Hero Cycles allocates Rs 100 crore contingency fund to tackle Covid-19 impact

With the Covid 19 outbreak expected to unleash long-term economic consequences, Hero Cycles announced that it is setting aside Rs 100 crore as a contingency fund to address and mitigate its impact on partners and the community at large.

The contingency fund will be put to use as and when required to mitigate the impact of Covid-19 situation on employees, suppliers, customers and communities across India. The organisation has also reached out to the governments in states where it has major facilities (Punjab, Bihar and Uttar Pradesh) to extend any help required by authorities in addressing the crisis.

The company has also set up an Emergency Monitoring Cell headed by Chairman Pankaj M Munjal to closely monitor the economic repercussions of the pandemic and its impact on the organisational supply chains. It will oversee the planning of supply chain resumption as and when the situation normalises, medical support for employees and their families, and support for communities around key manufacturing facilities.

Hero Motor Company’s international subsidiaries are undertaking a similar exercise in the UK and Germany where they have a significant presence.

“This global pandemic has unleashed unforeseen consequences and economic crisis across industries. We understand that long term lockdowns are bound to impact the supply chains and livelihoods associated with our business. At such a time, we want to make sure that we do our beat in cushioning our partners, distributors, associates, employees as well as the communities we work in against economic troubles. As an organization that stands for the principles of business with a humane approach, we are allocating Rs 100 crore as a contingency fund to help the entire ecosystem around our organization survive this crisis. We are also reaching out to different state governments to offer all possible help,” Pankaj Munjal, chairman, HMC, a Hero Motors Company said.

The company is also ensuring that all its employees comply with the requisite social distancing norms and has therefore mandated work from home for all possible functions. It is ensuring business continuity through its state-of-the-art IT systems.