Final Projcet Hero 123

CONTENTS
Sl no Particulars Page no
1 BRIEF HISTORY OF THE COMPANY
2 BOARD OF DIRECTORS AND OFFICE BEARERS
3 NUMBER OF MANUFACTURIMNG UNITS AND ADDRESS
4 NUMBER OF DIFFERENT DIVISION AND THEIR PRODUCTS
5 NUMBER OF EMPLOYEES AND THEIR CADRE
6 RECRUITMENT AND SELECTIN PROCESS
7 ORGANISATION STRUCTURE
8 COMPANY TURNOVER/SALES/PROFIT
9 PRODUCTLINE LENGTH/WIDTH/DEPTH
10 MARKET SHARE AND THE COMPETITORS
11 MARKETING/SALES PRODUCEDURE AND STRATEGY
12 VITAL INFORAMATION RELATED TO SPECIFIC INDUATRY
13 FACTORY OUTLINE/MAP
14 PHOTOGRAPHY
15 ATTENDANCE CERIFICATE
16 VARIOUS GOVT NORM TO BE FULFILLED BY THE ORGANIZATION
17 DIFFERENT TAX STRUCTURE
Faculty of business studies mba co ed appa (iet) kalaburgi Page 1 of 65

1. BRIEF HISTORYOF THE COMPANY
India is second largest producer and manufacturer of two wheelers in the world. India
two-wheeler has got spectacular growth in the last few years. The two-wheeler
industry (henceforth TWI) in India has been in existence since 1955. It consists of
three segments viz., scooters, motorcycles, and mopeds. The increase in sales volume
of this industry is proof of its high growth. In 1971, sales were around 0.1 million
units per annum. But by 1998, this figure had risen to 3 million units per annum.
Similarly, capacities of production have also increased from about 0.2 million units of
annual capacity in the seventies to more than 4 million units in the late nineties4.
The TWI in India began operations within the framework of the national industrial
policy as espoused by the Industrial Policy Resolution of 1956. This resolution
divided the entire industrial sector into three groups, of which one contained
industries whose development was the exclusive responsibility of the State, another
included those industries in which both the State and the private sector could
participate and the last set of industries that could be developed exclusively under
private initiative within the guidelines and objectives laid out by the Five Year Plans
(CMIE, 1990). Private investment was channelized and regulated through the
extensive use of licensing giving the State comprehensive control over the direction
and pattern of investment. Entry of firms, capacity expansion, choice of product and
capacity mix and technology, were all effectively controlled by the State in a bid to

prevent the concentration of economic power. However due to lapses in the system,
fresh policies were brought in at the end of the sixties. All sales figures are from
various issues of ACMA, capacity figures from various Five Year Plan documents.
The two-wheeler industry in India has to a great extent been shaped by the evolution
of the industrial policy of the country. Regulatory policies like FERA and MRTP
caused the growth of some segments in the industry like motorcycles to stagnate.
These were later able to grow (both in terms of overall sales volumes and number of
players) once foreign investments were allowed in 1981.
Key players in two-wheeler industry:
After facing its worst recession during the early 1990s, the two-wheeler
industry bounced back with a 25% increase in volume sales in February 1995. The
scooters are considered as family vehicles. There are many two-wheeler
manufacturers in India. Major players in the two-wheeler manufacturer are
 Hero Motocorp Ltd.
 Bajaj Auto Ltd.
 TVS Motor Company Ltd.
 Yamaha Motors India Ltd.
 Royal Enfield Ltd.
 Motorcycle & Scooter India.

 Kinetic Motor Company Ltd.
Types of two-wheeler in India:
There are mainly three types of two-wheeler available in India and they are
 Motorcycles.
 Scooters
 Scooterettes/mopeds
Evolution of two-wheeler industry in India:
Two-wheeler is one of the most important components of automobiles sector
that has undergone significant changes due to shift in policy environment the two-
wheeler industry has been in existence in country since 1995. The two-wheeler
industry in India has to a great extent been shaped by the evolution of the industrial
policy of the country. Regulatory policies like FERA and MRTP caused the growth of
some segments in the industry like motorcycles to stagnate. These were later able to
grow (both in terms of overall sales volumes and number of players) once foreign
investments were allowed in 1981. The reforms in the eighties like ‘broad banding’
caused the entry of several new firms and products which caused the existing
technologically outdated products to lose sales volume and/or exit the market. Finally
was liberalization in the ninety. The first time-period, 1960-1969, was one during
which the growth of the two-wheeler industry was fostered through means like
permitting foreign collaborations and phasing out of 7The Indian economy was faced
with several problems at this time.

