This company started with the production of only 25 cycles/day How did it become the world’s largest cycle manufacturing company? that’s amazing that the two brothers who started this cycle company He had nothing to do with the cycle business at all. This company was given to him by one of his friends simply to run the lodge. the story begins India and Pakistan at the time of partition Four brothers Brij Mohan Manjal, Dayanand Manjal, Omprakash Manjal.
And Satyanand Manjal whose birth before independence Was born in a city named Toba Tek Singh in Pakistan And his father used to run the same grain shop But after independence when India and Pakistan separated So living in Pakistan Like many Hindu families The Munjal family also migrated to India. And these people settled in Amritsar.
Karim Khan, a friend of Brijmohan Munjal, lived here. Whose cycle spare parts had a company named Hero Now because Karim Khan was going to Pakistan So he gave this company to Munjal brothers. From here the world of Munjal brothers was about to change. But it is not that Munjal brothers got success by luck. the hard work was still to be done And he worked very hard to make his dream come true. In Amritsar the business of spare parts of cycle was not doing much.
And that’s why the four brothers thought of shifting their business to Lahore. For this he took a loan of Rs.50000 from the bank And to the company that makes spare parts Changed into Hero, a bicycle maker. This is how Hero’s journey started in 1956 Initially, the company used to make only 25 cycles per day. But within the next 10 years the popularity of the company increased so much. that 300 cycles started being made here everyday And after 10 years, production of 5 lakh cycles started here annually.
Hero was scaling new heights every day And finally in 1986 there came a time When Hero became the world’s largest cycle company and for His name was also included in the Guinness Book of World Records. At that time Hero’s cycle was in demand in about 90 countries of the world. BBC World Bank and London Business of School are Used to praise Munjal Brothers’ way of doing business Even in Britain, Hero Cycle is called a super brand.
This was the way of doing business of Munjal Brothers. Which made Hero Cycle a global level company Munjal Brothers used to take care of everyone from their customers to dealers. And used to think of everyone’s interest and there’s a story about it that once the workers working in Hero company went on strike to get some of their demands met After some time it was seen that in the factory Some people are starting the cycle making work again.
When the striking workers went and saw So it came to know that the cycle makers in the factory The owner of the company means Munjal brothers themselves. This is also about that time When hero had become a global level brand watching the owner make a cycle workers tried to stop them On which Om Prakash Munjal said that you can go on strike as a worker. because it’s your right.
But at present we have many orders to make cycle And we have to fulfill those orders. We also have to think about the happiness of those children whose father has promised him a cycle on his birthday If we do not fulfill the order on time, then the hopes of many children will be shattered. it is clear from his That’s how important their customers were to the Munjal brothers. On the other hand, along with its customers He also took care of his dealers.
Along with commission to all his dealers had also given shares in his company The result was that all the dealers of the company considering the company as your own used to work with more dedication Hero was known all over the world for making cycles. But now motor bikes were also becoming very popular in foreign countries. But there was nothing like this in India, India Even then only scooter and moped were available in the market.
That’s why Hero thought that they will launch motorcycle in India. But till that time he did not have the technology to make a motorcycle engine. That’s why they thought that they would tie up with a foreign company. And he sent his proposal to the popular motor bike company Honda. Honda was a Japanese company And at that time any foreign company She could not start her business by coming directly to India. That’s why Honda also through this tie up Got a chance to enter the Indian market.
Finally in 1984 both the companies signed a joint venture And its many rules were also made Like Hero will make the body of the motor bike And Honda’s job will be to make the engine Apart from this, both the companies had also signed an NOC. that either company Will not launch any product of its own as a competitor of another company After this, their first plant was planted in Dharuhera, Haryana. And in 1985 Hero Honda launched its first bike.
Hero Honda CD100 The bike became popular as soon as it came in the market Because bikes were not so common in India. Apart from this Hero can afford Honda CD100 to the middle class Was launched at such a price only Also their marketing and advertising used to be tremendous. Hero Honda’s tagline was FILL IT. SHUT IT. FORGET IT. That is, once you put petrol in the car, you can easily forget about it.
And just enjoy the journey Everything went well for a while But then more competitors of Hero Honda in India Such as brands like Suzuki, Yamaha, Bajaj have also come Despite this, the relief for Hero Honda was this that the rest of the companies target the rich sections of the cities used to make its own products And Hero Honda’s target market was the middle class. but then the trouble started.
When there was a jump in the value of Japanese currency And the machine coming from Japan also started getting expensive. To keep your bikes affordable they didn’t want to increase the price In such a situation, he was incurring a lot of loss. After Dollar exchange price regulation in the year 1990 something happened in the circumstances of the company And Hero Honda again became a profitable company. In a few years, the profit of the company touched the figure of ten million dollars.
That was a pretty huge amount in the 90s But all was not well in this joint venture. As it was visible it had many problems Like where Honda is on one side then its bike Used to sell in developed countries like Russia and America And Hero’s market is only Nepal, Bangladesh As it was left till the neighboring countries of India. Because of which Hero was the world’s largest company in the cycle.
But its growth in the bike segment was not happening at the global level. And Hero could not separate from Honda even if it wanted to Because he was completely dependent on Honda for engine supplies. That’s why he could not launch any of his bike separately. Hero broke it and its share from the sale of Hero Honda ie some part of the profit used to make engines Due to which the conflicts between the two companies increased further.
And after this Honda also broke the NOC rule And in 1999, he started his company in the competition of Hero Honda. Honda motorcycle and scooter launched in India After this he launched the bike in the price segment of Hero Honda. And they also entered the scooter market by launching Activa. But all these divided the customers of Hero Honda. That means Honda had an advantage in all this. He was also getting a stake in Hero Honda. And also from the product of your other company.
He was getting a good amount of sales. Only Hero was in loss who had only one source of income Hero Honda’s sale and its customers who were now getting divided so finally in 2010 Hero also decided to part ways with Honda Both companies had 26-26% shares in Hero Honda. Honda sold its shares to Hero for 1.2 billion dollars. Hero after parting ways with Honda.
Started his company under the name of Hero Motor Corp. People felt that after parting ways with Honda Hero will not be able to survive in the market Hero suffered losses in the beginning but also gained some As now they can sell their products all over the world In the financial year 2022-23 only between April to September Hero Motor Corp had sold 28 lakh plus units And today Hero is as big a company as As was Hero Honda.
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