- Source: Hero Motors Company
Hero Motors Company (HMC) is an Indian multinational business conglomerate controlled by Pankaj M Munjal. The HMC family is made up of organisations such as Hero Cycles, Avocet Sports (UK), BSH (Sri Lanka), Firefox, Spur, HGD, Hero Motors, Munjal Hospitality, Munjal Kiriu, ZF Hero and OMA.
Overview
Hero Motors Company (HMC) is a global automotive corporation headquartered in India. HMC has matured into a cornerstone of the global automotive industry, renowned for its advanced engineering and a comprehensive ecosystem of mobility solutions. HMC deals with prototype manufacturing, small to medium volume productions and large-scale production. The company is chaired by Mr. Pankaj M Munjal and encompasses a diverse portfolio of subsidiaries and joint ventures that specialise in manufacturing bicycles, e-cycles, automotive components, lifestyle products and commercial real estate services. The group's strategic expansions and acquisitions have solidified its position as a leader in the automotive and mobility industry.
History
The origins of HMC trace back to the establishment of Hero Cycles in 1956 by Late Shri Om Prakash Munjal. Over the decades, the company diversified its operations and formed several subsidiaries to cater to different segments of the market. In 2015, Hero Cycles was restructured to form Hero Motors Company under the leadership of Pankaj M Munjal, focusing on expanding its global footprint and entering new market segments.
In recent years, HMC has strategically expanded its portfolio towards electric mobility and technological advancements. This is evident through the establishment of Firefox and Lectro brands and manufacturing facilities of HIVE e-valley.
Vision and Mission:
The company’s mission is to become a world-renowned manufacturer that sets the standard for efficiency, innovation, and quality. To lead the market by utilising cutting-edge technologies and industry best practices to deliver exceptional goods that exceed client expectations. In order to ensure that the company’s operations have a positive impact on the environment and society, their vision includes a commitment to sustainability and responsible manufacturing. The company’s mission is to build long-term partnerships based on honesty, transparency, and respect for our suppliers, consumers, and communities. HMC's goal is to lead the industry in manufacturing excellence by providing high-quality products that exceed customer expectations while emphasising social responsibility and environmental sustainability. HMC strives to innovate, utilising best practices and cutting-edge technology to expedite and optimise their manufacturing processes.
Sustainability and ESG:
Commitment to sustainability is at the core of everything HMC does. As a leading automotive company, they recognize their responsibility to drive the future of mobility while ensuring a positive impact on the planet and society. Their sustainability vision is guided by three fundamental pillars: Environmental Stewardship, Social Responsibility, and Governance and Ethics.
Environmental Stewardship: They are dedicated to reducing our carbon footprint and conserving natural resources. To reach this milestone, they are transitioning to renewable energy sources, production of electric and hybrid vehicles, and implementing closed-loop recycling systems. Circular economy is central to their sustainability commitment by minimizing waste and promoting recycling and reuse. They aim to implement a closed-loop recycling system for batteries and other materials, design for disassembly and recycling in new vehicle models and reduce packaging waste through sustainable packaging solutions. They are committed to water conservation and continually improving our manufacturing processes to minimize waste and emissions.
Social Responsibility: The people are their greatest asset. They strive to foster a safe, inclusive, and supportive work environment where diversity, equity, and inclusion are paramount. By actively engaging with the communities in which the company operates, supporting local education, workforce development, and sustainability projects. By enhancing customer awareness of sustainable practices and offering eco-friendly products, they aim to contribute to a more sustainable future for all.
Governance and Ethics: Integrity and transparency are the cornerstones of HMC’s business practices. They maintain the highest standards of ethical conduct and compliance, ensuring accountability at every level. Their commitment to sustainability extends throughout their supply chain to uphold fair labour practices and human rights. By engaging with stakeholders regularly, seeking their feedback and sharing our progress through detailed sustainability reporting.