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 Motor
Company was established in 1984 as the Hero Motors Limited at Dharuhera, India.
Munjal family and group both owned 26% stake in the Company. In 2010, it was
reported that planned to sell its stake in the venture to the Munjal family.
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. The technology in
the bikes of Hero for almost 26 years (1984–2010) has come from the Japanese.The
company has a stated aim of achieving revenues of $10 billion and volumes of 10
million two-wheelers by 2016–17. This is conjunction with new countries where they
can now market their two-wheelers following the disengagement from. 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. In addition,
to cope with the new demand over the coming half decade, the company was going to
build their fourth factory in South India and their fifth factory in Western India. There
is no confirmation where the factories would be built.
History
Hero Motocorp was started in 1984 as Hero Motors Ltd
 1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)
 1975—Hero Cycles becomes largest bicycle manufacturer in India.
 1983—Joint Collaboration Agreement with Motor Co. Ltd. Japan signed

Shareholders Agreement signed
 1984—Hero Motors Ltd. incorporated
 1985—Hero motorcycle CD 100 launched.
 1989—Hero motorcycle Sleek launched.
 1991—Hero motorcycle CD 100 SS launched.
 1994 - Hero motorcycle Splendor launched.
 1997—Hero motorcycle Street launched.
 1999 - Hero motorcycle CBZ launched.
 2002—Hero motorcycle Dawn and Hero motorcycle Ambition launched.
 2003—Hero motorcycle CD Dawn, Hero motorcycle Splendor plus, Hero
motorcycle Passion Plus and Hero motorcycle Karizma launched.
 2004—Hero motorcycle Ambition 135 and Hero motorcycle CBZ* launched.
 2005—Hero motorcycle Super Splendor, Hero motorcycle CD Deluxe, Hero
motorcycle Glamour, Hero motorcycle Achiever and Hero Scooter Pleasure.
 2007—New Models of Hero motorcycle Splendor NXG, New Models of Hero
motorcycle CD Deluxe, New Models of Hero motorcycle Passion Plus and Hero
motorcycle Hunk launched.
 2008—New Models of Hero motorcycles Pleasure, CBZ Xtreme, Glamour,
Glamour Fi and Hero motorcycle Passion Pro launched.
 2009—New Models of Hero motorcycle Karizma:Karizma - ZMR and limited
edition of Hero motorcycle Hunk launched
 2010—new Models of Hero motorcycle Splendor Pro and New Hero motorcycle
Hunk and New Hero Motorcycle Super Splendor launched.

 2011—New Models of Hero motorcycles Glamour, Glamour FI, CBZ Xtreme,
Karizma launched. New licensing arrangement signed between Hero and. In
August Hero and parted company, thus forming Hero MotoCorp and moving out
of the Hero joint venture. In November, Hero launched its first ever Off Road
Bike Named Hero "Impulse".
 2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor
the young generation bike are launched.
Growth
Hero Motocorp experienced great growth throughout its early days. The
Munjal family started a modest business of bicycle a day. Today hero Motocorp has
an assembly line of nine different producing 16000 bicycles a day. It holds the record
for most popular bike in the world by sales for it splendour model. Hero Motocorp
was established in joint venture with Honda motors of Japan in 1984, to manufacture
motorcycles. It is currently the largest producer of two-wheeler in the world. It sold
3million bikes in the year 2005-2006. Recently it has entered in scooter
manufacturing, with its model PLEASURE mainly aimed at girls. HUNK is the latest
offering from HHMl stabl.

2.BOARD OF DIRECTORS AND OFFICE BEARERS
BOARD OF DIRECTORS
1. Mr. Brijmohan Lall Munjal Chairman & Whole Time Director.
2. Mr. Pawan Munjal Managing Director.
3. Mr. Sunil Kant Munjal Joint Managing Director.
4. Mr. Suman Kant Munjal Director.
5. Mr. Paul Edgerley Director.
6. Mr. Pradeep Dinodia Director.
7. Mr. Gen.(Retd.) Ved Prakash Malik Director.
8. Mr. Pritam Singh Director.
9. Mr. M Damodarn Director.
10. Mr. Ravi Nath Director.
11. Mr. Anand C Burman
OFFICE BEARERS
SHRI VENKATESH AUTOMOTIVES: Authorized dealers of HERO Moto Corp
Ltd.
STARTED : June 2000
FOUNDER : KRISHNARAJ.B.KULKARNI
SALES OF 2011-2012 : 7500 MOTORCYCLE
M/s. SRI VENKATESH AUTOMOTIVES is authorized dealer for hero Motocorp

limited, m/s SRI VENKATESH AUTOMOTIVES was established with a prime
motive to supply the prestigious hero range of two-wheeler and provide the best
service to the consumer of this area. It undertakes marketing, spares, sales and
service, repairs of hero range of vehicles.
Sri K.B.KULKARNI established M/s. VENKATESH AUTOMOTIVES a
show room of hero Motocorp limited in the year 2000 with the required investment.
M/s. SRI VENKATESH AUTOMOTIVES at Gulbarga has an exclusive
showroom on Darga road with various departments that are required including
infrastructure support to dealership.
The employees of the organisation do have good qualification in their
respective department and are hard working in nature.
By the reputation and good will earned during the period M/s. SRI
VENKATESH AUTOMOTIVE captured the market and its performance is seen at
the zenith in spite of the stiff competition from its nearest competitors.
BACKGROUND AND INCEPTION OF THE COMPANY:
SRI VENKATESH AUTOMOTIVES is one of the dealership of hero
Motocorp in Gulbarga. It was established in the year 2000 with the opening of this
venture, consumer may feel ease as they are having options to take the view from

