MAHINDRA & MAHINDRA
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Transcript of MAHINDRA & MAHINDRA
MAHINDRA & MAHINDRA Presented by- Aamir Khan -02
deepti Nair -04
Subir Singh -06
Vikas Yadav -07
Mayank Agarwal-12
Overview
It was established in 1945 It is the US$ 6.7 billion group Its market capitalization is 289651.06
( Rs in million) It has a total revenue of 2905.42 (USD
in millions) It has a net profit 8367.8 million
Core business activities
Automotive sector Farm equipment sector Information technology Infrastructure development Trade and logistics Retail sector
3Q 2010 Revenues
26.60%
20.80%
12.20%
1.20%1.21%
6.40%1.40% 4.03%
Sales in Billion
Automoive
Farm Equipments
IT Services
Infrastructure
Hospitality
systech
Trading
Finacial services
HISTORY
Born around the same time as independent India
0n October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling Jeeps from Willys, USA.
Two years later, India became an independent nation and Mahindra & Mohammed changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan.
Since then Mahindra & Mahindra has grown in size and stature and evovoled into a group that occupies a premiere position in all sectors of the economy
Mahindra a Global time line
In 1969 – Mahindra established its export division with its first order of 600 jeeps for the Yugoslavian market.
In 1970’s – Mahindra begins exporting vehicles to Nigeria and other African countries.
Today, the company has a presence in almost 15 markets in Africa.
In 1970’s
Mahindra begins exporting vehicles to Nigeria and other African countries.
Today, the company has a presence in almost 15 markets in Africa.
It was also during the 70’s that Mahindra concluded exports of about 3300 units, mainly to Indonesia and Yugoslavia
In 1980’s
Mahindra
exports its CJ5 Model to Iran where it sold under the brand name of Sahara
In 1990’s
Mahindra begins exporting to Nepal in the early 90’s .
Today, the mountain kingdom is one of Mahindra’s key markets in neighbouring countries CBU exports in Ro-Ro shipment was made to Ceylon , Kenya , Namibia, Mozambique in Africa .
In 2000
The Bolero was launched, further transforming the image of the company with its contemporary looks and style.
Mahindra increased its global aspirations and expanded further field. It was during this decade that Mahindra’s export division gained further momentum.
In early 2000’s M&M made its presence in Tanzania , Sri Lanka, Congo, Madagascar, Mozambique, Ethiopia , Rwanda, Burundi and Nigeria.
In 2002 - a milestone year
M&M achieved a major milestone with the launch of its first indigenous SUV, the Scorpio A runaway hit from the day of its launch
In 2004
A significant year for Mahindra The company open its first office outside
India marking its presence internationally An SKD (Semi Knocked Down) facility was
set up in Uruguay for manufacture of the Bolero Pik- Up which is locally sold under the brand name of Cimarron
Mahindra South Africa, a JV company, was also set up in South Africa for sale of the Scorpio and Bolero Pik Up.
In 2005
Mahindra Europe was established in Italy with the launch of the Scorpio (known as the Mahindra Goa), and Bolero Pik Up.
Mahindra also made a foray in the French market in the same year.
In 2006
M&M launches a product solely for the overseas market, the Mahindra Pik Up which was built on the Scorpio platform.
Mahindra announced its entry in Spain at the Madrid Auto Show.
M&M’s debut in the country was led by the Mahindra Goa, the Mahindra Pik-Up and the Bolero Pick up range of vehicles.
In 2007
Mahindra consolidates its position in neighbouring countries including Bhutan.
The company soon forays into Sudan Morocco, Algeria and Ghana, consolidating its position in the African continent.
It also ventures into Chile in South America with the introduction of the Mahindra Pik Up.
In 2008
M&M’s first overseas CKD (Completely Knocked Down) operations are established in Egypt with the launch of the Scorpio.
This was soon followed by CKD operations in Brazil for manufacture of the Scorpio SUV and Pik Up range.
