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 Honda’s 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

We had a dream. The dream of making motorcycles that would touch and transform the
lives of our customers by giving them a mode of transport that was fuel-efficient,
comfortable and environment friendly. One that would enhance their efficiency at work,
enable them to share moments of joy with their families and add up to a better quality of
life.

In a scenario where the customer had a few choices, our vision was to offer the highest
quality at a reasonable price, to meet our customer’s expectations, and to exceed them.

Behind the success of Hero Honda, is the saga of team-work. We would like to
acknowledge the role played by our JV partners, Honda Motor Company, Japan, and all
our business associates, shareholders and employees.

In the new millennium, we stand committed to innovation, to change, to achieving

breakthroughs… to moving forward in the new century, while retaining the values that
have been like a beacon in this journey thus far.

Brijmohan Lall
Chairman
Hero Honda Motors takes considerable pride in its stakeholder relationships, especially
ones developed at the grassroots. The Company believes it has managed to bring an
economically and socially backward region in Dharuhera, Haryana, into the national
economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the
Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and
education facilities for both adults and children-now nurtures a vibrant, educated and
healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:

• Installation of deep bore hand pumps to provide clean drinking water.

• Constructing metalled roads and connecting these villages to the National
Highway (NH -8).
• Renovating primary school buildings and providing hygienic water and toilet
facilities.
• Ensuring a proper drainage system at each of these villages to prevent water-
logging.
• Promoting non-conventional sources of energy by providing a 50 per cent subsidy
on biogas plants.