either of the show room.
It seems Mr. K.B.KULKARNI decided to open this showroom in Gulbarga
area as there is no any vehicle showroom in this area and it is going to be the future
business area of the Gulbarga. SRI VENKATESH AUTOMOTIVES working
philosophy is particularly based on “prepare employees for future developments with
developments in their personality”. As competition is very much intense hence the
management is working hard for consumer relationship to achieve future business
growth. As it is newly opened organization hence as every other organisation it also
facing some management problems.
Management is trying to overcome all these problem and achieving systematic
working here. Each and every department is distinguished for the employees. Every
employee is having its own designation and job profile and he/she has to work under
that profile only. For each segment of the vehicles SRI VENKATESH
AUTOMOTIVES is having its separate executives. Department are connected
through local area networks.
The main aim of management here is self development of employees. So that
they can beam powered for the benefit of the organization and be able to take future
responsibilities. It starts with the joining of employees in the organization. Initially
they have to work under various departments till his/her probation period would be
over. They have to start their works from the ground level, so that they understand the
reality of business here.
Daily reporting at the morning and the evening make them up to date with the

objectives and their future target. The senior management knows that how they are
doing their work and in which way they have to be directed. About VENKATESH
AUTOMOTIVES Motors is a wholly owned subsidiary of Venkatesh Automotives
motor company.

3. NUMBER OF MANUFACTURING UNITS, PROCESS AND
ADDRESS
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India.
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.
Vision
The story of Hero Honda began with a simple vision - the vision of a mobile
and an empowered India, powered by its two wheelers. 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.
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.
Strategy
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.
Manufacturing
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.
DISTRIBUTION
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
MotoCorp's extensive sales and service network now spans over to 6000 customer
touch points. These comprise a mix of authorized dealerships, service & spare parts
outlets, and dealer-appointed outlets across the country.
Brand
The new Hero is rising and is poised to shine on the global arena. Company's

new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus
on mobility and technology and creating global footprint. Building and promoting
new brand identity will be central to all its initiatives, utilizing every opportunity and
leveraging its strong presence across sports, entertainment and ground-level
activation.
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. 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.

4. NUMBER OF DIFFERENT DEPARTMENT AND THEIR
PRODUCTS
SERVICE DEPARTMENT
Department Hierarchy
MD
GM
SERVICE MANAGER
SUPERVISORS SUPERVISORS
WORKERS HELPERS WORKERS HELPERS
M/s. Sri Venkateshwar Automotives has engaged 20 personnel in its service
department. It has a service station providing service to nearly 3000 customers a

month. The firm runs a completely automated workshop. The service station’s sales
alone accounts for about Rs. 2 lacs per month. The firm provides for an accident relief
motorcycle that engage the city limits.
The firm at least conducts 10 service camps every year. The camps are held at
Afzalpur, Aland, Sedam, Chincholi and so on. M/s. Sri Venkaateshwar Automotives
also takes up service camps it is invited by any organization or institution that has a
considerable number of its customers.
In this department vehicle washing, repair, servicing is done. According to the
customer needs the job card gets prepared. It contains the problem list of the vehicles
which is faces by customers regularly.
This department has tied up with customer care cell that deals with contacting the
existing customers about their problems and service. The customers are at liberty to
ask any kind of questions regarding the vehicles during the working hours.
WORK PROFILE
RECEPTION:
At the reception the customers are greeted and the record of the services provided to
different vehicles is maintained. A seating provision is made, accompanied by a
television set to the customers so that the customers find a good time while their
vehicles are being serviced.
WORK MANAGER:

The manager supervises the performance of all the personnel engaged in the service
department. He is entitled to perform all the necessary activities falling under his
purview.
SUPERVISOR:
The supervisor is in charge of the services to be provided to the vehicles. He has to
determine the kind of service the vehicle needs when it is brought to the workshop.
He has to supervise the working of the workers. The supervisor is provided with 3
workers in his team.
WORKERS:
The workers provide their services to the vehicles depending upon the instructions of
the supervisor. Depending upon the speed and accuracy the worker is assigned the
work.
HELPERS:
These are the people who further assist the workers. They engage themselves in
carrying the instructions placed by the workers or sometimes also the supervisor.
WORK FLOW:
The department maintains the record of business in the format provided by the

company through its software. It also maintains a job card that will be filled in by the
supervisor depending upon the requirements the customers need to be provided to
their vehicles. Further this job card will be sent to the spares department to get the
required spare parts for the vehicle. On receiving all the necessary accessories the
servicing will be done.
A few special automated equipments are available for the radiant servicing of the
vehicles. These equipments reduce the time consumption and provide the best
service.
Special Equipment Available:
* Pneumatic Gunbs .
* Pneumatic Benches.
* Clutch Holder
* Breaking Extractor.
* Magnet Holder
* Mechanical Ratchet
* Multi Utility Roller Test Bench.
Functions:
* Pre-delivery Inspection

* Service Repair
* Final Inspection.
* Accident Repair, Denting & Washing
* Training
Explanation:
Before delivering vehicle to the customer the workshop department workers check
the vehicle whether it is in a good condition or not.
The work starts from servicing the vehicle :
According to the customer’s needs the service is done. First the job card is to be
prepared here.
After complete services are rendered the inspection is done in front of the customer. It
is called final inspection.

