Newsletter dated 23rd June, 2015
0 likes190 views
Pawan Munjal is the Managing Director and CEO of Hero Honda Motors Ltd, the largest two-wheeler manufacturer in the world. He comes from the Munjal family which established Hero Cycles in the 1950s. Under his leadership, Hero Honda formed a partnership with Honda Motor Company in 1984 and together they dominated the Indian motorcycle market. Munjal grew the business into a conglomerate with annual revenues of over $1.5 billion by focusing on affordable motorcycles, financing options for customers, and expanding exports. He has received several awards for his business leadership and contributions to professional golf and sports development in India.
Newsletter dated 23rd June, 2015
- 1. www.csrajivbajaj.com c THOUGHT OF THE DAY THOUGHT OF THE DAY “The advancement and diffusion of knowledge is the only guardian of true liberty...” Law Updates: The Securities and Exchange Board of India (SEBI) is working on a framework to facilitate foreign portfolio investor (FPI) participation in the commodities market. SEBI board meets to discuss integration with commodities regulator, listing norms for start-ups and e-IPOs. The only concern could be raised is by RBI but sources indicate the central bank has already given an in-principle go ahead to the proposal Government proposes tax benefits for credit and debit card payments. In a draft paper on moving towards a cashless economy and reducing tax avoidance, the government also proposed making it mandatory to settle transactions worth more than Rs 1 lakh through electronic mode. The paper, posted on mygov.in, is open to public feedback and comments till June 29. The merger of Cairn India with Vedanta was never going to be easy. Days after billionaire Anil Agarwal announced that he would merge the energy company into its parent, state-owned Life Insurance Corp (LIC), a minority shareholder of Cairn India, raised its concern over the valuation for the merger and the debt of the merged entity. Cairn India's minority shareholders do not see the deal in their interest; the government too may throw in riders because of its concerns over energy security PROFESSIONALS INPUTS The ministry of corporate affairs is likely to notify by the end of this month the threshold and the rules for flagging corporate frauds to the government. Auditors of companies may soon be required to alert the authorities in case of any fraud involving a sum of at least Rs 1 crore or 10% of a company's turnover. Retirement fund body EPFO today notified an order to make Universal Account Number (UAN) mandatory for all employers covered under the Employees Provident Funds and Miscellaneous Provisions Act 1952. The deadline for completing the formalities is August 25 after which action will be taken under the powers given to us by the Employees Provident Funds Scheme, 1952, and other applicable laws for failure to comply with the order. MARKET WATCH: SENSEX: 27849.45 119.24 NIFTY: 8387.90 34.80 SILVER: 36726.00 46.00 GOLD (MCX): 26775.00 73.00 USD/INR: 63.62 0.1 CRUDE OIL: 3837.00 30.00 CS Rajiv Bajaj 9811453353 Bajajr66@gmail.com youtube.com/csrajivbajaj https://www.facebook.com/Rajiv 1Bajaj http://www.csrajivbajaj.com Date: 23rd June, 2015
- 2. www.csrajivbajaj.com MR. PAWAN MUNJAL, MD AND CEO, HERO HONDA MOTORS LTD. EARLY LIFE & CAREER PROFILE: Pawan Munjal is a second generation member of Munjal Family, which has its origins in Punjab. He spent his childhood in Ludhiana. A graduate in mechanical engineering from National Institute of Technology Kurukshetra. Popularly known as the maharaja of motorcycle, Mr. Pawan Munjal is the Managing Director and CEO of Hero Honda Motors Ltd, the largest two-wheeler manufacturer in the world. Munjal is instrumental in bringing about technological and managerial excellence in the company's operations over the years and is responsible for the growth and strategic planning of the entire Group. The Munjals were four brothers: Dayanand, Satyanand, Brij and Om. Brijmohan Lal had barely stepped out of his teens when his elder brothers decided to set up their new business- trading in bicycle components. There were plenty of challenges, the foremost among which was to procure a manufacturing licence.By 1971, the Munjals had set up a rim-making division for Hero Cycles and launched another