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The birth of Mahindra and Mahindra began when K.C. Mahindra visited the United States of America as Chairman of the India supply mission. There he met: BARNEY ROOS Inventor of Jeep Joined hands with Ghulam Mohammed.
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On 2nd October 1945,Mahindra and Mohammed was setup as a franchise for assembling jeeps from Willys,U.S.A. After Independence renamed to Mahindra & Mahindra. Total turnover of 6.7 billion dollars as of 2008.
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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 Mahindra &

Mahindra limited known world wide for the

quality of its products and services.
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Scorpio-the Bottom up Programme

Indias First Indigenously Developed SUV It Was Launched In June 2002. M&M Started Work On Project Scorpio From 1997.

It Was Designed To Target Urban Market To Fulfill The

Demand Of Passenger Car As Well As SUV Fans And Having Comfort And Elegance The UVs Design Fall Between Passenger Car And SUV Called Car Plus Powerpoint Templates Page 6

Set up in 1945 as the manufacturer of general purpose utility vehicles. Later diversified into manufacturer of Tractors and light commercial vehicles (LCV) Further diversified their business into trade and finance related services, information technology and infrastructure development through joint venture and alliance. By the end of 1960 company began manufacturing vehicles indigenously . Its production unit are Mumbai, Nasik, Igatpuri (Maharashtra) and Zaheerabad (A.P.)

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Why the project launched ?

From the year 1992company faced tremendous competition specially from Telco.
The sale from 1994 to 1997 was Tata Sumo- 100000 units and M&M UV- 26321 units M&Ms vehicles are more suitable for rough terrain than on urban road, works against it Took benefit of the small size UV market which is 15% of total vehicle market compared to Asians average (40%)D Powerpoint Templates Page 8

Set up plant at Nasik at a cost of $120 million and capacity was 40000 units. Three new world class lines were set up at the plant of manufacture component.

A paint shop ,collaboration with Durr of Germany.

Company developed integrated design and manufacturing (IDAM) system.

Entire system of production was fully automated and company have well trained workers.
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Development of Scorpio
Made survey and collect customer preference and perception for designee and feature .

a) b) c) d) e) f)

Introduction of Quality Function Development(QFD) Process.

Created a benchmark according to world class SUVs Big size Latest technology Affordable Price Have thrill and passion in driving Have Luxury International vehicles define image

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How Supplier Were Involved?

Company Involve Its Suppliers From Beginning To End. Company Collaborated With Suppliers On Product Design And Development.

Company Make Them Partners In The Scorpio


The Most Important Contact For --Petrol EnginesWith Renault Of France Diesel Engines -With AVL Of Austria Powerpoint Templates Page 11

M&M Only Gave Specification About What They Wanted

From The Vendors & Suppliers And Responsibility For Overall Quality It One Of The Reliable Suppliers.

Company Decentralized Its Vendor System And Result

Better Management Resources And Higher Quality . Company Gave Complete Autonomy Also Allowing Them To Employ On Conventional And Unproven Process And Did Not Change Its Product Specification Constantly.

Company Did Not Make Its Suppliers Wait.

Suppliers Setup Their Facility At Companies Plant. Powerpoint Templates Page 12

STRENGTH 1. The companys ability to introduce new products in the market and to generate sales. 2. Collaboration with big companys. 3. Government incentives for manufacturing plants. 4. Large domestic market. OPPORTUNITY 1. Rising rural demand WEAKNESS 1. Infrastructure bottleneck



High interest costs and high overheads make the production uncompetitive. One unit for manufacturing.

THREATS 1. Rising input costs


Increase in the income level

Commercial vehicles : ban on overloading.


Cut throat competition.

Maintain low cost.

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The Team Development And Function

The Team Was Having 120 Members Of Average Age 27 Years Of 19 Teams.

Apart From Traditional Approach ,They Worke Crossfunctionaly.

The Team Had Holistic View. Teams Were Made Responsible For Cost , Quality And Performance. Cost Target Was Given To Each Team, called Designed To Cost.

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Testing And Validation

74 Vehicles Made For Testing . Components Were Tested With Its Combination. Passed Through Nova-c.

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The Success Story Of Launching Scorpio

It Was Launched With Three Models. 1000 Units Were Booked Within The Launch Of First Week. In 2003 Companies Income Rose By 22%. Breaking The Tradition Of UV,Scorpio Is Being Used Primarily As

Personal Vehicle.
Survey In 2004 Shows That Scorpio Byers Were Satisfied. It Extensively Tested,so It Has No Run Time Defect After Launching

In Market.

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First and foremost, they tried to provide a status of Pajero in Scorpio at affordable price. Advertising, Public Relation, Mass medianothing was left to make brand popular. Scorpio adopted penetrative pricing strategy positioned between 5-7 lakhs.

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The Mahindra Scorpio is sold across the world in countries such as: India Italy France Spain Turkey Sri Lanka Nepal Bangladesh Egypt Russia Malaysia South Africa Qatar Brazil Chile: The Scorpio Pick Up is the first passenger vehicle of the Mahindra brand to be offered in Chile, and both were presented to the press the night of July 25, 2007. Powerpoint Templates

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As they were targeting urban areas, stronger distribution channels were needed. Scorpio was launched in phase manner i.e. first in metros and then other cities were covered so as to ensure the attention towards main market first.

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Revenue of Mahindra increased from Rs 1827cr. to Rs. 2511cr. with better returns to their share holders.

Profit also zoomed up from Rs. 102 cr. to 147 cr. in FY 03.

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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. 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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Some Companies Said That M&M did Not Have The Capacity To Produce Vehicles Inhouse .

No Crash Testing.
M&M Did Not Re-designed Its Product (Scorpio).

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CONCLUSION Thus Scorpio has proved as a Milestone for M&M and the Indian Automobile Industry. It has given a unique place To M&M in Indian market because ,It was innovated with High quality, Reliability, flexibility, Style ,

Driving Comfort etc.

In short it offered a customized product. hence, again Operations components: Time, quality & technology made A Success story. Powerpoint Templates

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