SPARES DEPARTMENT
MD
GM
SPARES MANAGER
ASSITANT
The firm has to place an order by the 5th date of every month at the Hubli regional
office which also serves the neighboring districts like Raichur, Dharwad, North
Canara. Based on the order requirement the company dispatches the spare parts. The
firm makes a sales of Rs. 6 lacs monthly from Spares department. The firm
undertakes inventory management once in every year. The company has categorized
around 42 parts of the vehicle into a few categories namely; starting from E1 to E13
and F1 to F29 and all the spares are categorized into A, B, C classification based on
the priority of demand. The few spare parts are

A B C
Break shoes Crankees Frame body
Front 4 oil seal Rim Center stand
Drum rubber Crank shaft Fuel tank
Clutch plates Cylinder kit Ball raise kit
The firm also maintains a spare shortage register to quote the parts which fell short of
supply so that the firm is able to demand the particular part in larger quantity.
WORK PROFILE :
SPARES MANAGER:
The manager managers all the activities of the spares department right from placing
an order to the company to regularly checking the stocks and meeting all the spares
requirements of the firm.
ASSISTANT SPARES:
The Assistant serves as a helping hand to the manager in all the activities he perform
in regard with the spares department.

WORK FLOW:
The firm records and maintains the transactions in the format provided by the
company through software. It maintains a job card that has a specified format which
should be filled in by the customers themselves or is filled in by the service
department based on the requirements of the service the customer needs.
This department is dealing with proper maintenance of spares required for vehicles.
This includes spare parts required for the smooth maintenance of the vehicle.
Accessories refer to the extra items, which makes vehicle look grand. Some of the
accessories are seat covers, wheel caps etc.
Functions:
* Procurement of Spares & Accessories.
* Issue of Spares & Accessories to workshop.
* Counter Sales.
* Inventory Control of Spares.
* Training .
Explanation:
It includes procurement of spares & accessories required by stores, & it also includes
proper checking of shortages.

As & when servicing is carried on in workshop requirement of spares & accessories
will be high , so all these work should be carried by this department only.
Spares & accessories are sold on the counter. While servicng a particular vehicle if
any spares are required they are sold through this counter only. Ex. : Nuts, Bolts etc.
Here each & every kind of spare parts are maintained properly. Highly moving spares
are having more demand & should be kept full without shortages. The manager is
responsible for all the shortage & proper maintenance.
Training is given to the employees who are working inspares department. If new
accessories come to the showroomthen proper training is necessary for them, so
spares managerundertakes this work.
ACCOUNTS/FINANCE DEPARTMENT
MD
GM
SENIOR ACCOUNTANT
CASHIER
No firm can operate without adequate funds. They are lifeblood of any company. This

department is pivotal for any organization. This department deals with maintaining
the accounts & checking the accounts. It contains proper checking of accounts related
to cash transactions while purchasing the vehicles. All accounts work is done through
computers.
Functions:
* Bank Transaction .
* Daily Reconciliation.
* Party Ledger.
* Expense Control.
Explanation:
The customers who have purchased the vehicles on loan basis are concerned to Bank.
So the transactions are done through Banks.
In this section, daily records of various accounting transactions are maintained and
verified.
Each & every customer’s ledger account is been prepared. Because, the customer
might have taken the vehicle on loanor cash. But it is necessary for checking the total
sales.
Proper steps are taken by the management to control the expenses related to

operations in the business.
STYLE:
 Top down approach: The management acts with autonomy and independence
in exercising that the company observes the highest standards of ethics,
transparency and disclosure.
 Participating approach: At SRI VENKATESH AUTOMOTIVES Motors the
management is participating in nature. Anyone in the company can put in their
view point before the management for any improvement in the prospects of
the company, manpower, working environment etc.
SKILL:
Sri Venkatesh Automotives Motor’s product is bikes, so they should be
handled carefully. So is to required skill manpower for handling, and skill in the sense
testing of bikes. For newly recruited employees will be given basic training program
for a week. And 10weeks training will be given for employees for junior technical
officer about machine. Training will be given to employees to know about the total
features of bikes in Sri Venkatesh Automotives Motors.
SHARED VALUES:

 Providing a safe working place,
 Respecting the environment
 Caring for our communities and demonstrating high ethical standards
 Fostering team work, nurturing talent, enhancing leadership capability and
acting with pace,
 Developing leading edge solutions in technology, processes and products.
 Becoming the supplier of choice, delivering premium products and services,
and creating value with our consumers.
PRODUCT/SERVICE PROFILE:
Products:
Bike Model Ex-Showroom Price
Hero HF Dawn Rs. 40,107 - 40,107
Hero HF Deluxe Rs. 42,742 - 44,664

Hero Splendor Plus Rs. 48,479 - 48,479
Hero Splendor PRO Rs. 49,466 - 51,662
Hero Splendor NXG Rs. 50,364 - 50,364
Hero Passion PRO Rs. 50,783 - 55,177
Hero Super Splendor Rs. 55,506 - 55,506
Hero Glamour Rs. 57,564 - 67,585

Hero Impulse Rs. 76,205 - 76,205
Hero Achiever Rs. 61,292 - 61,292
Hero Xtreme Rs. 73,738 - 77,033
Hero Hunk Rs. 71,066 - 74,684
Hero Karizma Rs. 86,144 - 1,08,326
Hero Maestro Rs. 52,534 - 52,534