company called Highway Cycles that would make freewheels. Within a span of 6-7 years, production at the Hero Cycles plant doubled and in 1975 it became the largest manufacturer of bicycles in India. Later it went on to make its own mopeds modeled on the Peugeot machine but designed in India known as the ‘Majestic Auto’.With an enviable slew of successes behind them, the Hero Group emerged a bigger, bolder player in the world of two-wheelers in the early 80s. The first mega success was the decision to join hands with the Japanese automobile giant, Honda and Hero Honda was born. Overnight, it redefined the rules of the game in the two- wheeler industry. At a time, when scooters (dominated by Bajaj) had a waiting period of 12 years or even longer, Hero's tie-up with Honda changed it all. It created the first of its kind – the motorcycle segment in India.A few months later, Hero Honda made its first public offering. The first 100 cc Hero Honda motorcycle came off the assembly line in 1985 and with it Hero Honda kick started its journey to unimaginable success. With another Japanese collaboration came the Showa to make shock absorbers. The new company was called Munjal Showa.After three decades of non-stop rigorous activity, Hero Cycles emerged as the largest bicycle manufacturer. The seal of approval came from none other than the Guinness Book of World Records. This compelled competitors like Bajaj Auto to reinvent their strategy from scooters to motorcycles. In 1990, Hero Honda Motors made Rs 1,000 for every bike it sold and that lead to an annual profit of USD 10 million. Later Pawan Munjal took over the mantel from the patriarch Brijmohan Lal Munjal. He actually managed to overtake Bajaj Auto and successfully restructured and streamlined Heros rapidly expanding business.In 1991, he set-up the Hero Honda Finlease to finance it’s customers. Two years later, in 1993, the Group launched Hero Exports, which emerged as India's largest exporter of two-wheelers. And a year later, the Japanese firm reaffirmed its partnership with Hero for the next ten years, and Hero Honda zoomed its way, laughing into a brand-new sunrise.Pawan made the Hero Group diversified into IT and IT-enabled services and Hero Honda emerged as the market leader with sales of over a million motorcycles. In 2002, Hero Cycles tied up with National Bicycle Industries, a part of the Matsushita Group to manufacture high-end bicycles.Munjal banked on the idea that in the long run, it is the two-wheeler which will continue to remain the vehicle of choice in India and the barricade of consumer aspirations. Women are also going to play a pivotal role with the two-wheeler emerging as a convenient mode of transportation. Hero Honda is presently selling about 12,000 units of women-focused scooter brand ‘Pleasure’ every month, and these numbers continue to soar at a fast pace.Another stint of success came for Hero Honda with the launch of Splendor, Passion and Passion Plus. Munjal’s next move is to start a new factory to churn out 2,000 units daily, and an agreement with partner Honda Motor Company on starting exports to Africa. Apart from this, Munjal has been instrumental and the main guiding force behind the launch of Hero Indian Sports Academy (HISA) in collaboration with Laureus Foundation to provide equal opportunities in sports to various communities and to reward talent in the country. An avid golfer, he is the Past Chairman of the Asian PGA Tour Board of Directors and the Past President of Professional Golfers Association of India (PGAI). With the widespread network of 5,000 dealers across the country, the Hero Group today is a conglomerate with an annual turnover of Rs 10,000 crore. Highs and lows, rewards and backlashes have all been a part of the Hero Group's corporate story, but that didn’t deter them, nor did losses kill their spirit of entrepreneurship. AWARDS AND ACCOLADES: Munjal serves as Works Executive of Majestic Auto Ltd and as a Member of Executive Board at Indian School of Business. He has been the Chairman of several Committees of CII. Munjal has been an Executive Director of Hero Honda Motors Ltd. since April 1, 1986 and serves as a Director of Hero Honda Finlease Ltd. Under his stewardship Hero Honda, has emerged as the world's largest two-wheeler manufacturer for nine consecutive years since 2001.