Hero Honda Motors Ltd.

is the world's largest manufacturer of two wheelers, based in India.

The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in
1984.

In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing
company in India and the ‘World No.1’ two-wheeler company in terms of unit volume sales in a calendar year
by a single company. Hero Honda has retained that coveted position till date.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in
India buys Hero Honda's top-selling motorcycle – Splendor.

Vision
The Hero Honda story began with a simple vision – the vision of a mobile and an empowered India, powered
by Hero Honda. This vision was driven by Hero Honda’s commitment to customer, quality and excellence,
and while doing so, maintaining the highest standards of ethics and societal responsibilities. Hero Honda
believes that the fastest way to turn that dream into a reality is by remaining focused on that vision.

Strategy
Hero Hondas key strategy has been driven by innovation in every sphere of activity – building a robust
product portfolio across categories, exploring new markets, aggressively expanding the network and
continuing to invest in brand building activities.

Manufacturing
Hero Honda bikes are manufactured across three 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.

Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke
motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It became the first
company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI
in June 2006.

Products
Hero Honda's product range includes variety of motorcycles that have set the industry standards across all
the market segments. The company also started manufacturing scooter in 2006. Hero Honda offers large no.
of products and caters to wide variety of requirements across all the segments.

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 Honda's extensive sales and service network now spans close
to 4500 customer touch points. These comprise a mix of authorized dealerships, Service & Spare Parts
outlets, and dealer-appointed outlets across the country.
Brand
The company has been continuously investing in brand building utilizing not only the new product launch
and new campaign launch opportunities but also through innovative marketing initiatives revolving around
cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was
the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010.
Hero Honda also partners the Commonwealth Games Delhi 2010.

2009-10 Performance
Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4 per cent
EPS of Rs. 111.77, growth of 74.1 per cent

Termination of Hero and Honda Joint Venture

In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero
Group of India and Honda of Japan in a phased manner. The Hero Group of India would buy out the 26% stake of the Honda in
JV Hero Honda. Under the joint venture Hero Group could not sell into international markets and the termination would mean
that Hero Group can exploit global opportunities now. Since last 25 years the Hero Group relied on their Japanese partner Honda
for R & D for new bike models. So there are concerns that the Hero Group might not be able to sustain the performance of the
Joint Venture alone

Founded January 19, 1984 in Gurgaon, Haryana, India

Headquart
New Delhi[1], India
ers

Brijmohan Lal Munjal (chair and founder)

Key people Toshiaki Nakagawa (joint managing director)

Pawan Munjal (Managing Director & CEO)[2]
Hero Honda Motors Ltd Current Share Price
Hero Honda Motors Ltd :
1532.80 -4.00 [-0.26%]

ISIN: INE158A01026 | BSE: HEROHONDA | Industry: Automobiles - Motorcycles / Mopeds |

Price
Information

• Open 1528.90

• High 1548.00

• Low 1520.00

• Previous Close 1536.80

• Shares Traded 475633

• 52 Wk High Price 2094.00

• 52 Wk High Date -

• 52 Wk Low Price 1375.75

• 52 Wk Low Date -

• Face Value 2.00

Fundamentals

• Market Capital (Rs.cr) 30643.00

• EPS (Rs.)(TTM) 97.27

• P/E Ratio(TTM) 15.77

• Book Value (Rs.) 173.50

• Price to Book Value 8.84

• Equity (Rs.cr.) 39.94

• Traded Value (Rs.lac)

Key Financials Latest Qrtr. Trailing Yr. Full Yr.

• Year End Dec, 2010 Dec, 2010 Mar, 2010
• Sales (Rs.cr) 5118.19 17986.70 15758.20
• Net Profit (Rs.cr) 496.42 1942.49 2081.80
• Net Profit Var (%) -7.00 - 76.00
• EPS (Rs) - 97.27 85.70
• P/E Ratio - 15.77 17.90
• Operating Profit Margin - 13.31 -
• CPS (Rs.) - - 95.30
• P/C Ratio - - 16.10
• Div% - - 5500.00
 DISTRIBUTION OF
SHAREHOLDING

ddDISTRIBUTION OF SHAREHOLDING as on March 31, 2009

No. of shares held Folios Shares of Rs. 2 paid up

(Rs. 2/- paid up)
Numbers % Numbers %

Up to 500 34092 77.93 3483765 1.74

501 - 1000 7146 16.33 5413633 2.71

1001-5000 1778 4.06 3532117 1.77

5001-10000 188 0.43 1352834 0.68

10001-50000 275 0.63 6862665 3.44

50001 and above 268 0.61 179042486 89.66

TOTAL 43747 100.00 199687500 100.00

2008-
No. of shares held Folios Shares of Rs. 2 paid up
(Rs. 2/- paid up)
Numbers % Numbers %

Up to 500 39189 79.64 3833856 1.92

501 - 1000 7634 15.51 5782140 2.90

1001-5000 1872 3.80 3661189 1.83

5001-10000 153 0.31 1067062 0.53

10001-50000 180 0.38 4465555 2.24

50001 and above 178 0.36 180877698 90.58

TOTAL 49206 100.00 199687500 100.00

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent Director

10 Gen. (Retd.) V. P. Malik Non-executive & Independent Director

11 Mr. Analjit Singh Non-executive & Independent Director

12 Dr. Pritam Singh Non-executive & Independent Director

13 Ms. Shobhana Bhartia Non-executive & Independent Director

14. Mr. M. Damodaran Non-executive & Independent Director

15. Mr. Ravi Nath Non-executive & Independent Director

16. Dr. Anand C. Burman Non-executive & Independent Director

FINANCIAL RESULTS

(Rupees in crores)

For the year ended

March 31,2010 March 31,2009

Gross Sales 16,780.62 13,543.09

Net Sales and other Income 16,098.79 12,565.21

Profit before Interest and

Depreciation 3,002.58 1,930.44

Less: Interest (net) (20.62) (31.68)

Depreciation 191.47 180.66

Profit before tax (PBT) 2,831.73 1,781.46

Less: Provision for taxation

- Current 591.58 475.65

- Deferred 8.32 19.06

Fringe Benefit - 4.99

Profit after tax (PAT) 2,231.83 1,281.76

Add: Balance of profit

brought forward 2,707.28 2,021.77

Balance available for appropriation 4,939.11 3,303.53

Appropriations

Dividend

- Interim (Silver Jubilee

Special Dividend) 1,597.50 --

- Proposed Final 599.06 399.38

Tax on Dividend 371.00 67.87

Transfer to General Reserve 225.00 129.00

Balance carried to Balance Sheet 2,146.55 2,707.28

Dividend (%) 5500 1000 Basic and

Diluted Earnings Per Share
(EPS)(Rs.) 111.77 64.19