Hero Pleasure Rs. 46,872 - 46,872
Hero Ignitor Rs. 61,600 - 63,797
Hero Passion X Pro Rs. 51,278 - 56,768
Rs. 1,08,326 -
Hero Karizma ZMR
1,08,326
Service profile:
First Free Service 500-750 km
Second Free Service 2500-2800 km

Third Free Service 5000-5500 km
Fourth Free Service 7000-7500 km
Fifth Free Service 9000-9500 km
Sixth Free Service 11000-11500 km
Terms and Conditions
1. All Hero Honda two-wheelers are warranted for a certain period specified in
terms of time and kms from the date of purchase, whichever term gets satisfied
earlier.
2. It is mandatory for the customer to avail all free and paid services as per the
recommended schedule to be eligible for the warranty benefits.
3. If a defect is observed in any Hero Honda two-wheeler, Hero Honda's only
obligation/liability is to repair or replace those parts which is/are considered to be
the cause of malfunction free of charge of both labour and material, when Hero
Honda acknowledges that such malfunction has not come out of misuse or
improper handling etc. such defective two-wheeler should be brought to the

nearest Hero Honda dealer/authorised service centre by the owner for necessary
inspection and subsequent repairs.
Limitations of Warranty
The warranty shall not apply:
 If any of the free services or subsequent paid service is not availed as per the
recommended service schedule given in the owner's manual.
 If Hero Honda recommended engine oil is not used.
 To normal wear and tear components like bulbs, electrical wiring, filters, spark
plugs, clutch plates, brake shoes, fasteners, shims, washers, oil seals, gaskets,
rubber parts (other than tyres and tubes), plastic components, chain and
sprockets and in case of wheel rim misalignment or bend.
 If there is any damage due to modification or fitting of accessories other than the
ones recommended by Hero Honda.
 If the two-wheeler has been used in any competitive events like track races or
rallies.
 If there is any damage to the painted surface due to industrial pollution or other
extraneous factors.
 For claims made for any consequential damage due to any previous malfunction.
 For normal phenomenon like noise, vibration, oil seepage, which do not affect
the performance of the two-wheeler.
 If there is any damaged caused due to usage of improper oil/grease, non genuine
parts.
 For two-wheelers which have been used for any commercial purposes as taxi etc

 For maintenance repairs required due to misuse while driving or due to
adulteration of oil, petrol or due to bad road conditions.
 For consumables like oil, grease etc. used during free services or used during
warranty repairs.
 If any part of the vehicle is tampered/repaired by unauthorized
persons/workshops etc.
 For two-wheelers not used in accordance with the owner's manual supplied with
each two-wheeler by Hero Honda.
AREA OF OPERATION:
The firm operates regionally in the Gulbarga circle. The showroom is situated
in the important market Place of Gulbarga that are
 Yadgir.
 Javargi.
 Shapur.
 Surpur.
 Sedam.
 Chitapur

5. NUMBER OF EMPLOYEES AND THEIR CADRE
Total number of employees are 22 in this cadre
Mechanics - 06
Account Department - 04
Manager - 01
Helpers - 03
Spares Department - 04
Washing - 04
6. RECRUITMENT AND SELECTION PROCESS
FUNTION OF HUMAN RESOURCES MANAGEMENT
The human resources management program of each organization is

unique. It is true that personal activities differ from firm to firm but
certain broad function encompassing all organizations can be enlisted.
The functions of human resource management can be broadly classified
into two categories.
Managerial Function
The managerial function involves planning, organization, directing,

co-ordinating and controlling. All these functions influence the operative
function.

Operative Function.
The operative functions of human resource management are related

to specific activities. Viz. Employment, Development, compensation and
relation. These functions have to be performed in injection with
managerial functions.
FEATURES OF HUMAN RESOURCE MANAGEMENT
The main features of Human Resource Management are as follows:
 Human Resource Management is concerned with employees

both as individuals and as a group in attaining goals. It is
concerned with behavior, emotional and social aspects of a
person.
 It is concerned with development of human resources, that is
knowledge capability. Skill potential, attitudes, attitudes,
attaining and achieving employee goals including job
satisfaction.
 Human Resource Management pervades the organizations every
person in an organization is involved with personal decisions
for instance, all managers in an organization need to known
how to train their employees and appraising their performances.
Thus they become involved with personal decisions.
 Human Resource Management with managing people at work.
It covers all type of personal work may take different shapes
and forms at each level in the organizational effectiveness
through effective and efficient utilization of human resources
the same.

 It is therefore a method of development potential satisfaction
out their work and give their best to the Organization.
 Humana Resource Management is a continuous function. It

requires constant alertness and awareness of human relation and
their important in everyday organization.
 Human Resource Management is responsive to different a

environmental, economical, demographic, social and
institutional force that is they are dynamic.
 Human Resource Management aims at helping employees to

align their individual goal with the organizational goal to create
a win-win situation.
HUMAN RESOURCE MANAGEMENT EMPHASIS ON:
 Individually Oriented: Human Resource Management Considers

each employee as an individual and offers services and program to
meet the individual needs.
 Action Oriented: Effective Human Resource Management focuses

in Action rather than on record keeping. Written procedures or
rules.

It emphasis the solution of employment problem to help achieve
organizational objectives facilitating employee development and
satisfaction.
Future Oriented: Human Resource Management is concerned with

helping and organization to achieve its Objective in future by providing
for competent well-motivated employees.

