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MAHINDRA
&
MAHINDRA
A PROJECT REPORT
ON
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 Srivastavs 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.C. Bhattacharjee
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.
DECLARATION
Monu A. Tiwari
SMM/22
Fazlani Altius Business School
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
INDEX
Sr. no
Particulars
Page no.
Bonafied certificate
Declaration
Acknowledgement
Executive summary
9-34
35-36
37-49
50-53
10
54-76
11
Market research
77-78
12
Environment analysis
79-85
13
Quality standards
86
14
87-96
15
PEST analysis
97-100
16
101-110
17
111-113
18
Product mix
114-143
19
144
20
Services analysis
145-148
21
149-157
22
Key People
158-160
23
Business structure
161
24
SWOT analysis
162-163
25
BCG matrix
164-165
26
166-169
27
Directors report
170-175
28
Financial statement
176-195
6
29
196-198
30
199
31
200-205
32
206-207
33
Conclusion
208-209
34
Webliograpgy
210
EXECUTIVE SUMMARY
Founders:-
10
11
12
- 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
- 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
1983
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.
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
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
- 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
- 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.
- 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.
- 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.
- 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 .
1993
- 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.
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
1995
- 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.
- 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
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 entering into a 50:50 joint venture with the $8 billion Case of the US for
manufacturing high horse power tractors.
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
- 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 & 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 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.
- 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 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.
- Mahindra & Mahindra is to go for a expansion, keeping pace with its plans for the
introduction of new models, including the Scorpio.
- 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.
- Fitch Ratings India has assigned `Ind 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 & 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 `AA+' to `AAA'.
- 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
- 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
- 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
-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.
-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
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.
-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,
-M&M, Renault ink MoU to set up Rs 550 crore car manufacturing plant in Nasik
-Mahindra & Mahindra inks a JV with International Truck & Engine Corporation,
USA
-Mahindra & Mahindra has given the Bonus in the Ratio of 1:1
2006
- 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 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.
-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
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.
- Mahindra & Mahindra announced its entry into the heavy commercial vehicle
segment in partnership with Navistar Inc of the U.S.
- 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.
2011
- Mahindra & Mahindra - Mahindra announces entry into Micro Irrigation Business
- Mahindra & Mahindra - India Mahindra & Mahindra Ltd. completes acquisition
of a majority stake in SsangYong Motor Company
- Mahindra & Mahindra - Mahindra launches 'Verito' the Logan with Mahindra
badge
2012
- 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 & Mahindra Ltd - Mahindra launches the Verito Executive edition
34
Mission Statement:-
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
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
&
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, weve 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 Groups competencies.
Weve 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. Were opening a new organized-sector
market for pre-owned cars and expanding into foreign markets including the United
States and Europe.
40
41
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, were 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 worlds 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 youre going, our trucks will help you
prosper in your business. Whether its goods, people or dreams, our trucks move it
all.
42
43
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
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 & Mahindras 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.
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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.
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 Koreas 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 Koreas leading luxury sedans. Today, we are a leader
in SUVs with a full product line including RextonII Kyron, Kerando, Actyon
and Actyon sports. We also offer sedan and MPV product lines, Chairman
and Rodius.
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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 youre safe even
in adverse driving conditions.
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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 Indias 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 Mahindras 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
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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.
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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 Companys commitment to the environment stems from the
Mahindra Groups 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 Companys 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.
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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.
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chain standards. Your Companys commitment to the environment stems from the
Mahindra Groups abiding concern for all stakeholders of society.
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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%.
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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.
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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.
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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.
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
Companys 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 Companys 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
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 Companys remuneration
policy from time to time.
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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.
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 Companys 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.
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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.
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 sustainabilitysocial, economic, and environmentalrests
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:
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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.
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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.
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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.'
We will value individual dignity, uphold the right to express disagreement and
respect the time and efforts of others.
fairness, trust, and transparency.
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(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.
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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.
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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.
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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 VFDs 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.
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competitiveness
at
the
marketplace
through
sustained
business
76
MARKET RESEARCH
S.N.
Company Name
Market Share
Maruti Suzuki
37%
14.4%
Tata Motors
13.1%
11.4%
Toyota
6.4%
General Motors
3.3%
Ford
3.2%
Honda
2.9%
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
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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.
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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.
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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 Mahindras 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.
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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 Asiaand 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
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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).
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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.
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Market Context:-
The soft tops sales, which were Mahindras 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.
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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 categorys 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 F00 at 36 per cent and in F01 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
SUVs like Pajero, Land Cruiser and Prado are seen as urban vehicles for the rich
and famous
Consumers aspire to own these vehicles as the imagery of these vehicles has
become very desirable
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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 wasnt 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.
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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.
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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 customers 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 dcor 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
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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
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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.
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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
governments 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.
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Economic factors:
98
Social Factors:
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.
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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.
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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
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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.
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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.
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. Tatas JLR Range Rover and Jaguar XF Sportbrake has good
enough support to have mix product portfolio to increase its sales globally.
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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
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industry. ACG like to see some solid initiatives from the side of Indian Gov. to
keep the India Car Market more attractive.
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.
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Hero also lost some market share and now stay with 43.77% while Hondas 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.
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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%.
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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
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VALUE CHAIN ANALYSIS:Mahindra and Mahindra have strong position in the Indian commercial taxi market.
People mostly buys it because it has good performance in extreme condition as
well.
STP:Segments:Mahindra and Mahindra has complete range of SUVs 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
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A6
Luxary
Above 5000mm
Segment
Price
Economy
Premium
Super-premium
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.
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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 Wheelers:We entered the Two Wheeler industry in 2008. Weve 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.
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Products: Duro-DZ
Flyte
Kine
Rodeo-RZ
Duro-DZ:-
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
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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. Its telescopic suspension smoothes
rough roads. Its supercharged battery gives you a clearer horn, brighter headlamp,
and instant startup. And its packed with features to ensure your comfort and style.
ALFA
Price:- 1.4L-1.6L
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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.
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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.
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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
livelihoodand 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.
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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 worlds first two-cylinder CRDe engine and equipped with
double overhead camshafts and four valves per cylinder, its built to perform.
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H. TOURIST BUSES
PRICE 7L to 14L
Every Tourists 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 drivers
comfort too, putting in a cable-type gearshift with a shorter gear and an adjustable
steering column.
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PERSONEL VECHICLES
BOLERO
Rs. 5,65,566
Creating the Bolero meant challenging the existing perception of utility vehicles
(UVs).
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. Well even send
you monthly updates on your carbon consumption with tips on how to drive more
efficiently.
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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.
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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 UVthe 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 cars
Mahindra lineage. The sparkle clear head lamps, chrome rear appliqu and fog
lamps add a touch of glamour. Inside, the Verito flaunts a tastefully designed sleek
control panel with a wood finish fascia.
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XYLO
RS. 7,22,833 to RS. 10,45,330
You can literally tell this car what to do: the pioneering Voice
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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 thats 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.
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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
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marketand even holds the Guinness Book of World Records title as Koreas
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 Companys
style. Its monocoque body is a first for a Ssangyong SUV, and ensures its both
lighter and sturdier than its counterparts.
KYRON
Price N/A
The varied needs of today's customers were at the forefront of the Kyrons 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.
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REXTON
Rs 18.69- 20.92*lakh
The Rexton for a spin and youll immediately understand why it is Ssangyong
Motor Companys 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 Koreas 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.
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XUV 500
Price 11.50 lakh to 14.50 lakh
The XUV 500 knows no boundaries. Mahindras 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.
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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.
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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 its 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.
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
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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:-
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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:-
Delhi, Andhra Pradesh and Jharkhand. Its 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, weve 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
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).
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 youre 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 efficiencyand its easy to
operate. Highly dependable and low maintenance, the Bhoomiputra will transform
your farms 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 agricultureits multi-utility
design will help you put your entrepreneurial ideas into practice. Weve 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. Its 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 215s 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. Its 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 215s
strong value proposition of affordability, power, and performance.
143
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.
Were 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. Weve
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
And
we
conduct
comprehensive
safety tests
and
simulate
146
N.K.Sing (Mumbai)
Owner of Mahindra Scorpio
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
market
in
1983
and
has
149
retained
the
position
till
today.
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.
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
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
Registered Office
153
Branch Office
Factory/plant
Nagpur
Nagpur Maharashtra - India
Factory/plant
Jaipur
Jaipur Rajasthan - India
Branch Office
Branch Office
Factory/plant
Igatpuri
Igatpuri Maharashtra - India
Factory/plant
Haridwar
154
Factory/plant
Pune.
Maharashtra - India
PEOPLE
Management team and key personnel:-
Name
Designation
A K Nanda
Director
A S Ganguly
Director
Anand G Mahindra
CEO
Anand G Mahindra
Anita Arjundas
158
Anoop Mathur
Anupam Puri
Director
Bharat Doshi
Bharat Doshi
Executive Director
Bishwambhar Mishra
Deepak S Parekh
Director
Hemant Luthra
Keshub Mahindra
M M Murugappan
Director
Nadir B Godrej
Director
Narayan Shankar
Narayan Shankar
Secretary
Narayanan Vaghul
Director
Pawan Goenka
Pravin Shah
R K Kulkarni
Director
Rajan Wadhera
Chief Executive
Rajeev Dubey
Rajesh Jejurikar
Romesh Kaul
Ruzbeh Irani
Shriprakash Shukla
Uday Y Phadke
Ulhas N Yargop
V S Parthasarathy
Additional Director
Vishakha N Desai
Additional Director
Zhooben Bhiwandiwala
160
Secretary
Anand Mahindra
Narayan Shankar
CFO
Keshub Mahindra
Bharat Doshi
Director
Automotive Sector
A.Ganguly
Pawan Goenka
Director
R.Kulkarni
Pawan Goenka
Director
Anupam Puri
Uday Phadke
Director
Naraynan Vaghul
Director
Rajeev Dubey
Information Technology Sector
M.Murugappan
Ulhas Yargop
Director
Arun Dasgupta
Sudhir Nair
Director
Deepak Parekh
S.P. Shukla
Director
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 SUVs good for Indian roads and off-road terrain.
Good reputation among customer.
Strong Brand name recognition.
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
163
BCG METRIX
High
High
Low
XUV 500
Verito Vibe
Scorpio
e20
(Stars)
(?)
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
cars 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:- Mahindras voyager had a flop for Mahindra and Mahindra due to its price
whereas Quanto is also facing loss of opportunity because the model is not selling
as per companys projected target. The companys 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
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 Mahindra
group
is
using
various
information technology
An
e-business
for example, is
in the p r o c e s s
of
168
169
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 countrys 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 Companys 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 years
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 Companys 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 Companys 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 Companys 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 Companys 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 Companys 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 Companys tractor exports grew by
173
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.
KESHUB MAHINDRA
Chairman
Mumbai, 30th May, 2012
175
Instrument
Frm -To
Authorized Capital
Issued Capital
Capital
(Rs. cr)
(Rs. cr)
294.51
2011 2012
Equity Share
600
294.51
293.62
2010 2011
Equity Share
600
293.62
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
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
Mar '10
Mar '09
Mar '08
12 mths
12 mths
12 mths
12 mths
12 mths
294.52
293.62
282.95
272.62
239.07
294.52
293.62
282.95
272.62
239.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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
0.00
0.00
0.00
0.00
0.00
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 '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
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
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
3,479.49 1,381.87
1,010.00
1,561.31
772.73
15,983.48 10,915.59
7,429.08
8,313.23
7,795.07
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
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
23,644.32 13,235.99
8,768.89
9,607.71
7,054.46
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
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
284.71
162.48
255.94
256.25
0.00
242.47
180
Mar '09
Mar '08
12 mths
12 mths
12 mths
12 mths
12 mths
Income
Sales Turnover
27,116.49 24,692.42
Excise Duty
2,072.18
Net Sales
25,044.31 22,537.60
Other Income
1,856.65
1,718.74
Stock Adjustments
1,158.67 444.34
-179.07
618.36
Total Income
26,721.89 24,874.70
Raw Materials
13,108.43 12,431.45
865.82
471.40
437.95
Employee Cost
4,268.59
3,607.22
1,409.70 882.55
1,394.69
1,176.06
1,302.27
0.00
4,931.15 3,405.55
3,027.98
2,773.91
Miscellaneous Expenses
7,411.09 863.08
958.74
677.10
-26.69
2,154.82
Expenditure
181
603.92
510.77
785.64
-177.18
0.00
Total Expenses
22,903.40 21,072.26
Mar '09
Mar '08
12 mths
12 mths
12 mths
12 mths
-132.59
12 mths
-107.80
-157.64
Operating Profit
1,961.84
2,083.70
PBDIT
3,818.49
3,802.44
Interest
857.76
715.43
PBDT
2,960.73
3,087.01
Depreciation
1,801.67 972.40
873.52
749.33
582.24
0.00
1.68
1.19
0.78
2,210.21
2,503.99
Extra-ordinary items
0.00
-6.36
-2.22
2,203.85
2,501.77
Tax
542.17
657.20
1,705.59
1,844.57
Minority Interest
-66.74
95.03
412.56
311.45
283.45
-283.96
7.32
-19.63
-11.27
-10.00
1,488.16
1,884.01
0.00
-15.71
-4.27
182
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
127.81
118.68
89.61
62.09
52.19
2,726.16
2,390.73
47.13
54.19
50.74
62.56
77.15
0.00
0.00
0.00
0.00
0.00
284.71
242.47
162.48
255.94
256.25
183
Mar '11
Mar '10
Mar '09
67,353.95 58,241.40
36,117.53
31,568.54
26,756.35
1,381.71 1,176.23
724.83
--
--
68,735.66 59,417.63
36,842.36
--
--
39,062.01 35,190.22
19,228.90
14,159.94
11,960.26
3,001.94 1,452.71
1,213.37
--
--
Increase/Decrease in Stocks
-220.36
-1,159.27
-445.27
25.50
180.25
--
--
--
--
--
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
--
--
--
--
--
--
--
--
--
--
R & D Expenses
--
--
--
--
--
--
--
--
--
--
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
7,424.87 5,922.33
5,285.05
--
--
Interest
2,297.00 1,799.57
974.21
979.83
750.16
5,127.87 4,122.76
4,310.84
--
--
Exceptional Items
452.50
--
--
--
5,580.37 4,183.52
4,310.84
--
--
Tax
1,934.63 1,407.56
1,317.08
1,154.20
510.23
2,993.76
--
--
--
--
--
--
-6.38
--
--
204.03
245.96
-76.39
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
483.41
283.96
-23.03
19.63
11.27
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
--
--
--
--
327.32
60.76
294.52
-185
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
--
--
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
--
--
23.33
23.06
--
--
186
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
3497.62
3402.13
2756.00
1026.20
1241.57
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
695.97
1753.13
1543.63
1174.62
1361.79
1188.23
614.17
1750.81
1561.83
923.88
'08
2075.08
Mar
'12
Mar
Mar '11
Mar '10
Mar '09
5.00
5.00
10.00
10.00
'08
5.00
12.50 11.50
9.50
10.00
11.50
64.00 58.60
53.31
47.12
48.42
540.47 399.79
327.20
479.84
473.09
195.40 165.14
120.24
170.32
168.36
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
10.03 12.89
14.29
7.59
8.12
10.19 12.19
12.84
9.38
9.68
10.19 12.19
12.84
9.38
9.68
Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax
Margin(%)
188
8.92
11.14
11.08
6.25
9.45
8.92
11.14
11.08
6.25
9.45
23.58 26.96
27.70
13.99
18.52
23.80 25.92
26.74
16.03
25.51
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
0.26
0.23
0.37
0.77
0.60
0.26
0.32
0.46
0.83
0.63
23.02 48.36
18.90
9.69
14.64
0.26
0.37
0.77
0.60
25.66 54.20
21.26
11.86
17.37
22.23 44.41
16.67
9.41
16.33
0.23
189
14.99 15.64
17.91
14.56
12.49
19.05 17.97
16.09
12.77
13.26
14.99 15.64
17.91
14.56
12.49
4.32
4.08
3.85
2.84
3.22
2.19
1.86
1.74
1.42
1.64
2.27
2.00
1.85
1.61
3.22
15.95 19.18
15.22
16.05
16.77
17.73 14.24
13.32
16.26
23.39
-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
4.68
4.11
5.28
7.81
-15.00
30.17 30.15
29.87
37.29
29.10
25.14 26.09
25.37
27.65
23.91
67.96 67.88
69.55
67.67
63.99
190
73.58 72.44
74.22
75.17
71.61
0.97
0.83
1.19
3.22
2.29
Mar '11
Mar '10
Mar '09
Mar
'12
Mar
'08
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.)
Turnover
Net Profit
Total
Assets
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
Maruti Suzuki
Hind Motors
Mar '12
Mar '12
Mar '12
294.52
144.50
86.57
294.52
144.50
86.57
0.00
0.00
3.61
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
3,552.36 7,214.00
366.62
Net Block
4,510.82 7,520.70
112.20
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
630.57
35.74
4,977.32 4,510.20
117.26
2,767.19 2,140.10
22.57
Fixed Deposits
557.86
0.00
1,776.10
660.00
193
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
8,767.00 6,119.00
196.46
-464.63
1,191.30
-56.63
Miscellaneous Expenses
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
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 companys 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
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
199
200
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.
203
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--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.
205
CASE STUDY
About 80%+ of Indias 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,
Mahindras 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. Mahindras R&D team took up this challenge. They captured
farmers 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 farmers 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
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.
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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/
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