COMPANY PROFILE

The history of the Honda Motor Company began with the vision of one man Soichiro Honda. His dream was personal mobility for everyone. Soichiro Honda founded the Honda Motor Company in 1948. In the same year, he designed and engineered the first product of this company - a 50 cc motorized bike on a bicycle frame - in his small shed at Hamamatsu. Today, Honda is a global company with a global viewpoint that is reflected in a solid commitment to local markets and economies. Honda Siel Power Products was incorporated in Sep.'85 as a joint venture, earlier it is called Shriram Honda Power, was promoted by Honda Motor Co, Japan, and Shriram Industrial Enterprises. Honda Motor, Japan, holds a 66.67% stake in the company. In 199899, it changed its name to Honda Siel Power Products. Its works is situated in Rudrapur (Uttaranchal), Pondicherry and at Greater Noida. The company manufactures and markets portable generating (PG) sets (inst. cap.: 1,75,000 pa), general purpose engines and water pumps at its plant in the Udham Singh Nagar district of Uttar Pradesh. It also has set up a plant at Pondicherry, commercial production at which commenced in Sep.'95. In 1991-92, the company took up a major indigenisation programme to set up in-house machining facilities for crankshafts rotorshafts. In Jul.'93, it received the ISO 9001 certification from RWTUV, Germany, for quality assurance systems in the design, manufacture, installation and aftersales service of its products. It achieved the Export House status in Sep.'94. The company sells its products to customers and institutions through regional offices and dealers. At present, it exports to over 25 countries in Africa, Europe, South America and Asia. In June, 2000, the company commenced the in-house manufacture of flywheel required for Gensets, GP Engines and water pumping sets. The Company has set up a Pressure Die-Casting plant in Greater Noida, U.P, at a capital outlay of 7.80 crores. The Commercial production commenced in December 2000. The Company has drawn plans to take up ERP (IT Project) for all its functions across the company in a phased manner. Honda Siel Power, manufacturer of Portable Generators, Water Pumping Sets and General Purpose Engines recorded 15% growth in net sales to Rs. 114.49 crore for the quarter ended September 2011, driven by the 27% growth in domestic business (87% of total sales) to Rs. 99.41 crore. However, Revenues from the Export business fell by 29% to Rs. 15.13 crore.

At operating level, margins fell by 80 basis points to 9.5% on the back of higher other expenses which has dwindled the growth in operating profit to 6% to Rs. 10.92 crore. Further, the decline in other income coupled with the higher depreciation there was 4% fall in PBT before EO to Rs. 10.01 crore. However, Rs. 20.49 crore EO gain resulted from the disposal of the Rudrapur factory coupled with the fall in effective tax rate during the quarter bolstered the growth in bottom-line to 228% to Rs. 23.19 crore. Honda Siel Power Products has announced that Takashi Nagai and Masato Saito has ceased to be directors of the company.The company has appointed H Kanayama as director of the company. Further, Vinay Mittal has been appointed as vice-president & whole time director of the company.

Sales and Distribution Network

Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 51 Honda Exclusive Authorized Dealerships in 21 cities. All HSCI dealerships are based on the "3S Facility" (Sales, Service, Spares) format, offering complete range of services to its customers. The company is targeting 100 dealer outlets across India by 2012, as per their expansion strategy which is based on the '1 dealer per 1000 Units formula

Honda's vision and role

Fulfilling the global needs of personal mobility in the new automotive society - go hand in hand with the corporate philosophy: maintaining a global viewpoint, they are dedicated to supplying products of the highest efficiency and quality at a reasonable price for worldwide customer satisfaction. In India, it is through HSCI that customers can enjoy the benefits of Honda's expertise. Soichiro's vision was international in character. His desire was to lead the world in technology, and make a significant contribution to the creation of a better society. As a result, most of the products that Honda developed started out by making a difference. However, the most enduring challenge has been to satisfy the ever-changing needs of their customers. This is the essential spirit of Honda. The Company's vision is "To be a Company that the Society would want to Exist". It strongly believes in Co-existence and Co-evolution, wherever it operates.

Company Principle (Mission Statement)

Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.

Fundamental Beliefs
Respect for the Individual

Initiative Initiative means not to be bound by preconceived ideas, but to think creatively and act on your own initiative and judgment, while understanding that you must take responsibility for the results of those actions.

Equality Equality means to recognize and respect individual differences in one another andtreat each other fairly. Our company is committed to this principle and to creating equal opportunities for each individual. An individuals race, gender, age, religion, national origin, educational background, social or economic status has no bearing on the individuals opportunities.

Trust The relationship among associates at Honda should be based on mutual trust. Trust is created by recognizing each other as individuals, helping out where others are deficient, accepting help where we are deficient, sharing our knowledge, and making a sincere effort to fulfill our responsibilities.

The Three Joys

The Joy of Buying The joy of buying is achieved through providing products and services that exceed the needs and expectations of each customer.

The Joy of Selling The joy of selling occurs when those who are engaged in selling and servicing Honda products develop relationships with a customer based on mutual trust. Through this relationship, Honda associates, dealers and distributors experience pride and joy in satisfying the customer and in representing Honda to the customer.

The Joy of Creating The joy of creating occurs when Honda associates and suppliers involved in the design, development, engineering and manufacturing of Honda products recognize a sense of joy in our customers and dealers. The joy of creating occurs when quality products exceed expectations and we experience pride in a job well done.