7. ORGANIZATION STRUCTURE
Structure:
Managing director
General Manager
Senior Spares manager Sales manager Service manager

Accountant
Cashier Assistant Sales Executives Work Manager
Work supervisor
Salesmen
Head Mechanics
Delivery boys
Mechanics

SPARES DEPARTMENT
MD
GM
SPARES MANAGER
ASSITANT
The firm has to place an order by the 5th date of every month at the Hubli regional
office which also serves the neighboring districts like Raichur, Dharwad, North
Canara. Based on the order requirement the company dispatches the spare parts. The
firm makes a sales of Rs. 6 lacs monthly from Spares department. The firm
undertakes inventory management once in every year. The company has categorized
around 42 parts of the vehicle into a few categories namely; starting from E1 to E13
and F1 to F29 and all the spares are categorized into A, B, C classification based on
the priority of demand. The few spare parts are
A B C
Break shoes Crankees Frame body
Front 4 oil seal Rim Center stand
Clutch plates Cylinder kit Ball raise kit

ACCOUNTS/FINANCE DEPARTMENT
MD
GM
SENIOR ACCOUNTANT
CASHIER
No firm can operate without adequate funds. They are lifeblood of any company. This
department is pivotal for any organization. This department deals with maintaining
the accounts & checking the accounts. It contains proper checking of accounts related
to cash transactions while purchasing the vehicles. All accounts work is done through
computers.
Functions:
* Bank Transaction .
* Daily Reconciliation.
* Party Ledger.
* Expense Control.
Explanation:
The customers who have purchased the vehicles on loan basis are concerned to Bank.
So the transactions are done through Banks.

In this section, daily records of various accounting transactions are maintained and
verified.

8. COMPANY TURNOVER / SALES / PROFIT
Profit & Loss - Hero MotoCorp Ltd.Rs (in Crores)
Mar'18 Mar'17 Mar'16 Mar'15 Mar'14
12Months 12Months 12Months 12Months 12Months
INCOME:
Sales Turnover 32871.82 30871.59 30857.48 29302.94 27155.82
Excise Duty 641.33 2371.13 2258.18 1717.64 1880.35
NET SALES 32230.49 28500.46 28599.30 27585.30 25275.47
Other Income 0 0 0 0 0
TOTAL INCOME 32756.31 29022.89 28990.42 28078.04 25721.85
EXPENDITURE:
Manufacturing Expenses 138.77 112.62 122.13 158.47 137.46
Material Consumed 23069.20 20086.43 19417.98 19860.87 18328.82
Personal Expenses 1540.13 1396.01 1319.56 1172.87 930.04
Selling Expenses 837.65 767.45 725.40 .00 .00
Administrative Expenses 1364.55 1503.14 2567.22 2850.91 2339.09
Expenses Capitalised .00 .00 .00 .00 .00
Provisions Made .00 .00 .00 .00 .00
TOTAL EXPENDITURE 26950.30 23865.65 24152.29 24043.12 21735.41
Operating Profit 5280.19 4634.81 4447.01 3542.18 3540.06
EBITDA 5806.01 5157.24 4838.13 4034.92 3986.44

Depreciation 555.60 492.73 441.40 539.97 1107.37
Other Write-offs .00 .00 .00 .00 .00
EBIT 5250.41 4664.51 4396.73 3494.95 2879.07
Interest 6.25 6.05 2.15 11.09 11.82
EBT 5244.16 4658.46 4394.58 3483.86 2867.25
Taxes 1546.80 1281.34 1262.21 943.18 758.17
Profit and Loss for the

Year 3697.36 3377.12 3132.37 2540.68 2109.08
Non Recurring Items -4.71 -14.08 .00 -155.04 .00
Other Non Cash

Adjustments .00 .00 .00 .00 .00
Other Adjustments 4.71 14.08 .00 .00 .00
REPORTED PAT 3697.36 3377.12 3132.37 2385.64 2109.08
KEY ITEMS
Preference Dividend .00 .00 .00 .00 .00
Equity Dividend 1351.93 1383.65 1145.06 974.36 1078.34
Equity Dividend (%) 3384.90 3464.32 2866.95 2439.55 2699.89
Shares in Issue (Lakhs) 1997.11 1996.97 1996.90 1996.88 1996.88
EPS - Annualised (Rs) 185.13 169.11 156.86 119.47 105.62

9. PRODUCT LINE LENGTH / WIDTH / DEPTH
PRODUCT MIX
Hero Motorcycle and Scooter India Pvt. Ltd
Hero Cars India Ltd
Hero Power Product Limited

10. MARKET SHARE AND THE COMPETITOR
MARKET SHARE
Hero MotoCorp sales up 43% in December 2017
The company sold a record 7,207,363 units of two-wheelers in 2017.
New Delhi: The two-wheeler manufacturer Hero MotoCorp, which is riding
on robust demand for its popular range of two-wheelers, capped-off the calendar year
(January-December 2017) with yet another global benchmark.
Hero MotoCorp sold 472,731 units in December 2017, against 330,202 units
in the corresponding month (Dec 2016), registering a strong growth of 43%.
Hero MotoCorp surpassed the landmark 7 million units in cumulative sales in
a calendar year. The company sold a record 7,207,363 units of two-wheelers in 2017.
The cumulative sales of Hero MotoCorp, in the financial year 2017 (April-
December 2017), have now risen to 5,585,558 units, translating into a double-digit
growth of 11% over the corresponding period (April-December 2016), when it had
sold 5,042,435 two-wheelers.
Commenting on the occasion, Pawan Munjal, CMD & CEO, Hero MotoCorp,
said, “The year 2017 has been a landmark year in our strategic endeavor to further
consolidate our market leadership. Despite the challenging industry environment, we
successfully created a series of benchmarks, not only for the Indian market but also
for the global automotive industry. Starting with our first global product launch in

