MAHINDRA & MAHINDRA GROUP

INTRODUCTION

• In 1945, two enterprising brothers named J.C. Mahindra and K.C. Mahindra joined forces with Guam Mohammed and started Mahindra & Mohammed as a steel company in Mumbai.

•  Two years later, India won its independence, Guam Mohammed left the company to become Pakistan’s first finance minister

• Entered automotive manufacturing in 1947 to bring the iconic Willis Jeep in Indian

INTRODUCTION…

• Keshub Mahindra - Former Chairman

• Anand Mahindra – Chairman and Managing Director

• US $15.4 billion multinational group with more than 144,000 employees in over 100 countries across the globe.

• New global brand name – Mahindra Rise

CORE BUSINESS

PASSENGER

• SUV / MUV• Scorpio /

bolero/ xylo.

COMMERCIAL

• UTILTY VECHILE/ TRUCKS

• BULERO MAXI/GIO/ALFA

TWO WHELLE

R

• DURO/ DURO-DZ

• KINE

AUTOMOBILESECTOR

FARMEQUIMENTS

TRACTORS

FRAM MECHANISMS

AUTOMOBILE INDUSTRY

Emerging sector and has a potential to improve it. The increasing GDP and economical resources have

boost up during the last decade which hasincreased purchasing power of the Indian peoples.

“Indian Passenger Car Market Analysis”, the passenger car market, which constitutes around 78.5% of passenger vehicle sales.

KEY PLAYERS

1. TATA MOTORS Market Share: Commercial Vehicles 63.94%,

Passenger Vehicles 16.45%. Tata Indica, India's first fully indigenous passenger car. Tata Ace, India's first indigenously developed mini-truck.

2. MARUTI SUZUKI INDIA.

A subsidiary of Suzuki Motor Corporation of Japan.Market Share: Passenger Vehicles 46.07%. Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports

Utility vehicle Grand Vitara.

KEY PLAYERS…3. Hyundai Motor India

Hyundai Motor India Limited is a wholly owned subsidiary of world’s fifth largest automobile company.

Market Share: Passenger Vehicles 14.15%.number one exporter of passenger car of the country for the sixth

year in a row. i10, i20, Verna, Sonata, Accent etc.

4. Mahindra & Mahindra

Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%.

mainly engaged in the Multi Utility Vehicle and Tractors. expanding its footprint in the overseas market with - XYLO

Key Factors influencing Automobile Industry

• Consumer Sentiment Index• Domestic Goods Price Metal/ Iron and Steel• Import and Export Taxes (Duties) / Motor

Vehicle Tariffs• World Price Energy/ Crude Oil

FIVE FORCES

• Porter's Five Forces, also known as P5F, is a way of examining the attractiveness of an industry. It does so by looking at five forces which act on that industry. These forces are determinants of that industry's profitability

KEY SUCCES FACTORS OF AUTOMOBILE INDUSTRY

WHAT DO CUSTOMER WANTS?{ANALYSIS OF DEMAND}• PRICE/ ECONOMICAL•SUPPLY RELABILITY•FEATURES •SPECIFIC TECHNICAL SPECIFIACTION

HOW DO FIRMS SURVIE COMPETITON ?{ANALYSIS OF COMPETITION }•RAW MATERIAL•ECONOMIC OF SCALE•FINANCIAL RECORCES• TECNOLOGY

KEY SUCCES FACTORS• Conventional sources of cost

efficiency include: large-scale plants, low-cost location, rapid adjustment of capacity to output.

• Differentiation through technical specifications

• and service quality.

CORPORATE STRATEGY

• Federated structure enables each business to chart its own success.

• Economies of scope.• Economies of scale.• Add value to shareholders

DIVERSIFICATION

M&M group have presence in almost 14 sectors

From its core business – automobiles it has diversified in many different sectors

Many of them are related and unrelated to its core business

Related diversified

M&M

MAHINDRA SYSTECH

(COMPONENT)

MAHINDRA AEROSPACE

FARM AND CONSTRUCTION

EQUIMENTSENERGY{solar/renewable}

when certain stages of the value chains “fit” each other, we consider such diversification related

UNRELATED DIVERSIFICATION

INFORMATION TECHNOLOGY[IT]• TECH MAHINDRA• MAHINDRA SATYAM• CANVAS-M

LEISURE & HOSPITALITY• MAHINDRA

HOLIDAY &RESORTS INDIA

• MAHINDRA OCEAN BLUE MARINE

RETAIL• MOM & ME.• REAL ESTATE• SEZ• LIVING SPACES

What is synergy in Business???

• 'Synergy'• This term is used mostly in the context of mergers and

acquisitions.• Synergy from mergers and acquisitions has been

characteristically connoted by 2+2=5. It signifies improvement of the performance of the acquired company by the strength of the acquiring company or vice versa.

• Realization of synergies through consolidation — domestic and global have been one of the main aims of the worldwide M&A activities today

SYNERGY IN M&M GROUP

M&M - Navistar Inc USA M&M - Ssangyong Motor Company South

koreaM&M - Kinetic Motor Company TECH MAHINDRA - SATYAM

Benefits from the merger

• The following benefits are expected as a result of the merger:

• Enhancement of capabilities across verticals, • Well-balanced geographic exposure, • Well-balanced client mix, • Other profitability related synergies.

ACQUISITION

• MAHINDRA REVA• Founded in 1994, the REVA Electric Car Company.• joint venture between the Maini Group of Bangalore

and AEV LLC of USA.• In may 2010 Mahindra group acquire majority stake

in company• It has about 3,500 electric cars on the road in 24

countries across Europe, Asia and Central and South America

M&M

COMPONENT IT SOLUTIONGLOBAL DISTRIBUTIONFINANCE

REVA

• Several International patents• DESING AND TECHNOLOGY

MAHINDRA REVA IN INDIA

• Inaugurating the world–class, energy efficient, green manufacturing plant in Bangalore – August 2012

• capable of producing 30,000 cars per year, is scheduled to begin production in end of 2012