Submitted by: Submitted by chitradiva
Views: 250
Words: 2222
Pages: 9
Category: Literature
Date Submitted: 03/08/2013 08:31 AM
cisionsCase 2 - Financial Management at Hero Honda Motors Ltd
Background
Hero Honda Motors Limited came into existence on 19 January 1984. The company was formed by creating a joint venture between Hero Group and the Honda Motor Company of Japan. Owned by Hero (Munjal) Group, the company's current Chairman is Mr Brij Mohan Lai Munjal and Mr Pawan Kant Munjal is its Managing Director. The promoters of the company hold approximately 29% of the equity shares and the Indian public holds 9% of the total shares, while the institutional investors hold about 35%.
The company produces motorcycles and scooters. Some of the brand names of its products are Achiever, Karizma, CBZ, Splendor, Super Splendor, Splendor Plus, Glamour, Passion, Passion Plus, CD Deluxe, CD 100 SS, Sleek, and CD Dawn. The company also manufactures the spare parts of these two wheelers. Besides, the company provides mobile after-sales service to its existing customers. The company has two plants located in Haryana, one at Dharuhera and the other at Gurgaon. In a little over two decades, it has emerged as the world's largest manufacturer of bicycles and a global leader in motorcycles. The company has sold over 15 million motorcycles and has consistently grown at double digits since its inception and today, every second motorcycle sold in the country is a Hero Honda. Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain, and world-class products with cutting edge technology from Honda Motor Company, Japan.
Progressively through the 1980s, the 1990s, and now in the 2000s, Hero Honda has relied on 3 R's—reach, research, and reliability as its basic building blocks. Using feedback from the market, a fully-equipped R&D centre has consistently created best practices in designing, testing, and harmonization, besides placing strong emphasis on road safety and ride quality. This emphasis has helped Hero Honda build products that...