brands in India.
 It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two Wheelers
Category at the Auto India Best Brand Awards 2012.

Initiatives
The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as
Hero Honda Motors Ltd., that looks after:
 Raman Munjal Vidya Mandir (an educational institution)
 Raman Munjal Memorial Hospital
 BML Munjal University
During the financial year, the company spent 1.4 crore on corporate social responsibility.

A few glimpse of Industrial Visit

 Student List for Hero Moto Corp. Industrial Visit
College
Sr No. Name of student Father's Name
Roll No
1 14ME07 AMIT KUMAR SUMER SINGH
DALIP KUMAR
2 14ME39 KONARK SINGHAL
SINGHAL
MD
3 14ME50 ZAHIR HUSSAIN
QYAMUDDINANSARI
4 14ME108 VIKAS VIKRAM SINGH
KRISHAN KANT
5 14ME122 AKSHAY VERMA
VERMA
6 L15ME130 RAHUL BRAHAM DEV

7 L15ME131 MANISH YASHODHAN

8 15ME03 AJIT YADAV SOHAN LAL

9 15ME20 HIMANSHU RAJPAL

10 15ME24 JITENDER RAJBIR SINGH

11 15ME30 MANDEEP SINGH KARAMVIR SINGH

MITHLESH KUMAR
12 15ME34 FULU MAHTO
MAHTO
13 15ME37 MOHIT YADAV BIRENDER SINGH

14 15ME38 MONU YADAV OMPARKASH

15 15ME39 MUKESH BABU LAL

16 15ME40 NAVEEN LAKSHMAN

PRADEEP KUMAR
17 15ME46 RAMJEE SAHANI
SAHANI
18 15ME49 RAHUL TULSI RAM

19 15ME50 RAHUL SAINI NIRANJAN LAL

20 15ME51 RAHUL SAINI HUKAM CHAND

21 15ME55 ROHIT PRADEEP KUMAR

22 15ME61 SHUBHAM GOYAL HARISH GOYAL

23 L16ME78 DINESH ASHWANI KUMAR

24 L16ME80 NITIN SAINI PREM CHNAD

25 16ME03 AKLESH CHOUDHARY ROSHAN LAL

26 16ME05 AMAN YADAV RAJENDER SINGH
27 16ME11 AMIT KUMAR HARI SINGH
28 16ME13 ANIL SOHAN LAL
29 16ME17 ANSHUL SURENDER KUMAR
30 16ME21 ASHWANI PRATAP SINGH
31 16ME34 GAURAV YADAV ABHEY SINGH YADAV
32 16ME37 HEMANT KUMAR RAJBIR
33 16ME39 ISHU RAMKISHAN

34 16ME42 KESHAV POHAP SINGH

35 16ME49 MANJEET BANWARI LAL

36 16ME75 ROHIT YADAV RAJESH KUMAR

37 16ME76 SACHIN KUMAR JAG DEV

38 16ME82 SANJEEV KUMAR RAM SINGH

39 16ME86 SONU LAMBA AJIT SINGH

40 16ME90 SUNIL KUMAR MAHTO MAHADEO MAHTO

Keeping the objective of bridging the gap between academia and industry Department of
Mechanical Engineering, organised an Industrial visit for B.tech Mechanical students to Hero
Moto Corp Ltd. at Dharuhera plant. To gain insight about the functioning within the industry will
definitely enlighten the students and will make them Industry prepared.The visit of RPS
Engg.college students was intended to help students understand various aspects of manufacturing
namely manufacturing operations and assembly lines by providing shop floor experience and
interaction with the Engineers, supervisors and operators of Hero Motocorp Ltd. The shop floor
experience also enriched the knowledge of the students about industrial safety and various safety
practices.

The students were briefed about the various manufacturing operations taking place inside the
company from the raw material to the complete manufacturing of the products like casting,
welding, machining, painting etc. The students were very enthusiastic to see the full assembly of
the bike in front of their eyes. Hero Motocorp is using JIT as a quality improvement technique
and students have seen this as their practical experience.

The Staff at Hero Moto Corp Ltd. was very cooperative and demonstrated the technical faculties
to their extent.The staff member of Hero Moto Corp Ltd. guided students on each and every
question with detailed answers. It is rightly said that “See & know” is better than “read & learn”.
Students really got the real exposure about company’s functioning after this visit. They got a
chance to transfer their theoretical knowledge to practical implication. This kind of visit will help
students to understand subject matter clearly. The students were also briefed about the job
opportunities for graduate engineers within Hero Moto Corp

Benefits
Developing better understanding amongst the students of the manufacturing Processes and
assembly of products.Understanding CNC Machines working and production rates.Sequencing
of operations on assembly lines leading to a higher production rate.Use of quality improvement
techniques.

Participation
A total of 40 students with Two Faculty Member joined the visit and gained experience and
industrial exposure.
In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1′ two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till
date. Hero MotoCorp two wheelers are manufactured across 4 globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in
the state of Haryana in northern India. The third and the latest manufacturing plant is based at
Haridwar, in the hill state of Uttrakhand.

Faculty Coordinators
Mr. Neeraj , Mr. Praveen

Conclusions and Suggestions

Visit to Hero Moto Corp was an amazing visit where the management and Engineering functions
were being practiced and it was a great experience going there. We can conclude that since Hero
has a good image attached to it, thus it should try and maintain its image, because in today`s time
the people and more brand conscious and look for value for their money and hence with such a
great brand name established for them, it is a real advantage to them and with this they can reach
to new heights

Thank You.

With Best Regards

Mr.Rajesh Rana
Asstt.Professor & Head
Department of Mechanical Engineering
Rao Pahlad Singh College of Engineering & Technology