HERO MOTOCORP LIMITED

Hero MortoCorp Limited formerly known as Hero Honda is an Indian motorcycle and scooter manufacturer, headquartered in New Delhi. It was founded in the year 1984 by Brijmohan Lall Munjal. Earlier it was a joint venture between Hero Cycles of India and Honda of Japan, which was named Hero Honda. In 2010, the company decided to terminate the joint venture and by 2011 Munjal family eliminated the partnership and named the company Hero MotoCorp.

In July 2013, HMC acquired 49.2%shareholding in Erik Buell Racing, a motorcycle sport company which produced street and racing motorcycles based in United States. And in 2018, HMC invested ₹205 crore (US$30.5 million) as Series B round of funding in October 2016 and gained a 32.31% stake in Ather Energy, a start-up company manufacturing electric scooters.

Now the company is the largest two-wheeler manufacturer in the world, and in India, where it has a market share of about 46% in the two-wheeler category. As of 31 December 2020, the market capitalisation of the company was Rs 68,474 crore (US$9.6 billion).

By financial statements, it is clearly shown that the Q4 PAT is around 44.22% higher than the same quarter of the previous year. Another parameter that assumes importance is the revenue from operations, which has grown by around 37.19% from the same quarter of the previous year and stood at Rs 8689.74 crores. Despite the economic slowdown globally due to pandemic, the company showed this increase in its revenue.

There are other worth mentioning points about the company as well and The Code of Conduct enables Hero MotoCorp Limited to maintain the standards of business conduct, thereby bringing efficiency, responsiveness and consistency in behaviour and decision making. It also reduces risk by decreasing the possibility of harmful conduct. The company is so dedicated towards the code of conduct for the directors as well as the employees that they even had even sacked 30 employees for not following the same. Also, according to The Brand Trust Report published by Trust Research Advisory, the conglomerate surged 223 places to rank 33 as one of India’s most trusted brands.

The company consider itself as a responsible corporate brand which is clearly shown by its various initiatives like world class research and development capabilities to enhance green and sustainable manufacturing for greener, safer, and more equitable earth.

Budget 2021 came up with few policies that directly affect the automobile industry and so Hero MotoCorp. Customs Duties increase of 15% in customs duties on select auto parts. A disadvantage to vehicles that are assembled in India. Also, agriculture infrastructure and development cess has been added to the cost of petrol and diesel.