Innovation and Technology: Innovation is key to achieving their sustainability goals. They are at the forefront of research and development in sustainable vehicle technology and connected mobility solutions. By leveraging digital transformation, they optimize operations to reduce energy use and emissions, while enhancing customer engagement and sustainability education.
Lean supply chain implementation: A lean supply chain is a systematic approach to managing the flow of goods, data, and resources from suppliers to consumers in order to decrease waste and boost efficiency. It extends lean manufacturing concepts, which originated in the Production System, to all stages of the supply chain. The principles that guide a lean supply chain are as follows: Just-in-Time (JIT) Inventory; Pull-Based Systems; Continuous improvement (Kaizen) and supplier cooperation.
Group Companies and Joint Ventures:
1 - Hero Cycles (Hero Cycles Ltd.): Hero Cycles is the world's largest manufacturer of bicycles, producing over 6 million units annually for various segments including kids, city, road, and mountain bikes. Its facilities are located in Ludhiana (Punjab), Ghaziabad (UP), Bihta (Bihar), and Sri Lanka. The company owns Avocet Sports in the UK and HNF Nicolai in Germany, enhancing its European market presence.
Products: Standard bicycles, electric bicycles, mountain bikes, road bikes.
2 - Firefox Bikes (Firefox Bikes Pvt. Ltd.): Acquired by Hero Cycles in 2015, Firefox Bikes specializes in premium bicycles aimed at urban consumers and cycling enthusiasts.
Products: Standard bicycles, electric bicycles, mountain bikes, road bikes, accessories, and biking gear
3 - Lectro: Lectro is a leader in electric mobility solutions, providing a diverse range of e-bikes that cater to various riding needs, including mountain biking, urban commuting and leisure riding.
Products: Cargo, mountain and city electric bicycles
4 - Insync: A brand under Hero Cycles, Insync offers a range of bicycles designed and developed in the UK specifically for the European market, integrating advanced engineering with modern designs.
Products: Bicycles and bicycle components
5 - HNF Nicolai: Based in Germany, HNF Nicolai sells premium, high-quality electric bicycles, known for their robust engineering and advanced technology.
Products: High-performance e-bikes and mountain bikes.
6 - HIVE: HIVE acts as an innovation hub within the HMC ecosystem for contract manufacturing in electric and alternate mobility. Its state-of-the-art tech centre is focused on design, engineering, and prototyping for the electric mobility sector, developing solutions for future mobility needs.
Products: Contract manufacturing for electric vehicles
7 - Hero Motors (Hero Motors Ltd.): The automotive components division of HMC, Hero Motors manufactures a wide array of high-precision parts for the global automotive, motorcycle, and off-road vehicle brands, with clients including BMW, Ducati, Harley Davidson, TVS, Royal Enfield and Hero MotoCorp.
Products: Drivetrain components like gears and transmission systems: EV transmission and Continuous Variable Transmission.
8 - Hero Motors Thai: This entity expands HMC's reach into Southeast Asia, leveraging local manufacturing and distribution networks. It focuses on producing transmission solutions for both internal combustion engines and electric vehicles.
Products: Transmission solutions for ICEs and EVs
9 - Hewland: Based in the UK, Hewland Engineering specializes in high-performance gearboxes and transmission systems for the motorsport and automotive industries.
Products: Gearboxes for racing, and bespoke, off-the-shelf, and EV powertrains
10 - Esync: This subsidiary offers integrated engineering solutions across multiple sectors, including automotive and industrial applications, supporting the e-mobility initiatives of the group
Products: Electric components and systems like motors, controllers, sensors, and HMIs for EVs
11 - ZF Hero (ZF Hero Chassis Systems Pvt. Ltd.): This is a joint venture between Hero Motors Ltd. and ZF India Pvt. Ltd, a subsidiary of Germany technology company, ZF Friedrichshafen AG, focused on developing and supplying chassis systems for passenger cars in India.
