| The venerated patriarch, visionary and the esteemed Chairman of the Hero Group, Brijmohan Lall Munjal, is a first generation entrepreneur who started very small and through sheer hard work and perseverance has today made his two wheeler venture the World's No.1 Two Wheeler company. It was a distinction hitherto held by a Chinese company. That is not all the motorcycle "Splendor" which was launched in 1995 and sold 791,000 units in 2001 has emerged as the largest selling motorcycle model in the world. The Hero Group comprises many backward integrated two wheeler related companies, of which the Hero Cycles and Hero Honda constitute the major players. He produces 5.7 million bicycles and over 1.42 million two wheelers annually. Also, Hero Cycles boasts of one of the highest labour productivity rates in the world. Brijmohan Lall's inspiration to enter the two-wheeler world came from a desire to provide the cheapest form of transport for the poorest of the poor. Post-partition, Brijmohan Lall Munjal and his brothers relocated to Ludhiana. They had to begin from scratch. They set up as manufacturers of bicycle components. From then on there was no looking back. In typically modest manner, Munjal accords a great deal of the credit for his success to his family and his team.
Hero Cycles has been the largest manufacturer of bicycles in the world since 1984 and figures in the Guinness Book of World Records. These honors have come through sheer discipline, which according to Munjal is the refining fire by which talents become ability. According to him ambition, confidence, enthusiasm and success are produced by courage, faith and hard work. No wonder, the leading company of the group, Hero Honda, declared a whopping 850% dividend for the financial year ended 31st March 2002. It grew over 500% in five years. Though not technically qualified, Munjal possesses the uncanny ability to zero in on the right technology, giving Hero's products a winning edge over its rivals. He is admiringly described by associates as an all-rounder, a businessman, whose acumen in financial matters is as sharp as his hands-on grasp of technology, manufacturing and marketing. A case in point being the Hero Honda decision to go for a four-stoke engine and focus on fuel efficiency. This really clicked in the market and laid the foundation for Hero Honda's phenomenal success. In fact their model, Splendor is the largest selling model in the world. Hero Honda apart, the examples are many and have made the man the living legend that he is. The business growth of Hero Honda has been phenomenal throughout its early days. Today Hero Honda has an assembly line of 9 different models of motorcycles available and is currently the largest producer of Two Wheelers in the world. Recently it has also entered in scooter manufacturing, with its model PLEASURE designed mainly for girls.
Majestic Auto, a group company, manufactured Hero Puch, a high-priced moped. When the domestic demand fell, the company looked at exports and today, it is the country's largest exporter of mopeds, in terms of volume. Those who know Munjal are unanimous in praising his qualities of head and heart. Yet the quality that epitomises the man is his complete humility. It is his self-effacing and impartial nature that has been the glue that has bonded the Munjal family for well over 40 years. No wonder, it is common to find three generations of the same family working together at the Group, or workers sharing their skills with other family members, and passing on the finest training to each other. No mean tribute to the relationship-building skills of their leader.
A glorious tribute to Munjal's ability to carry his team with him is the fact that at the Hero facilities in Ludhiana, there has been no stoppage of work ever, except for a few days during Operation Bluestar. Also, Hero Cycles boasts of the one of the highest labour productivity rates in the world. An enlightened labour policy and a keen sense of fair play have contributed to the tremendous sense of dedication and commitment on the part of everyone associated with Hero. Munjal's foresight and vision have taken many by quiet surprise. When the Japanese Honda Motors was looking for a collaborator, Hero was not one of the market's top bets. In fact there were other eligible suitors. Who would want to come to India with a low profile cycle manufacturer and that too a first generation entrepreneur when there were established family houses. Yet the astute Japanese soon realised that the Hero Group was run on more or less the same lines as Honda itself - with a sharp focus on financial and raw material management and enjoying a low employee turnover. They were also amazed to find that the Munjals already practised "Just-in- time-inventory" which became popular outside of Japan much later. In a visit to the Hero factory, a business associate recalls, "The raw material vendors would bring in the goods, they would be paid instantly and by the end of the day, the finished product would roll out."
When Honda Motor executives met Munjal for the first time, they were struck by the similarities in his approach to that of their company's legendary founder, Suichiro Honda. Today, the Japanese would appear to have certainly made the right decision, for Hero Honda is recognized as one of Honda's best-managed units outside of Japan. Munjal's aspiration to provide cheapest transportation to the poorest of India's poor inspired him to perfect his operations and make them as cost-effective as possible. This is how increased vendor efficiency and zero-inventory management practices evolved at Hero. A Spartan upbringing and the deeply-ingrained social ethics and values imbibed at the gurukul where he chose to study have profoundly impacted Munjal's sense of social commitment and responsibility. He keenly feels his responsibilities towards his country and holds in his heart a special affection for the city that gave him his success, Ludhiana. A sentiment that Ludhiana and its people reciprocate in full measure. Be it the large corps of industrialists and businessmen that the town boasts of, educators, social workers or even the ordinary resident, they all sing his praises and readily acknowledge his very personal involvement in, and contribution towards institution-building in the town. The Ludhiana Stock Exchange owes its existence to his vision and foresight. The Ludhiana Flying Club is another brainchild of Munjal's.
Yet another yeoman service he has rendered to Ludhiana is the steering of Dayanand Medical College and Hospital, to its current standing of being rated as one of the best medical colleges in India. From 1976, Munjal has been heading this association and is credited with turning it into the prestigious institution that it is today. Recently the Hero DMC Heart Centre was set up, an ultra modern cardiac care facility. Several schools and educational institutions in Ludhiana owe their existence to the Munjals. In and around Dharuhera, near the Hero Honda plant, the group has adopted numerous villages for integrated rural development such as education, drinking water, roads, streetlights, a proper drainage system, etc. Through vocational training scores of village women have been able to receive training resulting in gainful employment. The Raman Kant Munjal Foundation set up in memory of his beloved eldest son, under his stewardship, today runs a very modern and well-equipped 100-bed hospital at Dharuhera.
When asked about his success, he says that he traversed the road to success following these principles: Trusting his uncanny instincts, a unique approach to people - one from the heart, ahead of his time, every time, the ideal corporate citizen, showing others the way. Above all, his leadership and sagacity has earned him great respect and he has personally been responsible for kindling the spirit of entrepreneurship amongst his employees who today constitute a family of about forty successful entrepreneurs. The man who first carried rural India on his 2 wheels, now carries the middle class. |