When Hero Honda was born to launch Bike manufacturing in India, Honda of Japan was a well-known brand. They took Munjals of Hero Cycles as partner in order to comply with the then license requirements (who proved to be loyal to Honda.) We, the minority shareholders, took up shares in the IPO just because of our fancy for brand HONDA and were rewarded for superb performance & financial pay back by way of dividends & bonus issues since mid 1980's.
However, to our chagrins and dismay, Honda had talked to just Munjals and NOT all other shareholders holding 47+% shares. To be fair to their INDIAN PARTNERS, Honda should have insisted on selling their 26% collectively to a SPV whose shares should have been offered to all such partners proportionately and Munjals may have taken up all UNSUBSCRIBED shares them severally (i.e., taking PE routes). Exit of Honda will be damaging to the business of Hero Honda and their shareholders.
Munjals are NO match to HONDA as far technology is concerned
Present plan is totally tilted in favour of Munjals. To safe-guard the interests of minority, the government must have a re-look on the severance of such collaborations & joint ventures..
i don't agree with this entirely (i agree on technology part)
ReplyDeletei am a positive thinker and i think what ever happens, happens for good
and what Hero Group has done is better for the company and for the shareholder
we want indian company to be no. 1 in the world
and i am sure Hero- honda ( now hero group with a new brand name)
will surely do that
i am a proud investor of hero-honda