Products: Front and rear axle strut assemblies, chassis systems
12 - HYM: A joint venture between Hero Motors Ltd. and Yamaha, HYM manufactures electric drive units for e-cycles at their facility in Ludhiana.
Products: Motors
13 - Munjal Kiriu (Munjal Kiriu Industries (P) Ltd.): This is a joint venture between Hero Motors Ltd. and Kiriu Corporation, a company in Sumitomo Group of Japan. This entity caters to the Indian and overseas markets.
Products: Brake discs, brake drums, cylinder blocks, pressure plates, brake plates, flywheels, pulleys, brackets, steering knuckles, compressor bodies
14 - Oma Living: This is the group’s lifestyle solutions brand.
Products: Décor, art and furniture
15 - Munjal Hospitality Pvt Ltd: MHPL is the HMC Group's foray into commercial real estate with an upcoming project in Gurugram.
Products: Commercial real estate
Key Developments
New Developments
a. In January 2023, Hero Motors inaugurated a new transmission facility in Thailand, aimed at providing powertrain solutions for both internal combustion engines and electric vehicles.
b. Hero Motors inaugurated a Tech-Centre in UK in July’24; for designing, validating and testing mobility solutions to transform ideas into business opportunities
c. HMC has invested heavily in creating the Hi-Tech Cycle Valley in Ludhiana, Punjab, which significantly boosts its manufacturing capabilities
d. HMC Hive: HIVE has developed 100 Acres of industrial Park as an anchor investor to facilitate the production of high-end bicycles, E-bikes and related components. Includes 100% Owned EV design, engineering, manufacturing ecosystem 100 Acres Ecosystem Out of which 50 acres have been utilized. Plug & Play Facilities scalable for volumes & diverse vehicle sets. Design & Engineering in-house capabilities with ideal connectivity: 80 KM from Chandigarh International Airport, 30 KM from Railway Station, 35 KM from District Headquarter 10 KM from Dry Port Ludhiana HIVE Facility. HIVE has developed 100 Acres of Industrial Park as an anchor investor to facilitate the production of high-end bicycles, E-bikes and related components existing available existing available for expansion: utilities - Roads, Electricity, Effluent treatment, Gas, Telecom; Labour – Unskilled, Semi-skilled and Skilled labour available Premium EV Mfg. (Welding, Paint Shop, Testing, Assembly, Storage etc.) Mechanical Components. Hero-Yamaha JV Electric Drives* *SPUR & HYM operations are under long term lease agreements with HMC HIVE.
HIVE combines HMC’s E-mobility start-ups, OEMs and mobility companies’ demand aggregation to facilitate Manufacturing and engineering excellence economies of scale and cost leadership through production efficiencies. Global network access: vendors, distribution, relationships. End to end solutions: full stack of manufacturing services. Help clients reduce time to market and optimize capex.
HIVE has an integrated solutions approach, becoming the world’s largest supply chain (70%).
e. JVs in HIVE:
Rear Hub Motors: HYM, JV with Yamaha to manufacture.
Brakes: JV with German Brake manufacturer to set up a plant in HIVE.
Steel/AI Frames: In house frame manufacturing capabilities.
EDU Integrator: ESYNC in HIVE to produce EDU Integrators which provides a complete solution.
CVT: Hero Motors in HIVE to give in house CVT manufacturing for Enviolo.
Mechanical Components: SPUR in HIVE for in house manufacturing.
Plants
Hero Cycles, Ludhiana, Punjab
Hero Cycles, Ghaziabad, Uttar Pradesh
Hero Cycles, Bihta, Bihar
BSH Ventures Pvt. Ltd., Sri Lanka
ZF HERO Chassis Systems, Pune, Maharashtra
ZF HERO Chassis Systems, Chennai, Tamil Nadu
Munjal Kiriu, Manesar, Haryana
Munjal Kiriu, Ahmedabad, Gujarat
See also
Hero MotoCorp
References
External links
HMC
Hero Cycles
Hero Motors