Although our company, Intex Technologies (India) Ltd is into IT hardware, mobile phones and electronics, as a keen student of good management practices and the value systems followed by companies with a successful and sustainable growth record, I have been an admirer of Hero Honda for quite some time now. I read with great interest any news items or articles covering the company.
The company has inspired trust in millions of consumers, its employees and all its stakeholders. Also, the long enduring relationship between the two business partners is an inspiring example. It personifies amalgamation of strengths of the two partners?understanding customer needs, human resources, technology, systems and corporate values. From its roots as the world?s largest bicycle manufacturer, Hero Honda has continued to provide a very large part of the aam aadmi population with affordable mobility. It has emerged over a period of 25 years as the world?s largest two-wheeler company with 59% share of India?s market.
My understanding indicates that sustainable and aggressive growth has been achieved by Hero Honda?s focus on long-term interests of its consumers. Towards that end they deliver a vehicle that is fuel-efficient, comfortable and environmental friendly. These characteristics ensure that they offer a total value proposition to their customers. In their quest for perfection, Hero Honda has enhanced skills not only of its employees but also of the large vendor base and brought in very effective Japanese management systems, and suitably adapted it to Indian needs.
The company has developed commendable cost reduction capabilities and reduced the ?go-to-market? time gap of innovative products. It is widely recognised for its safe and healthy practices and high work force productivity.
I have high regard for their management which prefers to maintain a low profile. It is the brand which always occupies the place of pride. Some of their marketing campaigns are unforgettable, an outstanding one being the ?Fill-it, Shut-it, Forget-it? campaign.
The ?Just for Her? campaign targeted at women only, offered a unique combination of a product designed for women and was made available at outlets that offered a specially designed, comfortable ambience for women.
Hero Honda is an interesting example of peaceful co-existence of two companies with the same supporting technology partner. Fifteen years after Hero Honda had established itself in the Indian market, Honda floated their own company?Honda Motor Cycle & Scooter India Pvt Ltd to manufacture the same generic products. Management of the obvious conflicts of interests in such a scenario speaks volumes of the maturity and understanding between the Hero and Honda families.
It is not surprising therefore that the company has been conferred innumerable awards in fields ranging from corporate governance, corporate environment responsibility, technology, best bike maker, HR practices etc, to name just a few.
A reward it has earned for itself is to make the company debt-free for the last several years.