Racing Honda has always played an important role in motor sports, believing it to be the springboard for technological advancement. Honda has made its mark in the 500cc class Motorcycle Racing World Championship and more. Technology Our fundamental design philosophy seeks to maximize space and comfort for people, while minimizing the space required for mechanical components. With this aim in mind, Honda's R&D activities include product-specific development and research. Safety At Honda, we use a three-prong approach, based on preventing accidents, minimizing injury in the unlikely event of an accident and our Driving Safety Promotion operations. Honda's safety philosophy emphasizes the development of appropriate technologies for its products, so as to ultimately achieve maximum riding comfort for its customers. Honda was the first manufacturer in Japan and India to develop and apply the anti-lock brake system for the two wheelers. Environment Honda is unrivalled in making a conscious effort to lower the emissions of every one of its vehicles, 2 and 4-wheelers. It is actively pursuing the development of a 4-stroke engine in all 2-wheelers from 2009. Honda and Honda Activa: The Honda Activa has set a new standard for new era of scooters in India. It has been developed exclusively for the Indian market after closely examining the changing lifestyles, wants and needs of the consumers. The Honda Activa has been designed to cater people who believe: The conventional Indian scooter is too big and difficult to handle The scooterette is too small and similar to mopeds

The Honda Activa is equipped with a number of new functions and mechanisms, introduced for the first time in India. It is designed to offer greater functionality, performance, economy, and ease of handling and maintenance to a wide cross-section of the Indian society. As responsible members of society and industry, we Honda Motorcycle and Scooters India Pvt. Ltd. (HMSI), Manesar manufacturer of two wheelers, recognize that well being of humans and conservation of earth's environment is important. By adopting environmental management system, HMSI is moving towards realization of Honda's green factory concept. We shall endeavor to continually monitor, improve and conserve the environment in which

we operate. HMSI is committed to achieve, environmental excellence in all its industrial activities, in the following ways: Conserving environment through preventing pollution at its source of generation and strengthening our existing pollution control system. Promoting conservation of resources such as energy, water, oil and grease and other raw materials, by reusing, recycling and minimizing the waste generation. Complying with all applicable legal/regulatory requirements and strive to go beyond wherever possible. Regular monitoring and reviewing of environmental objectives and targets. Increasing environment awareness and competence amongst our employees and encourage vendors & dealers to adopt EMS. HMSI will establish its environmental management system following PDCA cycle and continuously work to make it more effective. The policy will be well disseminated to our employees as well as to public at large.

HONDA GROUP COMAPANIES

Honda Worldwide Honda Motor Company, Japan with its headquarters in Tokyo, has manufacturing operations in 32 countries with 109 production bases. The company principal of Honda Worldwide is dedication to supplying products of the highest quality yet at a reasonable price for worldwide customer satisfaction. It has 3 business divisions namely 2-wheelers, 4-wheelers and Power Products. Apart from HMSI that manufactures 2-wheelers, the other business divisions in India include Honda Cars India Limited (HCIL) and Honda Siel Power Products Limited (HSPP).

Honda Cars India Ltd Honda Cars India Ltd., (HCIL) is a leading manufacturer of premium cars in India. The company was established in 1995 with a commitment to provide Honda's latest passenger car models and technologies, to the Indian customers. The company is a subsidiary of Honda Motor Co. Ltd., Japan. The company's product range include Honda Brio, Honda Jazz, Honda City, Honda Civic, Honda All-New CR-V and Honda Accord which are produced at the Greater Noida

facility. Honda's models are strongly associated with advanced design and technology, apart from the established qualities of durability, reliability and fuel-efficiency. HCIL's first manufacturing unit was set up at Greater Noida, U.P in 1997. The green field project is spread across 150 acres and has an annual production capacity of 100,000 units. The company's second manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 450 acres and currently has a state-of the art Power train and Press shop. The first phase of this facility was inaugurated in September 2008. Honda Siel Power Products Limited (HSPP) Honda Siel Power Products Ltd (HSPP) is a Joint venture between Honda Motor Co., Japan and Siel Ltd.India. Currently Honda Motor Company, Japan has a 67% Equity Stake in this company. It was incorporated in September 1985 and produces a range of Power Products in India, like Portable Gensets, Portable Engines, Portable Water Pumping set and Lawnmowers. Honda R&D (India) Pvt. Ltd. By establishing R&D facilities in three key regions beyond Japan (designated as the Americas, Asia and Europe), Honda R&D develops technologies and products that reflect the needs of people in individual regions, yet bound together by common values including environmental preservation and regional economic development. The company's objective is to make an R&D that works jointly with the people of India to produce motorcycles for the enrichment of society and lifestyle of users of India Honda Motor India Pvt Ltd. (HMI) Honda Motor India the wholly owned subsidiary of Honda Motor Co.,Ltd Commences Operations, Beginning with HSCI Parts Operations (HMI) formally began its operations from its corporate office in Greater Noida, Uttar Pradesh, India from December 1, 2006 The plan to set up HMI was first announced by Mr Takeo Fukui, President and CEO, Honda Motor Co., Ltd, during his visit to New Delhi. Formation of HMI is part of the overall strategy to strengthen and integrate operations of Honda companies in India with respect to service parts.