SFAS of Indian Two-Wheeler

Industry Hero MotoCorp

Submitted By:
Dayanidhi kar-358
Kumar Anand-376
Manish Ranjan Singh-383
Mitesh Lalwani-384
Navya Lavanya Ekkirala-392

Facts and Figures on the Indian

Two-Wheeler Market

India is the largest two-wheeler market in the world.

Domestic market expected to grow at a CAGR of 9-10 per cent
till FY17.

Rural Market is expected to be a major driver for the demand of

Two-Wheeler Industry.

Investments of around Rs 3,500-4,000 Crores are expected in

next 2 years.

Preferred Export destinations are Africa and Asian countries**.

Sales growth has been at 2.9% in 2012-13 over previous year as
against 13.9% growth over the past 5 years.

India as a market place for twowheeler Industry

Past 3 years (2010-2013) has seen a consumption squeeze in

the two-wheeler market.

Exports have seen a downward trend of -0.7% when compared

to CAGR increase of 27% for the past 5 years.

The direct correlation between infrastructure development,

incomes , consumer durables ownership and two-wheeler
penetration levels suggests that two-wheeler penetration levels
will improve sharply in some of the lower-penetration states.

The right regional mix of distribution network will hold the key to
the future growth of the Indian two-wheeler Industry.

Road development, Spending

patterns highly linked to twowheeler sales

Infra-structure development
versus two wheeler ownership

Evidence

of

infrastructure

development

driving

ownership of durables in less-penetrated states is also

already visible.

Better road connectivity in several states (measured by

growth in length of roads under the Pradhan Mantri Gram
Sadak Yojana PMGSY) has sharply driven up twowheeler ownership during 2004-05 to 2009-10.

In Rajasthan, Bihar, Orissa and Uttar Pradesh, although

overall ownership of two-wheelers remains low as
compared to more developed states, ownership has more
than doubled.

YoY Growth(%)

Cost Analysis

Softening in raw material prices provided a respite to the

manufacturers in FY13 .The major raw materials worth to
be mentioned under this discussion are Steel and Rubber.

Selling and distribution witness a substantial rise in FY13

Efficiency measures have led industry to control its

employee cost during past 2-3 years

Power, transportation cost increased.

Regulations in Industry

Change in technology for meeting various emission

norms

Custom duty trend for two wheelers and key raw

materials

Excise duty trend for two wheelers and key raw materials

Threats to 2W Industry

Good Public transport

Poor Finance

Unfavorable regulations

Infrastructure projects pending

Unfavorable RBI measures to tame inflation.

Labor strike

Facts and Figures-Hero

Motorcorp

Hero Honda sells more two wheelers than the second, third and
fourth placed two-wheeler companies put together.

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.

Offers one of the widest range of two-wheelers with over 19

different products across the 100cc, 125cc, 150cc, 225cc and
scooter categories.

Hero Warranty : Indias 1st company to offer a 5-year warranty

on all two-wheelers. This warranty has earned immense trust
and
customers.

respect for the brand among Heros clients and

Hero Moto Corp Standing

Preparation for sustainability

Newer Technology:
Investing 2-3 per cent of its annual revenue on R&D.
Using TQHRM : to attain brilliance in their work by improving
and empowering employees.
Coming with engine stop-start system a technology called as
micro hybrid in top-end cars and SUVs.
electronic immobiliser , is a security device that prevents the
engine from running without the correct key.
also coming up with scooters equipped with integrated braking
system (IBS),
applied for a patent for its i3S technology -- ideal stop-start
system -- which will debut on its flagship model Splendor as the
'iSplendor.
firm's 150-cc bike 'Extreme' will be equipped with the electronic
immobiliser, while its scooter model 'Pleasure' will be armed
with the IBS.

