Dear Shareholders,
With great pleasure, I present to you our Annual Review for Fiscal Year 2023-24, a
truly memorable year for our organisation.
This exceptional year witnessed the 'Hero Parivar' (Hero Family) achieving remarkable
business outcomes while celebrating two significant milestones - the Centennial Birth
Anniversary of our visionary Founder Chairman and the 40th year of our
Company's incorporation.
The remarkable achievements and milestones of the year fill me with pride and
gratitude. Throughout the year, we strengthened our core business, explored new horizons,
and set ambitious goals for long-term sustainable growth. Our dedicated employees and
valued business partners worked tirelessly to deliver lasting value to our customers and
shareholders.
Guided by its vision 'Be the Future of Mobility,' Flero MotoCorp, the world's largest
manufacturer of motorcycles and scooters for 23 consecutive years, is poised to establish
new benchmarks in innovation, leadership, and sustainability.
Riding with India, for the world
The theme of this year's Annual Report aptly reflects our philosophy and purpose.
Through our world-class manufacturing, state-of- the-art R&D, globally recognised
sustainable operations and millions of customers worldwide, Flero MotoCorp, empowers India
to achieve its vision of 'Viksit Bharat' (Developed India). As Flero MotoCorp progresses
towards its 50th year, it resonates with India's journey in this transformative
era.
For us, the year was defined by passion, courage, and innovation.
100 Years of our Founder Chairman
We celebrated the centennial birth year of our Founder Chairman and Flero Forever, my
beloved father, Dr. Brijmohan Lall Munjal. FHis enduring legacy and values continue to
inspire generations, and his unparalleled towering personality remains a guiding light for
everyone at Flero, as we envision the future of mobility.
40 years of Hero
In its 40th year, Flero MotoCorp continues to expand its impressive customer
base of 116 million globally. Operating in 48 countries, the
Company pioneers new-age mobility solutions, marking a milestone in its growth journey.
Driving growth in both our brand and the two-wheeler industry, we have broadened our
product lineup to include bold and premium motorcycles. The Harley-Davidson X440, the
iconic Karizma XMR, and the Mavrick 440, among others, are poised to reshape the
automotive horizon. Our entry into the upper premium segment underscores our dedication to
supporting India's evolving and progressive aspirations for growth.
Since its launch, the Xtreme 125R has captivated the youth nationwide, strengthening
our footprint in the core segment. This is yet another validation of our R&D prowess
and our ability to deliver pioneering products that define their categories. These
achievements reaffirm our steadfast commitment to innovation, pushing limits, and
establishing new industry standards.
Our new brand presence, with its modern design elements, ensures a cohesive appearance
at all customer touchpoints. More than 400 stores in India have adopted the Hero 2.0
identity, with plans for all domestic and international stores to follow. Moreover, the
introduction of Hero Premia stores elevates the shopping experience for premium product
customers through contemporary architecture, captivating design, and cutting-edge digital
technologies. This upgrade of our dealer network will significantly enhance our brand's
visibility and appeal.
The theme of this year's Annual Report aptly reflects our philosophy and purpose.
Through our world-class manufacturing, state-of-the-art R&D, globally recognised
sustainable operations and millions of customers worldwide, Hero MotoCorp, empowers India
to achieve its vision of 'Viksit Bharat' (Developed India).
Accelerating our efforts towards the burgeoning emerging mobility sector, we rapidly
expanded VIDA's reach nationwide, enhancing product availability, and establishing public
charging stations. At the recent Hero World 2024 event, we unveiled our groundbreaking
innovation - the Surge S32, a pioneering vehicle that seamlessly transforms between a
two-wheeler and a three- wheeler in just three minutes. I am delighted by the significant
excitement and overwhelming response that Surge S32 has generated from experts, businesses
and customers.
The year was also marked by the highest number of product launches in our history, and
our well-rounded approach led to an 11% growth in revenues and a 36% growth in net profits
for the Company.
‘Viksit Bharat' - A Collaborative Growth Story
The India growth story is one of unparalleled momentum. The Indian economy registered a
robust growth of 8.2%1 in FY 2023-24, making it the fastest-growing major
economy in the world. Currently the fifth-largest global economy,
India is projected to become the third-largest economy by 20272.
