Hero MotoCorp spends Rs 100 Cr on CSR activities in FY21; Focuses on COVID-19 relief initiatives

New Delhi, 7 January 2022: Hero MotoCorp, has spent Rs 99.73 crores on its CSR activities for the financial year 2020-21. The major focus areas for the company’s CSR activities included Covid relief, community development and livelihood.

The average net profit of the Indian multinational motorcycle and scooter manufacturer, stood at Rs 4,852.77 crores. Therefore its mandatory CSR obligation, calculated as 2 percent of the average net profit of the past three years, amounted to Rs 97.06 crores. However, the company had made a contribution of Rs 31.38 crores to PM-CARES Fund on March 31, 2020 in pursuance of the appeal to contribute to PM-CARES Fund by the Secretary, Ministry of Corporate Affairs. This amount was supposed to be set off during FY21. Therefore, the total CSR budget needed to be spent by the company for the financial year 2020-21 was calculated as Rs. 65.68 crore.

The company however, went a step ahead and spent Rs 99.73 crores in the FY 21 which is approximately Rs34 crore over and above its obligation. Out of the total spent Rs 2.85 crore on administrative overheads.

Hero MotoCorp’s CSR projects are focused on:

• Enhancing environment capital
• Supporting rural development, education & women empowerment
• Facilitating healthcare and skill development
• Creating sustainable livelihoods
• Supporting specially-abled people
• Promoting and inculcating road safety practices
• Development of sports at the grass-root level

Some major CSR projects of Hero MotoCorp and their implementation area

The programmes were undertaken either directly or through specialized agencies/NGOs and government departments.

Contribution towards COVID-19 relief

The annual report of the company states, “When the Covid-19 pandemic hit the world, we considered it our responsibility to support the people & communities in need. As a responsible organisation, we earmarked a significant amount of our CSR spends for various initiatives undertaken to support frontline workers and vulnerable communities that were severely impacted due to the pandemic.”

Important contributions

• 22.34 lakhs meals distributed to underprivileged communities
• 45.51 lakhs masks distributed to hospitals/ administration/police/community
• 37,701 liters of sanitizer offered to hospitals/ administration/police/community
• 57, 865 PPE kits handed over to government hospitals
• 59 FRVs (First Responder Vehicles) given to health departments of various states
• 34000+ ration kits

Provisioning meals & ration kits

The kitchens at its manufacturing plants produced meals for communities during the pandemic.

Producing COVID-19 essentials

In order to meet the increasing demand for essential equipment, the company produced hand sanitizers at its plants and made provisions for manufacturing face masks and PPE kits through various partners. It also redesigned a few motorcycles as FRVs to support the healthcare fraternity and mobilize staff amidst the lockdown.

Donation to PM CARES Fund

Hero MotoCorp proactively responded to the Honorable Prime Minister’s call for contributions towards the government’s efforts to mobilize resources during the Covid-19 pandemic and made generous donations to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund).

Hero MotoCorp CSR Committee

The company has constituted a CSR committee that functions under the direct supervision of Dr. Pawan Munjal (Chairman). Other key members of the committee are Pradeep Dinodia, Prof. Jagmohan Singh Raju, and Tina Trikha.