Argentina in January, we have continued to delight the customers with our
technologically-advanced and youthful range of new two-wheelers.”
“This has clearly been reflected in the strong demand pattern for our
motorcycles and scooters. We are now entering the last quarter of this fiscal with a
strong focus on the premium segment and scooters and we are confident of sustaining
our growth momentum.”
In December, the company 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. These motorcycles will be introduced
in a phased-manner starting January 2018.
COMPETITORS INFORMATION:
 V.K.G Bajaj Motors.
 Bilgundi Motors.
 TVS Motors.
 YAMAHA Motors.
 Mahendra Two-Wheelers

11. MARKETING / SALES PROCEDURE AND STRATEGY
Marketing Strategy & Sales Promotion carried out by
M/s. Sri Venkateshwar Automotives
Advertising:
* Catalogue Advertising
* Printing of calendars.
* Pamphlets Advertising
* Window Display
* Banners & Posters.
Sales Promotion:
* Good communication system & customer relation.
* Sponsoring to cultural programs in Gulbarga
* Gifts to loyal customers.
* A separate sales force is timely appointed.
* Participation in marketing fairs.

* Introduction of new and attractive customer beneficial schemes.
SERVICE DEPARTMENT
MD
GM
SERVICE MANAGER
SUPERVISORS SUPERVISORS
WORKERS HELPERS WORKERS HELPERS
M/s. Sri Venkateshwar Automotives has engaged 20 personnel in its service
department. It has a service station providing service to nearly 3000 customers a

month. The firm runs a completely automated workshop. The service station’s sales
alone accounts for about Rs. 2 lacs per month. The firm provides for an accident relief
motorcycle that engage the city limits.
The firm at least conducts 10 service camps every year. The camps are held at
Afzalpur, Aland, Sedam, Chincholi and so on. M/s. Sri Venkaateshwar Automotives
also takes up service camps it is invited by any organization or institution that has a
considerable number of its customers.
In this department vehicle washing, repair, servicing is done. According to the
customer needs the job card gets prepared. It contains the problem list of the vehicles
which is faces by customers regularly.
This department has tied up with customer care cell that deals with contacting the
existing customers about their problems and service. The customers are at liberty to
ask any kind of questions regarding the vehicles during the working hours.
WORK PROFILE
RECEPTION:
At the reception the customers are greeted and the record of the services provided to
different vehicles is maintained. A seating provision is made, accompanied by a
television set to the customers so that the customers find a good time while their
vehicles are being serviced.

WORK MANAGER:
The manager supervises the performance of all the personnel engaged in the service
department. He is entitled to perform all the necessary activities falling under his
purview.
SUPERVISOR:
The supervisor is in charge of the services to be provided to the vehicles. He has to
determine the kind of service the vehicle needs when it is brought to the workshop.
He has to supervise the working of the workers. The supervisor is provided with 3
workers in his team.
WORKERS:
The workers provide their services to the vehicles depending upon the instructions of
the supervisor. Depending upon the speed and accuracy the worker is assigned the
work.
HELPERS:
These are the people who further assist the workers. They engage themselves in
carrying the instructions placed by the workers or sometimes also the supervisor.

WORK FLOW:
The department maintains the record of business in the format provided by the
company through its software. It also maintains a job card that will be filled in by the
supervisor depending upon the requirements the customers need to be provided to
their vehicles. Further this job card will be sent to the spares department to get the
required spare parts for the vehicle. On receiving all the necessary accessories the
servicing will be done.
A few special automated equipments are available for the radiant servicing of the
vehicles. These equipments reduce the time consumption and provide the best
service.
Special Equipment Available:
* Pneumatic Gunbs .
* Pneumatic Benches.
* Clutch Holder
* Breaking Extractor.
* Magnet Holder
* Mechanical Ratchet
* Multi Utility Roller Test Bench.

Functions:
* Pre-delivery Inspection
* Service Repair
* Final Inspection.
* Accident Repair, Denting & Washing
* Training
Explanation:
Before delivering vehicle to the customer the workshop department workers check
the vehicle whether it is in a good condition or not.
The work starts from servicing the vehicle :
According to the customer’s needs the service is done. First the job card is to be
prepared here.
After complete services are rendered the inspection is done in front of the customer. It
is called final inspection.

