Hero Honda Motors Ltd

Hero Honda Motors Ltd

Sales (2007-2008) =Rs.10000 crores (rounded off)

Net profit after tax =Rs.1000 crores (rounded off)

CSR Budget: Not available

Karmayog 2008 CSR Rating: 3/ 5

See Karmayog Comments below:

CSR activities:

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The Company believes it has managed to bring an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda factory at Dharuhera for integrated rural development. This includes:

Installation of deep bore hand pumps to provide clean drinking water.
Constructing metalled roads and connecting these villages to the National Highway (NH -8).
Renovating primary school buildings and providing hygienic water and toilet facilities.
Ensuring a proper drainage system at each of these villages to prevent water-logging.
Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas plants.

Other key projects taken up by the Foundation include:

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-educational school with over 1200 students and 61 teachers. The school has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and a computer centre.

Multi-specialty hospital equipped with the latest diagnostic and surgical technology. The Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-Jaipur highway.

Raman Munjal Sports Complex

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and football grounds are used by the local villagers. In the near future, sports academies are planned for volley ball and basket ball, in collaboration with National Sports Authority of India.

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational Training Centre. So far 26 batches comprising of nearly 625 women have been trained in tailoring, embroidery and knitting. The Company has helped women trained at this centre to set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by the Foundation by providing financial help and other support to the families.

Rural Health care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care services to the local community. Free health care and medical camps are now a regular feature in the Hero Group’s community outreach program.

Environment

For a number of years, Hero Honda has been one of India�s most environmentally sustainable firms. The company believes that to create a sustainable enterprise, it is critical to strike the right balance between business, mankind and nature. The Company has ensured complete compliance with all applicable environmental regulations and practices.
For its efforts, Hero Honda was awarded for Safety Performance and Best working condition and Canteen facilities in the plant by the Government of Haryana for 2007.
The Company has also been nominated for the Green Manufacturer of the year under the TERI Corporate Award Scheme. A green vendor development program was launched on the World Environment Day June 5, 2007. A green charter was released giving specific guidelines to the vendors and suppliers. A total of 31 vendors were selected in the first phase and in all, 256 vendors will be covered and certified as green vendors over a period of 5 years. Each vendor will initiate EARN programs in the areas of pollution prevention, waste reduction, water conservation, energy conservation and statutory compliances. Each vendor will be evaluated and certified cluster wise.
During the year, an environmental plan to reduce hazardous waste from the pollution control facilities was developed. As much as 30% of sludge generated was reduced through a sludge decanter system.
The company also increased the conversion rate of paint sludge into useful primer from 15 MT to 25MT per month. Hero Honda has also successfully developed primer from the waste paint sludge, which used to be incinerated earlier. This development has been demonstrated to the state authorities, and the Company is seeking authorization to use this practice on a regular basis. The converted primer has already been used on the products, which has passed al l quality parameters.
To fulfill its commitment towards water conservation, a recycling plant of 400KL per day capacity with reverse osmosis technology has been installed which recycles the sewage effluent into the process at the Haridwar plant. A similar project has also under progress at the Dharuhera plant and this is likely to be completed in 2008.

Community

Hero Honda Motors takes considerable pride in its community relationships, especially ones at the grassroots that have evolved over time. The Company has played a pivotal role in bringing an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream through direct interventions in education, healthcare, vocational training, creation of social and physical infrastructure, and environment management.
Most of the group’s social enterprises � including the Rural Development Centre– are planned and executed by the Raman Kant Munjal Foundation. To help local people, especially women, Hero Honda has set up a vocational training centre which runs a 6 months Diploma Course for Tailoring, Embroidery and carpet weaving, etc.
During the year in review, the Centre was upgraded. It now trains 50 girls per batch up from 25 & the duration of the course was increased from six months to 9 months. The Centre has also been equipped with modern machines to prepare the girls for the Garment Export Industry, where placement is 100%.
Also during the year, women from four villages near the factory at Dharuhera benefitted from food-processing courses conducted at the Centre. In February 2007, the Foundation had set up a computer training & learning centre in partnership with Microsoft. A total of 8 to 10 batches (boys and girls) are run simultaneously consisting of 18- 20 students per batch. Till date, close to 400 students have been trained at the centre. To enhance the value of rural youth in the job market, a spoken English course was started during the year. Currently the course is being run in three Batches during the day. It is proposed to train approx 120 students per year. The Foundation will make an effort to place them with BPO/Call Centres, provided the students also have the requisite computer training.
A vocational centre for boys is expected to start during 2008-09 and will run on the lines of an ITI. The centre will provide training in Fitter, Welding, Carpentry and Plumbing & Electrician Trades. It is planned to train approx. 50 students every year, and efforts will be made to accommodate them in group companies.
The Foundation also runs an Adult Literacy Program, a marriage facilitation service for underprivileged girls, besides doorstep healthcare programs and medical camps for the local population. A graduate teacher from the targeted village is appointed to teach the elders. Approx 650 people have benefited from this scheme spread over 20 villages.
In every CSR Project undertaken, the Foundation always involves either a local NGO preferably the village itself or panchayat members not only during execution but also for subsequent sustainability/maintenance of project. In certain areas such as computer learning by rural youth Udyan Care, a reputed NGO has been made a partner in association with Microsoft. In Projects like Hygiene, Sanitation & Safe Drinking Water, Local Government Representatives such as Block Development Officers are also involved.

Source: www.herohonda.com/co_csr.htm

http://www.herohonda.com/invest_annual_reports.htm Annual Report �07-�08 pg 18/19/20

Karmayog Comments: Increase in CSR initiatives this year

Contact Information:

Hero Honda Motors Ltd

34, Community Centre,

Basant Lok, Vasant Vihar,

New Delhi 110 057

Delhi

Phone no. : 011-2614 2451, 2614 4121

Fax : 011-2615 3913

Email : jk@yahoo.co.in

Website : http://www.herohonda.com/

Industry Sector: Automobiles – Motorcycles / Mopeds

Products / Services: Manufacturer of Automobiles – Motorcycles / Mopeds

Other locations of factories / offices: Plants in Dharuhera, Gurgaon and Haridwar

Previous year�s CSR activities & rating: