Complete analysis of Mahindra & Mahindra

7/20/2013

MAHINDRA
&
MAHINDRA

COMPLETE STUDY ON AUTOMOBILE SECTOR

[Type the document subtitle] | Monu

A PROJECT REPORT
ON

MAHINDRA AND MAHINDRA
COMPLETE STUDY ON AUTOMOBILE
SECTOR

1

BONAFIDE CERTIFICATE

Certified that this project report titled Mahindra and Mahindra complete study
of Automobile Sector is the bonafide work of MR. Monu. A. Tiwari, who carried
out the project under Prof. Abhay Srivastav’s supervision. Certified further, that to
the best of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.

Prof. Abhay Srivastava

Prof.C. Bhattacharjee

Fazlani Altius Business School

Dean, Fazlani Altius Business School

2

FACULTY GUIDE CERTIFICATE

Certified that the dissertation title Mahindra and Mahindra complete study of
Automobile Sector is a bonafide work done Mr. Monu A. Tiwari under Prof.
Abhay Srivastava guidance in partial fulfillment of Master of Business
Administration programme at FAZLANI ALTIUS BUSINESS SCHOOL. The
views expressed in this dissertation is only of that of the researcher and the need
not be those of this institute. This project work has been corrected by me on the
basis of rough draft being submitted.

Prof. Abhay Srivastava
Visiting Faculty
FAZLANI ALTIUS BUSINESS SCHOOL
Powai, Mumbai branch

3

DECLARATION

I do hereby declare that the dissertation title A STUDY ON Mahindra and
Mahindra complete study of automobile sector is a record of bonafide work
done by me under the supervision of Abhay Srivastava, FAZLANI ALTIUS
BUSINESS SCHOOL, Mumbai 400 072 and submitted in partial fulfilment of the
requirements for the semester-4 doing degree of Master of Business
Administration.

Monu A. Tiwari
SMM/22
Fazlani Altius Business School

4

ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would
like to extend our sincere thanks to all of them.
I am highly indebted to Fazlani Altius Business School for their guidance and
constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to express my gratitude towards Prof. Abhay Srivastava for his kind
co-operation and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to Prof. Chittaranjan
Bhattacharjee for giving me such attention and time.
My thanks and appreciations also go to my colleague in developing the project and
people who have willingly helped me out with their abilities.

Place:Mumbai
Date:20th july,2013
Monu.A.Tiwari

5

INDEX

Sr. no

Particulars

Page no.

1

Bonafied certificate

2

2

Faculty guide certificate

3

3

Declaration

4

4

Acknowledgement

5

5

Objective of the report

8

6

Executive summary

9-34

7

Vision & Mission

35-36

8

Long term objective

37-49

9

Strategy management process

50-53

10

Corporate social responsibility

54-76

11

Market research

77-78

12

Environment analysis

79-85

13

Quality standards

86

14

Strategy and risk management

87-96

15

PEST analysis

97-100

16

Market environment analysis

101-110

17

Value chain analysis

111-113

18

Product mix

114-143

19

Guarantee & warrantee

144

20

Services analysis

145-148

21

Manufacturing Plant Location

149-157

22

Key People

158-160

23

Business structure

161

24

SWOT analysis

162-163

25

BCG matrix

164-165

26

Sustainable competitive advantages

166-169

27

Directors report

170-175

28

Financial statement

176-195
6

29

Automobile industry in and beyond the crisis

196-198

30

Current status of Indian auto industry

199

31

Need for automotive policy

200-205

32

Case study on yuvraj

206-207

33

Conclusion

208-209

34

Webliograpgy

210

7

Objectives of the Reports is to know:
To Study the automobile Company as well as the whole sector.
To find the opportunities in the emerging Indian market.
To find out the success of Mahindra and Mahindra.
To design long term marketing strategy for penetration for Mahindra &
Mahindra.

8

EXECUTIVE SUMMARY

DESCRIPTION OF THE COMPANY:-

Mahindra & Mahindra Limited is an Indian multinational automobile
manufacturing corporation headquartered in Mumbai, Maharashtra, India. It is one
of the largest vehicle manufacturers by production in the Republic of India.
M & M was founded in 1945 by Mahindra brother’s i.e. KC Mahindra and JC
Mahindra and Mohd. Ghulam as a steel trading company, we
entered automotive manufacturing in 1947 to bring the iconic Willy’s Jeep onto
Indian roads. Over the years, we’ve diversified into many new businesses in order
to better meet the needs of our customers. They follow a unique business model of
creating empowered companies that enjoy the best of entrepreneurial independence
and Group-wide synergies. This principle has led our growth into a US $16.2
billion multinational group with more than 155,000 employees in over 100
countries across the globe.
Today, our operations span 18 key industries that form the foundation of every
modern economy: aerospace, aftermarket, agribusiness, automotive, components,
construction
equipment,
consulting
services,
defence,
energy, farm
equipment, finance and insurance, industrial equipment, information technology,
leisure and hospitality, logistics, real estate, retail, and two wheelers.
Our federated structure enables each business to chart its own future and
simultaneously leverage synergies across the entire Group’s competencies. In this
way, the diversity of our expertise allows us to bring our customers the best in
many fields.

9

Founders:-

JAGDISH Chandra Mahindra

KAILASH CHANDRA MAHINDRA

MALIK GHULAM MOHAMMED

10

KESHUB MAHINDRA (FORMER CHAIRMAN)
Keshub Mahindra is a graduate from Wharton, University of Pennsylvania, USA.
He joined the company in 1947 and became the chairman in 1963.
During his long career he has held many key positions, served on the Board of
Directors of several organizations, and been a member of many organizations and
committees. He has also held many other important positions, such as Chairman of
Bombay Chamber of Commerce and Industry (1966–67), President of
ASSOCHAM (1969–70), Chairman of the Indian Institute of Management,
Ahmedabad (1975–85); Member of the Foundation Board - International
Management Institute, Geneva (1984–89); Chairman, India Nominating Committee
'Single Nation Programme', Eisenhower Exchange Fellowships, USA (1998–2005).

11

ANAND MAHINDRA (CHAIRMAN & M.D.)
Anand Mahindra is Vice Chairman and Managing Director of Mahindra &
Mahindra. He graduated magna cum laude from Harvard University and earned his
MBA from Harvard Business School in 1981. He joined the Mahindra Group in
1981 as an Executive Assistant to the Finance Director of the Mahindra Ugine
Steel Company. His leadership has helped make Mahindra a global company and
strong competitor since India's economic liberalization in 1991. Anand is a notable
public figure with a considerable following on Twitter and serves on many boards
and committees.

12

Mahindra and Mahindra Full History:1945

- The Company was Incorporated and converted into Public Limited in 1955 at
Mumbai. The Company Manufacture Jeep type vehicles, petrol industrial engines,
industrial process control instruments and flow meters. Trading in steel and
manufacture of professional grade electronic components. Jeeps are manufactured
under a license and an agreement with Willys Motors Inc., Toledo, Ohio, U.S.A.,
for whom the Company also acts as exclusive distributors for the whole of India for
their entire range of vehicles including utility vans, cargo/personnel carriers and
pick-up.

1958

- The Company entered into an agreement with Birfield Ltd., to form Mahindra
Sintered Products Private Limited for the manufacture of a wide range of selflubricating bearings.

1968

- The Instrumentation & Electronics Division came into existence as a result of
merger of the wholly-owned subsidiary of Mahindra Engineering Co. Ltd., with the
Company with effect from 1st April 1968. The activities of the merged company
were being carried on in this division.

- The Company acquired the whole paid-up capital of Mahindra Electro-Chemicals
Products Ltd. Company.

- With effect from 1st April, the wholly owned subsidiary Mahindra Engineering
Co. Ltd., was merged with the Company. International Tractor Company of India
Ltd., was merged with the Company effective from 1st November 1977.

13

1970

- The name was changed from Mahindra Van Wijk & Visser Ltd. to Mahindra &
Mahindra Ltd. This was merged with the Indian National Diesel Engine Co., Ltd.,
during 1977-78. 1977 - 74,

- 700-9.3% Pref. and 12,98,202 No. of Equity share allotted without payment in
cash to shareholders of International Tractor Co. Ltd., on its merger in prop 1:1
Pref. and 2:3 Equity. 12,500-7.8% Pref. shares redeemed on 1.2.1979.

1978

- The Company started negotiation with Balania K. Zacharopoulos Ltd., Athens for
jointly promoting a new company in Greece for the manufacture of Jeep vehicles
and trucks. Initially, it was proposed to assemble these vehicles mainly from CKD
packs to be shipped from India.

1979

- 57,22,764 Bonus equity share issued in prop. 1:1.

1983

- 76,30,352 Bonus equity shares issued in prop. 2:3 in October 1984.

1984

- Mahindra Spicer Ltd. (MSL), was amalgamated with Mahindra & Mahindra Ltd.
(MML) with effect from 3rd April. Pursuant to the scheme of amalgamation of
MSL with MML, the shareholders of MSL were allotted 1,88,166 equity shares of
MML in the ratio of 1 equity share of MML for every 6 shares held in MSL.

- The Company entered into a collaboration agreement with Foramer S. A., an
14

associate of Forasol S.A., for purchase of Ile d' Amsterdam an offshore drilling rig
at a price U.S. $10.75 million. The Company arranged for a foreign currency loan
through Bank of Baroda. In view of this purchase, the Company obtained a firm
order from ONGC for drilling services for 2 years.

1985

- A letter of intent was obtained for the manufacture of 50,000 lines of
EPABX/PAXs in collaboration with OKL Electric Co. of Japan.

- The Company also signed a Memorandum of Understanding with the British
Telecom p.l.c. of London under which the two companies were to jointly explore
and develop opportunities in telecommunication and technical fields in India. MBT was made a subsidiary of the Company with 60% holding and the remaining
40% was subscribed by the foreign partners, the British Telecommunications p.l.c.,
U.K. (BT) for provision of software engineers of MBT to work on various projects
of BT in the U.K. MBT also decided to issue equity capital to the extent of Rs 4
crores out of which shares worth Rs 2.40 crores were to be offered to Mahindra &
Mahindra Ltd., for subscription and the balance shares worth Rs 1.60 crores were
to be offered to BT.

1987

- (17 months), approval from Government was received for the manufacture of
Peugeot 504 pick-up vehicles in collaboration with Automobiles Peugeot of
France. - A new model M-595 tractor in the 50 H.P. range was introduced.

1988

- The Company acquired a off-shore drilling rig "Ile d' Amsterdam" from Foramer
S. A., France as on 1st March. A firm letter of intent was received for one land rig
for drilling operations at Jwalamukhi, Himachal Pradesh against a tender from
ONGC. The Company already entered into an agreement with Forasol S.A., for
15

purchase of a land rig and related equipment. 1989

- During the year improved versions of CJ 500 range of jeeps and FJ range of
LCVs were introduced. Also a sporty model of jeep was introduce which was well
received by the target audience.

- During September, the Company acquired the automotive pressing unit at Kanhe
from Guest Keen Williams, Ltd. for a gross consideration of Rs 28.75 crores. The
unit has an installed capacity of 10,000 tonnes per annum.

1990

- The Automotive division faced adverse market conditions resulting in a drastic
reduction in production and sales of vehicles. The Automotive division introduced
a direct injection diesel engine, the MDI 2500 A engine on the CJ 500 vehicles. A
new fuel efficient 10 seater vehi cle having a direct injection diesel engine was
introduced.

- A letter of intent was obtained from ONGC for extension of the contract for a
further period of one year. However, on account of certain procedural delays
ONGC dehired the rig and it remained non-operational for about 160 days.
However, the Company received a contract from ONGC for a much higher day rate
and the rig was rendering service to ONGC with effect from 9th November.

- The Company issued 48,16,012-12.5% fully convertible debentures of Rs 110
each with a provision to apply, instead, for 58,86,236 fully convertible zero interest
bonds of Rs 90 each. An option was given to apply for a combination of debentures
and bonds subject to an aggregate value of Rs 52,97,61,320. These
debentures/bonds were offered on rights basis to the then existing equity
shareholders in the ratio of one debenture for every four equity shares held. The
issue was fullysubscribed. Additional bonds/debentures were issued to retain the
over-subscription to the extent of 15% of the issue which is equivalent to 7,22,401
debentures of Rs 110 each.
16

- Through another letter of offer, two blocks consisting of 8,64,049 debentures each
were offered to Mahindra Companies and International Finance Corporation,
Washington, respectively with an option to apply for bonds subject to the aggregate
value of Rs 9,50,45,390 for each block. The issue was fully subscribed. Additional
bonds/debentures were issued to retain the over-subscription to the extent of 15%
of the issue which is equivalent to 1,29,607 debentures of Rs 110 each for each
block.

- The employees (including Indian working directors)/workers of the Company
were also offered on an equitable basis 2,40,801 debentures of Rs 110 each with a
provision to apply for bonds within the aggregate limit of the issue. The issue was
under subscribed. Only 16,750 debentures and 68,250 bonds were allotted. The
balance debentures/bonds were allowed to lapse.

- As on 1st April, 49,90,354 debentures and 26,20,371 bonds were allotted.

- As on 1st May, the Company allotted on private placement basis 14% redeemable
non-convertible debentures for a total value of Rs 20 crores to UTI, LIC, ICICI,
Army Group Insurance Fund and GIC and its subsidiaries. These debentures are
redeemable in full at a premium of 5% on 1st May 1997.

1991

- New replacement kits for the series of diesel engines, the XDP 4.90 were
successfully launched in order to replace petrol engines in passenger cars and
create new demands for the series of diesel engines manufactured by the Company.

- During the second half of the year, the Company introduced the new range of
`Commander' vehicles which were well received in the market. A new model on
the anvil was a five door ten seater vehicle "Armada" with a factory built body for
which dies were imported from Japan.
17

- To meet the changing needs of the market, the Company introduced a new model
225 DI (25HP) tractor.

- Another 8,64,049 zero interest fully convertible bonds of Rs 90 each for a total
value of 9,50,45,390 were allotted to Peugeot India Holding, France, a subsidiary
of Automobiles Peugeot, France as on 18th January.

- As per the terms of the issue, a portion of Rs 55 of each debenture was converted
into one equity share of Rs 10 at a premium of Rs 45 per share and a portion of Rs
45 each bond was converted into one equity share of Rs 10 at a premium of Rs 35
per share an on 1st April.

- Accordingly, the Company allotted 49,90,354 equity shares on conversion of
debentures and 34,84,420 equity shares on conversion of bonds. The balance
amount of each bond and debenture was to be converted as per the same terms
given above at the end of 18 months from the date of allotment.

- In order to meet the long term working capital requirements, the Company issued
in January 1991, 14% redeemable non-convertible debentures aggregating Rs 25
crores to Infrastructure Leasing and Financial Services, Ltd. on a private placement
basis. The debenture are redeemable in full at premium of 5% on 8th January,
1998.

1992

- It was proposed to launch a new LCV with a much larger platform, imported
driving comfort and better styling .

- The Company issued 72,42,719 - 14.5% secured Non-convertible redeemable
debentures of Rs 100 each with a detachable warrant attached to each debenture
entitling the holder thereof to apply for 1 equity share of Rs 10 each at a premium
of Rs 20 per share in the ratio 1 debenture: 5 equity shares held, on the expiry of
six months and 36 months from the date of allotment of debentures.
18

- Another 3,62,136 non-convertible debentures with detachable warrants were also
offered to employees on an equitable basis. Only 2,20,300 debentures taken up.

- 76,04,855 oridinary shares of Rs 10 each at a premium of Rs 20 per share were to
be issued to those exercising the rights attached to the warrants between 6 months
and 36 months from the date of allotment of debentures. The debentures were to be
redeemed not earlier than the end of 7th year but not later than the end of the 10th
year from the date of allotment of debentures.

1993

- The Automotive division undertook to introduce a wide range of products such as
mini bus, MM Deluxe, Armada deluxe, Cabking pick-up, CL-Classic & a
single/double Cab pick-up etc.

- Mahindra Nissan Allwyn Ltd. (MNL) was amalgamated with Mahindra &
Mahindra Ltd. (MML) with effect from 1st November. Pursuant to the scheme of
amalgamation, the shareholders of MNAL were allotted 9,73,200 equity shares of
MML in the ratio of 1 equity share of MML for every 25 shares held in MNAL.
With the merger modern automotive plant owned MNAL became a Unit of the
Company's automotive division.

- The Company issued 100,47,043 Global depository receipts valued at US $ 74.75
million. Each GDR was issued at a market price of US $7.44 and was supported by
equal number of underlying shares. Accordingly 1,00,47,043 shares were allotted at
a premium of Rs 22.50 per share.

1994

- During the year a new Company Mahindra USA Inc. had been established in
Texas, U.S.A. with the objective of increasing tractor sales in U.S.
19

- 9,73,200 shares allotted to the erstwhile sharehodlers of MNAL 11,14,682 shares
allotted against the detachable warrants. 35,85,874 shares allotted to Ford Motor
Company USA, at a premium of Rs 370 per shares. 28,00,000 shares allotted to the
promoter group.

1995

- A New LCV model-cabking DI 3150 - with a payload of 2.5 tonnes, a 5-speed
transmission and high quality components was launched. Also, a sporty 4-wheel
drive vehicle Mahindra Classic with modern fitments such as Vacuum assisted
brakes, disc brakes in front, wire wheels & bull bar was launched for the domestic
market. In addition, a new commander 5-Door Hard Top vehicle, primarily targeted
for semi-urban and rural transportation was introduced.

- Two new models - 365 DI and 585 - DI were also launched in 30-35 HP and 4550 HP segments respectively.

- The Company entered into a joint venture agreement with Ford Motor Company
USA (Ford) for promotion of a new Company for the manufacture and marketing
of Ford range of passenger and other vehicles. The Company has an equity
participation of Rs 160 crores each by Ford and the Company.

- 22,71,322 No. of Equity shares allotted in conversion of warrants. 407,17,489
bonus equity shares issued in proportion 2:3.

- The tractor division received the ISO 9001 certification from TUV of Germany.

1996

- The Company proposed to introduce the `Armada Grand' with XD3 diesel engine,
5 speed BA 10 transmission with air-conditioning and power steering as standard
features. New models like, soft top and FRP versions of CL/MM 550 models,
comfortable 8 seater Armada with Disc Brakes and an optional factory fitted air
20

conditioner, Commander 650 DI on a longer wheel base and MM 540/550 XDB
models with the powerful 2.5 lines XD3 engine and the all-synchromesh 5 speed
BA 10 transmission were launched during the year.

- During July, the Company offered US $100,00,000-5% convertible note during
July 9, 2001 came into GDRs each representing one share at a cover sum price of
US $11.955 per GDR. Till date 15,73,830 shares issued.

1997

- The Zaheerabad plant and R&D division were awarded Iso 9002 and ISO 9001
certification respectively. With the technology received from Fuji Technica, Japan
the company undertook to manufacture dies for vehicle bodies in the new Die
Shop. During the year, 7 new models to cater to different nice markets were
introduced.

- New products viz. 275 DI TU upgrades B-275 model with increased power and
585-C, 585 DI model with constant mesh transmission for ease operation were
introduced.

- M&M is setting up an engineering and product development centre at Thane to
strengthen its technology and designing capacities.

- M&M is setting up a joint venture with Mondragon Corporation of Spain in the
area of iron foundry. The joint venture agreement was signed in Spain by M-M at
an Indo-Spain joint business council meeting organised by the Federation of Indian
Chambers of Commerce and Industry and the Association of Chambers of
Commerce and Industry of India.

- M&M is entering into a 50:50 joint venture with the $8 billion Case of the US for
manufacturing high horse power tractors.

- The M&M-Sealand joint venture is considering introducing a Ro-Ro (Roll-on,
21

Roll-off) railway service in India. - The Mahindra group has tied up with Sega
Enterprises Ltd and Mitsubishi Corporation of Japan to form a joint venture (JV) in
India to develop and launch Sega branded family entertainment centres.

- M&M has signed an agreement with Chemoleums Ltd under which M&M will
use a special quality of Chemoleums lubricating oil, Mahindra Singlestar, for its
tractors.

- M&M has signed a wage agreement with its union at its automotive plant at
Kandivali, evolving a Mahindra Production System (MPS) which is an
amalgamation of latest work measurement techniques and Toyota Production
Systems.

1998

- A joint venture company is being promoted by Mahindra and Mahindra Limited,
Infrastructure Leasing and Financial Services and Tamil Nadu Industrial
Development Corporation to set up an industrial park near Chennai to attract auto
ancillary units and all categories of non-polluting industries.

- Utility vehicle manufacturer, Mahindra and Mahindra (M&M) on May 27 signed
a productivity and capacity linked wage agreement with its union (Bharatiya
Kamghar Sena) at its tractor plant at Kandivali.

- M&M has signed new productivity agreements with its workers at the Kandivli
(Mumbai), Nashik and Zaheerabad (Andhra Pradesh) plants.

- Mahindra Ford is likely to sign a MoU with the government to import auto kits.

- Mercedes-Benz India Ltd and Mahindra Ford India Ltd have signed a MoU with
the Directorate-General of Foreign Trade (DGFT), under the new MoU policy for
car manufacturing in the country.
22

- Danish company Maersk, Mahindra & Mahindra and the Tamil Nadu Industrial
Development Corporation (Tidco) propose to establish a joint venture to develop
Colachel on western coast of south Tamil Nadu into a hub port.

- Mahindra & Mahindra (M&M) is all set to float a 50:50 joint venture company
with the Punjab state government for setting up a hi-tech agro-commodity
exchange in the state.

1999

- M&M has set up a new company - Mahindra Auto Specialities Ltd - for bulletproofing passenger vehicles and providing specialised services. M&M has signed
an MoU with Plasan Sasa of Israel for design and development of armoured (bullet
proof) solutions on M&M utility vehicles for use by Indian security forces.

- The Mahindra & Mahindra group and the TVS group have floated a joint venture
to provide software solutions to the automobile sector.

- Mahindra and Mahindra (M&M) is working towards introducing a slew of models
in India from the Mitsubishi stables, including its famed Pajero brand of multiutility vehicles (MUVs) and jeeps.

- Mahindra & Mahindra Ltd (M&M) has created a tier-IT structure under Mahindra
Holdings & Financial Ltd whereby individual subsidiaries will tap the capital
market depending upon their need for cash.

- Utility vehicle major, Mahindra and Mahindra (M&M), is entering the Rs 1,000crore three-wheeler market for the first time. The company will launch its first
three-wheeler a diesel-driven eight seater within 8-10 months from now.

2000

- The Company will be launching its first CNG-powered utility vehicle in Delhi.
23

- The Company consequent to disciplinary action taken by the Management against
certain workmen and Union representative, the workmen of Kandivli Plant of
Tractor Division of the company initially stopped work and thereafter resorted to
illegal strike on 11th January.

- The Company proposes to make a call for redeeming Bonds of value US $25.378
million out of current outstanding of US $27.866 million.

- The Company tie-up with Citibank for a channel financing agreement for their
dealers.

- Mahindra & Mahindra launched its eight seater Marshal DI Deluxe 2000 in
Western Maharashtra.

- Mahindra Auto Specialisites Ltd, a wholly-owned subsidiary of the company
delivery of the first "Neticle" (net-vehicle) - brand named Quadro - in India.

- The Company has launched its new generation tractors Arjun 605 DI at the
Kandivali plant.

- The Company and French car maker Renault have signed an agreement to explore
the possibility of using Renault petrol engines for M&M's planned Scorpio utility
vehicle.

- The Company has launched a fresh voluntary scheme for employees in its tractor
division. The Scheme will open on June 8 and will continue till July 31.

- The Company is set to launch its 2.5-litre multi-utility vehicle, Bolero.

- The Company launched the 39 HP and 40 HP models of its `Bhoomi Putra' range
of tractors.
24

- The Company has entered into a technical alliance with Austrian engine
manufacturer AVL list GmbH for production of light commercial vehicles of 3.5
tonne capacity.

- M&M will launch the LCV under the `Loadking' name in January next year.

- M&M has launched its first 60 HP class tractor Arjun 605 DI here, will from now
roll out a new mode very six months.

- The Company the utility vehicle market leader, launch of its latest UV, the Bolero
GLX.

- The Company will launch Scorpio, its urban utility vehicle, by the end of the year.

- The Company has launched the first of its new series of "Horizin Tractors", the
Mahindra "Arjun 605 DI" in Andhra Pradesh.

- The Company launched diesel version of Bolero in a short time.

- Mahindra & Mahindra is to go for a expansion, keeping pace with its plans for the
introduction of new models, including the Scorpio.

- Mahindra & Mahindra is likely to introduce agricultural related implement and
equipment in the near fugure.

- Mahindra and Mahindra Limited (M&M) launched yet another range of new
generation tractors to grab a large share of an emerging mature market.

- The Company has launched its fourth portal business with an investment of $1
million.

- Mahindra Intertrade, subsidiary of Mahindra & Mahindra, has launched a steel
trading portal, steelmartindia.com.
25

- Fitch Ratings India has assigned Ìnd AAA' rating to the proposed five-year Rs
100-crore non-convertible debenture programme of the company.

- The Board has approved an ESOS and decided to allot 55,24,219 No. of equity
shares to the Mahindra & Mahindra Employee Stock Option Trust.

2001

- The Company has set up a farm extension services division called Mahindra
Shubh Labh, which will pioneer the building of a chain of one-stop shops offering
a comprehensive range of farm-gate services.

- Mahindra Intertrade, the largest non-automotive company of the Mahindra &
Mahindra group, has entered into a distribution alliance with Lego.

- Mr. Anand G. Mahindra has been appointed as Vice-Chairman and Managing
Director.

- Mahindra & Mahindra is set to launch three new variants of its utility vehicle
Bolero to boost its presence in the urban segment.

- The strike at the company's Nashik automotive plant which began on March 4,
has been called off with effect from 8th March.

- Credit Rating and Information Services of India Ltd. has revised the rating
assigned to the company's long-term debentures to ÀA+' to ÀAA'.

- Mahindra & Mahindra has tied up with French auto giant Renault for sourcing
petrol engines for its premium utility vehicle Scorpio which would be launched
later this year.

-The price of Mahindra & Mahindra Ltd (M&M) shares hit a 92-month low on the
26

Bombay Stock Exchange (BSE) on june 14 fuelled by market apprehensions of a
steep fall in the company’s sales in May 2001

- Mahindra & Mahindra launched the premium version of its 7 seater multi-utility
vehicle, Bolero GLX.

2002

-Mahindra & Mahindra Ltd has informed BSE that ICICI Bank Ltd has withdrawn
the nomination of Mr Inder Chand Jain as their Nominee Director from the Board
of M& M with immediate effect.Consequently Mr Inder Chand Jain ceases to be a
Director of Mahindra & Mahindra Ltd with immediate effect.

-Mahindra & Mahindra Ltd has informed BSE that Mr. David Friedman (currently
the Alternate Director to Mr.Lewis W. K. Booth) has been appointed as a Director
of the Company w.e.f. October 30, 2002 in the vacancy caused by the cessation of
Directorship of Mr. Lewis W.K. Booth. Mr. V.K. Chanana has been appointed as a
Nominee Director of UTI w.e.f. October 30, 2002 in place of Mr. Sanjiv Kapoor
whose nomination has since been withdrawn by UTI.

2003

-Unleashes MaXX Pik Up utility vehicle

- Signed an agreement with Canara Bank . Where in, Canara Bank will provide
loan to those farmers who are willing to buy Mahindra's tractors and other farm
implements.

- Mahindra and Mahindra Ltd on December 24th showcased its new products,
Bolero XL and Bolero XLS, for prospective customers in Karnataka.

2004
27

-Mahindra & Mahindra delisting of shares from DSE

-M&M launches two variants of Bolero utility vehicle in TN

-The former managing director of Rallis India, Mr Rajeev Dubey, is joining
Mahindra & Mahindra Ltd (M&M) as Executive Vice-President (Human
Resources & Corporate Services). Mr Dubey has previously held senior positions at
Tata Steel and was the managing director of Tata Metaliks.

-Auto giant Mahindra and Mahindra has launched its latest variants of Bolero XL
range here on January 19, 2004, thus heralding its launch across the State.

-M&M enters into agreement for acquiring majority stake in US based Bristlecone
Inc

-Mahindra & Mahindra Ltd has informed that the equity shares of the Company
have been delisted from Pune Stock Exchange Ltd w.e.f. January 16, 2004.

-M&M unveils innovation matrix to enhance performance

-Mahindra Special becomes M&M's new IT unit

-Equity shares delisted from Madras Stock Exchange

- Tied up with an Iran-based company Barchinkar for localising M&M tractors in
the Iran market

- Mahindra Tractors in accord with Castrol

-M&M rolls out India's first turbo tractor

-Mahindra & Mahindra Ltd has informed that HSBC Global Investment Fund has
acquired 3,99,825 equity shares of the company through market on May 17
28

-- Andhra Bank has announced that it has joined hands with Mahindra Tractors for
financing the distribution of tractors through the bank branches across the country

-Mahindra & Mahindra (M&M) has forayed into the Latin American markets
through the opening of an assembly line in Uruguay

-Mahindra & Mahindra Ltd (M&M) on announced its foray into the South African
automobile market

-Hemant Luthra to head M&M's new MSAT Sector

-Dena Bank inks MoU with M&M for tractor loans

2005

- Mahindra & Mahindra tractors' top dealer in the US has become the largest tractor
dealer in the US, muscling past dealers of John Deer, New Holland and Kubota.

-M&M forays into Australian tractor market on February 14, 2005.

-Mahindra & Mahindra Ltd (M&M) launches its Common Rail Diesel Engine
(CRDEe) fitted-Scorpio, which conforms to BS III emission norms on February 22,
2005,

-Mahindra & Mahindra executes JV Agreement with Renault

-Scorpio unveiled in Malaysia on May 4, 2005

-M&M, Renault ink MoU to set up Rs 550 crore car manufacturing plant in Nasik

-M&M introduces new pick-up vehicle on July 6, 2005
29

-Mahindra unveils 3-wheeler cargo carrier Champion Alfa model

-Mahindra & Mahindra inks a JV with International Truck & Engine Corporation,
USA

-Mahindra & Mahindra enters into agreement with Plexion Technologies,
Mauritius

-M&M has signed a memorandum of understanding with the Saigal family of
Pakistan for exporting tractors to that country..

-Mahindra & Mahindra has given the Bonus in the Ratio of 1:1

2006

-M&M unleashes Scorpio Pik-Up in South Africa

-M&M unveils three-wheeler car

-M&M Hingna unit enters into new new wage agreement

- Mahindra & Mahindra Ltd on Oct 11,2006 signed a agreement with ITMCo (Iran
Tractor Manufacturing Co) to sell tractors in Iran. The agreement was signed in
Tehran.

-Mahindra & Mahindra (M&M) and French automaker Renault have joined hands
yet again to establish a greenfield passenger car manufacturing plant in India within
five years.

- Mahindra & Mahindra inks deal with Global Vehicles USA Inc

30

2007

- Mahindra & Mahindra acquires a leading German Forging Company Schoneweiss
& Co. GmbH.

- Mahindra unveils new Bolero in Gujarat.

-Mahindra and Mahindra (M&M) has launched the line of sports utility vehicles
(SUV) and pick up trucks that it plans to begin selling in the United States starting
from 2009.

- M&M unveils Mahindra Pik-Up in Australia.

-The latest product from Mahindra Defence Systems, the Axe FAV is an extreme
offroading multi terrain defence purpose vehicle.

2008

-Mahindra & Mahindra acquires renowned Italian design house, GRD Italy.

2009

- Mahindra & Mahindra unveiled its fourth generation Scorpio at an unbeatable
price.

- Mahindra & Mahindra (M&M) signed a memorandum of understanding with the
State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance.

- Mahindra launches luxury sedan XYLO

- M&M enters retail space with Mom & Me

- Mahindra sold 1,788 XYLOs in two weeks
31

- M&M signs pact with State Bank of Bikaner

- Mahindra gets order for 15,000 Xylo in three months

2010

- Mahindra & Mahindra has hiked prices of its products by up to Rs 18,000 due to
the in excise duty announced in the Budget.

- Anand Mahindra, vice-chairman and managing director, M&M, is keen on
attaining companies that boost M&M’s global aspirations. This can be done by
giving a combination of facilities, technology and dealer network. Meanwhile,
M&M came out as the ideal bidder for getting hold of a majority stake in
Ssangyong Motor Company (SMC).

- Mahindra & Mahindra announced its entry into the heavy commercial vehicle
segment in partnership with Navistar Inc of the U.S.

- M&M launched new mini-truck Maxximo

- Mahindra & Mahindra and Mitsubishi Agricultural Machinery tie-up to deliver
FarmTech prosperity

- Mahindra & Mahindra (M&M) announced that Mahindra Tractors has sold onelakh tractors in 2010.

- Mahindra & Mahindra Finance Services Limited (MMFSL) launched its new loan
against gold product in Kerala, which has been specifically designed in order to
provide liquidity against gold ornaments without selling them.

- Mahindra FirstChoice, TVS group in tie up
32

-Company has splits its Face value of Shares from Rs 10 to Rs 5

2011

- Mahindra & Mahindra - Mahindra launched ‘Genio' - India's Next Generation
Pick Up

- Mahindra & Mahindra - Mahindra announces entry into Micro Irrigation Business

- Mahindra Satyam signs ERP contract with Omran

- Mahindra Group signs strategic alliance with Cisco Systems

- Mahindra & Mahindra - India Mahindra & Mahindra Ltd. completes acquisition
of a majority stake in SsangYong Motor Company

- Dr. Pawan Goenka appointed Chairman of SsangYong Motor Company.

- Mahindra & Mahindra - Mahindra launches 'Verito' the Logan with Mahindra
badge

- Mahindra & Mahindra - Mahindra launches the ‘New Bolero SUV'

- Mahindra & Mahindra - Mahindra launches a New SUV - XUV500

2012

- Mahindra and Mahindra had acquired Ssangyong Motor Company, a South
Korean SUV maker, almost a year ago and are now planning to set up a assembly
plant and invest Rs 800 crore over next 3-4 years

- Mahindra and Mahindra wins arbitration award and class action suit against
global vehicles
33

- Mahindra & Mahindra has entered the Kenyan passenger vehicles market with the
launch of their utility vehicles, XUV500 and Scorpio. Other vehicles include pickup range, Genio and Maxximo mini-truck

- Mahindra & Mahindra Ltd said that the company has signed an agreement with
Telephonics Corporation to form a joint venture, named as Mahindra-Telephonics
Integrated Systems Limited.

- Mahindra Ugine inked joint venture with Sanyo Special Steel & Mitsui & Co.
Ltd. names new venture as Mahindra Sanyo Special Steel Pvt Ltd.

2013

- Auto major Mahindra and Mahindra has inked partnership with online shopping
portal, Snapdeal.com to sell its two-wheeles on the site.

- Mahindra launches new visual identity reflecting modernity and dynamism

- Mahindra & Mahindra Ltd - Mahindra launches the Verito Executive edition

34

Mission Statement:-

To create India's largest automobile and automobile-related products
distribution network by providing dealers and customers with the largest choice of
unique world-class products and services.
“We don’t have a group-wide mission statement. Our core purpose is what makes
all of us want to get up and come to work in the morning”
-ANAND MAHINDRA

Vision Statement:Indians are second to none in the world. The founders of our nation and of our
company passionately believed this. We will prove them right by believing in
ourselves and by making M&M Ltd. known worldwide for the quality of its
product and services.
Mahindra wants to be among the top 10 automotive brands in the world. "The
lifecycle of automotive products is reducing very fast," he says. "The customer is
very demanding and his needs are changing rapidly. For driving growth in
business, we need a new product pipeline." Increasingly, Mahindra is positioning
itself to engineer those products by itself. It is even feeling emboldened to take
calculated risks, as it did with the XUV500's infotainment system, which also faced
some teething troubles.
"We got too aggressive in bringing a very advanced entertainment system to India,"
says Goenka. "We could have taken a safe route of bringing something that's triedand-tested and stayed a generation behind." When the issues with the XUV500
came to light, a cross-functional team of 15-20 members, led by senior officials
from R&D, purchase, servicing and quality worked with a German consultant to

35

address them. "It was important to understand customer issues for future vehicle
programmes," says Mahesh Babu, part of the XUV 500 team.
"Sometimes, it was quality, design or just a freak application outside the design
boundaries." He adds that the company's response time to customers has reduced
considerably. Most of Mahindra's R&D spends in 2012 went into launching new
product and engine refreshes, including Quanto and E20. It also included expenses
on its integration efforts with Ssangyong. "Ssangyong is jointly developing fuelefficient smaller engines with Mahindra, but M&M still has a long way to go," says
Mahantesh Sabarad, analyst at Fortune Financials.
"Currently, its six engines in the range of 1 to 1.6 litre, including petrol and diesel,
are being developed with Ssangyong to power some of the proposed new
launches." Auto sourcing is a lot about deriving economies of scale. If Mahindra
was to work on the six-engine platform on its own, it would be able to do volumes
of up to 80,000 annually.
With Ssangyong as partner, and suppliers from Korea and India, Mahindra can
produce about 300,000 engines per year. "It will not be enough," says
Ramakrishnan of Frost and Sullivan India, adding that improving quality should be
the company's first priority. Pravin Shah, CEO, automotive, M&M, calls quality a
'relative term’. “We make value-for-money products," he says. "Consumers do not
see quality in isolation; it's an entire value proposition." And Mahindra is chipping
away at it.

36

Long term objectives :Anand Mahindra, vice chairman and MD of Mahindra Group, believes the team has
a long way to go to reach its full potential. And apart from "establishing themselves
as a force in the circuit and further enhancing the reputation of the country in the
sport,
"Mahindra's long-term goal is to start a programmer through which Indian riders
can be nurtured for the big league.
"That is indeed our long term goal," says Mahindra. "But that is for later. My belief
is that we can't nurture riders if we don't know the game ourselves.
"We want to establish ourselves as one of the strongest teams in the circuit and then
we will slowly bring up Indian riders. Of course, slowly we will graduate to Moto2
(250cc). That's the next logical step," he adds.
"We are just two races old and it's great that we already made a mark by scoring
our first points. But there is a lot more to do in this season itself," says Mahindra.
"Our riders, Danny Webb (of England) and Marcel, are very experienced in the
circuit. Last Sunday's race was proof enough of their quality. As a manufacturer,
we are glad that we were able to provide the riders the best hardware possible. That
was my primary concern," he added.
The Mahindra bikes were indeed competitive in wet conditions at Jerez on Sunday
with Webb setting sights on a top-10 finish before he crashed out. Schrotter, the
junior rider in the team, took over though. Starting 23rd on the Grid, the 18-yearold German made his way through the field to finish 13th.
Schrotter, who is in his fourth year in the 125cc Championship, was very happy
with the bike's performance after the race.
"It is very competitive and was handling very well too. We have small work here
and there. For instance, improvement has to be made during braking and that
should save us more time. But in a few races, if we keep improving at the same
rate, we would be fighting for podiums," said Schrotter.
37

Small improvements is what we are looking at now, adds Mahindra.
"The big improvement we have made so far was to bring down the weight of the
bikes as it will save us valuable time. One area in particular is the new titanium
exhaust system which saves a few pounds. As the season goes on we will further
develop the bikes," promises Mahindra.
And he expects a lot more from his senior rider Webb.
"Webb is just 19 years old. But he is a veteran in the circuit already and is very
talented. He probably pushed the bike a little too much last Sunday and I am sure
he has learnt from his mistake. He was very disappointed that he couldn't score the
team's first points and has promised to make amends in the coming races," smiles
Mahindra.

38

Various companies of automotive under Mahindra Group:1) Mahindra and Mahindra Automotive Division
2) Mahindra Graphic Research Design
3) Mahindra Navistar Automotive
4) Mahindra Navistar Engines
5) Mahindra Reva Electric Vehicle
6) Mahindra Vehicle Manufacturer
7) SSANGYONG Motor Company
8) Mahindra Trucks and Buses

39

1) Mahindra and Mahindra Automotive Division:Mahindra

&

Mahindra

is

the

flagship

company of

the

Mahindra

Group. Established in 1945, our core automotive and farm equipment businesses
have grown into market leaders whose triple bottom line ethic is driving industry
trends towards technological innovation, social responsibility, and constantly
improving customer satisfaction.
Over the years, we’ve spun off into new ventures in order to better meet the needs
of our customers, expanding into automotive and non-automotive components,
Information technology, Financial services, and energy. We operate in a federated
structure so that each business can take risks and grow on its own and
simultaneously leverage synergies across the entire Group’s competencies.
We’ve been the leader in utility vehicle for over fifty years, since we built the first
Willys jeeps under license on Indian soil in 1947. Today, our portfolio comprises a
wide spectrum of vehicles from two wheeler to heavy Trucks, SUVs to school
buses. Our services include maintenance and repairs, customization, providing
spares, and manufacturing and engineering. We’re opening a new organized-sector
market for pre-owned cars and expanding into foreign markets including the United
States and Europe.

40

2) Mahindra Graphic Research Design:-

Formed in 2008, Mahindra Graphic Research Design specializes in consulting on
automotive style, engineering, CAE (Computer-Aided Engineering), and project
management. Based in Beinasco, Italy, we consult with many European and global
automotive clients to create striking designs and support engineering.
Our style consulting services begin with a brand analysis to understand and then
shape brand identity. We offer concept definition for two wheeler’s, passenger
vehicles and light and heavy trucks. Next, we help with engineering processes
including the part design of BIW (body in white), exterior and interior trim, and the
instrument panel. We use CAE to model static and dynamic qualities, lifetime
wear and tear, safety, and autoform and moldflow manufacturing processes. We
also build prototypes and provide support for regulatory, plant process, and part
manufacturing compliance. Finally, we offer project management services from
project development to product to market support.

41

3) Mahindra Navistar Automotive:-

In 2005, Mahindra & Mahindra entered into a joint venture with Navistar Inc USA,
and Mahindra Navistar Automotive set out to build a range of indigenously
developed commercial vehicles for Indian terrain. Six years later, we’re still
creating and developing Light Commercial Vehicles (LCV) and Heavy
Commercial Vehicles (HCV) that continue to set the standards.
We manufacture a wide range of LCVs and HCVs that are rugged, reliable,
environmentally friendly and fuel-efficient. Designed ground-up in India with
technological assistance from Navistar Inc (USA), a market leader in trucks and
buses in the USA and the world’s largest mid-range engine manufacturer, our
trucks are created to fulfill requirements that are specific to your needs. Our new
state-of-the-art plant at Chakan, near Pune, is staffed by 800 highly trained
technicians, engineers, and specialists, and stretches over 700 acres.
Our constant drive to improve means that our range of trucks is not only high on
performance, but also low on maintenance. With rigorous tests to ensure high
performance even in the toughest of conditions and features that will make your
journey comfortable no matter how far you’re going, our trucks will help you
prosper in your business. Whether it’s goods, people or dreams, our trucks move it
all.

42

4) Mahindra Navistar Engines:-

In 2007, we formed Mahindra Navistar Engines (MNEPL) through a joint venture
with Navistar Inc, USA to produce diesel engines for medium and
heavy commercial vehicle in India. Navistar Inc is North America’s largest
integrated truck and engine manufacturer and the technology leader in emissions
control. Our partnership integrates the best of their expertise with ours to bring
India better, tougher, and cleaner engines.
Our plant at Chakan has an installed capacity of 45,000 engines per year. We’ve
already localized 70 percent of our engine components through 42 vendors. Our
engines are extensively validated for over 18,000 hours. We’ve tested them for 1.5
million km under different geographic conditions to make sure they will deliver the
best performance for both on and off highway applications.
Our first engine, the six cylinders, 207 HP Maxxforce engine, is already powering
25 and 49 to Mahindra Navistar Trucks on long distance hauls. The Maxxforce
platform ranges from 180 HP to 310 HP and is available in both mechanical and
electronic variants. The electronic common-rail Generation 3 version is the most
advanced engine available on Indian roads.
MNEPL is poised to grow to market leadership over the next few years. Through
exceptional dedication to quality and knowledge of the Indian market, we are
committed to developing a robust engine business that will improve truck
performance-and prosperity-for many Indian businesses.

43

5) Mahindra Reva Electric Vehicle:-

The concept of mobility is in the midst of significant change, driven by
environmental concerns, oil economics, rapidly changing consumer needs,
development of new technologies and integration of multiple disciplines in
developing mobility solutions. Sobering facts like rising fuel costs and rapid
urbanisation are just some of the reasons why the world is looking to newer,
superior mobility solutions.
The future of the automotive industry is electric. As we worry about climate
change, energy security, and the price of oil, technological improvements are
making electric cars ever cheaper and more convenient.
We acquired a majority stake in the Reva Electric Car Company in 2010 to advance
the design and production of electric cars worldwide. By integrating Reva’s
electric car technology with our own leading engineering, we can build higher
performance electric vehicles that satisfy customers’ demand both for better
lifestyles and a healthy environment.
At Mahindra REVA, we are constantly seeking solutions to issues that range from
the kind of products that will define the future and the technologies that will go into
these vehicles to the intelligence that these vehicles will possess and the way they
will be manufactured. These questions are shaping our vision of the Future of
Mobility. The advanced vehicles of the future will not only offer unmatched
features, safety, and convenience. They will also be clever and environmentally
friendly.
The increasing fusion of electronics and IT with automotive technologies will give
rise to vehicles with advanced intelligence and connectivity. Other developments in
distribution models, financing options, flexible ownership models, personalisation

44

of vehicles and greater choices across the ecosystem will further alter the entire
experience of interacting with the mobility ecosystem.

As a total systems solution provider, we develop all our Electric Vehicle (EV)
systems in-house. We are pushing EV technology to the next step to create better
energy management, faster charging, and advanced telematics.

We offer

innovative electric vehicles and mobility solutions, technology licensing, and
licensed manufacturing and distribution.
We’re well established as a major global player with the largest deployed fleet of
electric cars on the road today. We’ve sold around 1,800 electric vehicles in
Europe, and more than 1,700 are on the road across Asia and Central and South
America. In total, we’re present in 24 countries worldwide and growing. The
Mahindra Group’s manufacturing expertise and wide global distribution network
will help Mahindra Reva scale up production and spread green technology across
the globe.
In 2012, we inaugurated a new plant in Bangalore, with the capacity to build
30,000 vehicles per year. In keeping with our commitment to clean technology, the
plant received a Platinum rating from Indian Green Building Council (IGBC). The
new facility harvests rainwater, uses natural light and ventilation, and harnesses
solar energy for electricity and heating. With this clean manufacturing process of
clean vehicles and a battery recycling program, our electric cars aim to have the
lowest dust-to-dirt carbon footprints in the automotive world.
In 2007, Reva was named one of India's Coolest Companies by Business Today We
received the 2008 Frost and Sullivan Powertrain Company of the Year award for
excellent sales volume, market penetration, and customer satisfaction. And in
2009, Business Week voted our founder and Chief Technology Officer, Chetan
Maini, one of India's top 50 most influential people. In 2010, the Reva-i was
crowned Car of the Year at the Overdrive & CNBC TV 18 awards.
In 2013, we were named amongst the Top 50 most innovative companies in the
world by Fast Company.
45

6) Mahindra Vehicle Manufacturers:-

Mahindra Vehicle Manufacturers was set up in 2007 to push our technology to the
edge. We designed and built a greenfield facility at Chakan, near Pune,
Maharashtra, to integrate the best in technology, environmental sustainability,
social responsibility, and operational excellence. Spread across 700 acres and
planted with approximately 10,000 trees, Chakan offers a flexible and eco-friendly
manufacturing layout for multiple Multi-Purpose Vehicles (MPVs), sport utility
vehicles (SUVs), and commercial vehicle that allows us to respond rapidly to
changing customer needs.
With a current capacity of 3.2 million vehicles per year and a future-ready
expandable module setup, we have the flexibility to constantly innovate and adapt
to changes in market demand or customer requirements. We currently manufacture
Mahindra & Mahindra’s entire medium and heavy commercial vehicle range from
the 0.75 ton Maxximo to the 49 ton Mahindra Navistar Trucks. The new Global
SUV and Pik-Up range will also be manufactured here.
Our staff of over 2,000 is highly trained in the fields of mechanical, electronic, civil
and electric engineering as well as paint technology. We partner with two regional
tribal Industrial Training Institutes (ITIs) to facilitate a match between educational
quality and content and industry demands. Our partnership has resulted in periodic
faculty training sessions, a restructuring of the curriculum, and the recruitment of
173 students to an apprenticeship training scheme by 2011. We also maintain our
own residential training centre which provides a month-long training to the selected
trainees before they initiate work at the shop floor.
46

We use solar energy and waste heat from the oven exhaust to power activities in
the paint shop, reducing our consumption of gas and electricity for an overall
reduction of 3,500 tons of CO2 per year. A cluster of 70 solar dishes provides the
energy for cooling the paint used for the vehicle bodies. And by recycling waste
water through reverse osmosis and multiple effect evaporation, we achieve zero
water discharge across the entire plant.

7) SSANGYONG Motor Company:-

The Ssangyong Motor Company joined Mahindra & Mahindra in 2011. Founded
in 1954 as the Ha-dong-hwan Motor Workshop, Ssangyong is today a major player
in the South Korean utility vehicle space and enjoys a market presence in more
than 90 countries. Based in Pyeongtaek, South Korea, Ssangyong is more than
4,800 people who are passionate about cars.
In the 1960s, we built Korea’s first large buses and began exporting them in
1966. In the 1970s, we expanded into specialized trucks from buses to fire
trucks. We welcomed the era of four-wheel drive with new independently
developed platforms, the Korando, and Musso, in 1993. In 1997, we introduced
the Chairman, one of Korea’s leading luxury sedans. Today, we are a leader
in SUV’s with a full product line including RextonII Kyron, Kerando, Actyon
and Actyon sports. We also offer sedan and MPV product lines, Chairman
and Rodius.

47

We’re currently focusing on strengthening our global competitiveness by
producing environmentally friendly engines. We’ve developed an eco-friendly
diesel common rail engine to conform to the EURO5 standards. We are also
designing an engine to comply with the EURO6.
In the next few years, we plan to strengthen our global distribution network. We
have already set up local head offices and parts centers in Europe. We believe that
emerging markets are the key to sustainable growth, and we are building local
bases in markets such as Central America, Eastern Europe, Africa, China, and
India.
In addition to our focus on green technology and developing markets, we look
forward to capitalizing on our new relationship with Mahindra & Mahindra. Both
known for our SUV’s, we can strengthen our positions in the SUV market through
technical cooperation and shared expertise.

48

8) Mahindra Trucks and Buses:-

Indian roads can be more than a little challenging thanks to wide variation in
terrain, inclement weather, and a large percentage of unpaved or unmaintained
routes. To succeed, you need a transportation solution that can handle it all. We
designed Mahindra trucks from the ground-up in India to excel in Indian
conditions, so that you have a more than able partner in your business.
At the core of our Heavy Commercial Vehicle range are our revolutionary
MaxxForce engines. These state of the art engines deliver high performance at
high fuel efficiency and meet EPA and Euro emissions standards. Join us at the
cutting edge of pro-environment business solutions.
Our trucks come in multiple sizes, depending on the load carrying capacity. A
strong and durable suspension, rugged chassis aggregates, robust brakes, and heavy
duty axles to handle its superior torque, are designed to be low maintenance and
easy to repair. Coupled with best-in-class ride and handling, and low turning radius
for excellent maneuverability and generous cabin space - this makes for a pleasant
ride for you and a passenger.
In addition we also offer buses and special vehicles through our Tourister range of
vehicles
We meet both Indian and European safety standards to make sure you’re safe even
in adverse driving conditions.

49

Strategic management process:

A. Strategic formulation
B. Vision & mission
C. Opportunities & threats
D. Long term objectives
E. Alternative strategy
F. Strategy selection

Strategy implication:The Mahindra Group has a new tagline, which reflects a new strategy. It's a call to
action a core purpose that will galvanize employees, customers and stakeholders in
coming together to form a more cohesive, formidable unit. The Mahindra brand
logo will read as Mahindra Rise from here onwards. This tagline is the acceptance
of no limits in creativity, alternative thinking and drive positive change. This is not
some corporate branding but a new strategic move that will cost the Mahindra
Group Rs 120 crore over the next three years. It will strengthen Anand Mahindra's
federation of companies. This is a strategic move.
The Global Recruit Program from the Mahindra Group empowers you to learn and
experience firsthand the challenges and opportunities presented by a changing
world and an evolving global economy by working with one of India’s biggest and
most dynamic corporate houses. At Mahindra, you will be placed in positions of
real time responsibility and operations, where you will be enabled and encouraged
not only to participate in actual day to day operations, but also make strategic
decisions that have significant strategic implications on Mahindra’s national and
global business operations. All in an atmosphere that constantly encourages you to
use your learning and education to come up with your own ground breaking ideas
and initiatives.
In the 21st century, the focus of the world will be on the emerging markets of Asia
and the economies powered by the aspirations and energies of their billions. In such
50

a 'flat' world, experience in countries like 'India' instead of being considered a plus,
will rather be mandatory, and your success in the global marketplace of the future
will depend on whether you have this knowledge or not.
The Office of Strategy Management, or OSM for short, is an internal consulting
agency which is responsible for ensuring a robust strategy cycle across the group
with research and developmental activities focused on identifying and pursuing
cross sector business initiatives. In addition to heralding corporate outreach and
promotional activities and serving as a sounding board for the management board
and the top brass, it is focused towards an active promotion of best practices and
collaborations across the organization.
The OSM forms the focal point of the entire program, as a platform for the period
of your working association with the Mahindra Group, and as a classroom for your
knowledge assimilation while on the job.

51

Annual objective
Company tracks the objectives and targets laid out in the road map of the triple
bottom line approach. Various green projects have been implemented by your
Company in the areas of abatement of air pollution, recycling and reduction of
water and Solid Waste Management in accordance with world class Green supply
chain standards. Your Company’s commitment to the environment stems from the
Mahindra Group’s abiding concern for all stakeholders of society.
We have various annual objective plans:

Investor relation
In line with the best practices aimed at fostering improved investor relations, our
Company engaged with investors in many ways, including one on one meetings,
attendance at investor conferences, regular quarterly earnings calls and annual
analyst meet during the year. New technology, including telepresence and
webcasting enabled in our Company to reach out to a large number of investors.
our Company interacted with over 550 Indian and overseas investors and analysts
from a wide cross section of the investment universe during the year. Several
investor/analyst interactions with the Chairman & Managing Director and Business
Heads were organised during the year. our Company won top awards/ ranking in
various investor relations categories from Thomson Reuters Extel Survey for 2011
(awarded in June 2012) and from Institutional Investor, Asia, for the year 2012. A
user friendly investor relations page on the Company’s Corporate Website ensures
the benefit of easy access to relevant information for
Investors. In future we will try to give our effort and encourage to investor to
invest our company.

52

Industrial relation
Our Company has focused on propagating proactive and employee centric shop
floor practices, quick grievance resolution mechanisms and alignment to overall
business
goals, thus ensuring that there was no loss of production in the Financial Year
2013. As a result of propagating employee engagement as a business imperative,
Financial Year 2013 recorded the highest production figures in the history of the
Company.
Over the last few years, your Company has placed significant emphasis on
enhancing capabilities at the shop floor, beyond merely technical skills. Operators
are trained and encouraged to generate ideas for resolving quality concerns,
reducing cost, improving safety and efficiency. For the year under review, the
workmen generated over 19 ideas per person towards this cause.

Safety, Occupational Health and Environment
Company has a well-established Safety, Occupational Health & Environmental
Policy (“SH&E Policy”) in line with the National Safety, Occupational Health &
Environmental Policy. The safety and occupational health of employees is a major
area of focus for the Company. The SH&E Policy, inter alia, covers the safety of all
stakeholders, ensures compliance on a monthly basis and imparts necessary
education and training to all employees and stakeholders. External surveillance
audits of the facilities as per legal and other requirements are conducted regularly.
Internal and external medical check-ups of employees and contractors are
conducted.
Company tracks the objectives and targets laid out in the road map of the triple
bottom line approach. Various green projects have been implemented by your
Company in the areas of abatement of air pollution, recycling and reduction of
water and Solid Waste Management in accordance with world class Green supply

53

chain standards. Your Company’s commitment to the environment stems from the
Mahindra Group’s abiding concern for all stakeholders of society.

Corporate Social Responsibility:

Mahindra’s Corporate Social Responsibility (“CSR”) is committed to ‘building
possibilities’ for socially and economically communities to enable them to ‘RISE’
above their limiting circumstances. Some of the major objective the Company has
undertaken in India during the Financial Year 2013 are described below:

54

Project Nanhi Kali:Nanhi Kali, which supports the education of the disadvantaged girl child, has been
the flagship programme of the K. C. Mahindra Education Trust (“KCMET”) since
1996.
The Nanhi Kali sponsorship provides underprivileged girls with academic support
classes where concepts of Maths, Science and Language are taught to the girls. In
addition, the girls are provided with material support including uniforms, school
bags, shoes, socks and stationery which allow them to attend school with dignity.
In the Financial Year 2013, 7,414 individuals and corporates donated Rs. 22.65
crores to the Nanhi Kali Project, enabling the Project to support the education of
78,338 underprivileged girls across 9 states of India. The largest donor is the
Mahindra Group, which supports the education of 29,702 Nanhi Kalis. This
initiative has had a significant impact in terms of increase in learning outcomes by
10% and curtailing drop out of girls from school to less than 10%.

55

Mahindra Pride Schools:-

The Mahindra Pride Schools through their one-of-a-kind livelihood training
programmers continue to take forward their vision to completely transform youth
from socially disadvantaged communities by training and placing them in high
growth service sector careers. The last Financial Year witnessed the setting up of
the 5th Mahindra Pride School in Srinagar in October 2012, where the 1st batch of
students braved extreme weather and socio-political unrest to complete their
training and are now ready to be placed. In the Financial Year 2013, a total of
2,605 Scheduled Caste/Scheduled Tribe students received intensive training at the
5 Mahindra Pride Schools in Pune, Chennai, Patna, Chandigarh and Srinagar.
Areas of training included Hospitality Craft, Information Technology Enabled
Services (ITES – for BPOs and KPOs) and Customer Relationship Management.
The total number of Mahindra Pride School students trained till date is 5,666. Post
training, the Mahindra Pride School students have been recruited by food chains
such as McDonald’s, Pizza Hut, KFC and Café Coffee Day, 5 star Hotels such as
Hotel Le Meridien, Department Stores such as Westside, Mom & Me and BPOs &
KPOs such as Bajaj Allianz, Syntel, HCL, TCS, Dell, Cognizant, Tech Mahindra
56

and Mphasis. There has been 100% placement of students in lucrative jobs and a
consistent increase in average salary per batch. The average salary is currently over
Rs. 10,000 per month.

Scholarships and Grants:Every year Mahindra rise spend crore rupees to prove better education to society
which is main objective of Mahindra rise. The programmes are
Mahindra All India Talent Scholarships Instituted in 1995, Mahindra All India
Talent Scholarships (“MAITS”) are awarded to students from lower socio
economic strata to enable them to pursue a job oriented diploma course at a
recognized Government Polytechnic Institute in India. Approximately 500
scholarships are given every year to students who undergo a three year course. In
the Financial Year 2013, 550 students were awarded the MAITS leading to a
disbursement of Rs. 91.43 lakhs. MAITS has been awarded to 6,354 students till
date.

57

K. C. Mahindra Scholarships for Post-Graduate studies abroad:-

In the Financial Year 2013, 44 students were awarded a scholarship of Rs. 2 lakhs
each. Recipients will be doing their post-graduation in a wide range of subjects like
Computer Science and Engineering, Mechanical Engineering, Electrical
Engineering, Chemical Engineering, Economics and Law and had received
admission in renowned universities like Harvard Business School, Yale, Stanford,
Massachusetts Institute of Technology, Carnegie Mellon, London School of
Economics, etc. Further, the K. C. Mahindra Fellows Fund awarded scholarships of
Rs. 24 lakhs to the top 3 candidates (a maximum scholarship of Rs. 8 lakhs each).
The total number of scholarships given till date is 1,070.

58

K. C. Mahindra United World Colleges (“UWC”) Scholarships:-

Till date 86 students have benefited from the K. C. Mahindra UWC Scholarship
enabling them to study at the United World Colleges, and in particular,
the Mahindra United World College. KCMET has disbursed a total of Rs. 655.31
lakhs in the form of these scholarships. During the Financial Year 2013,
12 students were given scholarships amounting to a disbursement of Rs. 69.31
lakhs.

Mahindra Search for Talent Scholarship:-

This scholarship which rewards excellence in academics has been set up in 35
institutions in India. In addition, students who receive the Mahindra Search for
59

Talent Scholarship for two consecutive years also receive the Honours Scholarship
Award comprising a cash prize of Rs. 5,000 and a citation from the Trust.

B. Policies
The Indian economy performed poorly in the Financial Year 2012-13.
Faced with economic turbulence abroad and an unsupportive policy environment at
home, industrial activity slowed steadily through the year, critical infrastructural
projects stalled and private corporate investments lost much of their dynamism. A
weak south-west monsoon added further stress. Company follows a prudent
financial policy and aims to maintain optimum financial gearing at all times. The
Company’s total Debt to Equity Ratio was 0.24 as at 31st March 2013.
In January 2013, the Government of India announced a policy for partial
deregulation of diesel prices. In line with this policy and market dynamics, the
diesel – petrol price gap has narrowed from Rs. 30 in Q1 F13 to Rs. 21 in Q4 F13.
This will impact the cost of ownership and may have an impact on the demand of
your Company’s products, as almost all its products are diesel powered.

Remuneration Policy:While deciding on the remuneration for Directors, the Board and the Governance,
Remuneration and Nomination Committee

takes into consideration the

performance of your Company, the current trends in the industry, the qualification
of the appointee(s), their experience, past performance and other relevant factors.
The Board/ Committee regularly
keeps track of the market trends in terms of compensation levels and practices in
relevant industries. This information is used to review the Company’s remuneration
policy from time to time.

60

II. Remuneration to Non-Executive Directors for the year ended 31st March
2013:The eligible Non-Executive Directors are paid commission upto
a maximum of 1% of the net profits of the Company as specifically computed for
this purpose. During the year under review, the Non-Executive Directors were paid
a commission of Rs. 172.99 lakhs (provided in the accounts for the year ended 31st
March 2012), distributed amongst the Directors.

Whistle Blower Policy:-

Our Company promotes ethical behavior in all its business activities and has put in
place a mechanism wherein the Employees are free to report illegal or unethical
behaviour, actual or suspected fraud or violation of the Company’s Codes of
Conduct or Corporate Governance Policies or any improper activity to the
Chairman of the Audit Committee of the Company or Chairman of the Company or
Corporate Governance Cell. The Whistle Blower Policy has been appropriately
communicated within the Company. Under the Whistle Blower Policy, the
confidentiality of those reporting violation(s) is protected and they are not subject
to any discrimination. No personnel has been denied access to the Audit
Committee. Our Company has not adopted the other non-mandatory requirements
as specified in Annexure I D of Clause 49.
61

Principle-wise (as per NVGs) BR Policy/policies
The Business Responsibility Policy (“BR Policy”) encompassing the following 9
principles as per the National Voluntary Guidelines on Social, Environmental and
Economic Responsibilities of Business (NVGs), duly approved by the Board, is in
place. This policy is operationalized and supported by various other policies,
guidelines and manuals.

1: Businesses should conduct and govern themselves with Ethics, Transparency
and Accountability.
2: Businesses should provide goods and services that are safe and contribute to
sustainability throughout their life cycle.
3: Businesses should promote the wellbeing of all employees.
4: Businesses should respect the interests of, and be responsive towards all
stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
5: Businesses should respect and promote human rights.
6: Business should respect, protect, and make efforts to restore the environment.
7: Businesses, when engaged in influencing public and regulatory policy, should do
so in a responsible manner.
8: Businesses should support inclusive growth and equitable development.
9: Businesses should engage with and provide value to their customers and
consumers in a responsible manner.
The Company has a Green Supply Chain Management policy, which has been
shared with Suppliers. Under this the Company is committed to improve the
Awareness about legal compliances, enhance Eco efficiencies, packaging/logistics
improvements and employee health and safety initiatives at the supplier end, etc.
62

To actualize this commitment, the Company engages with its suppliers and vendors
on a regular basis through supplier meets and training sessions. To institutionalize
sustainable practices across supply chain, the Company has institutionalized
sustainability awards for suppliers. These initiatives are at various stages of
maturity with various suppliers and hence determining the percentage of inputs
sourced sustainably is difficult.

Postretirement medical POLICY
The Company provides post-retirement medical cover to select grade of employees
to cover the retiring employee and their spouse up to a specified age through med
claim policy on which the premiums are paid by the Company. The eligibility of
the employee for the benefit as well as the amount of medical cover purchased is
determined by the grade of the employee at the time of retirement.

C. Motivate employees
Our motivation to give our best every day comes from our core purpose: we
will challenge conventional thinking and innovatively use all our resources to drive
positive change in the lives of our stakeholders and communities across the world,
to enable them to Rise.
Our products and services support our customers’ ambitions to improve their
living standards; our responsible business practices positively engage the
communities we join through employment, education, and outreach; and our
commitment to sustainable business is bringing green technology and awareness
into the mainstream through our products, services, and light-footprint
manufacturing processes.
This commitment to sustainability—social, economic, and environmental—rests
upon a set of core values. They are an amalgamation of what we have been, what
we are, and what we want to be. These values are the compass that guides our
actions, both personal and corporate. They are:
63

Professionalism:We have always sought the best people for the job and given them the freedom and
the opportunity to grow. We will continue to do so. We will support innovation
and well-reasoned risk taking, but will demand performance.

Good corporate citizenship:As in the past, we will continue to seek long-term success, which is in alignment
with the needs of the countries we serve. We will do this without compromising
ethical business standards.

64

Customer first

We exist and prosper only because of the customer. We will respond to the
changing needs and expectations of our customers speedily, courteously and
effectively.

65

Quality focus
Quality is the key to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our interactions with
others. We will do it 'First Time Right.'

Dignity of the individual

We will value individual dignity, uphold the right to express disagreement and
respect the time and efforts of others.
fairness, trust, and transparency.

66

Through our actions, we will nurture

Employee Social Options
Esops stands for Employee Social Options. Esops is a platform offering employees
a set of social work volunteering options. These options are created and
implemented exclusively by employees themselves based on the needs of
underprivileged communities in and around their areas of operation. In a way, it is
each employee’s CSR initiative. Esops enables the workforce to collectively donate
thousands of human hours for various social projects, in the three focused areas of
Education, Health and Environment, making social work an integral part of
everyone’s lives. In this manner
Esops enables our employees to give not just their wealth but also their time. To
fund these employee initiatives, each Sector of the Company donates 0.5% of its
profit after tax to the Central CSR fund and 0.5% to Esops. Some notable Esops
initiatives during the year were the Lifeline Express at Puri in Odisha and at
Naksalbari in West Bengal where a total of 4,219 patients were treated by
performing surgeries, giving medicines and distribution of aids and appliances free
of cost. Another notable initiative
was Mahindra Hariyali where the 1 million tree plantation target was surpassed by
planting more than 1.7 million trees. Esops Awards – 2012, Esops Star Performers
Awards, Group level Esops Champions Meet were organised to motivate
employees and ensure their maximum participation in Esops. The other Esops
activities included numerous initiatives in the fields of Education, Health,
Environment, etc. which had a
short term as well as a long term impact on the beneficiaries and society at large.
Esops is also a culture that the Mahindra Group has cultivated as an ethic. The
Esops platform and a set of structures and protocols have been created, to make it
easier and possible for every employee, who wishes to make a contribution to
society, to do so.

67

Provide Employee Benefits
Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit
payable is the greater of the amount calculated as per the Payment of Gratuity Act
or the Company scheme applicable to the employee. The benefit vests upon
completion of five years of continuous service and once vested it is payable to
employees on retirement or on termination of employment. In case of death while
in service, the
gratuity is payable irrespective of vesting. The Company makes annual
contribution to the group gratuity scheme administered by the Life Insurance
Corporation of India through its Gratuity Trust Fund.

Post retirement medical
The Company provides post retirement medical cover to select grade of employees
to cover the retiring employee and their spouse upto a
specified age through mediclaim policy on which the premiums are paid by the
Company. The eligibility of the employee for the benefit as
well as the amount of medical cover purchased is determined by the grade of the
employee at the time of retirement.

Post retirement housing allowance
The Company operates a post retirement benefit scheme for a certain grade of
employees in which a monthly allowance determined on the
basis of the last drawn basic salary at the time of retirement, is paid to the retiring
employee in lieu of housing.
The Company has allotted 55,24,219 Ordinary (Equity) Shares of Rs. 10 each,
10,00,000 Ordinary (Equity) Shares of Rs. 10 each and 1,73,53,034 Ordinary
68

(Equity) Shares of Rs. 5 each in the years ended 31st March, 2002, 31st March,
2010 and 31st March, 2011 respectively to the Mahindra & Mahindra Employees’
Stock Option Trust set up by the Company. The trust holds these shares for the
benefit of the employees and issues them to the eligible employees as per the
recommendation of the Compensation Committee.

69

Resources allocation
"Providing the essentials needed to create detailed and intelligent factory models,
Factory CAD allowed our planners to use ‘smart objects’ to represent their factory
resources."
Anupam Patil
Senior Manager, IT and PLM
Mahindra Vehicle Manufacturers

Factory CAD was used to create 3D plant layouts for all of the Chakan plant
production lines, including body and trim, chassis and final (TCF). “Providing the
essentials needed to create detailed and intelligent factory models, Factory CAD
allowed our planners to use ‘smart objects’ to represent their factory resources,”
says Anupam Patil, senior manager, IT and PLM, Chakan plant, Mahindra
Vehicles.

70

Core purpose:-

We will challenge conventional thinking and innovatively use all our resources to
drive positive change in the lives of our stakeholders and communities across the
world, to enable them to Rise.
To unite all our companies through one common thread, we harmonized the
communication of 60 Group Companies via the unique SAP platform. This
integration of processes across core functions is helping channelize inter-company
expertise, enhance efficiency and optimize resources.
Our Company has always been aware of the need for conservation of energy and
natural resources and has been consciously making efforts year on year towards
improving the energy performance. Energy efficiency improvement initiatives have
been implemented across
all the plants and offices by undertaking various energy conservation projects.

Our Company ensures strict compliance with all the statutory requirements and has
taken several sustainable steps voluntarily to contribute towards better environment
like
1. Reduction in Sp. carbon footprint in spite of production increasing continuously.
2. Effective effluent and sewerage treatment, recycle and reuse of water.
71

3. Reduce, reuse, and recycle of waste and eco-friendly waste disposal.
4. Reduction in water footprint and encouraging rain water harvesting.
5. Saving of natural resources like Electricity, Oil, Fuel, etc.
6. Use of Renewable Energy in Manufacturing.
7. Use of natural lighting and natural ventilation.
During the year, the Company has taken the following resources to manufacturing
vehicles

72

Engineering Initiatives:-

Installation of heat recovery systems on Paint shop oven exhaust for hot
water generation and air preheating.
Installation of Closed Loop efficient Cooling tower in Body Shops for gun
cooling.
Installation of VFD’s at select locations.
Installation of Energy Saving Magnetic Induction Lamps for Shop and
Street Lighting.
Energy Savers for Air-Conditioners in various offices.
Replacement of inefficient compressor with energy efficient compressors.
Installation of fan less cooling tower.
Replacement of electrical heaters with gas burners in heat treatment
furnaces.
Flat belt instead of V belt for blowers.
Installation of energy efficient pumping system.
Light Pipe installation in offices.

73

Process Improvement:Optimization in VFD Frequency.
Energy efficient Burners for plant canteen.
No air loss drain valves for moisture removal from compressed air.
Timers for blowers, fans and lights.
Lighting sensor auto-switches for lighting.
Downsizing Motors HP by Optimizing Operation periods.
Conversion of hot coolant to cold coolant for cleaning parts.
Processing of more BMT/Cabs per skid.
Conversion of Paint shop AED to CED process at Zaheerabad.
Energy reduction of slab cores using cold box instead of hot box at molding
in Foundry. Improvements through small group activities.
Adjustment of chiller temperature.
Replacing tube light Electromagnetic ballasts with Electronic ballasts.
Installation of Motion Sensors in various areas.
Energy saving by switching off high bay lamps.

74

Use of resources to Awareness on Energy Consumption:-

Energy Conservation Week celebration at all plants.
Energy Conservation Oath at all locations.
E-mailer’s and Wallpapers for awareness.
Display of posters and slogans on energy conservation.
Material Developments in Human Resources/ Industrial Relations for
Automotive and Farm Equipment Sectors.

75

The strategic purpose of Human Resources in the Mahindra
Group is to be the change agent for creation of a cultural transformation to
create

competitiveness

at

the

marketplace

through

sustained

business

outperformance while simultaneously addressing the needs of all its stakeholders,
starting with customers and employees and strengthening the core values of the
Group. In the long run, the metric for success would be improvements in the total
factor productivity, while addressing the business imperatives of cash, cost,
competence and confidence. The emphasis was on aligning all the HR levers
towards achieving these goals. In line with the above, the internal transformation
journey through Rise to create a company of tomorrow saw a slew of initiatives
taken to bring the Rise cultural pillars of Accepting No Limits, Alternative
Thinking and Driving Positive Change alive through the nuts and bolts of HR
levers. The philosophy of Rise and its three cultural pillars have got a buy-in from
employees across the Group. In order to ensure internalization of this culture, the
Mahindra Leadership Competency Framework has been developed and rolled out
across the company. A complete integration of these competencies has been
achieved in recruitment, on-boarding and other HR processes. We are now working
towards integrating Rise with other HR levers like Talent Management, Leadership
Development, Rewards and Recognition and the Performance Management
System.

76

MARKET RESEARCH
S.N.

Company Name

Market Share

1

Maruti Suzuki

37%

2

Hyundai Motors India Ltd.

14.4%

3

Tata Motors

13.1%

4

Mahindra and Mahindra

11.4%

5

Toyota

6.4%

6

General Motors

3.3%

7

Ford

3.2%

8

Honda

2.9%

9

Volkswagen

2.4%

10

Nissan

1.5%

India is the second fastest growing automobile market in the world after China.
The Automobile Industry in India is one of the largest and is the fastest growing
industry, world-wide. There has been a dramatic development and change
in Automobile industry, particularly for the last couple of years. With many
companies now concentrating more on customer needs and price factors, there has
been a sharp rise.
The reason behind this is simple; foremost, there is an increase in demand for more
and more usage of automobiles and second, there is a sharp rise in the percentage
of profit that the Automobile manufacturers make, contributing a considerable
income to the Indian economy as well.
The Indian Automobile Industry manufactures over 1.1 Crores of vehicles and
exports about 15 lakhs each year. The dominant products of the automotive
industry are two-wheelers that occupy a market share of around 75%. Passenger
cars have a market share of about 16% while commercial vehicles and threewheelers share about 9% between them.
The economic scenario is also encouraging for the buyers to buy more vehicles and
thus the demand is likely to increase. But will 2013 be a good year for Automobile
77

industry in India? Our expert Astrologers has analyzed the planetary positions for
the year 2013 to forecast the future of Automobile industry in India. Here are the
findings;
The forth coming year, due to the placement of planets Saturn (signifying
profession), Jupiter(indicating money), Rahu and Ketu (Rahu & Ketu being the two
most powerful planets) in the sign Libra, Gemini, Libra and Aries respectively will
have more impact on any industry.
The planet Saturn (planet indicating profession) is in the powerful sign Libra which
is ruled by Venus (the planet indicating vehicles) during the year 2013. But, it is
going to retrograde (backward movement of planets) from February 18th 2013 to
7th July 2013.
Saturn is exalted and Jupiter (signifying money) will be transiting to the 3rd House
(indicating communication technology) in that natal chart, in the sign Gemini. So
there are bright chances for the implementation of communication technology in
the Automobile Industry.
Also, new manufactures will come up and there will be tough competition in
the automobile industry during 2013. New low cost cars and bikes will strike the
market and due to the introduction of new automobiles, manufacturers will try to
boost a considerable increase in their production, so as to compete in the heavy
competition which is much tougher. This is due to the placement of Rahu and
Saturn in the sign Libra.
Thus the Automobile Industry in India will see development in terms of
technological advancements and also increase in production during 2013, which
will passively boost up the Indian economy in regards with the same.

78

Environmental analysis :Mahindra & Mahindra, branded on its products usually as 'Mahindra', produces
SUVs, saloon cars, pickups, commercial vehicles, and two wheeled motorcycles
and tractors. It owns assembly plants in Mainland China (PRC) and the United
Kingdom and has three assembly plants in the United States. Mahindra maintains
business relations with foreign companies like Renault SA, France and Navistar
International, USA.
M&M has a global presence and its products are exported to several countries. Its
global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA
Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.
Mahindra started making passenger vehicles firstly with the Logan in April 2007
under the Mahindra Renault joint venture. M&M will make its maiden entry into
the heavy trucks segment with Mahindra Navistar, the joint venture with
International Truck, USA.
Mahindra produces a wide range of vehicles including MUVs, LCVs and three
wheelers. It manufactures over 20 models of cars including larger, multi-utility
vehicles like the Scorpio and the Bolero. It formerly had a joint venture with Ford
called Ford India Private Limited to build passenger cars.
At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing
an aggressive product expansion program that would see the launch of several new
platforms and vehicles over the next three years, including an entry-level SUV
designed to seat five passengers and powered by a small turbo diesel engine. True
to their word, Mahindra & Mahindra launched the Mahindra Xylo in January 2009,
and as of June 2009, the Xylo has sold over 15000 units.
Also in early 2008, Mahindra commenced its first overseas CKD operations with
the launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto
Group. This was soon followed by assembly facilities in Brazil. Vehicles
assembled at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and
double cab pick-up body styles as well as SUVs.

79

Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in
North America through an independent distributor, Global Vehicles USA, based in
Alpharetta, Georgia. Mahindra announced it will import pickup trucks from India
in knockdown kit (CKD) form to circumvent the Chicken tax. CKDs are complete
vehicles that will be assembled in the U.S. from kits of parts shipped in crates. On
18 October 2010, however, it was reported that Mahindra had indefinitely delayed
the launch of vehicles into the North American market, citing legal issues between
it and Global Vehicles after Mahindra retracted its contract with Global Vehicles
earlier in 2010, due to a decision to sell the vehicles directly to consumers instead
of through Global Vehicles. However, a November 2010 report quoted John Perez,
the CEO of Global Vehicles USA, as estimating that he expects Mahindra’s small
diesel pickups to go on sale in the U.S. by spring 2011, although legal
complications remain, and Perez, while hopeful, admits that arbitration could take
more than a year. Later reports suggest that the delays may be due to an Mahindra
scrapping the original model of the truck and replacing it with an upgraded one
before selling them to Americans In June 2012, a mass tort lawsuit was filed
against Mahindra by its American dealers, alleging the company of conspiracy and
fraud.
Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles.
In 2011, it also gained a controlling stake in South Korea's SsangYong Motor
Company.
Mahindra has launched its relatively heavily publicized SUV, XUV 500, code
named as W201 in September 2011. The new SUV by Mahindra has been designed
in-house and it is developed on the first global SUV platform that could be used for
developing more SUVs. In India, the new Mahindra XUV 500 comes in a price
range between Rs 11.40 lakh to Rs 15 lakh. Besides India, the company also targets
Europe, Africa, Australia and Latin America for this model. Mahindra President Mr
Pawan Goenka stated that the company plans to launch six new models this fiscal.
The company launched CNG version of its mini truck Maxximo on 29 June 2012.
A new version of Verito in diesel and petrol options was launched by the company
on 26 July 2012 to compete with Maruti's Dzire and Toyota Kirloskar Motor's
Etios.
80

Other uses vehicles:Military Defense:-

The company has built and assembled military vehicles, commencing in
1947 with the importation of the Willys Jeep for use in World War II. Its line of
military vehicles includes the Axe. It also maintains a joint venture with BAE
Systems, Defense Land Systems India.

81

Provide Energy to world:-

Mahindra & Mahindra entered the energy sector in 2002, in response to growing
demands for increased electric power in India. Since then, more than 150,000
Mahindra Powered engines and diesel generator sets (genets) have been installed in
India, offering standard proper quality power, as do larger companies, in areas with
arguably less reliable grid electricity. The inverters, batteries, and genets are
manufactured at three facilities in Pune (Maharashtra), Chennai (Tamil Nadu), and
Delhi; and 160 service points across India offer 24-7 support to most key markets.
Powerol is present in countries across Latin America, Africa, the Middle East, and
Southeast Asia—and expanding into the United Arab Emirates, Bangladesh, and
Nepal. Mahindra Powerol's energy services consist mostly of power leasing and
telecom infrastructure management. In 2006, it became a major market leader in
82

the telecom segment (and in 2011, its market share passed 45 percent). In 2007, it
won the Frost and Sullivan "Voice of the Customer" award for best practices in
telecom. Mahindra Clean tech Ltd specializes in eco-friendly, or 'green' power. In
response to growing acceptance of Solar Power, it formed a subsidiary, Mahindra
Solar, in 2010 to offer a range of solar solutions, both off grid and on grid,
alongside Engineering, Procurement, and Construction (EPC).

Mahindra EPC is the Engineering Procurement & Construction arm of the
Mahindra group. A portfolio company under the Clean tech arm of Mahindra
Partners, they offer solar solutions spanning On-Grid solutions, EPC (Engineering,
Procurement and Construction) and Off-Grid Product solutions. The company
commenced its operations in the year 2011 and has successfully commissioned
over 60 MW worth of Solar PV projects. Meanwhile, its off-grid products include
power packs and rooftop setups for business organizations and public institutions
alongside rural electrification through lanterns and home and street lighting
systems. The company works closely with Mahindra’s farm equipment division to
offer lighting products to some of the more rural areas in India. It also works with
Mahindra Powerol to offer solar power backup to telecom sites in India. In 2011,
Mahindra Solar received a CRISIL rating of SP1A in 2011, the highest rating for
any solar photovoltaic off-grid company.

83

Mahindra’s Farm equipment

Development of a load-car. In 2007, Mahindra & Mahindra won the Deming
Application Prize and the Japan Quality Medal for Total Quality Management
excellence in entire business operations. Mahindra began manufacturing tractors for
the Indian market sometime during the early '60s. Today, it is one of the top three
tractor companies in the world with annual sales totaling more than 150,000
tractors. It has expanded its product-line to include farm-support services via
Mahindra AppliTrac (farm mechanization products), Mahindra ShubhLabh (seeds,
crop protection, and market linkages and distribution), and the Samriddhi Initiative
(farm counseling and information services).
Mahindra & Mahindra’s farm equipment division (Mahindra Tractors) is one of the
largest tractor companies in the world, with more than 1,000 dealers servicing more
than 1.45 million customers. Mahindra tractors are available in 40 countries,
including India, the United States, China, Australia, New Zealand, Africa (Nigeria,
Mali, Chad, Gambia, Angola, Sudan, Ghana, and Morocco), Latin America (Chile,
Argentina, Brazil, Venezuela, Central America, and the Caribbean), South Asia
(Sri Lanka, Bangladesh, and Nepal), the Middle East (Iran and Syria) and Eastern
Europe (Serbia, Turkey, and Macedonia. In the 2010-11 Mahindra entered in Micro
dripp irrigation with the takeover of Epc Industry Ltd, Nasik. Mahindra Tractors
manufactures its products at four plants in India, two in Mainland China, three in
the United States, and one in Australia. It has three major subsidiaries: Mahindra

84

USA, Mahindra (China) Tractor Company, and Mahindra Yueda (Yancheng)
Tractor Company (a joint venture with the Jiangsu Yueda Group).
The company has garnered the highest customer satisfaction index (CSI) in the
industry at 88 percent. In its 2009 survey of Asia’s 200 most admired and
innovative companies, the Wall Street Journal named Mahindra & Mahindra one of
the 10 most innovative Indian companies. It earned a 2008 Golden Peacock Award
in the Innovative Product/Services category for its in-house.

85

COMAPRISON OF QUALITY STANDARDS OF MAHINDRA AND
MAHINDRA

A study ‘Assessment of Quality of Automobile Services’ was conducted by
VOICE Society with support from Union Ministry of Consumer Affairs,
Government of India, under ‘JAGO GRAHAK JAGO’ campaign. Mahindra ranked
2nd in India in ‘Overall Satisfaction Shown by Consumers’ and number 1 in
recommending the service station to family/friends after the 3rd free service. 100%
respondents said they got response from the company whenever contacted.

86

Strategy and risk management:-

In today’s highly dynamic business environment, organizations are at greater risk
from information leakage and corporate governance missteps.

The Mahindra

Special Services Group's (MSSG) risk consulting services help you de-risk your
strategic business processes so that you can focus on your value propositions.
M&M wide range of risk consulting services identifies areas where damage can
occur to physical property, people and information. First, identify and value your
assets from people to buildings, hardware, software, and supplies. Then M&M
assess the likelihood of various threats, including acts of war, accidents, and malign
acts, and your level of vulnerability. By comparing the impact of these threats with
the cost of countermeasures, M&M help you determine an acceptable level of risk.
Finally, M&M develop and then help you integrate security measures into your
business processes. M&M follow a human-centric approach to risk management.
87

M&M information security management services include educating employees
about its importance and delineate clear steps they can take to safeguard your
critical information assets. M&M physical security advisory services implement
strategies to protect key personnel and their families, organizations, and assets.
M&M also offer you a Governance Directorate to help you achieve high standards
of good governance. Take advantage of M&M technical advisory services and
change management services if you need additional support as you navigate the
ever-changing risk management landscape.

Market Context:-

The soft tops sales, which were Mahindra’s strength, were stagnating. Hard top
vehicles like Sumo and Qualis were garnering market share. The urban market was
showing more potential for vehicle sales and UVs were gaining higher
acceptability in urban cities. The competition was getting tougher with
international UVs entering the market. And also operating in the urban market
meant competing with cars.
88

The market was moving from traditional multi utility, non-luxurious vehicles to
luxurious vehicles. M&M had launched Bolero in 2000 to cater to this newly
emerging segment. However, to add to the category’s woes, it declined at the rate
of 3.1 percent in year 2001 over year 2000. UVs as a percentage of the overall
passenger car market were just 16 per cent in 2001. This simply meant that for
attaining the volumes, Scorpio needed to look beyond UVs in terms of competitive
framework to decide on a marketing strategy.

Competitive Context:-

The conventional UV market was too small in size. The UV market in urban
markets was even smaller a percentage. The trend was that the UVs operating in
the urban market were eating into the car share, primarily the cars which operated
in the same price bracket. Qualis was taking market away from midsize cars. With
these facts in place the whole of automobile market was studied in details.
In the arena of cars, A-segment cars, which have been the leaders in terms of
volumes and grew at the rate of 55.2 percent in the year 1999, were having a
reduced growth rate of 34.2 percent in the year 2001. It was found that the fastest
growing segment (growing at the rate of 42.9 per cent) in year 2001 was semi
luxurious cars or B segment cars. And the luxurious car segment i.e. C segment
cars were also growing at a healthy rate of 14.2 percent in that year. However,
super premium cars termed as segment D and E cars, were not growing at such
healthy rates and did not offer volume in terms of number of cars sold.
It was imperative for Scorpio to look beyond UVs. Apart from appealing to a
typically UV buyer, it was also necessary to appeal to a wider target audience prospective car buyers belonging to 5 lakh and 5 lakh+ segment. The midsize car
market (C class) which was in the Rs. Five to Seven lakh price bracket had grown
in F’00 at 36 per cent and in F’01 at 22 per cent, and small luxury car segment (B
89

class) which was up to Five lakh segment was also showing a healthy growth.
Analysis showed that the volumes in the automobile industry were coming from B
and C segment cars. This meant that the mid size car market was the competitive
arena for Scorpio for it to attain the volume growth and market share it was looking
for. It was decided that the offer had to appeal to segment C buyer and should be
aspirational for segment B buyers. Therefore, an analysis of the offers of all the
segment C cars and the relevant UVs was done. The table below summarises the
analysis:
Interpretations: All the vehicle are feature packed within a price range of Rs. 6-8
Lakhs. All of them, including UVs, are with a proposition of luxury and comfort,
with no differentiation implication. With this analysis it came out clearly that the
positioning of Scorpio has to be such that it should communicate that the vehicle is
better than any of these cars and is a better buy in terms of money.

ConsumerContext:Having defined the competitive framework, the next task undertaken was that of
analyzing the consumer. Consumer segments of B and C category car buyers were
analyzed in terms of their expectations from a car, their perceptions about cars and
their relationship. Proprietary techniques of research, of the advertising agency
Interface Communications, like Mind & Mood, ICON and VIP were used to
understand this consumer. The findings were:
* Size matters- big size stands for status
* Consumers seek latest technology
* Imagery but at affordable prices
* The sheer thrill and passion of driving an SUV
* Power of the vehicle makes a statement
* But along with the others, luxury was a very important parameter
* International vehicles define imagery
Þ SUVs like Pajero, Land Cruiser and Prado are seen as urban vehicles for the rich
and famous
Þ Consumers aspire to own these vehicles as the imagery of these vehicles has
become very desirable
90

The Key Consumer Insight that emerged from all the consumer analysis and which
was used for strategy development was “Consumers want to consume premium
imagery at prices affordable to them”
Strategic Branding Approach - Identifying the need gap and occupying it
There existed a gap that wasn’t tapped. There was no SUV in the country that the
masses could buy. To make SUVs a mass concept in India - UVs needed to be seen
as comfortable, easy-for-city driving and should have imagery comparable to
international brands.
Therefore, as a strategy it was decided that Scorpio would not take the traditional
UV imagery of tough, off-roading and 4x4. A 4x4 approach would be a very niche
category and would not generate numbers. To appeal to a car buyer, the Scorpio
needed to be seen as a car that offers much more.
A Scorpio had to be seen as providing car-like driving pleasure and at the same
time providing the edge over cars in space, power, style, fuel efficiency, luxury and
comfort. In short, to provide status of a Pajero (international SUV) at the price of
midsize car
The Scorpio product package offered - Superior technology, Dynamic Looks, Carlike product and great value for the price
Value Proposition for Scorpio:
To capture the identified need -gap, the value proposition of Scorpio was defined as
‘Car plus’
Rational benefits: World class vehicle, good looks, car like comfort, great value
Emotional benefits: Ownership experience of thrill, excitement and power
Relational benefits: Young modern, premium, city companion / extension of
lifestyle.
Brand Promise: ‘Luxury of a car. Thrill of an SUV’
This brand positioning addresses the key consumer Insight and the product delivers
the promise. The position is also a unique proposition, which will help the brand
have a distinct image in the consumers’ mind.

91

Baseline “Nothing Else Will do”
The baseline captures the essence of the brand, which is superiority and
uncompromising attitude. It also summarises the spirit behind the making of the
Scorpio.
Brand Strategy - Parent brand relationship defining
A study of international brand names was done and a classification of brand names
of midsize cars and SUVs was done into groups. International brand naming trends
and strategies were analysed. New names were generated. These brand names were
researched massively first by qualitative techniques and then by quantitative
techniques.
The name that emerged as most popular, and which was also the most liked name
internally at Mahindra was SCORPIO.
Brand Endorsement Strategy
The relation between Scorpio and the mother brand Mahindra was also deliberated
upon. The strategy chosen for Brand Endorsement was - Scorpio from Mahindra shadow endorsement, one which does not shout “Mahindra.”
The Mahindra brand image was not modern and young. There was a need to create
a strong distinct modern brand. Hence Mahindra as a Masterbrand could not
contribute towards enhancing the Value Proposition. Yet Mahindra had to provide
source reassurance. Also the distribution would be through Mahindra dealerships.
Hence it became a shadow endorser.
Advertising and Promotions Strategy
The creative strategy was to drive home the ‘Car Plus’ positioning forward. There
was a need to leverage on product strengths. And a need to establish car plus story.
Hence the product was to be the hero in all communications
The tone and manner was to help associate the brand with the modern and urban
lifestyle. The TVCs as well as the press still-shots were shot in Australia to provide
an international city feel. This brought in the international, premium, up-market
association for the brand.

92

Media Strategy
Role of Media
*Dramatic and high impact launch
* High visibility
* Push brand image even by the media vehicle
Building impact through multiple-media
* PR, Mass Media, Direct Marketing, Events
Public Relations
Pre-launch excitement and buzz was created by a full blown PR program. Media
coverage on the IDAM process, the people behind the Scorpio, the obsession, the
world class technology, etc set the tone for the hyped up launch. PR was also the
first tool used for launching the Scorpio. The coverage of the launch was massive.
It got four cover stories
Mass Media
‘While the media targets would be achieved through the right selection of the
media mix, the Scorpio media posture was to ensure that Scorpio was present on
the decided media but ‘with a difference.’ Scorpio would use media innovations to
create differentiation on the traditional media and do things in a ‘bigger and better’
manner.
Customer Relationship Management (CRM)
CRM as a tool was used to create positive word-of-mouth, to monitor customer
experiences and generate referrals. A series of CRM activities were implemented
with regular direct communication, events and customer research. The CRM plan
included a welcome Pack on filling up Scorpio Club (Top Gear) form, satisfaction
surveys, Events, Festive offers, Rewards Program, etc.
Pricing Strategy: to be a premium brand yet having universal appeal
Scorpio was to compete with the midsize cars like Hyundai Accent, Ford Ikon,
Opel Corsa, Maruti Suzuki Esteem on the one side and UVs like Toyota Qualis,
Tata Safari and the Tata Sumo on the other. Scorpio adopted the penetrative pricing
strategy positioned in the psychological price barrier of Rs. 5 -7 Lakhs.
93

Distribution Strategy - Serve less markets at a time but serve them well
Since the Scorpio was targetted at an urban clientele it needed a stronger ditribution
presence in Metros and urban areas. Hence, the distribution channel had to focus on
providing an appealing experience for modern car buyers and on offering
international standards of auto retail.
Phased Launch
The Scorpio was launched in a phased manner - first in Metros Mumbai, Delhi,
Bangalore, Chennai. Twenty cities were included over a period of 4 months and
within a year 50 cities were covered. This ensured attention to main markets and to
ensure that initial production of the vehicle could match demand. Dealerships were
revamped prior to launch in a particular city.
Showroom Experience
The showroom revamp was centred around the intention to provide a uniform
customer experience at all the touch points and to provide the customer with a
unique “experience” and not just a “product”. Therefore the back office would
remain outside the customer’s line of vision because the customer would be
concerned with the product and not with the paperwork.
Infrastructure
Thirty-five showrooms across the country were redone entirely with the same look
and identity and a décor built around movement, technology and sportiness. The
theme focussed on giving the customer a memorable experience.
Response - The strategy delivered
Volumes and Market Shares: Scorpio achieved its targets on market share and
achieved a volume of 12000 vehicles in the first 9 months of its launch.
Image: Scorpio advertising had a very high recall for the Mahindra brand (Exhibit
3) as well as for the product (Exhibit 4). Apart from this, advertising actually
positioned Scorpio as a powerful vehicle with a sporty look, solidly built with good
cargo capacity amongst the premium car consumers and sports utility vehicle
consumers.
Overall response to the Scorpio was stupendous. The product was well received
across the country and got rave reviews across media. More importantly the
94

product and the strategy delivered in terms of the various objectives set before
launch. Footfalls in the showrooms had been massive and demand had far exceeded
supply of vehicles with a waiting period of three months.
Scorpio Brand Recall
In the SUV/MUV segment, Scorpio has the second-largest awareness and has
emerged as a strong brand in the C & sub-C car segment, however as compared to
Qualis, it needed higher recall. Scorpio advertising had been able to create a good
impression on appearance and styling of the vehicle.
Scorpio buyer profile
Scorpio managed to pull out customers from the C segment of vehicles. The
product, communication and the retail experience of the Scorpio passed the
stringent test of luxury car buyers and the buyer profile was exactly as per the
target profile. The strategy delivered with more and more small and midsize car
buyers choosing the Scorpio over the others.
Awards
The

Scorpio

was

awarded

various

awards

from

various

bodies

Mahindra achieved the objectives it set out to achieve. M&M has more than 39 per
cent of market share in hard tops, sold 11800 Scorpio in first nine months of
operation and due to this campaign, Mahindra image improved.
Scorpio Impact
Scorpio was launched on June 19, 2002. At that time Mahindra was losing market
share and the share prices were also at an all time low at around Rs. 100. The
Mahindra share of business was largely from the semi-urban and rural market of
India and the markets where Mahindra was strong were stagnating.
With the launch of Scorpio, things started looking up for Mahindra. There was an
improvement in the bottom line as well as the return to the shareholder. The
revenue for M&M Auto Sector increased from Rs. 1827 Cr. in F 02 to Rs. 2511 Cr.
in F 03, a growth of 37 per cent. The profits before Interest and Tax (PBIT) too
zoomed up from Rs. 102 Cr. in F 02 to Rs. 147 Cr. in F 03, an increase of 43 per
95

cent. In F04 the scenario has further improved. The half-yearly results show a
growth of 54 per cent in revenue and 218 per cent increase in PBIT. The share
prices have outperformed the Sensex and Share prices have zoomed from Rs. 100
to Rs. 400 by December ‘03.
As regards Mahindra image in the customers mind, the post launch study
conducted gave the following improvements (Brand track Study - Nov 2002 IMRB):
*The Mahindra saliency scores improved by 27 points among MUV/ SUV owners
and by 29 points among all car-owners.
*The overall positive opinion about Mahindra also moved up by 18per cent among
MUV/ SUV owners and by 11per cent among all car owners.
*Mahindra Scorpio has fared excellently in overall opinion as against its key
competitors.
Future Directions - World class product goes global
Having done well in the domestic market, Mahindra and Mahindra is now moving
forward on its path to become a global niche player. i.e, it is stretching its activities
in foreign markets. The company is in the process of negotiating joint ventures in
markets like Spain, Italy, South Africa, Indonesia, Russia, Equador for marketing
of Scorpio.

96

MARKET ENVIRONMENT
PEST Analysis:
Political factors:

The automotive and farm equipment industry is closely linked with the policies of
the government and hence we see both the industries dominated by players with
political powers all over the world. The automotive industry depends on various
regulations imposed by the government like emission of co2 limit, or how the
Indian government allowing 100% investment of foreign equity hassled to increase
in competition and brought in development in infrastructure in technology. The
government’s investment on infrastructure like roads and bridges affects the
automobile sales. Also the governments import/export regulations play an
important role for the globalisation of the companies. while the policies of the
government in agriculture sector is vital to the farm equipment industry. The
policies of the Indian government have mostly been conducive to growth of both
automotive and farm equipment industry.

97

Economic factors:

Both the automotive and farm equipment (related to agricultural industry)
industries play an important role in the country’s economic progress and also their
progress is dependent on the progress of the economy. Recent economic conditions
have lea to flat-demand of automobiles all over the world although the farm
equipment industry continues to grow. With the country’s GDP growth being
projected around 6.5-7.5 % it will be challenge for the automotive industry to
maintain its growth of 8-10 % over the previous years and even more difficult to
add on it. Also the growth the manufacturing industry (steel, plastic, glass) depends
on these industries growth. Slow growth would result in wastage to economic
resources.

98

Social Factors:

Automotive industry plays an important role in the employment levels of the
country as it is responsible for employment of millions directly and indirectly. Also
it leads to increase in standard of living of the people as having a bike or car is
associated with the social status of families. The Indian customers are well
informed and price sensitive with preference given to low cost and fuel efficient
cars. Around half of the country’s population is involved in agricultural activities
and hence it is important for the farm equipment industry to add value to their
activities. Environment factors like increase in pollution and global warming also
have an impact on the two industries.

99

Technological Factors:

Innovation being one of the main criteria of growth in both the industries,
technology plays a very important role indeed. Hence, we see millions being spent
on finding new technologies by many companies to ensure progress. Also the entry
of many foreign competitors like BMW have lead to exposure for customers to new
level of technologically developed cars leading to pressure on the local players to
stay in tune with the technological developments.

100

Passenger Vehicle Analysis Fiscal Year 2012-13

Overview automobile Industry:- Overall Indian Automobile Industry has shown
2.61% growth in FY 2012-13 compare to last FY 2011-12. Production and
Domestic sales has registered growth of 1.20% and 2.61%, however export is
negative growth due to negative global environment and fluctuation.

Most of the automotive players have plan for expending their activities in India
including new product launches. Indian automotive industry contribute 5-6% in
GDP and more than 15 million man power directly associate with auto industry.
However the overall performance is not giving good vibes for Industry. Indian
Govt should take some action for stabling fundamental sentiments of economy.

Passenger Vehicle Segment: One of the hot spot in world automotive industry is
Indian car market. Indian car industry is going thru turbulent times in now. Car
sales is down by more than 6% in FY 2012-13 compare to last year of FY 2011-12.
The main reasons are high interest rates, fuel price, high inflation, low movement
in other sectors etc. Utility vehicle segment is having maximum growth in this
segment @ 52%. Ertiga has put successful foot print this segment. This vehicle is
giving good competition to Innova. SUV segment also grown due to its fuel
economy and price combination became top choice for larger families.
101

Maruti has increased market share due its better performance in UV segment
compare to FY 2011-12. Tata is still third largest car manufacture with marker
share of 15%. Tata has de-growth of 15% which is very significant. Tata need to
102

revive its product position and brand value which play important role in passenger
segment.
Segment Analysis:- Tata Nano can be a good case study for product planning.
Only advertising cannot increase sales. They must fulfill all parameter and clear
picture of this target segment.

Even export came down from 3,462 units to 166 units, recording a de-growth of 95% in FY 2012-13. ACG analyst team saw that the main reason is of heavy
marketing of Nano, Tata shall think about reducing the marketing cost, make it
more competitive and pass it the customers.
Economy car segment:- It is biggest segment in car industry of around 8-9 lacs
units. Maruti and Hyundai is dominating this segment. Fiat can be good example
for inconsistent strategy. There could be big barrier to be become successful in
market. Fiat India is having one of the quality product in its segment. Fiat is
targeting a modest 1% market share in 2013, with 100 exclusive Fiat showrooms
expected to be operational by the end of the 2013.

103

ACG primary research shows that most of the Fiat customers are satisfied with its
product quality but they have dissatisfaction over after sales service. ACG team has
done this study to macro level to prepare strategy paper.

Sales and Celebrity:- Nissan Micra is one the companies who use celebrity to
increase its sales. Ranbir Kapoor is the brand ambassador for Micra. This is a miss
match between this segment car and branding strategy of Nissan.

SUV Segment: Compact SUV – Game Changer:- Fastest growing segment of
FY 2012-13. Its segment share is around more than 20% & growing by around 7%
in FY 2012-13. There is a perceptible shift from Mid segment sedans to SUV
segment.
104

Duster manufacture/assemble at the plants in Pitesti (Romania), Moscow (Russia),
Curitiba (Brazil) and Envigado (Colombia) and in Chennai. 4X2 and 4X4 version
are available globally. For South America it is available with executive cabin
design and colors where in India there is separate AC arrangement for rear
compartment.

Renault Duster has sold 39,188 units in India in FY 2012-13. Globally its sale was
256,553 units out of which 98,498 units sold in Europe. In Europe there is de
growth of this model but rest of the world it is very well accepted. Ford is also
launching its EcoSports SUV in this segment.
Luxury Car segment: Audi Beats BMW to Pole Position:- India is rapidly
emerging as a key market for global luxury car brands. All premium brands has
now having their show rooms in India. Audi, BMW, JLR, Volvo Cars and Porsche
are top performer in this segment. Mercedes Benz is still struggling to get its space
in this segment. Tata’s JLR Range Rover and Jaguar XF Sportbrake has good
enough support to have mix product portfolio to increase its sales globally.
105

Significantly Audi beats BMW for top spot in luxury car segment. According to
the ‘ACG Brand Image Study’ its the strong brand value that Audi imposed into the
Indian market aided them in achieving this. And there is every chance of the gap
between the two German giants to get widen in the near future. Tata Jaguar and
Land rover has shown strong growth in FY 2012-12 with 101% growth rate.

Outlook:
ACG saw drastic changes in market this year. We are expecting to have some
market correction and growth could be around 2-3% in FY 2013-14. ACG do
forecast every qtr to qtr. We will keep watching all factors which can influence car
106

industry. ACG like to see some solid initiatives from the side of Indian Gov. to
keep the India Car Market more attractive.

2 Wheeler Market Environment
Two wheeler sales in India for Q1 FY-2013-14 decreased by 0.82% whereas
scooter sales up by 14.30%:- The cummulative sales of two wheelers in India for
the first quarter of fy 2013-14 stood at 3,490,677 units as against 3,519,555 units in
q1 fy 2012-13 registering a 0.82% decline.

Hero is the market leader in Indian two wheeler segment, but witnessed a 4.24%
reduction in their sales. While Honda had marked a 14.24% rise in their sales.
Notable increment had been shown by Yamaha at 36.05% and Royal Enfield at
46.53%. Piaggio registered 149.75% increase in sales with 12,280 units sold during
q1 fy 2013-14 as against 4917 units during same period of previous financial
year. The strikes at Chakan Plant of Bajaj has adversely affected their two wheeler
production and they marked 7.57% decline in sales.

107

Hero also lost some market share and now stay with 43.77% while Honda’s share
had risen to 20.36.

Motorcycles

The motorcycle segment had witnessed a 3.98% de-growth during the period q1 fy
2013-14 with 2,524,316 units sold as against 2,628,975 units for q1 fy 2012-13.
Market leader Hero had their sales cut down by 8.21% while second most selling
brand Bajaj got their sales decreased by 7.57%. Among the positives Honda had
registered 20.58% growth in sales, while Royal Enfield and Harley Davidson had
also improved their sales by 46.53% and 22.70% respectively.

108

Hero contributes 54.06% of sales in motorcycle segment, while Bajaj auto has
22.65% share. Improvement has been made by Honda in this segment and raised
their share in this segment to 12.48% in q1 fy 2013-13 from 9.94% in q1 fy 201213.

Scooter Segment

The Scooter segment had seen their sales grow by 14.3% during the period q1 fy
2013-14 with 785,591 units sold as against 687,333 units in q1 fy 2012-13.
Segment leader Honda registered 9.65% growth while Hero had earned an
impressive 49.98% growth in sales. The segment also witnessed Mahindra sales got
decade by 51.44%.
109

Honda witnessed their share came down to 50.37% in Scooter segment, while Hero
up their market share to 20.80%.

Mopeds

The sales of TVS Mopeds have decreased by 11.06% in q1 fy 2013-14. TVS sold
180,770 units during the period as against 203,247 units in q1 fy 2012-13.
Source: SIAM

110

VALUE CHAIN ANALYSIS:Mahindra and Mahindra have strong position in the Indian commercial taxi market.
People mostly buy’s it because it has good performance in extreme condition as
well.

STP:Segments:Mahindra and Mahindra has complete range of SUV’s and Sedan segment
for attracting their target segments.
Automobiles can be classified based on different criteria. Society of Indian
Automobile Manufacturers (SIAM) classifies automobiles based on their length. As
per this model, cars are classified into different segments such as A1, A2 etc.
Segment

Type

Length

A1

Mini

Upto 3400mm

A2

Compact

3401-4000mm

A3

Midsize

4001-4500mm

A4

Executive

4501-4700mm

A5

Premium

4701-5000mm

111

A6

Luxary

Above 5000mm

Passenger car segment in India
Source : SIAM
We can also classify Indian passenger cars into different segments based on price
and functionality.

Segment

Price

Economy

Less than INR 5,00,000

Premium

INR 5,00,000 – 15,00,000

Super-premium

Above INR 15,00,000

Indian car segment based on price.
Target Group:Mahindra and Mahindra is mainly targeting upper middles class young
executive who prefer a better lifestyle for them. They are mainly the professionals
and businessman. Mahindra and Mahindra has also the strong rural reach through
it’s exclusive showrooms.
They have find out many significant factors that customer take into account
while making purchase decisions. The various factors are as follows:Factors
Price
Mileage
Styling/exterior
Spaciousness
Availability of spares
Interiors
Reliability/Quality
Brand Name
Availability of Financial Schemes
112

Positioning
Mahindra and Mahindra to use “RISE” as new brand positioning. Keeping with its
global ambition, homegrown farm equipment-to-auto group Mahindra and
Mahindra today said it will embark on a new brand positioning to project a singular
voice for various entities under its umbrella.
The group, which has decided to use 'Rise' as the new brand position, said it will be
spending Rs 120 crore in the next three years towards promoting the new initiative.

113

PRODUCT MIX
Products and Services:In 1947, we introduced India to the utility vehicle. More
than 65 years later, we're still India's premier utility vehicle (UV) company, but
we've also grown quite a bit. In addition to making ground-breaking UVs like the
Scorpio and Bolero, Mahindra offers cars, pickups, and commercial vehicles that
are rugged, reliable, environmentally friendly, and fuel-efficient. Our global
presence means you can find Mahindra vehicles on the roads-both paved and
unpaved of Australia, Europe, Latin America, Malaysia, South Korea, and South
Africa. And we're seeking out new terrain every day.

Mahindra is also there for you through the construction of excellent components,
provision of spares, and commitment to superior service. Our automotive
businesses cover all your transportation needs thanks to strategic synergies between
our expertise in design, manufacturing, and service.

Two Wheeler’s:We entered the Two Wheeler industry in 2008. We’ve developed rapidly
since then by focusing on brand-building via new product development guided by
consumer insights, strategic partnerships, service orientation, and building scale.
Within eight months of entering the industry, we launched a portfolio of Power
Scooters to critical acclaim in September 2009. Less than a year later, our Power
Scooters had captured a double digit market share. In 2011 Mahindra became the
first Indian two-wheeler manufacturer to enter the Moto Grand Prix
Championships, showcasing our engineering and technology expertise on a
platform where the best in the world compete. We aim to grow into a major player
in the Indian Two Wheeler industry with a robust presence in all product segments.
114

Company’s under Two wheeler:Mahindra Two Wheelers
Mahindra Racing

Products:Duro-DZ
Flyte
Kine
Rodeo-RZ

Duro-DZ:-

A solid scooter designed specifically for tough Indian roads.
A powerful 125 cc engine provides better instant pick-up and multi-terrain
acceleration, making it easier for you to carry load, even on steep inclines and in
tough road conditions. The Dual Curve Digital Ignition (DCDI) System delivers a
115

mileage higher than other 125 cc scooters. Greater ground clearance enables
manoeuvrability over speed breakers with ease and comfort. The longer wheelbase
and improved braking system offer you better safety & stability on the road.

Flyte:-

Affordable and convenient, the Flyte grants you the freedom to go where you want,
when you want.
The Flyte is designed for convenience, comfort, and style. We added a specially
designed fuel tank inlet on the front, so you can stay seated while you refuel.
Everything from books to clothes to shopping bags are easy to fit and easy to find
in the largest-ever 22 liter dual compartment. And the four-in-one key system
multitasks to start the ignition, open the fuel lock, lock the handle, and prevent
theft.
Kine:-

The Kine brings young drivers independence. Zip to class and to your friends’
houses in style with plenty of space for your backpack or kit bag under the
116

seat. Sleek grab rails make it easy to bring along a friend, and the cushy seating
keeps you both comfortable.
Rodeo-RZ:-

The Rodeo-RZ offers superior performance. Its powerful 125 cc, 4-stroke engine
delivers a rush on the open road or in traffic. It’s telescopic suspension smoothes
rough roads. Its supercharged battery gives you a clearer horn, brighter headlamp,
and instant startup. And it’s packed with features to ensure your comfort and style.

ALFA
Price:- 1.4L-1.6L

117

The Alfa is a three wheeler goods carrier designed to make the loading,
transportation, and unloading of small cargos easier.

GIO
PRICE :- RS. 1.65-1.68L

The Gio for intra-city cargo movers who need a compact, hardy truck that can carry
small quantities of goods over rough roads. Through its reliability, functionspecific size, and superior driving experience, the Gio makes hard work easier for
the drivers who depend on it every day.

118

C. TRUCK
PRICE- RS.15L

Indian roads can be more than a little challenging thanks to wide variation in
terrain, inclement weather, and a large percentage of unpaved or unmaintained
routes. To succeed, you need a transportation solution that can handle it all. We
designed Mahindra trucks from the ground-up in India to excel in Indian
conditions, so that you have a more than able partner in your business.

D. BOLERO MAXI TRUCK
Price: Rs 4,08,720 - Rs 4,80,647

119

The Bolero Maxi Truck has the clean lines and macho grille of the Bolero utility
vehicle, and the power and cargo space of a hard-working truck. It lifts your
livelihood—and your lifestyle.

E. GENIO
Rs. 5,06,000

We built the Genio to satisfy small and medium business transportation needs.
Built for performance, it commands the style of a utility vehicle and the comfort of
a car to make transporting goods more efficient and more relaxed. And with eyecatching metallic colors and an aggressive grill and bumper, the Genio makes a
statement.

120

F. LOADKING
Rs. 6,73,865/-

Our range of Loadking trucks offers the right transportation solution for any
business. Need to transport high-volume perishables? Try the Long-Wheelbase
4tyre. Moving big loads like boulders, cement, or sand? Use the Sherpa
Tipper. We even have a model that runs on compressed natural gas (CNG) to help
you fight global warming and fuel costs.

G. MAXIMO
Rs. 3,25,400. to Rs. 3,42,896.

The Maxximo is the most technologically advanced minitruck on the Indian roads
today. Powered by the world’s first two-cylinder CRDe engine and equipped with
double overhead camshafts and four valves per cylinder, it’s built to perform.

121

H. TOURIST BUSES
PRICE – 7L to 14L

Every Tourist’s two-tone, high-back seats are well spaced out to give you plenty of
legroom, and the interior is bright and spacious. We focused on the driver’s
comfort too, putting in a cable-type gearshift with a shorter gear and an adjustable
steering column.

122

PERSONEL VECHICLES
BOLERO
Rs. 5,65,566

Creating the Bolero meant challenging the existing perception of utility vehicles
(UVs).

Because of their toughness, the common perception is that UVs lack

comfort and style. With the Bolero, we strive to deliver the ruggedness people
expect in a UV with the driving pleasure of a car, answering the need for function
with style.

E2O
Rs. 5.95 - 6.25 Lakhs

Designed for urban use, this electric car brings clean transportation options to any
lifestyle. You can carve through city traffic easily, the green way. We’ll even send
you monthly updates on your carbon consumption with tips on how to drive more
efficiently.

123

Striking, convenient, and comfortable, the e2o is the successor to the
REVAi (known in the UK as the G-Wiz) which was amongst the world’s bestselling electric vehicles. With seating for four adults and two children, it presents a
convenient transportation solution and is perfect for city driving. It operates with
maintenance free Lithium-ion batteries delivering 100 km per charge, and reaching
a top speed of over 80 km/h.

SCORPIO
Rs 7.94 - 12.56 Lakhs

The Scorpio (known in Europe as the Goa) we started with a clean sheet of paper
and just one thing in mind-our customers. Your needs became its features, and your
destinations its motivation.
The Scorpio is built around a sophisticated
all-original frame that is rugged yet forgiving. That gives you the flexibility to take
Scorpio anywhere-from urban alleyways to glass-smooth highways to boulderstrewn trails in confidence and comfort.

124

THAR
Rs.7,08,649

The Thar has been more than 60 years in the making. Mahindra built its first utility
vehicle in 1947, when it assembled completely knocked down (CKD) jeeps in
India. Rough, uncertain driving conditions across the country led Mahindra to
design its own powerful, handle-anything UV—the MM540.

VERITO
PRICE- RS. 5,35,053 to RS. 7,23,038

Bold straight lines and subtle curves clearly affirm its powerful stance. The
muscular side cladding, rear spoiler and roof rails bear testimony to the car’s
Mahindra lineage. The sparkle clear head lamps, chrome rear appliqué and fog
lamps add a touch of glamour. Inside, the Verito flaunts a tastefully designed sleek
control panel with a wood finish fascia.

125

XYLO
RS. 7,22,833 to RS. 10,45,330

The all-new Xylo: 50 updates, 5 variants, 3 engine options.
The Xylo is a sleek multi-utility vehicle (MUV) that offers tons of space, style,
and features.

You can literally tell this car what to do: the pioneering Voice

Command Technology lets you control over 30 actions, just by speaking.
The striking front grill and chrome accents make the
Xylo a statement, and the cozy interior makes it a home away from home. The
seats offer advanced lumbar support, and the flatbed front seats recline fully to
form a horizontal bed. Foldout trays on the backs of the front seats make a quick
snack or meal-on-the-go easy and less messy. Mobile charging points and courtesy
lamps transform the Xylo into a moving office. We’ve also attended to details like
express power windows, tilt steering, and easy-to-adjust driver seats.

126

ACTYON
Rs 8.00 L - 10.00 L

With a dynamic and unique style that features simple and refined lines as well as a
powerful diesel engine and four wheel drive system, the Actyon offers the style of
a sports coupe and the utility of an SUV.

ACTYON SPORTS
Price N/A

Take the best of the Actyon's style and fuse it with a pickup truck's practicality.
The result? The Actyon Sports-a Sports Utility Truck that’s ready to handle any
challenge you throw at it.The first multi-purpose SUT in Korea, the Actyon Sports
fits seamlessly into an urban lifestyle with an innovative design that suits both
work and personal needs.

127

CHAIRMAN W.
Price N/A

The Chairman W burst onto the scene in 2008, it strengthened the impact the
Chairman line has had on the Korean luxury car market since 1997.
With its smooth lines, exciting interior features, and superior
handling, the Chairman W brings safety and style to a new level. The Benz 7-speed
automatic transmission delivers enhanced shifting comfort, fuel economy, and an
acceleration boost, while its electronic stability program reduces risk factors on the
road. And with a sophisticated electric parking brake system, active cruise control,
and a 10-airbag safety system, you can rest assured that the most advanced
technology is at work protecting you.

KORANDO
Rs 15 lakh

The sturdy space of an SUV. The style of
an elite European vehicle. It’s no wonder the Korando has long led Korea’s SUV

128

market—and even holds the Guinness Book of World Records title as Korea’s
longest-surviving brand.
This classy utility vehicle was jointly designed and developed in
Europe by renowned stylist Giorgetto Giugiaro, who married a modern, stylish
SUV shape with the rugged appeal at the heart of Ssangyong Motor Company’s
style. Its monocoque body is a first for a Ssangyong SUV, and ensures it’s both
lighter and sturdier than its counterparts.

KYRON
Price N/A

The varied needs of today's customers were at the forefront of the Kyron’s new
design, which made its debut in January 2011. Today, this mid-sized, high
performance SUV is more eco-friendly, more convenient, and more dynamically
styled than ever.
Even before its redesign, the Kyron enjoyed a worldwide
reputation as one of the best SUVs in the industry renowned for their convenience,
style, off-road performance, and pricing.

129

REXTON
Rs 18.69- 20.92*lakh

The Rexton for a spin and you’ll immediately understand why it is Ssangyong
Motor Company’s showcase SUV. This powerful SUV offers the best combination
of performance, fuel economy, comfort, versatility, and safety.
A host of advanced features like the 8-way electrically adjustable driver's
seat with memory settings, touch-screen infotainment system with maps, sunroof,
automatic climate control, rain sensors and auto headlamps make your journey
comfortable.

RODIUS
Price Rs. 15 lakh

The New Rodius is Korea’s first Multi-Purpose Vehicle. It combines the best from
passenger vehicles, SUVs, and minivans with some of the most popular
technologies found in our Chairman and Rexton models.
130

XUV 500
Price 11.50 lakh to 14.50 lakh

The XUV 500 knows no boundaries. Mahindra’s first global SUV platform is here.
Designed with inputs from customers across the world, it is unmatched in terms of
style, performance, technology, safety and comfort – a truly complete driving
experience.
Bold lines trace the chiselled, aerodynamic body of the XUV
500 with static-bending projector headlamps, LED parking lamps and racinginspired twin exhaust give the vehicle both a ferocious and sophisticated look,
making it a striking presence on road.

131

New Launch expected:L . QUANTO
Estimate price RS. 5.98 Lakh to Rs. 7.49 Lakh

Designed for the modern family, the Mahindra Quanto fuses the convenience and
practicality of a hatchback, with the space and comfort of an SUV.
A new breed of compact SUV, the Quanto is the only vehicle with 5 + 2 seating in
the sub-4m category giving it best-in-class interior space. Need a bigger boot? The
5+2 seating is adaptable to the varying needs of the modern family, and the third
row of seats folds to make more space than ever before.

132

M. Mahindra compact XUV500 (Expected in October 2013)
Expected Price : Rs.6.00 L – 7.50 L

The XUV500 has been a massive success for Mahindra however now Mahindra
plans to expand and cash in on its popularity and might bring in a mini XUV500!
Yes the XUV500 may be chopped and in a bid to get more sales the compact
XUV500 could be soon a reality. The Quanto has not been a big success primarily
because it’s not exactly great looking and not that much different from the Xylo.

Defense Products:India's national security challenges are varied and complex, ranging from contested
borders to regional peacekeeping to domestic unrest and natural disasters. As we
become an economic and political leader in Southeast Asia and across the globe,
we need better defense solutions to support us in our growing roles. Since the late
1990s, India has begun a systematic modernization and upgrade of its military
equipment. A key component of this push is the indigenization of our defense
supplies.
We've been involved with defense systems since 1947 when a licensing agreement
allowed us to become importers, assemblers, and then adapters of the iconic Willys
Jeeps used in WWII. From there, we moved into designing and constructing our
own line of armored vehicles to become the largest private sector supplier to the
government.

We've now expanded into defense systems like sea mines,

surveillance solutions, weapons, ammunition, and more. As India improves its
133

national security capabilities, we want to be there providing cutting-edge
technology based on decades of experience and care.
Our expertise, manufacturing strengths, and cost-efficient production also make
our products useful to foreign governments and security organizations. We partner
with several countries to bring them a range of defense solutions for use by police
forces, the Army, and the Navy.

Companies Under Defense Auto Sector:Mahindra and Mahindra Defence Division
Defence Land System
Products:- They have products for Land as well as for Sea.
For land they have various products such as:Axe
Marksman
Mine Protected Vehicle
Rakshak

For Sea they have various products such as:Sea Mines
Torpedo Decoy Launchers

134

Mahindra Axe:-

The Mahindra Axe Light Strike Vehicle is a high mobility combat vehicle designed
for the Indian Army and the Special Forces of foreign armies. Its 140 HP, fourcylinder diesel engine and Mercedes-Benz transmission deliver high performance
in the roughest situations. Lightweight and high-payload, the Axe can carry six
crew with full battle loads.

Marksman:-

Mahindra designed the Marksman to protect paramilitary and police forces in
counterterrorist and standard operations. The first of its kind in India, the
Marksman is a capsule-based, light bulletproof vehicle that carries a driver, codriver, and four personnel.

135

Mine Protected Vehicle:-

The Mine Protected Vehicle India (MPVI) is the first product designed and
manufactured by Defence Land Systems India, the then joint venture between
Mahindra & Mahindra and BAE Systems. Designed specifically to meet Indian
security challenges and terrain, the MPVI supports the Indian armed and
paramilitary forces in their remote security procedures. With a rugged 230 HP
engine and a 6x6 transmission system, the MPVI is ready for offroading.

Rakshak:-

The Rakshak is a heavy-duty bulletproof vehicle with a powerful four cylinder, 61
HP engine. The Rakshak’s composite armor stops front, side, and rear attacks with
7.62mm bullets from a distance of 10m, and its roof protects the passenger
compartment from a 45 degree attack from 10m. An optional light machine gun
comes with a protection shield in the front, providing a firing range of 120
degrees. A ballistic carpet to provide 98 percent underbelly protection from
shrapnel grenades can be installed on request.
Today the Rakshak is serving the Indian Army, police and
paramilitary forces - saving lives in Jammu and Kashmir, North-Eastern States,
136

Delhi, Andhra Pradesh and Jharkhand. It’s also used by the Paramilitary and
Security forces of Guyana and Nepal.

Farm Equipment:They

began

manufacturing tractors

in

the

early

1960s for

the

Indian

market. Nearly 50 years later, we are the number one tractor company in the world
(by volume) with annual sales above 200,000 and over 2.1 million tractors sold to
date. Our products are making farms more prosperous in more than forty countries
on six continents. Following our vision of Farm-Tech Prosperity, we’ve also
expanded into farm-support services, including agri-mechanization solutions under
Mahindra AppliTrac; seeds, crop protection, as well as market linkages,
distribution,

agri-support

information

and

counseling

through

the Samriddhi Initiative.
Through this network of services, we aim to empower the rural farmer and
transform rural productivity, income, and living standards. We want to improve
farm lifestyles by making hard work easier, increasing yields, and increasing
returns. All our tractor brands, ranging from the 15 HP engine to 85 HP, have been
designed in close communication with farmers about their day to day tractor usage
and farming practices. From low cost tractors that cater to farmers with marginal
landholdings, to higher performance tractors with superior features, we've
revolutionised the farm equipment space. Our farm equipment and services provide
a comprehensive support system to help farmers prosper.
Coupled with this is a comprehensive agri-support system ranging from watermanagement to crop solutions— enabling farmers to rise beyond their current
realm of possibility. Our continous dedication in putting the farmer at the center of
our products and services has led us be the market leader in India for nearly three
decades, with a market share above 40 percent.
This close relationship to Indian agricultural development has given us extensive
expertise in designing and manufacturing farm equipment in response to local
conditions, enabling us to enter foreign markets across the world. Today, we have
137

footprints in the United States, China, Australia, New Zealand, Africa (Nigeria,
Mali, Chad, Gambia, Angola, Sudan, Ghana, Morocco), Latin America (Chile,
Argentina, Brazil, Venezuela, Central America and the Caribbean), South Asia (Sri
Lanka, Bangladesh, Nepal), the Middle East (Iran, Syria) and Eastern Europe
(Serbia, Turkey, Macedonia).

Company’s under Farm Equipment:Mahindra (China) Tractor Company
Mahindra USA Inc
Mahindra Yueda (Yangcheng) Tractor Company
Mahindra and Mahindra-Farm Equipment Division

Products Under Farm:Arjun
Bhoomiputra
Sarpanch
Shaan
Yuvraj

138

Arjun:-

The Arjun will take your farm from prosperity to plenty. With its high-performance
engine, technological superiority, and flashy looks, the Arjun dominates in the topend category of 40+ HP tractors in India.
The most advanced technology in India makes the Arjun an outstanding
performer. Thanks to the Synchrotec transmission, you can change gears easily
even when you’re in motion. Dual acting balanced power steering ensures easy
maneuverability in any operation conditions. Hi-Tec hydraulics ensure smooth and
precise operation. And the Lubritech braking system is so powerful it can stop the
tractor even with 25T of loaded trolleys on a steep gradient.

139

Bhoomiputra:-

Exceptional reliability and value for money make the Bhoomiputra our best-selling
tractor, accounting for almost 60 percent of all tractor sales. It brings you robust
style, strength, better pick-up, and high fuel efficiency—and it’s easy to
operate. Highly dependable and low maintenance, the Bhoomiputra will transform
your farm’s productivity for years to come.
The Bhoomiputra comes in five models ranging from 25 HP to 45 HP so you can
choose exactly the tractor you need. Our engine technology monitors load and rpm
to determine the optimal amount of fuel for each task, bringing you savings on fuel
costs and gains in performance. And with a low rpm of 1900, your engine suffers
less wear and tear so it can keep working for you longer.

140

Sarpanch:-

Ushering in a new era of turbo technology, the Sarpanch sets a new pace for
agriculture.
Available in 39 HP to 52 HP, the Sarpanch's three-cylinder turbo engine brings
you greater power, higher speed, and enhanced productivity. The full constant
mesh transmission lets you shift gears in motion so you never have to slow
down. The Hi-Tec hydraulic system gives you smooth operating control and the
Quick Lift button lets you quickly lift and drop loads without fatigue. And the
multi-disc brakes are immersed in oil to encourage top performance and low
maintenance.
The Sarpanch upgrades your style with new, modern lines and a removable front
grille. Take a look at the illuminated gauges on the dashboard, bright halogen
headlamps, and comfortable seating. With turbo power and style, the Sarpanch
helps you get more done every day.

141

Shaan:-

The Shaan is a modern multi-utility tractor with the ideal combination of looks and
performance that will help you with more than just agriculture—its multi-utility
design will help you put your entrepreneurial ideas into practice. We’ve built in a
trolley with a payload of 750 kg so you can use the Shaan for a range of activities
to suit your ambitions.
With a top speed of 40 kmph and a 23.5 HP engine, the Shaan is fast enough to be
not only a farming tractor, but also a goods or people carrier. It’s got versatile style
too, with a conventional tractor look coupled with chic features including a soft-top
canopy and windscreen with wipers. Its comfortable seat and car-style clutch,
accelerator, and gears will have you speeding through your work.
In 2007, the Shaan was recognized with the American Society for Agricultural &
Biological Engineers Award for being one of the 50 Outstanding Innovations of the
Year. From agriculture to transportation, the Shaan is ready to support you in
every business activity.

142

Yuvraj:-

The Yuvraj 215’s low cost of ownership and best-in-class fuel efficiency is
bringing mechanization opportunities to farmers with small landholdings across
India and revolutionizing earnings capabilities.
We designed the Yuvraj 215 for small farm operations. With one cylinder and 15
HP, the Yuvraj 215 is compact and easy to operate. We built it for long life and
low maintenance, durability and dependability. It offers the first water-cooled
single cylinder engine in the 15 HP segment, and its side shift gear is easy and
comfortable to use.
The Yuvraj 215 achieves a top speed of 25 kmph, the highest in its class. It can
haul up to 1.5 tons. It’s ideal for farmers ready to upgrade from bullocks or power
tillers, or for farmers who need an additional machine for specific applications like
inter-culture, power generation, or water pumping. Farmers who cultivate
vegetables, tend orchards, or raise cash crops can all benefit from the Yuvraj 215’s
strong value proposition of affordability, power, and performance.

143

What is covered in the warranty?
It covers Engine, Manual Gear Box, Front Wheel Drive, Rear Axle, Propeller
Shaft, Suspension, Steering, Clutch, Breaking system, Diesel Injection System
except for standard maintenance items, body, glass and interiors. This Warranty is
mechanical breakdown coverage. If any of the covered parts break down, then for a
period of 365 days from the date of Vehicle purchase, Mahindra First Choice
Wheels will repair or replace any such part(s) at no charge. Mechanical breakdown
coverage applies to the covered parts only.

Benefits:Mahindra First Choice Wheels follows a stringent 118 point check to ensure the
quality standard of every certified and offers warranty to take care of unforeseen
failure of engine & many other expensive parts over a limited period of time. For a
hassle-free ownership experience and complete peace of mind, we recommend you
to choose the warranty cards.

SERVICES
Customization Service
Design services
Mahindra Spares

144

Customization Service:We at Mahindra and Mahindra take pride in being a consumer-centric organization.
Now, we become the first Indian automotive manufacturers to give you a unique
experience. We are in fact the only original manufacturer in India to pursue
automotive customization.
We’re pioneering automotive customization in India, transforming the mass
produced vehicle into an expression of your own tastes, needs, and personality.
Once you pick out your automobile, we offer you an array of customization menus
to completely revise the look and feel of your car. Change everything from details
like color and spot lamps to the structure itself by restyling the body shell, hood,
and bumpers. Overhaul the interior from carpeting to the central console to the
number and type of seats.

145

Design Services:We offer customized design services through our Italy-based design
house, Mahindra Graphic Research Design. We focus on style, engineering, CAE
(computer-aided engineering), prototypes, and project management to partner with
our clients from start to finish.
Our style consulting begins with an in-depth brand analysis and the development
of a robust brand identity. We take a design through every phase from concept
design to feasibility, detail design, FMEA (failure mode and effects analysis),
DMU (digital mockup), and SOP (standard operating procedure) support. We’ve
provided two wheelers, passenger vehicles, and light and heavy trucks with part
design for BIW (Body in White), exterior and interior trim, and instrument
panels. We also handle regulatory compliance with ECE, CEE, FMVSS, and AIS
standards and ensure part manufacturing and plant process compliance.
We use CAE(computer-aided engineering) to model vehicle performance. We test
static and dynamics like bending and torsion stiffness, Eigen modes, multibody
analysis, and CFD (computational fluid dynamics).

We monitor lifetime

performance from NVH (noise, vibration, and harshness) to fatigue and
durability.

And

we

conduct

comprehensive

safety tests

and

simulate

manufacturing processes like auto form and moldflow.
Finally, we offer project management services. Let us take care of deadlines and
milestones management, resource and supplier management, and quality
procedures. We also provide product to market support including homologation
procedures, testing, and SOP in product plants.

146

Mahindra Spares:In addition to making ground-breaking vehicles, we build many of
the important parts that go into them. Since 2002, we've offered a wide range of
spares for Mahindra’s automobiles, farm, Mahindra Navistar trucks, three
wheelers, and other companies in both domestic and overseas markets. Our goal is
to provide our customers with nothing but the best, and if we can’t source a highquality component from another location, we learn to build it ourselves.
You can take advantage of our spare parts to improve the machinery you depend
on, from your scooter to your tractor to your SUV. With more than 36,000 active
parts handled by over 800 vendors through our hub and spoke model, you can rest
assured that you get the best parts and service at a reduced order-to-delivery time.

N.K.Sing (Mumbai)
Owner of Mahindra Scorpio

I was completely satisfied by the work done by MFCS. Good service.
Ramavatar Agrawal (Mumbai)
Owner of Mahindra Logan
147

I feel my car is in safe hands, after my car warranty expired. Prefer Mahindra First
Choice Services for taking personal care & reasonable repair charges

148

PLACE

Another Division, Farm Equipment manufactures agricultural tractors and
implements used in conjunction with tractors. It became the market leader in Indian
tractor

market

in

1983

and

has

149

retained

the

position

till

today.

The Company's outstanding manufacturing skills allow it to constantly innovate
and launch new products for Indian market. The "Scorpio", a sport utility vehicle
(SUV) won National Award for outstanding in-house research and development in
2003. It also won "Car of the Year" from Business Standard Monitoring and CNBC
Auto Car. Also, it received the "Best SUV of the Year" and "Best Car of the Year"
Awards from BBC on Wheels.

It has also launched India's first tractor with turbo technology - the Mahindra
Sarpanch 595 D1 Super Turbo. The manufacturing units of Mahindra and
Mahindra are at Jaipur, Rudrapur, Nagpur, Nashik (2 units), Mumbai (2 units) and
Zaheerabad.

Mahindra motor’s manufacture & distribution strategy:
January, 23, 2013: Mahindra World City (MWC), Jaipur, an Integrated Business
City reaches another milestone with the signing of Mahindra & Mahindra Ltd to set
up a distribution hub for spare parts business in 10 acres within Domestic Tariff
Area of Mahindra World City, Jaipur. The new facility will be started with an
investment of Rs. 30 Cr and will provide direct employment to over 300 people.
The spare parts business unit caters to the spare parts requirements of Mahindra
vehicles and tractors in use by customers to provide them with the best and genuine
spares through capabilities in sourcing, assembling, warehousing and distribution.
As part of its expansion strategy, the business unit plans to create hubs across India
to cater to the fast growing demand for genuine spare parts.
Dr Pawan Goenka, President – Mahindra Automotive & Farm Equipment Sector
said, "For our new parts distribution hub for Northern markets, Mahindra World
City, Jaipur was the ideal choice for us. MWC is strategically located on NH 8 and
provides world class infrastructure, connectivity with key markets and a conducive
ecosystem to meet all our business needs."
Speaking about the development, Ms Anita Arjundas, MD & CEO, Mahindra
Lifespace Developers Ltd & Director, Mahindra World City, Jaipur, said, “It is an
150

important milestone for us in our journey of creating an industrial destination at
Jaipur to have a leading customer like Mahindra & Mahindra Ltd as part of
Mahindra World City, Jaipur.”

About Mahindra World City, Jaipur
Mahindra World City, Jaipur is an integrated business city focused on creating
economic centers of development and new urban nodes. The 2nd such development
from the Mahindra World City stable, Mahindra World City, Jaipur (MWCJ) is
spread over an area of 3000 acres and provides corporates with a world-class
platform to expand their businesses to compete globally. Mahindra World City,
Jaipur offers Special Economic Zones, a Domestic Tariff Area and Social
Infrastructure Zone and is a 74:26 joint venture between Mahindra Lifespace
Developers Ltd. (a Mahindra group company) and the Rajasthan State Industrial
Development and Investment Corporation Ltd (RIICO, an agency of the
Government of Rajasthan).MWCJ includes exclusive zones for IT/ITeS
Companies, Engineering & related industries, handicraft companies, gem &
jewellery companies and apparel companies. Besides these export oriented zones,
MWCJ also has a Domestic Tariff Area (DTA) for catering to companies serving
the domestic market. Mahindra World City will also have a dedicated Logistics and
Warehousing Zone for the manufacturing companies in order to provide complete
end to end solutions. Social Infrastructure in the form of housing, education and
health institutes, recreational zones, and retail and hospitality centers also forms an
integral part of the development.

Today, 43 companies have already signed-up with MWCJ in various zones viz.
IT/ITeS, Engineering & Related Industries and Handicrafts, which include names
like JCB, Perto, Infosys, Wipro, Deutsche Bank, State Bank of India, ICICI Bank,
EXL, Nucleus Software, Nagarro Software, Truworth, Girnar Soft, QH Talbros,
Dynamic Cables, Poly Medicure, Gravita India, Knit Pro, and Ratan Textiles
among others.
151

Mahindra World City, Jaipur is one of 16 projects world-wide to be part of the
Clinton Climate Initiative’s (CCI) effort to create Climate Positive cities. Total
investments into Mahindra World City, to date, have crossed Rs. 1000 crores.
About Mahindra Spares Business Unit (SBU)
Mahindra Spares Business Unit (SBU) is a part of the Automotive and Farm
Equipment Sector of the Mahindra Group and caters to spares parts requirement of
Mahindra vehicles and tractors in use for repair and maintenance. SBU procures
parts from various Mahindra approved vendors and plants across India and supplies
to the market through channel partners. SBU was established in August 2002 to
provide Mahindra customers the best possible and quicker solutions to their spare
Parts needs through its abilities in sourcing, assembling, warehousing and
distribution. The total turnover handled for Financial Year 2012 is around Rs.1,300
crores. New capacity creation is being done to facilitate handling business which is
expected to reach Rs.6,000 crores by 2020. SBU supplies entire range of spares for
M & M vehicles in domestic and overseas markets. The product range is
maintained and supplied in the market not just for profitability but also for
supporting vehicles on road as per the commitment of sectors to end users.

Distribution Strategy - Serve less markets at a time but serve them well
Since the Scorpio was targetted at an urban clientele it needed a stronger ditribution
presence in Metros and urban areas. Hence, the distribution channel had to focus on
providing an appealing experience for modern car buyers and on offering
international standards of auto retail.

152

State

Location

Class

Madhaya Pradesh

Pithampur

Two wheelers

Uttarakhand

Rudrapur

Commercial vehicles

Karnataka

Bangalore

Passenger vehicles

Maharashtra

Nashik

Passenger vehicles

Maharashtra

Mumbai

Commercial vehicles

Rajsthan

Jaipur

spare parts

Andra Pradesh

Zaheerabad

tractor

Other
Location Details - Mahindra and Mahindra

Location Type

Address

Factory/plant

Nashik
Nasik - 422403
Maharashtra – India

Branch Office

7, Dr. Ishaque Road (Old KYD Street)
Kolkata - 700016
West Bengal - India

Registered Office

Gateway Building, Apollo Bunder
Mumbai - 400001
Maharashtra - India
Phone : 22021031
Fax : 22875485
Email : investors@mahindra.com

153

Branch Office

Raheja Chambers, First Floor, 12 Museum Road.
Bangalore - 560001
Karnataka - India

Factory/plant

Nagpur
Nagpur Maharashtra - India

Factory/plant

Jaipur
Jaipur Rajasthan - India

Branch Office

Mahindra Towers 2 - A Bhikaji Cama Place
New Delhi - 110066
Delhi - India

Branch Office

Mahindra Towers, First Floor, 17/18 , Pattulous Road
Chennai (Madras) - 600002
Tamil Nadu - India

Factory/plant

Igatpuri
Igatpuri Maharashtra - India

Factory/plant

Haridwar
154

Haridwar Uttaranchal - India

Factory/plant

Pune.
Maharashtra - India

Mahindra Dealers in India

Mahindra dealers in Agartala

Mahindra dealers in Agra

Mahindra dealers in Ahmedabad

Mahindra dealers in Ahmednagar

Mahindra dealers in Ajmeer

Mahindra dealers in Akola

Mahindra dealers in Aligarh

Mahindra dealers in Allahabad

Mahindra dealers in Alwar

Mahindra dealers in Ambala

Mahindra dealers in Amritsar

Mahindra dealers in Anantapur

Mahindra dealers in Asansol

Mahindra dealers in Aurangabad

Mahindra dealers in Azamgarh

Mahindra dealers in Balasore

Mahindra dealers in Bangalore

Mahindra dealers in Bareilly

Mahindra dealers in Basti

Mahindra dealers in Bellary

Mahindra dealers in Bhilwara

Mahindra dealers in Bhopal

Mahindra dealers in Bhuvaneshwar

Mahindra dealers in Bikaner

Mahindra dealers in Chandigarh

Mahindra dealers in Chennai

Mahindra dealers in Chhindwara

Mahindra dealers in Cochin
155

Mahindra dealers in Coimbatore

Mahindra dealers in Cuddalore

Mahindra dealers in Cuttack

Mahindra dealers in Dehradun

Mahindra dealers in Delhi

Mahindra dealers in Dhanbad

Mahindra dealers in Dhule

Mahindra dealers in Dibrugarh

Mahindra dealers in Dimapur

Mahindra dealers in Dispur

Mahindra dealers in Etawah

Mahindra dealers in Faizabad

Mahindra dealers in Gangtok

Mahindra dealers in Gurgaon

Mahindra dealers in Guwalior

Mahindra dealers in Hoshangabad

Mahindra dealers in Hoshiarpur

Mahindra dealers in Hubli

Mahindra dealers in Hyderabad

Mahindra dealers in Indore

Mahindra dealers in Itanagar

Mahindra dealers in Jabalpur

Mahindra dealers in Jagdalpur

Mahindra dealers in Jaipur

Mahindra dealers in Jalandhar

Mahindra dealers in Jalgaon

Mahindra dealers in Jammu

Mahindra dealers in Jhansi

Mahindra dealers in Jodhpur

Mahindra dealers in Kanpur

Mahindra dealers in Karimnagar

Mahindra dealers in Karnal

Mahindra dealers in Khandwa

Mahindra dealers in Kharagpur

Mahindra dealers in Kolhapur

Mahindra dealers in Kolkata

Mahindra dealers in Korba

Mahindra dealers in Kota

Mahindra dealers in Latur

Mahindra dealers in Leh

Mahindra dealers in Lucknow

Mahindra dealers in Ludhiana

Mahindra dealers in Madurai

Mahindra dealers in Malda
156

Mahindra dealers in Mandi

Mahindra dealers in Mangalore

Mahindra dealers in Meerut

Mahindra dealers in Mirzapur

Mahindra dealers in Mohali

Mahindra dealers in Motihari

Mahindra dealers in Mumbai

Mahindra dealers in Nagaur

Mahindra dealers in Nagpur

Mahindra dealers in Nanded

Mahindra dealers in Nasik

Mahindra dealers in Navi Mumbai

Mahindra dealers in Nellore

Mahindra dealers in Noida

Mahindra dealers in Ongole

Mahindra dealers in Panvel

Mahindra dealers in Patiala

Mahindra dealers in Patna

Mahindra dealers in Pondicherry

Mahindra dealers in Port Blair

Mahindra dealers in Porvorim

Mahindra dealers in Pune

Mahindra dealers in Raipur

Mahindra dealers in Rajahmundry

Mahindra dealers in Ratlam

Mahindra dealers in Ratnagiri

Mahindra dealers in Rewari

Mahindra dealers in Rourkela

Mahindra dealers in Salem

Mahindra dealers in Sangli

Mahindra dealers in Satna

Mahindra dealers in Secunderabad

Mahindra dealers in Shillong

Mahindra dealers in Sikar

Mahindra dealers in Silchar

Mahindra dealers in Siliguri

Mahindra dealers in Sirsa

Mahindra dealers in Solapur

Mahindra dealers in Sriganganagar

Mahindra dealers in Srinagar

Mahindra dealers in Thane

Mahindra dealers in Tirunelveli

Mahindra dealers in Trichy

Mahindra dealers in Trivandrum
157

Mahindra dealers in Udaipur

Mahindra dealers in Varanasi

Mahindra dealers in Vellore

Mahindra dealers in Vijayawada

PEOPLE
Management team and key personnel:-

Name

Designation

A K Nanda

Director

A S Ganguly

Director

Anand G Mahindra

CEO

Anand G Mahindra

Vice Chairman & Mng.Director

Anita Arjundas

CEO Real Estate Sector

158

Anoop Mathur

President (Two-Wheeler Sector)

Anupam Puri

Director

Bharat Doshi

Group Chief Financial Officer

Bharat Doshi

Executive Director

Bishwambhar Mishra

Chief Executive - Tractor & Farm Mechanization

Deepak S Parekh

Director

Hemant Luthra

President (Systems & Technologies Sector)

Keshub Mahindra

Chairman / Chair Person

M M Murugappan

Director

Nadir B Godrej

Director

Narayan Shankar

Company Secretary & Compliance Officer

Narayan Shankar

Secretary

Narayanan Vaghul

Director

Pawan Goenka

President (Auto. & Farm Equipment Sectors)

Pravin Shah

Chief Executive - International Operations

R K Kulkarni

Director

Rajan Wadhera

Chief Executive

Rajeev Dubey

President (Group HR & After-Market)

Rajesh Jejurikar

Chief Executive - Automotive Division

Romesh Kaul

Global Chief Executive Officer

Ruzbeh Irani

Exe. VP - Corp. Strategy & Chief Brand Officer
159

Shriprakash Shukla

President-Special Group Projects

Uday Y Phadke

President (Finance, Legal & Fin. Services Sector)

Ulhas N Yargop

President-Information Tech. Sector, Group CTO

V S Parthasarathy

Group CIO, Exe. Vice President - Finance & M&A

Vikram Singh Mehta

Additional Director

Vishakha N Desai

Additional Director

Zhooben Bhiwandiwala

Executive Vice President

160

Business Structure or Organization Structure:
CEO

Secretary

Anand Mahindra

Narayan Shankar

Chairman of the Board

CFO

Keshub Mahindra

Bharat Doshi

Director

Automotive Sector

A.Ganguly

Pawan Goenka

Director

Farm Equipment Sector

R.Kulkarni

Pawan Goenka

Director

Finance, Legal & Financial Services

Anupam Puri

Uday Phadke

Director

Human Resources, After-Market &
Corporate Services

Naraynan Vaghul
Director

Rajeev Dubey
Information Technology Sector

M.Murugappan

Ulhas Yargop

Director

Infrastructure Development Sector

Arun Dasgupta

Sudhir Nair

Director

Systems & Technologies Sector

Deepak Parekh

S.P. Shukla

Director

Trade, Retail & Logistics Sector

Nadir Godrej

k. venkatraman

161

SWOT Analysis:Strength:Mahindra has been one of the strongest brands in the Indian automobile market.
Mahindra group give employment to over 1,55,000 employees.
Excellent branding and advertising, and low after sales service cost.
Sturdy SUV’s good for Indian roads and off-road terrain.
Good reputation among customer.
Strong Brand name recognition.

Weakness:Mahindra’s partnership with Renault did not live up to international quality
standards through their brand Logan.
Economic Crash
Competition with other companies

Opportunities:Developing hybrid cars and fuel efficient cars for the future.
Tapping emerging markets across the world and building a global brand.
Fast growing automobile market.
Growing in the market through electric car Reva (controlling stake) and entry into
two-wheeler segments.
Unfulfilled customer needs.
Use of advance technology for technical advantage.
162

Threats:Government policies for the automobile sector across the world.
Ever increasing fuel prices.
Intense competition from global automobile brands.
Substitute modes of public transport like buses, metro trains etc.
Possible shift in cutomer taste due to substitute vehicles.
Trade barriers due to economic crash.
New trading Regulations implemented by SEBI.

163

BCG METRIX

Relative Market Share

High

Low

XUV 500

Verito Vibe

Scorpio

e20

(Stars)

High

(?)

BCG Matrix of
Mahindra and
Mahindra

Bolero

Mahindra Voyager

Xylo

Mahindra Quanto

(Cash Cows)

(Dogs)

Low

The BCG matrix is used to know about the company position about their products
that

which

products

giving

the

revenue

and

which

gives

losses.

Stars:- Mahindra and Mahindra has the XUV 500 and Scorpio as the top selling
car’s for the company. XUV 500 is the market leaders in SUV segment in India
while Scorpio is top selling and famous in rural markets of India.

Cash cows:- Bolero is the best-selling vehicle for the last 2 years crossing sale of
more than 1 lac units. In 2013 bolero crossed 1,17,000 units sold across India.
Bolero was first launched in the year 2001, and it has become a cash cows for
Mahindra for the last 13 years whereas Mahindra xylo had launched in the year
2009. It is the best MUV in India.
164

Question Marks (?):- Mahindra and Mahindra has launched the Verito Vibe the
sporty sedan car in to compete in small car segments whereas the Mahindra e2o is
the first-in-line of next-generation global Electric Vehicle.e2o is born keeping YOU
and the future in mind. We are confident the e2o will transform you into a different
world with its Future Inspired design, Technically Advanced DNA, & being the
most convenient way to travel in the city.

Dogs:- Mahindra’s voyager had a flop for Mahindra and Mahindra due to it’s price
whereas Quanto is also facing loss of opportunity because the model is not selling
as per company’s projected target. The company’s thought it will recover the
investment but due to not selling this models BEP were gone for toss atleast 10
years to recover. So, it has finally became a Dogs for the company

165

Sustainable Competitive Advantage
E-business can be an effective tool in building and maintaining a sutainable
competitive advantage, and is helping the Mahindra group forge new relationships
with its stakeholders.
All of us in Indian industry are aware of the Internet, and the
tremendous impact it is going to have on business. Fuelled by the recent alliance
between traditional rivals General Motors, Ford and Daimler Chrysler to form a
unified Business-to-Business (B2B) Exchange, the pervasive nature of the Internet
can only grow. However, this is just the beginning; as more companies become eenabled, e-businesses will soon rule the roost. The time has come for conventional
Bricks-and-mortar businesses to adapt to the change in the environment and
become Internet enabled e-businesses. E-business can be an effective tool in
building and maintaining a sustainable competitive advantage, and is helping the
Mahindra group forge new relationships with its stakeholders. The Mahindra group
has followed the e-business evolution model shown in Figure 1 on the next page.
The process involves the following phases.
The Mahindra World Web site was launched in June 1996. The objective of
launching the site was to disseminate information about the organisation to all
stakeholders of the company.
A comprehensive ERP system is the backbone of any e-business strategy.
Mahindra & Mahindra Ltd had several choices, and selected SAP since it offered
the group the best functionalities for its core businesses – automotive and farm
equipment.
Involved putting an intranet in place. This served several purposes simultaneously,
including

employee

education

and

awareness,

and

knowledge

management.
Over the past year the Mahindra group has launched several e-ventures,
including automartindia.com, officemartindia.com and property martindia.com (a j o i n t venture with HDFC). This represents another step in
166

the ev o lu tio n of the g ro u p ’s e-business strategy–moving from an
information based e- business model to a transactions based one.
The group is currently in the process of implementing its customer
relationship management (CRM) and supply chain management
(SCM).

The Mahindra

group

is

using

various

information technology

initiatives to realise its e-business strategy, which will help the
organisation in two ways:
(a) Reduce costs and delays in procurement of material from suppliers.
The inbound transactions component of an e-business strategy can be
implemented using tools such as SCM, which connects organisations to
their vendors. All the transaction flows between an organisation and its
167

vendors, material, inventory and so on, can be automated. This reduces
cycle time and administrative costs, improves inventory control and
accuracy of communications.
E-procurement initiatives can enhance the entire material procurement
system, from supplier selection, contracting, planning, supplier
relationship management, decision management and execution
(production/manufacturing).The Mahindra group has hundreds of
vendors and is using SCM and e-procurement to improve efficiencies in
terms of both time and cost.
(b) Find ways in which to serve customers better.

An

e-business

strategy can be used to implement a CRM initiative. CRM can help an
organisation collect data on

customers’ buying habits using data

mining techniques, and tailor their offerings to suit i n d i v i d u a l groups
of customers.
Organisations can use CRM to develop focused marketing and sales
promotion campaigns as part of their advertising strategy. This, in turn,
can help organisations d ev el o p closer relationships with their customers
and earn customer loyal- ty, resulting in repeat purchases and higher
sales.
Mahindra & Mahindra Ltd,

for example, is

in the p r o c e s s

of

implementing a CRM strategy that will help the organisation obtain
valuable, real-time information about customer buying behaviour.
The Mahindra group is aware of the opportunities presented by ebusiness and is in the process of developing and implementing a
comprehensive e-business strategy that will help the group.
consolidate its position in the market.
(The author is President-Telecom and
Software Sector, Mahindra group)

168

NEW RESEARCH AND DEVELOPMENT
We constantly strive to build products with a lighter environmental impact. Our
R&D teams are currently pursuing technology to enable full hybrid vehicles,
micro-hybrid models, biofuel variants, more advanced electric cars, hydrogen
combustion engines, and the use of recyclable materials.
For example, we are the first company to introduce micro-hybrid technology in the
light commercial vehicle(LCV) segment with our Bolero Maxi-Truck. The microhybrid variant now accounts more than 30% of Bolero Maxi-Truck sales and
Mahindra Reva is pushing the technology of electric cars, with the largest deployed
fleet in the world.

169

DIRECTORS REPORT:Dear Shareholders,
The Directors present their Report together with the audited accounts of your
Company for the year ended 31st March, 2012.

The Financial Year 2011-12 was beset with challenges. Global macro risks,
stemming from sovereign debt issues in the advanced economies and turmoil in the
Middle East, remained high through the year. At the same time, a weak economic
environment at home- rising fiscal and current account deficits, persistently high
inflation, rising interest rates, a weakening currency and prolonged policy and
regulatory uncertainty - added to the risks facing domestic firms and households.
Demand as a consequence, turned sluggish and the country’s economic growth
dropped to 6.9% this year (as per advance estimates put out by the CSO),
considerably below the 8.4% growth registered in the previous two fiscals.
While the agricultural and services sectors displayed some resilience, the unsettled
global outlook and constrained domestic economic environment took a particularly
heavy toll on industrial activity during the year. Environmental hurdles, corruption
charges and slowing Government approvals brought mining activity to a standstill
which severely constrained power generation and other core infrastructure
activities in the country. Hemmed in by structural impediments and rising input
costs on the one hand and weakening domestic and external demand on the other,
manufacturing activity suffered a severe loss in momentum with volume growth
dropping from 7.7% year-on-year in the first quarter of the Financial Year 2012 to
0.2% in the fourth quarter of the Financial Year 2012. Over all, industrial
production grew a paltry 2.8% in 2011-12, in sharp contrast to the 8.2% increase
registered in the previous fiscal.

170

Financial Performance
In these challenging times, the Automotive and Farm Divisions of your Company
have secured good performance reflecting in substantial growth in the net income
of the Company by 35.3% to Rs.32,319 crores in the year under review from
Rs.23,894 crores in the previous year.
Consequent to this commendable performance, the Profit for the year before
Depreciation, Finance Costs, Exceptional items and Taxation recorded an increase
of 9.0% at Rs.4,237 crores as against Rs.3,888 crores in the previous year.
Similarly, Profit after tax clocked an increase of 8.1% at Rs.2,879 crores as against
Rs.2,662 crores in the previous year. Your Company continues with its rigorous
cost restructuring exercises and efficiency improvements which have resulted in
significant savings through continued focus on cost controls, process efficiencies
and product innovations that exceed customer expectations in all areas thereby
enabling the Company to maintain profitable growth in the current economic
scenario.

Dividend
Your Directors are pleased to recommend a dividend of Rs.12.50 per Ordinary
(Equity) Share of the face value of Rs.5 each, payable to those Shareholders whose
names appear in the Register of Members as on the Book Closure Date. The equity
dividend outgo for the Financial Year 2011-12, inclusive of tax on distributed
profits (after reducing the tax on distributed profits of Rs.23.38 crores payable by
the subsidiaries on the dividends receivable from them during the current Financial
Year) would absorb a sum of Rs.868.61 crores (as against Rs.802.64 crores
comprising the dividend of Rs.10.50 per Ordinary (Equity) Share and also a Special
Dividend of Re.1 per Ordinary (Equity) Share aggregating Rs.11.50 per Ordinary
(Equity) Share of the face value of Rs.5 each paid for the previous year).

171

Performance Review
Automotive Division:
Your Company’s Automotive Division recorded total sales of 3,98,357 vehicles
(including Verito) and 70,988 three-wheelers as compared to 2,99,342 vehicles
(including Verito) and 64,740 three-wheelers in the previous year registering a
growth of 33.1% and 9.7% in vehicle sales and three-wheeler sales respectively.
On the domestic sales front, your Company sold 2,45,700 Passenger Vehicles
[including 2,02,217 Utility Vehicles (UVs), 25,644 Multi-Purpose Vehicles
(MPVs) and 17,839 Cars] registering a growth of 36.4% over the previous year’s
volumes of 1,80,180 Passenger Vehicles [including 1,69,205 UVs, 966 MPVs and
10,009 Cars by Mahindra Automobile Distributor Private Limited] (for a
meaningful comparison, sales numbers of Verito Car is also added in the previous
year''s sales numbers). In the commercial vehicle segment, your Company sold
1,27,029 vehicles [including 53,895 vehicles < 2T GVW and 73,134 vehicles
between 2-3.5T GVW] registering a growth of 21.4% over the previous year''s
volume of 1,04,622 commercial vehicles [including 43,717 vehicles < 2T GVW
and 60,905 vehicles between 2-3.5T GVW]. In the three-wheeler segment, your
Company sold 67,440 three- wheelers registering a growth of 8.5% over the
previous year''s volume of 62,142 three-wheelers.
Your Company’s UV sales volume grew by 19.5% and your Company
strengthened its leadership position of the domestic UV market by posting a market
share of 55.1% against the previous year market share of 53.7%. During this year,
Bolero posted record sales and became the first SUV in India to cross the milestone
of 1 lakh sales in a year. Bolero retains the title of India''s largest selling SUV for
the 6th consecutive year. It is also the 7th highest selling passenger vehicle in India.
The Scorpio continues to strengthen its iconic status with sales of over 50,000 units
in the year under review. In September, 2011, your Company launched the
XUV5OO. The XUV5OO is loaded with enhanced technology and safety features,
a strong diesel engine, luxurious interiors and unprecedented refinement, all at a
very competitive price. Twenty two awards received from various Media Groups
bear testimony to the mass appeal and acceptance of the product. The XUV5OO
172

was launched simultaneously in India and South Africa - a first for the Indian
Automotive Industry.
With an aim to strengthen its product portfolio and enter new segments, your
Company successfully launched many new products over the past two years. As a
result, the Company’s share of the Indian Automotive market stood at 11.5% in
2011-12 as compared to 9.6% in the previous year.
In the Overseas market, your Company registered a volume growth of 70.2% over
the previous year. This growth was driven by volume growth in the SAARC
countries, Chile and South Africa. During the year under review, your Company
sold 25,628 vehicles [including 157 vehicles sourced from Mahindra Navistar
Automotives Limited ("MNAL")] and 3,548 three-wheelers in the Overseas market
as compared to 14,540 vehicles [including 305 vehicles sourced from MNAL] and
2,598 three-wheelers in the previous year.
Spare parts sales for the year stood at Rs.873.99 crores (including Exports of
Rs.55.47 crores) as compared to Rs.666.97 crores (including Exports of Rs.28.3
crores) in the previous year, registering a growth of 31.0%.

Farm Division:
Your Company’s Farm Division (including the Swaraj Division) recorded sales of
2,36,666 tractors as against 2,14,325 tractors sold in the previous year, recording a
growth of 10.4%.In the Financial Year 2012, the Indian tractor industry continued
to enjoy double digit growth. The domestic market recorded sales of around
5,35,210 tractors as compared to 4,80,377 tractors in the previous year, recording a
growth of 11.4%.
Your Company’s performance was in line with the tractor industry with domestic
sales of 2,22,944 tractors as compared to 2,02,513 tractors in the previous year
recording a growth of 10.1%. Your Company’s market share now stands at 41.4%
as compared to 42% in the previous financial year, thus completing 29 years of
leadership in the Indian tractor industry. Your Company’s tractor exports grew by

173

16.2% to reach 13,722 tractors as compared to 11,812 tractors exported in the
previous year.
Beyond agriculture, in the power generation space under the Mahindra Powerol
Brand, your Company sold 29,122 engines in the current financial year as against
27,748 engines in the previous year. The growth in volume was achieved in spite of
adverse market conditions in the Telecom Sector. Your Company, while retaining
its leadership position in the genset market catering to the telecom space, has
focused its presence in the retail segment. It strengthened its position in the
fragmented inverter/Home UPS market and sold 83,993 units against 47,217 units
in the previous year, a growth of 78%.
Mr. Anand G. Mahindra commenced his professional career with Mahindra Ugine
Steel Company Limited in 1989 and then joined the Company in 1991 as Deputy
Managing Director. He has been largely credited for the Company’s diversification
into new businesses viz. real estate and hospitality management. In April, 1997,
Mr Anand G. Mahindra was appointed as Managing Director and in January, 2001
was given additional responsibility of Vice-Chairman.
The Board has placed on record its sincere appreciation of the valuable services
rendered by Mr. Dasgupta during his tenure as a Director of the Company.
Mr. Deepak S. Parekh, Mr. A. K. Nanda, Mr. Narayanan Vaghul and Mr. R.
K. Kulkarni retires by rotation and, being eligible, offer themselves for reappointment.

The Board of Directors at its Meeting held on 20th March, 2012 have pursuant to
the approval of the Governance, Remuneration and Nomination Committee of the
Board and subject to the approval of the Members to be obtained at the ensuing
Annual General Meeting of the Company, re-appointed Mr. Anand G. Mahindra as
the Managing Director for a period of 5 years with effect from 4th April, 2012 to
3rd April, 2017 and Mr. Bharat Doshi as the Executive Director for a period with
effect from 28th August, 2012 to 31st March, 2015.

174

Particulars of Employees
The Company had 159 employees who were in receipt of remuneration of not less
than Rs.60,00,000 during the year ended 31st March, 2012 or not less than
Rs.5,00,000 per month during any part of the said year. However, as per the
provisions of section 219(1 )(b)(iv) of the Companies Act, 1956, the Directors''
Report and Accounts are being sent to all the Members of the Company excluding
the Statement of particulars of employees. Any Member interested in obtaining a
copy of the Statement may write to the Company Secretary of the Company.

For and on behalf of the Board

KESHUB MAHINDRA
Chairman
Mumbai, 30th May, 2012

175

Capital Structure (Mahindra and Mahindra)
Face Value
Period

Instrument

Issued Capital

Capital

(Rs. cr)

Frm -To

Authorized Capital

(Rs. cr)

5

294.51

2011 2012

Equity Share

600

294.51

5

293.62

2010 2011

Equity Share

600

293.62

5

289.22

2009 2010

Equity Share

600

289.22

10

278.82

2008 2009

Equity Share

600

278.82

10

245.74

2007 2008

Equity Share

375

245.74

10

238.03

2006 2007

Equity Share

275

238.03

10

233.4

2005 2006

Equity Share

275

233.4

10

116.01

2004 2005

Equity Share

175

116.01

10

116.01

2003 2004

Equity Share

175

116.01

10

116.01

2002 2003

Equity Share

175

116.01

10

116.01

2001 2002

Equity Share

175

116.01

10

110.48

2000 2001

Equity Share

175

110.48

10

110.48

1999 2000

Equity Share

175

110.48

10

103.37

1997 1999

Equity Share

175

103.37

10

101.79

1996 1997

Equity Share

175

101.79

10

101.79

1995 1996

Equity Share

175

101.79

1

0.28

1994 1995

Equity Share

92.8

58.8

10

50.33

176

1993 1994

Equity Share

90

50.33

10

36.21

1992 1993

Equity Share

90

36.21

10

35.34

1991 1992

Equity Share

90

35.34

10

19.26

1987 1989

Equity Share

45

19.26

10

19.26

1984 1985

Equity Share

45

19.26

10

19.08

1983 1984

Equity Share

45

19.08

10

11.45

1979 1980

Equity Share

20

11.45

10

5.72

1977 1979

Equity Share

10

5.72

10

4.42

1973 1974

Equity Share

10

4.42

177

Consolidated Balance Sheet of Mahindra
and Mahindra

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11

Mar '10

Mar '09

Mar '08

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

294.52

293.62

282.95

272.62

239.07

Equity Share Capital

294.52

293.62

282.95

272.62

239.07

Share Application Money

0.00

0.00

0.00

0.00

0.00

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

Init. Contribution Settler

0.00

0.00

0.00

0.00

0.00

Preference Share Application Money

0.00

0.00

0.00

0.00

0.00

Employee Stock Options

0.00

33.97

8.01

6.55

4.00

Reserves

16,475.69 13,945.31

8,912.18

6,704.69

5,887.15

Revaluation Reserves

0.00

11.67

12.09

12.47

Net worth

16,770.21 14,284.08

9,214.81

6,995.95

6,142.69

Secured Loans

13,682.07 14,250.26

9,446.27

7,723.89

6,980.00

Unsecured Loans

5,247.42 3,755.02

4,241.88

4,465.60

3,377.08

Sources Of Funds

11.18

178

Total Debt

18,929.49 18,005.28

13,688.15

12,189.49

10,357.08

Minority Interest

4,525.16 4,336.64

2,462.35

3,057.26

2,734.52

Policy Holders Funds

0.00

0.00

0.00

0.00

0.00

Group Share in Joint Venture

0.00

300.19

2,188.86

39.03

34.60

Total Liabilities

40,224.86 36,926.19

27,554.17

22,281.73

19,268.89

Mar '12 Mar '11

Mar '10

Mar '09

Mar '08

12 mths

12 mths

12 mths

12 mths

12 mths

Application Of Funds
Gross Block

32,012.46 29,818.01

13,692.14

13,029.73

10,516.98

Less: Accum. Depreciation

14,451.33 14,836.09

5,651.36

5,341.02

4,219.02

Net Block

17,561.13 14,981.92

8,040.78

7,688.71

6,297.96

Capital Work in Progress

1,131.25 1,769.29

1,967.69

1,440.48

1,316.79

Investments

5,347.21 4,816.97

3,475.37

3,380.82

1,353.78

Inventories

7,157.67 5,449.15

3,541.72

3,266.87

3,269.45

Sundry Debtors

5,346.32 4,084.57

2,877.36

3,485.05

3,752.89

Cash and Bank Balance

3,479.49 1,381.87

1,010.00

1,561.31

772.73

Total Current Assets

15,983.48 10,915.59

7,429.08

8,313.23

7,795.07

Loans and Advances

23,846.11 15,850.39

11,154.90

9,624.63

8,556.15

Fixed Deposits

0.00

1,623.96

1,400.38

949.09

677.01
179

Total CA, Loans & Advances

39,829.59 27,442.99

20,207.94

19,338.24

17,300.31

Differed Credit

0.00

0.00

0.00

0.00

Current Liabilities

19,642.00 10,106.63

6,933.63

7,992.80

5,664.07

Provisions

4,002.32 3,129.36

1,835.26

1,614.91

1,390.39

Total CL & Provisions

23,644.32 13,235.99

8,768.89

9,607.71

7,054.46

Net Current Assets

16,185.27 14,207.00

11,439.05

9,730.53

10,245.85

Minority Interest

0.00

0.00

0.00

0.00

0.00

Group Share in Joint Venture

0.00

1,151.01

2,626.70

24.33

40.33

Miscellaneous Expenses

0.00

0.00

4.58

16.86

14.18

Total Assets

40,224.86 36,926.19

27,554.17

22,281.73

19,268.89

Contingent Liabilities

3,226.55 3,549.89

3,778.61

2,343.04

2,241.90

Book Value (Rs)

284.71

162.48

255.94

256.25

0.00

242.47

Source : Dion Global Solutions Limited

180

Consolidated Profit & Loss account of
Mahindra and Mahindra

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10

Mar '09

Mar '08

12 mths

12 mths

12 mths

12 mths

12 mths

Income
Sales Turnover

60,299.19 37,130.93 33,184.89

27,116.49 24,692.42

Excise Duty

3,612.85 2,682.29 2,102.13

2,072.18

Net Sales

56,686.34 34,448.64 31,082.76

25,044.31 22,537.60

Other Income

3,119.97 2,926.88 969.80

1,856.65

1,718.74

Stock Adjustments

1,158.67 444.34

-179.07

618.36

Total Income

60,964.98 37,819.86 32,025.87

26,721.89 24,874.70

Raw Materials

37,079.92 20,725.62 15,461.94

13,108.43 12,431.45

Power & Fuel Cost

865.82

471.40

437.95

Employee Cost

6,590.87 3,094.20 4,574.21

4,268.59

3,607.22

Other Manufacturing Expenses

1,409.70 882.55

1,394.69

1,176.06

1,302.27

Selling and Admin Expenses

0.00

4,931.15 3,405.55

3,027.98

2,773.91


7,411.09 863.08

958.74

677.10

-26.69

2,154.82

Expenditure

181

603.92

510.77

785.64

Preoperative Exp Capitalised

-177.18

0.00

Total Expenses

53,180.22 31,100.52 26,000.21

22,903.40 21,072.26

Mar '12 Mar '11 Mar '10

Mar '09

Mar '08

12 mths

12 mths

12 mths

12 mths

-132.59

12 mths

-107.80

-157.64

Operating Profit

4,664.79 3,792.46 5,055.86

1,961.84

2,083.70

PBDIT

7,784.76 6,719.34 6,025.66

3,818.49

3,802.44

Interest

1,799.57 1,232.07 1,120.50

857.76

715.43

PBDT

5,985.19 5,487.27 4,905.16

2,960.73

3,087.01

Depreciation

1,801.67 972.40

873.52

749.33

582.24

Other Written Off

0.00

1.68

1.19

0.78

Profit Before Tax

4,183.52 4,514.87 4,029.96

2,210.21

2,503.99

Extra-ordinary items

0.00

-6.36

-2.22

PBT (Post Extra-ord Items)

4,183.52 4,499.16 4,025.69

2,203.85

2,501.77

Tax

1,407.56 1,317.08 1,154.20

542.17

657.20

Reported Net Profit

2,775.96 3,182.08 2,871.49

1,705.59

1,844.57

Minority Interest

-66.74

95.03

412.56

311.45

283.45

Share Of P/L Of Associates

-283.96

7.32

-19.63

-11.27

-10.00

1,488.16

1,884.01

Net P/L After Minority Interest & Share
Of Associates

0.00

-15.71

-4.27

3,065.90 2,891.41 2,232.60

182

Total Value Addition

16,100.30 10,374.90 10,538.27

9,794.97

8,640.81

Preference Dividend

0.00

0.00

0.00

0.00

0.00

Equity Dividend

767.48

706.08

549.52

302.34

282.61

Corporate Dividend Tax

127.81

118.68

89.61

62.09

52.19

Per share data (annualised)
Shares in issue (lakhs)

5,890.30 5,872.47 5,659.08

2,726.16

2,390.73

Earning Per Share (Rs)

47.13

54.19

50.74

62.56

77.15

Equity Dividend (%)

0.00

0.00

0.00

0.00

0.00

Book Value (Rs)

284.71

242.47

162.48

255.94

256.25


183

Consolidated Yearly Results of Mahindra
and Mahindra

------------------- in Rs. Cr. -------------------

Mar '13 Mar '12

Mar '11

Mar '10

Mar '09

Net Sales/Income from operations

67,353.95 58,241.40

36,117.53

31,568.54

26,756.35

Other Operating Income

1,381.71 1,176.23

724.83

--

--

Total Income From Operations

68,735.66 59,417.63

36,842.36

--

--

Consumption of Raw Materials

39,062.01 35,190.22

19,228.90

14,159.94

11,960.26

Purchase of Traded Goods

3,001.94 1,452.71

1,213.37

--

--

Increase/Decrease in Stocks

-220.36

-1,159.27

-445.27

25.50

180.25

Power & Fuel

--

--

--

--

--

Employees Cost

6,819.07 6,590.87

4,218.27

4,582.55

4,274.86

Depreciation

2,079.86 1,801.67

972.40

873.52

749.33

Excise Duty

--

--

--

--

--

Admin. And Selling Expenses

--

--

--

--

--

R & D Expenses

--

--

--

--

--

Provisions And Contingencies

--

--

--

--

--

Exp. Capitalised

--

--

--

--

--

EXPENDITURE

184

Other Expenses

10,957.21 9,946.42

6,553.65

7,286.90

6,674.44

7,035.93 5,595.01

5,101.04

--

--

Other Income

388.94

184.01

119.43

163.46

P/L Before Int., Excpt. Items & Tax

7,424.87 5,922.33

5,285.05

--

--

Interest

2,297.00 1,799.57

974.21

979.83

750.16

P/L Before Exceptional Items & Tax

5,127.87 4,122.76

4,310.84

--

--

Exceptional Items

452.50

--

--

--

P/L Before Tax

5,580.37 4,183.52

4,310.84

--

--

Tax

1,934.63 1,407.56

1,317.08

1,154.20

510.23

P/L After Tax from Ordinary Activities 3,645.74 2,775.96

2,993.76

--

--

Prior Year Adjustments

--

--

--

--

-6.38

Extra Ordinary Items

--

--

204.03

245.96

-76.39

Net Profit/(Loss) For the Period

3,645.74 2,775.96

3,197.79

2,871.49

1,705.59

Minority Interest

-29.95

66.74

-95.03

-412.56

-311.45

Share Of P/L Of Associates

483.41

283.96

-23.03

19.63

11.27

Net P/L After M.I & Associates

4,099.20 3,126.66

3,079.73

2,478.56

1,405.41


295.16

293.62

282.95

272.62

19,651.55 16,464.93

13,979.26

9,893.65

6,757.75

--

--

--

--

P/L Before Other Inc., Int., Excpt. Items
& Tax

Reserves Excluding Revaluation
Reserves
Equity Dividend Rate (%)

327.32

60.76

294.52

-185

EPS Before Extra Ordinary
Basic EPS

69.51

--

--

--

51.57

Diluted EPS

66.76

--

--

--

48.27

Basic EPS

69.51

53.18

53.48

45.08

51.57

Diluted EPS

66.76

50.92

51.29

42.17

48.27

No Of Shares (Crores)

42.64

42.46

42.46

--

--

Share Holding (%)

69.45

69.15

69.16

--

--

1.26

1.18

1.13

--

--

8.18

7.63

7.41

--

--

2.06

1.93

1.84

--

--

14.20

14.33

14.15

--

--

91.82

92.37

92.69

--

--

- Per. of shares (as a % of the total Share 23.12

23.33

23.06

--

--

EPS After Extra Ordinary

Public Share Holding

Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of shares (Crores)
- Per. of shares (as a % of the total sh. of
prom. and promoter group)
- Per. of shares (as a % of the total Share
Cap. of the company)
b) Non-encumbered
- Number of shares (Crores)
- Per. of shares (as a % of the total sh. of
prom. and promoter group)

186

Cap. of the company)
Notes

Cash Flow of Mahindra and Mahindra

------------------- in Rs. Cr. ------------------Mar

Mar '12

Mar '11

Mar '10

Mar '09

12 mths

12 mths

12 mths

12 mths

12 mths

Net Profit Before Tax

3497.62

3402.13

2756.00

1026.20

1241.57

Net Cash From Operating Activities

2734.95

2979.75

2336.49

1631.30

825.83

-1936.54

-3734.99

-1345.44

-1941.00

-306.15

-383.72

-783.87

696.91

811.34

492.26

-1138.96

207.18

387.21

-437.91

Opening Cash & Cash Equivalents

695.97

1753.13

1543.63

1174.62

1361.79

Closing Cash & Cash Equivalents

1188.23

614.17

1750.81

1561.83

923.88

Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing
Activities
Net (decrease)/increase In Cash and Cash
Equivalents

187

'08

2075.08

Key Financial Ratios of Mahindra and

Mar
'12

Mar

Mar '11

Mar '10

Mar '09

5.00

5.00

10.00

10.00

'08

Investment Valuation Ratios
Face Value

5.00

Dividend Per Share

12.50 11.50

9.50

10.00

11.50

Operating Profit Per Share (Rs)

64.00 58.60

53.31

47.12

48.42

Net Operating Profit Per Share (Rs)

540.47 399.79

327.20

479.84

473.09

Free Reserves Per Share (Rs)

195.40 165.14

120.24

170.32

168.36

Bonus in Equity Capital

57.92 58.10

60.29

62.58

71.36

11.84 14.65

16.29

9.81

10.23

9.90

12.67

14.04

7.41

7.87

Gross Profit Margin(%)

10.03 12.89

14.29

7.59

8.12

Cash Profit Margin(%)

10.19 12.19

12.84

9.38

9.68

Adjusted Cash Margin(%)

10.19 12.19

12.84

9.38

9.68

Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax
Margin(%)

188

Net Profit Margin(%)

8.92

11.14

11.08

6.25

9.45

Adjusted Net Profit Margin(%)

8.92

11.14

11.08

6.25

9.45

Return On Capital Employed(%)

23.58 26.96

27.70

13.99

18.52

Return On Net Worth(%)

23.80 25.92

26.74

16.03

25.51

Adjusted Return on Net Worth(%)

22.41 24.33

26.23

18.49

20.61

205.32 174.85

137.95

191.45

180.87

205.50 175.04

138.15

191.90

181.39

23.58 27.05

27.73

14.51

19.64

Current Ratio

0.95

0.86

1.11

0.90

0.86

Quick Ratio

0.66

0.61

0.86

0.83

0.74

Debt Equity Ratio

0.26

0.23

0.37

0.77

0.60

Long Term Debt Equity Ratio

0.26

0.32

0.46

0.83

0.63

Return on Assets Excluding
Revaluations
Return on Assets Including
Revaluations
Return on Long Term Funds(%)
Liquidity And Solvency Ratios

Debt Coverage Ratios
Interest Cover

23.02 48.36

18.90

9.69

14.64

Total Debt to Owners Fund

0.26

0.37

0.77

0.60

Financial Charges Coverage Ratio

25.66 54.20

21.26

11.86

17.37

22.23 44.41

16.67

9.41

16.33

Financial Charges Coverage Ratio Post
Tax

0.23

189

Management Efficiency Ratios
Inventory Turnover Ratio

14.99 15.64

17.91

14.56

12.49

Debtors Turnover Ratio

19.05 17.97

16.09

12.77

13.26

Investments Turnover Ratio

14.99 15.64

17.91

14.56

12.49

Fixed Assets Turnover Ratio

4.32

4.08

3.85

2.84

3.22

Total Assets Turnover Ratio

2.19

1.86

1.74

1.42

1.64

Asset Turnover Ratio

2.27

2.00

1.85

1.61

3.22

Average Raw Material Holding

15.95 19.18

15.22

16.05

16.77

Average Finished Goods Held

17.73 14.24

13.32

16.26

23.39

Number of Days In Working Capital

-5.25

11.77

7.80

11.07

76.20 70.72

67.30

70.39

70.41

3.48

1.79

1.51

1.39

1.59

3.72

4.41

4.33

4.39

7.11

Expenses as Composition of Total Sales 5.83

4.68

4.11

5.28

7.81

-15.00

Profit & Loss Account Ratios
Material Cost Composition
Imported Composition of Raw
Materials Consumed
Selling Distribution Cost Composition

Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit

30.17 30.15

29.87

37.29

29.10

Dividend Payout Ratio Cash Profit

25.14 26.09

25.37

27.65

23.91

Earning Retention Ratio

67.96 67.88

69.55

67.67

63.99

190

Cash Earning Retention Ratio

73.58 72.44

74.22

75.17

71.61

AdjustedCash Flow Times

0.97

0.83

1.19

3.22

2.29

Mar '11

Mar '10

Mar '09

Mar
'12

Mar
'08

Earnings Per Share

48.88 45.33

36.89

30.69

46.15

Book Value

205.32 174.85

138.02

191.91

181.43


191

Competition

Name

Last Price

Market Cap.

Sales

(Rs. cr.)

Net Profit

Turnover

Total
Assets

Mah and Mah

971.65

59,657.44

40,441.16

3,352.82

15,278.91

Maruti Suzuki

1,554.55

46,959.86

43,587.93

2,392.13

16,265.70

Hind Motors

7.90

145.97

525.15

-46.39

156.03

Balance Sheet

------------------- in Rs. Cr. ------------------Mah and

Maruti Suzuki

Hind Motors

Mar '12

Mar '12

Mar '12

Total Share Capital

294.52

144.50

86.57


294.52

144.50

86.57

Share Application Money

0.00

0.00

3.61

Preference Share Capital

0.00

0.00

0.00

Reserves

11,799.26 15,042.90

-61.42

Revaluation Reserves

10.91

0.00

Networth

12,104.69 15,187.40

Mah

Sources Of Funds

0.00

192

28.76

Secured Loans

400.18

Unsecured Loans

2,774.04 1,078.30

92.05

Total Debt

3,174.22 1,078.30

127.25

Total Liabilities

15,278.91 16,265.70

156.01

Mah and
Mah

Mar '12

0.00

35.20

Maruti Suzuki

Hind Motors

Mar '12

Mar '12

Application Of Funds
Gross Block

8,063.18 14,734.70

478.82

Less: Accum. Depreciation

3,552.36 7,214.00

366.62

Net Block

4,510.82 7,520.70

112.20

Capital Work in Progress

922.26

1,406.30

15.15

Investments

10,310.46 6,147.40

85.31

Inventories

2,358.39 1,796.50

61.85

Sundry Debtors

1,988.36 937.60

19.67

Cash and Bank Balance

630.57

35.74

Total Current Assets

4,977.32 4,510.20

117.26

Loans and Advances

2,767.19 2,140.10

22.57

Fixed Deposits

557.86

0.00

1,776.10

660.00

193

Total CA, Loans & Advances

8,302.37 7,310.30

139.83

Deffered Credit

0.00

0.00

Current Liabilities

6,921.73 5,420.50

187.32

Provisions

1,845.27 698.50

9.14

Total CL & Provisions

8,767.00 6,119.00

196.46

Net Current Assets

-464.63

1,191.30

-56.63


0.00

0.00

0.00

Total Assets

15,278.91 16,265.70

156.03

Contingent Liabilities

2,633.99 5,925.90

103.59

Book Value (Rs)

205.32

1.45

0.00

525.68


194

Recent News:
Due to decrease in sales Mahindra and Mahindra has laid off 500 temporary staff
employed at its Chakan plant near Pune. The temporary workers were employed
mainly at the company’s logistics and support division, sources told the paper.
An M&M spokesman said: "We have reduced 500 temporary workers from across
our plants due to the prevailing situation within the auto industry. We have not yet
taken any call on delaying investments but if the current situation prevails we may
have to."
The company manufactures its XUV500 and Rexton SUVs and commercial
vehicles at the plant. It also has factories in Nashik and Haridwar.
M&M posted a 7% decline in domestic sales in June to 36,207 vehicles, down from
38,951 units in the same month last year. Earlier this month, the company
announced it would stop production at its plants for up to eight days during July to
reduce inventory.
Along with other carmakers, the company has been hit by persisting weak demand
and the falling rupee, leading to an increase in manufacturing costs.
Car sales fall 20% in March despite record discounts
After a free fall in February, car sales in India for the month of March hit another
record low, leading to the overall car sales moving into a negative territory for the
entire fiscal, the first in a decade. Passenger car sales for March fell over 20% led
by an across-the board sharp decline posted by leading carmakers that included
Maruti Suzuki, Hyundai India, Tata Motors and Volkswagen, among others.
In April, nine car companies remained negative on sales chart, while only six
managed to increase sale in the domestic market. Major carmakers like Maruti
Suzuki, Honda Car India, Mahindra&Mahindra, Renault India posted good sales in
the domestic market, while tougher times were faced by Ford Motor, Hyundai, Tata
Motor and Toyota Kirloskar Motor whose sales dipped last month over the
previous year. This follows a 7% fall in sales for the 12-month financial year that
ended in March, raising speculation that the entire passenger car industry may be
195

heading for some sluggish period in the 12-month new fiscal that started in April
this year.
Carmakers are pinning hope that the recent cut in the prices of petrol may boost
demand. Already petrol cars sales have picked up in last month and smaller micro
models like Alto, Eon and WagonR that are available only in petrol increased to
47,800 units sold in April 2013 from 44,380 cars of April 2012.
Analysts tracking the auto industry remained skeptical of an early recovery and
hoped that new car launches and an upbeat festive period could only bring any
turnaround in sales. But, cautioned that before that the auto industry would have to
face four months of monsoon when sales generally remain bleak across India

THE AUTOMOBILE INDUSTRY IN AND BEYOND THE CRISIS
The automobile industry has been severely hit by the crisis
The automobile industry is among the sectors that have been hit most by the
recession. Demand for cars fell sharply, accentuating the difficulties of excess
production capacity already faced before the crisis and deepening the economic
downturn in major car-producing countries. Relative to the general downturn, the
decline in car sales was nonetheless not deeper than what was observed in the past.
The automobile industry is economically important and intertwined with business
cycles
This chapter considers the role of the automobile industry in the current cycle. It
first examines the role of the industry in the economy, before analysing the relation
between the automobile and business cycles. After casting some light on the
sources of the collapse in car sales at the start of the crisis, the chapter discusses the
policy measures, in particular car scrapping programmes, put in place to support
the automobile industry. Finally it investigates the short and medium-term
prospects for the automobile industry.
196

The main results are the following:
The size of the automobile industry relative to overall activity is small, but because
of its strong linkages with other parts of the economy, the final impact of a shock in
the industry on the broader economy is sizable.
The automobile and business cycles usually move in line with each other but the
amplitude of the cycle is higher in the automobile industry. The volatility of the
automobile industry is also higher than that of the manufacturing industries as a
whole.
Evidence for the United States and Canada suggests that the reduction in car sales
since mid-2008 has been magnified by the lack of access to credit, leading many
households to postpone their car purchases. This implies that continued
improvement in financial market conditions could provide an impetus to car sales.

The importance of the automobile industry in the economy
The industry is more important than its size implies
The automobile industry1 represents a relatively small share of the overall size of
OECD economies in terms of value added and employment but this hides large
variation across countries. The automobile

The automobile industry includes companies that are involved in production of
cars, including their design, testing, manufacturing and sales. In the United States it
includes companies producing light vehicles as this series contains vehicles such as
SUVs (4x4s) that are defined as cars elsewhere. Definitions vary depending on the
series used. Industry accounts for almost 4% of total output in the Czech Republic
and Germany, while it is almost non-existent in several countries. Over 2% of
employed people work in the industry in the large automobile-producing countries.
These numbers understate the size of the automobile-related workforce, as a higher
197

number of people are employed in the automobile value chain e.g. both
downstream, in services such as car financing, insurance and maintenance, and
upstream, in steel and transport.2 In many car-producing countries a large share of
output is exported. Automobile exports represent more than 20% of manufacturing
exports in Japan, the Slovak Republic, Hungary, Canada and Spain, and account for
more than or close to 15% of total exports in these countries. The current structure
of the industry is the result of a long process of structural change which is likely to
have further to go.

Input-output tables allow the quantification of the size of multiplier effects from the
automobile industry to the rest of the economy. These multipliers combine
information on both domestic and import inter-sectoral linkages. They are
estimated to be close to three in G7 countries, i.e. a $1 increase in the value added
delivered by the automobile industry would increase output by $3. This level of
multiplier is at or close to the top of what is observed in other industries, and
always stronger than the average across industry (which is estimated to be at
Focusing on domestic linkages would lead to smaller multipliers but, with the
exception of the United Kingdom and Canada, the automobile industry would
continue to display stronger multipliers than the average across industry.

198

CURENT STATUS OF INDIAN AUTOMOTIVE INDUSTRY
The industry encompasses commercial vehicles, multi-utility vehicles, passenger
cars, two wheelers, three wheelers, tractors and auto components. There are in
place 15 manufacturers of cars and multi utility vehicles, 9 of commercial vehicles,
14 of Two/Three Wheelers and 10 of Tractors besides 5 of engines. With an
investment of Rs.50,000 crores, the turnover was Rs. 59,500 crores in Automotive
Sector during 1999-2000. It employs 4,50,000 people directly and 100,00,000
people indirectly and is now inhabited by global majors in keen contention. 4.2
India manufactures about 38,00,000 2-wheelers, 5,70,000 passenger cars, 1,25,000
Multi Utility Vehicles, 1,70,000 Commercial Vehicles and 2,60,000 tractors
annually. India ranks second in the production of two wheelers and fifth in
commercial vehicles. 4.3 India’s automotive component industry manufactures the
entire range of parts required by the domestic automobile industry and currently
employs about 250,000 persons. Auto component manufacturers supply to two
kinds of buyers – original equipment manufacturers (OEM) and the replacement
market. The replacement market is characterized by the presence of several smallscale suppliers who score over the organized players in terms of excise duty
exemptions and lower overheads. The demand from the OEM market, on the other
hand, is dependent on the demand for new vehicles. 4.4 The auto sector (excluding
Tractors) attained a steep cumulative annual growth of 22% between 1992 and
1997. The Tractors achieved a cumulative annual growth of 16%. Component
production grew by 28%. There has been a slowdown in the automobile sector in
the past two years. However, the component industry maintained a low but positive
growth rate mainly due to its export performance. Over the years, the component
industry has maintained a 10% - 12% share of exports in the total production. 4.5
Roads occupy an eminent position in transportation as they, as per the present
estimate, carry nearly 65% of freight and 87% of passenger traffic. Although, India
has 3.3 million kilometers of road network, which is the second largest in the
world, the Indian highways are getting overpopulated. Traffic management and
road sense also need attention.

199

NEED FOR A COMPREHENSIVE AUTOMOTIVE POLICY
The extant policy has drawn many overseas companies into India but needs to be
more investor friendly, address emerging problems and be WTO compatible. The
Indian car market is full of possibilities; but present demand profile inhibits volume
production, saves by a few, and conduces contention rather than competition.
World over, the majors have consolidated to elevate technology, enlarge product
range, access new markets, cut costs and in graft versatility. They have resorted to
common platforms, modular assemblies and systems integration by component
suppliers and E-Commerce. The automotive industry is in the midst of a major
structural transformation in today's globalized scenario. "System Supply" of
integrated components and sub-systems is becoming the order of the day, with
individual small components being supplied to the system integrators instead of the
vehicle manufacturers. In the process, most of the SSI units manufacturing smaller
individual components are on their way to become tier 2 and tier 3 suppliers, while
the larger companies including most MNCs are being transformed into tier 1
companies, which purchase from tier 2 & 3, and sell to the auto manufacturers. 5.3
Indian auto sector needs to grow collaterally and in harmony with world industry.
India has the potential to be a global automotive power. However, concerted efforts
will be required to take auto manufacturing to a self-sustaining level where they
shall have volumes, generate requisite technology and meet evolving emission
requirements. 5.4 Volume is important for any manufacturing enterprise. However,
it is more important for automobile sector, both for the manufacture of vehicles as
well as auto components. Lack of volume will not only inhibit efficient
manufacture but also R&D and introduction of new models. The investment and
fiscal policies should create an environment for volume production and indigenous
capability for innovation for small cars and auto components. It should be possible
to achieve an export target of US $ 1 billion by 2005 and US $ 2.7 billion by 2010.
The would require three pronged marketing strategy: exports through OEMs for
their global sourcing requirements, export to tier I manufacturers as a part of their
international supply chain and direct exports to aftermarket. The main challenges
are lower volume – low scale, fragmentation, inadequate R&D/technology support,

200

lower productivity levels, limited resources for international marketing and
establishment of an efficient supply chain.

MEASURES TO REALIZE THE POLICY OBJECTIVES
Initiatives relating to investment, tariffs, duties and imposts will be the instruments
to achieve the Policy objectives. These path government’s economic reform and are
in harmony with the commitments made to WTO. Increased resource allocation to
the highways sector to ensure collateral upgradation and development of road
infrastructure in step with the increase in the population of vehicles. 6.3 An
appropriate regulatory framework for smooth movement of traffic, safety and
environmental aspects.
FOREIGN DIRECT INVESTMENT
Automatic approval for foreign equity investment up to 100% of manufacture of
automobiles and component is permitted.
IMPORT TARIFF
The incidence of import tariff will be fixed in a manner so as to facilitate
development of manufacturing capabilities as opposed to mere assembly without
giving undue protection; ensure balanced transition to open trade; promote
increased competition in the market and enlarge purchase options to the Indian
customer. The Government will review the automotive tariff structure periodically
to encourage demand, promote the growth of the industry and prevent India from
becoming a dumping ground for international rejects. In respect of items with
bound rates viz. Buses, Trucks, Tractors, CBUs and Auto components,
Government will give adequate accommodation to indigenous industry to attain
global standards. 8.4 In consonance with Auto Policy objectives, in respect of
unbound items i.e., Motor Cars, MUVs, Motorcycles, Mopeds, Scooters and Auto
Rickshaws, the import tariff shall be so designed as to give maximum fillip to
manufacturing in the country without extending undue protection to domestic
industry. The conditions for import of new Completely Built Units (CBUs), will be
201

as per Public Notice issued by the Director General Foreign Trade (DGFT) having
regard to environment and safety regulations. Used vehicles imported into the
country would have to meet CMVR, environmental requirements as per Public
Notice issued by DGFT laying down specific standards and other criteria for such
imports. Appropriate measures including anti-dumping duties will be put in place
to check dumping and unfair trade practices.

EXCISE DUTY
The ownership of cars in India is just 6 per thousand of population as against 500 in
the developed economies. The contribution of the auto sector to the GDP and
employment is likewise low. Expansion of local demand holds great potential and
is vital to install scale volumes of production. Domestic demand mainly devolves
around small cars not exceeding 3.80 meters in length. Small cars occupy less of
road space and save on fuel. These capture more than 85% of the market. India can
build export capability and become an Asian hub for export of small cars. The
growth of the segment needs to be spurred. Multi Utility Vehicles 9.2.1 MUVs are
an important mode of economical mass transport in rural India due to poor road
infrastructure and lack of good State transport system. They are the first vehicle
purchased by a number of farmers, traders, small businessmen in rural and semiurban markets. The Government will endeavor to provide fiscal incentives to the
sector. Commercial Vehicles presently excise duty on commercial vehicles sold by
a manufacturer whether as a chassis or with a complete body is 16%. However, no
duty is levied on the body that is built by an independent body builder on chassis
bought from a manufacturer. The dispensation inveigles production of the complete
trucks and buses by the chassis manufacturer and is detrimental to safety standards.
The duty imposed on the construction of bodies by an independent body builder,
small or organized sector, shall be equal to that of bodies built by a chassis
manufacturer. The Government will encourage fabrication of bus body on bus
chassis designed for better passenger comfort instead of truck chassis as is the
current practice. The Government will promote the use of multi-axle vehicles for
202

carriage of goods as they cause reduced environmental pollution and lesser wear
and tear on road surface in comparison to the existing 2-axle trucks.

IMPROVING ROAD INFRASTRUCTURE
Traffic on roads is growing at a rate of 7 to 10% per annum while the vehicle
population growth for the past few years is of the order of 12% per annum. Poor
road infrastructure and traffic congestion can be a bottleneck in the growth of
vehicle industry. A balanced and coordinated approach will be undertaken for
proper maintenance, upgradation and development of roads by encouraging private
sector participation besides public investment and incorporating latest technologies
and management practices to take care of increase in vehicular traffic. 10.2 For the
convenience of traveling public the Government shall also promote multi-modal
transportation and the implementation of mass rapid transport systems.

INCENTIVE FOR RESEARCH AND DEVELOPMENT
The Government shall promote Research & Development in automotive industry
by strengthening the efforts of industry in the direction by providing suitable fiscal
and financial incentives. The current policy allows Weighted Tax Deduction under
I.T. Act, 1961 for sponsored research and in-house R&D expenditure. The will be
improved further for research and development activities of vehicle and component
manufacturers from the current level of 125%. In addition, Vehicle manufacturers
will also be considered for a rebate on the applicable excise duty for every 1% of
the gross turnover of the company expended during the year on Research and
Development carried either in-house under a distinct dedicated entity, faculty or
division within the company assessed as competent and qualified for the purpose or
in any other R&D institution in the country. The would include R & D leading to
adoption of low emission technologies and energy saving devices. Government will
encourage setting up of independent auto design firms by providing them tax
breaks, concessional duty on plant/equipment imports and granting automatic

203

approval. Allocations to automotive cess fund created for R&D of automotive
industry shall be increased and the scope of activities covered under it enlarged.

ENVIRONMENTAL ASPECTS
The automotive and oil industry have to heave together to constantly fulfill
environment imperatives. The Government will continue to promote the use of low
emission fuel auto technology. The Government after considering the
recommendations of the Expert Committee on Auto Fuel Policy headed by Dr.
R.A. Mashelkar, have approved a road map for implementation for the auto fuel
quality consistent with the required levels of vehicular emissions norms and
environmental quality. The Government will formulate a comprehensive auto fuel
policy covering the other related aspects and ensure availability of appropriate auto
fuel/fuel mixes at minimum social costs across the country. Suitable institutional
mechanism will be put in place for certification, monitoring and enforcement of
different technologies/fuel mixes. Appropriate fiscal measures will be devised to
achieve milestones in the roadmap for implementation of auto fuel policy. In the
short run, the Government will encourage the use of short chain hydrocarbons
along with other auto fuels of the quality necessary to meet the vehicular emissions
norms. There is prime need to support the development and introduction of
vehicles propelled by energy sources other than hydrocarbons by promoting
appropriate automotive technology. Hybrid vehicles and vehicles operating with
batteries and fuel cells are alternatives to the conventional automobile, which in
their early beginnings, lie in treasured. As an impetus for the development of such
vehicles, an appropriate long-term fiscal structure shall be put in place to facilitate
their acceptance vis-à-vis vehicles based on conventional fuels. Internationally, the
practice is to levy higher road tax on older vehicles in order to discourage their use.
In India, the road tax on vehicles varies in nature and quantum among the states.
Lifetime road tax is also in vogue. The endeavor will be to move to the
international model. 13.6 In order to facilitate faster upgradation of environmental
quality, the Govt. will consider having a terminal life policy for commercial
vehicles along with incentives for replacement for such vehicles.
204

SAFETY
Government will duly amend the Central Motor Vehicles Rules, Bureau of Indian
Standards (BIS) and other relevant provisions and introduce safety regulations that
conform to global standards. Testing and certification facilities need to be revised
and strengthened in accordance with safety standards of global order. Government,
in partnership with industry, will tend to the requirement.

BUILDING BYE LAWS FOR RESIDENTIAL, COMMERCIAL AND
OTHER USES
With the growth of vehicles, smooth traffic movement has come under severe
strain. The problem has been aggravated because of inadequate provision of
parking facilities generally. Starting with metropolitan and important towns, the
Government will pursue with State Governments and Local bodies amendments to
by laws for upward revision of the parking norms for new residential buildings,
construction of common parking for existing residential areas besides parking
upgradation in all commercial areas. Multi-storied parking shall also be
encouraged.

205

The “Yuvraj -215”

CASE STUDY
About 80%+ of India’s farmers are marginal or small farmers who cultivate land
holdings that are small and not amenable to mechanization. Productivity from these fields are low.
For Indian agriculture to progress, it is vital that yields from these fields are raised and farm incomes
grow.
The introduction of technology – of which mechanization is a critical part –into
these fields is the most critical driver of farm prosperity.
After extensively researching this segment,
Mahindra’s Farm Equipment Sector had a brainwave : Why not develop a tractor
that costs as much a pair of Bullocks traditionally used to work the land, thereby enabling a
quantum leap in farm productivity? Thus was born the “Yuvraj-215”, a tractor that is driving
unheard of increase in farm productivity on these small plots of land in rural India
The Yuvraj competes in a segment dominated by the unorganized sector and
no other branded tractor caters to the needs of the customers. The Yuvraj-215 is a low cost, and
economical-to-operate tractor, backed by the reliable and trusted Mahindra brand.
However, the task of developing such a tractor was formidable – the cost of the
tractor had to be kept low enough to make it affordable while at the same ensuring that farmers get
the performance levels they expect. Mahindra’s R&D team took up this challenge. They captured
farmer’s insights and conceptualized a product which stands apart in terms of power, speed, fuel
consumption, aesthetics, position and draft control and a small turning radius.
Concept approaches ranged from “A day in a farmer’s life”, keeping in mind
the rational, functional and emotional needs of the customer. Brainstorming on cost saving ideas
was conducted during initial design concept finalization. Also an aggressive sourcing strategy and
contract manufacturing concept was used to keep the cost of the tractor as low as possible.

206

And in a market where an indigenous 9 HP (Horse Power) Tractor costs Rs.2.0
lakhs (~$4,500), the Yuvraj-215, a 15 HP tractor, introduced a year ago costs Rs.1.75 lakhs
(~$4,000). The response to the tractor has been so overwhelming that it is proving to be extremely
challenging to meet demand.
The Yuvraj-215 is a much awarded product and has been honored with the
“Golden Peacock Award
2010” in the innovative product and services category.
The Yuvraj-215 is a shining ability of our ability to think alternatively and make a
difference to the lives of our customers

207

CONCLUSION
Mahindra & Mahindra Ltd. and Ssangyong Motor Company Limited (SYMC) have
signed a definitive agreement containing information related to securing outside
investment, the establishment of principal management, repayment of rehabilitation
claims to protect the interests of creditors, such as creditors and shareholders, and
establishing a foothold for SYMC normalization.
The total cost of acquisition is US$ 463 million with US$ 378 million in new stock
and US$ 85 million in corporate bonds. Mahindra will acquire a 70% stake, and the
deal is expected to be concluded by March 2011.
The agreement was signed in Seoul by Mr. Yooil Lee and Mr. Youngtae Park, Joint
Receivers of SYMC and Dr. Pawan Goenka, President, Automotive & Farm
Equipment Sectors, M&M, in the presence of key staff and advisors to both groups.
SYMC has been undergoing a corporate rehabilitation process since February 2009
and the court receivership will conclude upon court approval and the termination of
corporate rehabilitation process.

The labour union of SYMC, M&M and SYMC have also signed a Tripartite
Agreement which contains provisions for employment protection, long-term
investment and commitment for no labor dispute.
"The securing of a solid partner who has both financial capability and is engaged in
diverse markets will allow Ssangyong to emerge as a global SUV player through
the strengthening of R&D, investments in product development, better business
competitiveness and global sales expansion", said Mr. Yooil Lee.
"The coming together of Mahindra and Ssangyong will result in a competitive
global UV player. Together with its financial capability, Mahindra offers
competence in sourcing and marketing strategy while Ssangyong has strong
capabilities in technology. We are committed to leverage the combined synergies
by investing in a new Ssangyong product portfolio to gain momentum in global
markets", said Dr. Pawan Goenka.
208

Dr. Goenka added, "There is also an opportunity to introduce a premium portfolio
of SUVs in the Indian market, providing a new growth avenue for Ssangyong and
further strengthen our dominant position in the UV segment."
The definitive agreement also encapsulates terms and conditions related to the
process of acquiring new stock and corporate bonds, down payment and deposit
guidelines, repayment of rehabilitation claims, employment guarantees, and other
covenants. M&M has already deposited 10 percent of the final purchasing price per
terms of the definitive agreement, with the remaining balance to be deposited three
days prior to SYMC’s stakeholder meeting. SYMC will update its corporate
rehabilitation plan to include reference to repaying liabilities with cash-in from the
deal, and will be required to receive approval from creditors and the court on the
updated plan. After completing all the acquisition procedures and the repayment of
rehabilitation claims, the corporate rehabilitation process is likely to be finished by
March, 2011.
Mahindra is committed to nurturing the Ssangyong brand in global markets while
preserving its Korean heritage. It is intended that SYMC will continue to function
as an independent entity with primarily a Korean management. The acquisition will
offer financial stability to SYMC and the two companies will work to further
strengthen Ssangyong’s product portfolio across the globe. The inherent strengths
of Ssangyong combined with Mahindra’s expertise will help in building a global
SUV major.

.

209

WEBLIOGRAPHY:http://www.moneycontrol.com/news_html_files/news_attachment/2013/M&M_IDi
rect_170613.pdf
http://www.mahindra.com/#
http://en.wikipedia.org/wiki/Mahindra_%26_Mahindra
http://thebusinessferret.com/tesla-motors-financial-analysis/
http://www.siliconindia.com/news/business/10-Most-Popular-AutomobileCompanies-in-India-nid-138575-cid-3.html
http://www.mahindra.com/Investors/Mahindra-andMahindra/Resource#showCenter
http://autobei.com/blog/passenger-vehicle-analysis-fiscal-year-2012-13/
http://www.team-bhp.com/forum/indian-car-scene/134653-march-2013-indian-carsales-figures-analysis.html
http://priyankablogthoughts.com/companies-in-india/top-10-automobilescompanies-in-india/

210

Complete analysis of Mahindra & Mahindra

More Related Content

What's hot

Viewers also liked

Similar to Complete analysis of Mahindra & Mahindra

More from Santosh Tiwari

Recently uploaded

In this document

Complete analysis of Mahindra & Mahindra