India's growth strategy is underpinned by a robust economy, strong governance, and
progressive policies. Substantial investments in infrastructure are transforming the
nation's physical landscape and driving economic growth. Significant investments in road
transport and highways are particularly beneficial for the automobile sector and for
achieving economies of scale.
The Government's emphasis on renewable energy has resulted in a significant increase in
The year was also marked by the highest number of product launches in our history, and
our well- rounded approach led to an 11% growth in revenues and a 36% growth in net
profits for the Company.
its generation, more than doubling over the past decade. This commitment is expected to
continue, enabling the nation to reduce dependence on energy imports and transition to
cleaner energy sources. While the automotive sector focuses on reducing tailpipe
emissions, it is imperative to ensure that the entire energy value chain operates on clean
energy. This comprehensive approach will contribute to a more sustainable energy
ecosystem.
As the Government strengthens its focus on financial inclusion, digital ecosystems, and
policy overhauls, the country's economic growth trajectory will continue to ascend.
Various welfare initiatives have positively impacted millions, demonstrating the
Government's commitment to inclusive growth and societal well-being.
These combined efforts will lay the groundwork for India's vibrant and resilient growth
narrative, solidifying its position as an economic powerhouse. Hero MotoCorp's vision and
strategies, interwoven with the Government's policies, will catalyse prosperity that
transcends boundaries.
Create. Collaborate. Inspire
Building upon its mission, Hero MotoCorp is steadily working to boost the larger
economy while swiftly advancing new and emerging segments.
As the semi-urban and rural economies catch up with the urban sector, we are focused on
increasing two-wheeler penetration in the country, which remains lower than in comparable
global economies. Through various interventions such as increased retail financing, an
enhanced customer journey, and wider availability, which align with the Government's rural
policies, we are ensuring the growth of the core two-wheeler market. This approach is
essential for delivering sustained long-term growth.
Parts, Accessories, and Merchandise (PAM)
Our allied businesses, particularly PAM, present substantial growth opportunities. We
are evolving alongside our customers to offer a comprehensive solution for all
vehicle-related needs. From ensuring easy access to genuine parts to offering top-tier
accessories and merchandise, we are strategically developing this business unit to become
a major revenue driver. With notable growth already observed, we foresee PAM becoming a
core business unit over the coming decade.
Digital-First Approach
Hero MotoCorp is spearheading synergies within the organisation and across the industry
by pioneering the adoption of the Open Network for Digital Commerce (ONDC) in the
automotive sector, ensuring digital accessibility of PAM products.
Across our operations, we are accelerating digital-led growth and innovation. We have
implemented extensive digitalisation initiatives to improve efficiency and deliver
seamless customer experiences. Leveraging advanced technologies like Artificial
Intelligence (Al), Internet of Things (loT), and data analytics, we are optimising our
supply chain, streamlining operations, and providing customers with online booking
options, virtual showrooms, and personalised interactions through chatbots and mobile
apps.
Global Economic Resilience
Contrary to earlier forecasts, the global economy exhibited resilience and surpassed
growth expectations. Decisive monetary policies and enhanced frameworks effectively
anchored inflation expectations. The normalisation of supply chains and lower commodity
prices supported emerging markets, contributing to sustained economic momentum.
However, geopolitical uncertainties continue to pose risks to global growth.
Projections suggest that global growth will maintain a trajectory of 3% or higher through
2024 and beyond3. Advanced economies are anticipated to experience moderate
growth improvements, while emerging markets are expected to maintain stable growth rates
with regional variations.
Expanding Business Horizons
As I reflect on the Company's journey, I see significant growth potential in segments
such as Global Business and Electric Mobility. Despite fluctuations in the global economy,
these areas are poised to become strong, key revenue drivers in the long term.