Preparation for sustainability

contd
Global tie ups:
Hero MotorCorp picked up a 49.2 per cent stake in US-based
Erik Buell Racing for USD 25 million in July, 2013 after entering
into a technology sourcing pact last year.
Entered into an alliance with Austria-based engine developer
AVL to enhance capability in various segments
Associated with the AMA Pro Road Racing superbike series,
North America's premier motorcycle road-racing championship,
with two racing teams called Team Hero and AMSOIL Hero EBR.
Diluting its commitment to cricket, Hero MotoCorp are engaged
in promoting several sports, including cricket, golf, hockey and
soccer and super bike racings globally.

Media

A Mission to maintain High

Ecological Standards

Introducing Green initiatives in Production Development, Manufacturing,

Supply Chain (backward and forward) or even in the operations within
the company

To ensure a low carbon footprint, Hero has, in the last few years,
proactively eliminated harmful substances like Asbestos, Hexavalent
Chromium, Phenolic Substances

Gurgaon plant has been judged the Best Maintained Garden for the
year 2013

In January 2011, Hero initiated the Heat Recovery from Incineration

project which has helped to save 1258 tons of Co2 emissions and 16,
22, 400 units per annum.

In October 2011, Hero introduced its Solar Power Project 100 KW which
has helped to save 1, 56, 000 units per annum, 121 tons of Co2
emissions and 37.96 tons on furnace oil.Done through the solar energy
that is captured by the photovoltaic cells during the day.

initiated oil conservation through the installation of Chip Wringer which

is capable of recovering neat cutting oil from chips that are generated
from m/c operation. This has led to oil recovery of about 56 liters/ day
per plant.

Effectively involved with Water Management, Rain Water Harvesting and

ETP Recycling Plant.

Low cost material & R&D Outlook

PLM (Product Life Cycle Management) is already in place and is being

used extensively.

The TDM (Test Data Management) and Schedule Manager projects went
live during the year.

R&D's focus will rest on four key planks: on refurnishing existing

platforms, on developing products with alternate fuel options, on
compliance with stringent safety and environment norms and finally, on
achieving cost competitiveness through VA/VE and innovative cost
reduction ideas.

world-class Technology & Integrated R&D Centreat Kukas, Jaipur will

have innovation labs for component design, engine and vehicle testing,
latest software being used
for collaborative design and vehicle
simulation.

Different positioning strategy

"Just 4 her" like exclusive stores for women

ambitious plan to enter 30 countries, The Company has incorporated an

off-shore investment subsidiary in the Netherlands

expedite its global expansion plans, which includes

investments and merger and acquisition opportunities.

gearing with The Hero

Relationship Program).

MotoCorp

GoodLife

Program

overseas
(Customer

SFAS Matrix

The

SFAS

(Strategic

Factors

Analysis

Summary)

Matrix

summarizes an organizations strategic factors by combining

the highest weighted external and internal factors from the

EFAS & IFAS Tables respectively.

The SFAS Matrix requires the strategic decision maker to

condense these strengths, weaknesses, opportunities, and
threats into fewer than ten strategic factors. This is done by
reviewing and revising the weight given each factor.

The revised weights reflect the priority of each factor as a

determinant of the companys future success.

Microsoft Office
Excel 2007 Workbook

SFAS ,EFAS and IFAS for HERO MOTOCORP :

TOWS Matrix

The TOWS Matrix is a relatively simple tool for generating strategic

options.

By using it, organizations can look intelligently at how you can

best take advantage of the opportunities open to them.

At the same time that you minimize the impact of weaknesses and
protect yourself against threats.

At a practical level, the only difference between TOWS and SWOT is

that TOWS emphasizes on the external environment whereas SWOT
emphasizes the internal environment.

TOWS for HERO MOTOCORP :

Microsoft Office
Excel 2007 Workbook

Expansion plans are backed by

their strong long-term goals

Hero MotoCorp plans to establish 20 manufacturing and

assembly facilities to expand its presence across 50 countries
by 2020

Setting up a fourth plant at Neemrana in Rajasthan with an

annual installed capacity of 750,000 units .

Setting up a fifth plant at Halol in Gujarat, with an annual

installed capacity of 1.2 Million.

Setting up a Global Parts Centre (GPC) at Neemrana, Rajasthan.

Thank You