It was inevitable, wasn’t it? Hero Honda has applied to the Registrar of Companies (ROC) for a name change. As per SEBI guidelines, a public listed company has to get approval from ROC for a name change and 50% of the revenue in the previous year should come from the activity indicated by the new name. The new name is Hero Moto and the change is not yet official as the ROC is yet to grant permission. Once Hero Honda gets approval from ROC, it will have to get shareholders approval as well, which should not be an issue considering majority stake lies with promoters. So in another two months time, Hero Moto would be the official name of the world’s largest motorcycle manufacturer.
Obviously the company can’t just change the name and sit. They have set aside Rs. 200 crore for re-branding activities. This would involve aggressive communications telling people about the new Hero Moto Passion or Hero Moto Karizma. What do you think about the new name? Does it change your perception about the company? We ask this because most people relate Hero Honda to Honda, and Honda means quality to most. Will Hero Moto continue to set the sales charts on fire with this new beginning? We wait and watch.