Together with Ather Energy, VIDA has established India's largest public-charging
infrastructure for two-wheeler EVs. Additionally our partnership with Zero Motorcycle will
facilitate the development of new EV motorcycles targeted at a distinct customer segment,
thereby expanding the overall market size. I am particularly pleased to witness VIDA V1's
rise as one of the leading electric scooters in India, and I anticipate its future launch
in global markets, where it is poised to become a significant player as well.
Through our revitalised efforts in global business, we have achieved promising
outcomes. With a renewed strategic focus, we anticipate an upward trajectory in the share
of global sales contribution to our overall revenues. The establishment of a new
subsidiary in Brazil, upcoming operations in Southeast Asia and Europe, and strengthening
our presence in key existing markets are poised to deliver positive results for us.
Despite facing global headwinds such as market volatility, regulatory changes, and
supply chain disruptions, we achieved a remarkable 16% growth in our global volumes this
year.
The Indian auto sector serves as a proud ambassador of India's success story worldwide,
and we remain dedicated to upholding the reputation of Indian manufacturing and R&D
through our exceptional products and services.
ESG: The Hero Way
I am pleased to share that our journey towards sustainability has yielded remarkable
achievements over the past year.
In January 2023, Hero MotoCorp achieved 100% zero waste-to-landfill, surpassing our
original target by one year. Our water positivity rate stands at an impressive 455%,
saving nearly 3.8 million kilolitres of water annually.
Recognising our effective water management practices, our Gurugram facility received
the prestigious CII National Award for Excellence in Water Management earlier this year.
Our steadfast commitment to reducing carbon emissions, enhancing energy efficiency, and
aligning with global climate objectives, reinforces our commitment to environmental
stewardship.
Through our CSR initiative, Hero WeCare, we have made a positive impact on 1.4 million
people by providing quality education, livelihood opportunities, promoting road safety
awareness, and supporting biodiversity conservation efforts.
We are dedicated to fostering a workplace culture that promotes collaboration,
diversity, equity, and inclusion. Currently, our Company Board boasts a 30% diversity
representation, and we are progressing towards achieving 30% women in our workforce by
2030.
By prioritising ESG principles, we not only fulfill our corporate responsibilities but
also create enduring value for our shareholders. We believe that businesses play a crucial
role in driving positive societal change, and we are proud to lead this transformation at
Hero MotoCorp.
A Sporting Hero: Taking India to the World
Sports partnerships have been integral to Hero MotoCorp's journey, promoting sports
across various disciplines and geographies to inspire excellence and passion among the
youth.
In 2023, the Hero MotoSports Team Rally made history once again by securing second
place in the Dakar Rally. Starting this journey in 2017, achieving such recognition was
initially considered improbable. This achievement resonates not only with our team and
Company, but also reflects positively on our nation and its automotive industry.
By prioritising ESG principles, we not only fulfill our corporate responsibilities but
also create enduring value for our shareholders.
We believe that businesses play a crucial role in driving positive societal change, and
we are proud to lead this transformation at Hero MotoCorp.
Our partnerships in sports such as football and golf serve as gateways to Europe, the
UK, USA, Africa, and Latin America, solidifying Hero as a global brand. Collaborations
with prestigious associations like the European Tour and the PGA Tour, alongside global
ambassadors like Tiger Woods, Diego Simeone, and Virat Kohli, further enhance Hero's
global presence and reputation.
Our vision for sports goes beyond sponsorship; we aim for meaningful impact on our
Company, our country, and the athletes themselves.
An Exciting Future Awaits
In the realm of sports, pivotal moments during a game are often termed as 'Moving Day,'
'Moving Quarter,' or 'Moving Half.' For Hero MotoCorp, the Fiscal Year 2023-24 marked a
'Moving Year,' during which we laid strong foundations for our future.
As we enter Fiscal Year 2024-25 on a positive note, numerous promising indicators
inspire confidence in an upward trajectory for us, our industry, and India as a whole.
Hero MotoCorp anticipates an exhilarating phase ahead as we strive for profitability
with purpose, pioneering mobility technologies and creating sustainable value for all our
shareholders.
Thank you for your unwavering support and trust in Hero MotoCorp.
Warm Regards,
Dr. Pawan Munjal
Executive Chairman Hero MotoCorp