Working capital management in automobile industry - A case study of hero motocorp private limited

Working capital meets the short-term financial requirements of a firm. The efficient handling of cash and current assets determines the survival of a firm and it should maintain adequate working capital for its smooth functioning. Both, inadequate working and surplus working capital will harm the profitability and general health of a firm equally.

This paper is to examine the working capital management in Hero Moto Corp Pvt. Ltd. Hero cycles were founded in Ludhiana in the year 1956 and it became the largest bicycle manufacturer in India by 1975. The company was renamed Hero MotoCorp Pvt. Ltd. with a new corporate identity. It made a rich contribution to the fields of sports and education as a sense of corporate social responsibility.

In this paper, the structure and composition of working capital in the enterprise for a period of ten years is analysed to report the working capital position and net profit. The Pearson correlation was calculated and SPSS tool was usedfor testing of hypotheses formulated.