12. VITAL INFORMATION RELATED TO SPECIFIC INDUSTRY
Many continue to be surprised at the ability of India 's 2-wheeler segment to
buck the present recessionary trend in the economy. What, they ask themselves,
accounts for such resilience: competitive pricing? Quality ? Technology ? Or, is it
ready availability? What makes the 2-wheeler segment so impervious to demand
fluctuations? A 2-wheeler is the most necessary consumer durable goods owned by
lower Middle, and middle class, households. There is multiple ownership of this
product in such households. Firstly, there is an income effect that influences 2-
wheeler demand. Per Capita GDP growth of 3.7 per cent per annum has been pushing
households up into higher income brackets. The push effect is more in lower and
middle- income groups - hence the increased demand. It also links up with the higher
contributions of the service sector to GDP; the income impact of that has been greater
on lower income households. A second major reason is the inadequate public
transport. The percentage of people who use public transport has fallen from 85 per
cent to 75. Entry- level transport options like two- and three-wheelers have mostly
filled this gap. They have also become a sort of necessity and thus do not show heavy
fluctuations in demand. Increased demand for two-wheelers from households has also
led financial institutions to increase credit in a sustained way in the last three or four
years. That too has imparted stability to this item, compared to others. A good
proportion of sales owes to replacement demand.

13. FACTORY OUTLINE / MAP
Service center Manager

Storage
15. ATTENDANCE CERTIFICATE
16. VARIOUS GOVT. NORMS TO BE FULFILLED BY THE

ORGANISATION
R.T.O- EX Showroom 18%
TAX:
INSURANCE- Iffco took
FINANCE:
1. Giridev finance - 18%
2. Raghoji finance – 18%
3. HDFC – 18%

17. DIFFERENT TAX STRUCTURE
CGST – 14%
SGST – 14%
TOTAL – 28%

Final Projcet Hero 123

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CONTENTS

1 BRIEF HISTORY OF THE COMPANY

2 BOARD OF DIRECTORS AND OFFICE BEARERS

3 NUMBER OF MANUFACTURIMNG UNITS AND ADDRESS

4 NUMBER OF DIFFERENT DIVISION AND THEIR PRODUCTS

5 NUMBER OF EMPLOYEES AND THEIR CADRE

6 RECRUITMENT AND SELECTIN PROCESS

10 MARKET SHARE AND THE COMPETITORS

11 MARKETING/SALES PRODUCEDURE AND STRATEGY

12 VITAL INFORAMATION RELATED TO SPECIFIC INDUATRY

16 VARIOUS GOVT NORM TO BE FULFILLED BY THE ORGANIZATION

17 DIFFERENT TAX STRUCTURE

Faculty of business studies mba co ed appa (iet) kalaburgi Page 1 of 65

policy as espoused by the Industrial Policy Resolution of 1956. This resolution

Faculty of business studies mba co ed appa (iet) kalaburgi Page 2 of 65

players) once foreign investments were allowed in 1981.

Key players in two-wheeler industry:

scooters are considered as family vehicles. There are many two-wheeler

manufacturers in India. Major players in the two-wheeler manufacturer are

 Hero Motocorp Ltd.

 Bajaj Auto Ltd.

 TVS Motor Company Ltd.

 Yamaha Motors India Ltd.

 Royal Enfield Ltd.

 Motorcycle & Scooter India.

Faculty of business studies mba co ed appa (iet) kalaburgi Page 3 of 65

Types of two-wheeler in India:

Evolution of two-wheeler industry in India:

Two-wheeler is one of the most important components of automobiles sector

with several problems at this time.

Faculty of business studies mba co ed appa (iet) kalaburgi Page 4 of 65

and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition,

is no confirmation where the factories would be built.

Hero Motocorp was started in 1984 as Hero Motors Ltd

 1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)

 1975—Hero Cycles becomes largest bicycle manufacturer in India.

 1983—Joint Collaboration Agreement with Motor Co. Ltd. Japan signed

Faculty of business studies mba co ed appa (iet) kalaburgi Page 5 of 65

 1984—Hero Motors Ltd. incorporated

 1985—Hero motorcycle CD 100 launched.

 1989—Hero motorcycle Sleek launched.

 1991—Hero motorcycle CD 100 SS launched.

 1994 - Hero motorcycle Splendor launched.

 1997—Hero motorcycle Street launched.

 1999 - Hero motorcycle CBZ launched.

 2002—Hero motorcycle Dawn and Hero motorcycle Ambition launched.

 2003—Hero motorcycle CD Dawn, Hero motorcycle Splendor plus, Hero

motorcycle Passion Plus and Hero motorcycle Karizma launched.

 2004—Hero motorcycle Ambition 135 and Hero motorcycle CBZ* launched.

 2005—Hero motorcycle Super Splendor, Hero motorcycle CD Deluxe, Hero

motorcycle Glamour, Hero motorcycle Achiever and Hero Scooter Pleasure.

 2007—New Models of Hero motorcycle Splendor NXG, New Models of Hero

motorcycle Hunk launched.

 2008—New Models of Hero motorcycles Pleasure, CBZ Xtreme, Glamour,

Glamour Fi and Hero motorcycle Passion Pro launched.

 2009—New Models of Hero motorcycle Karizma:Karizma - ZMR and limited

edition of Hero motorcycle Hunk launched

Hunk and New Hero Motorcycle Super Splendor launched.

Faculty of business studies mba co ed appa (iet) kalaburgi Page 6 of 65

Karizma launched. New licensing arrangement signed between Hero and. In

Bike Named Hero "Impulse".

the young generation bike are launched.

motorcycles. It is currently the largest producer of two-wheeler in the world. It sold

3million bikes in the year 2005-2006. Recently it has entered in scooter