M&M has been increasing its global footprint and has established itself in markets across the world as one of the world’s most prestigious auto brands.
The emphasis is now on establishing a solid local presence in different countries.
International operations
International operations has ever since enjoyed a healthy CAGR (64% from 03 to 08)
2003 2004 2005 2006 2007 2008 20090
2000
4000
6000
8000
10000
12000
14000
106116073046
5534
8021
12359
8501
CAGR
Further, we aspire to be the first automaker in USA. Today thousands of people use Mahindra vehicles every day and perceive the Mahindra badge as a symbol of trust, reliability, durability, style and innovation.
The journey has just begun…
Why South Africa
1. Sound economic polices2. Access to the market3. Industrial capability4. World class infrastructure 5. Gate way to Africa6. Cost of doing business7. Competitiveness
Sound economic policies
Taxes reduced Tariffs lowered Fiscal deficit brought under
control Implementation of the strategy
– such as investment in infrastructure
Access to the market
SA is ideally positioned for access to the 14 countries comprising the Southern African Development Community (SADC) – with a combined market of over 250-million people – as well as the islands off Africa's east coast, and even the Gulf States and India.
It also serves as a trans-shipment point between the emerging markets of Central and South America and the newly industrialised nations of South and Far East Asia.
Major shipping lanes pass along the South African coastline in the South Atlantic and Indian oceans,
Its seven commercial ports form by far the largest, best equipped and most efficient network on the continent.
These ports are the hubs for traffic to and from Europe, Asia, the Americas and the east and west coasts of Africa.
Industrial Capability
South Africa's industrial production growth is well above the average for developing markets.
The country's manufacturing output is increasingly technology-intensive, with high-tech manufacturing sectors – such as machinery, scientific equipment and motor vehicles – enjoying a growing share of total manufacturing production since 1994.
SA technological research and quality standards are world-renowned.
The country has developed a number of
leading technologies, particularly in the fields of energy and fuels, steel production, deep-level mining, telecommunications and information technology.
World class Infrastructure
It includes a modern transport network, relatively low-cost and widely available energy, and sophisticated telecommunications facilities.
These are being significantly upgraded and expanded in preparation for the 2010 Fifa World Cup.
The government has identified massive infrastructure projects as key to boosting the country's economic growth rate and creating employment.
Gate way to Africa
It is a minimum requirement for accessing other sub-Saharan markets.
The country borders with Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho
Its well-developed road and rail links provide the platform and infrastructure for ground transportation deep into sub-Saharan Africa.
SA has the resident marketing skills and distribution channels imperative for commercial ventures into Africa.
The country plays a significant role in supplying energy, relief aid, transport, communications and outward investment on the continent.
Cost of doing Business
SA exchange rate makes it one of the least expensive countries for foreigners to live and do business in – with a first-world infrastructure and high living standards ensuring good value for money.
South Africa's energy costs are still among the lowest in the world
the country compares favourably for petroleum prices, with private sector and multinational oil companies refining and marketing nearly all imported petroleum products in southern Africa.
Competitiveness
A number of industrial support measures have been introduced since 1994 to enhance the competitiveness of South Africa's industrial base.
SA unit labour costs are lower than those of
other key emerging markets, including Mexico, Hungary, Malaysia and Singapore
The country’s labour productivity has improved markedly in recent years.
South Africa's corporate tax rate – down to 28% for 2008/09 – compares favourably against a number of developing companies, and the prospects of further reductions are good.
South Africa was ranked 44th out of 130 countries – ahead of Italy and India – in the World Economic Forum's Global Competitiveness Index for 2007/08
Mahindra in South Africa
Mahindra & Mahindra entered SA in October 2004
It went into partnership with the local company African Automotive Investment Corporation (AAIC)
M&M LTD had 92% stake and AAIC had 8% stake
Incorporation
Mahindra South Africa was incorporated in 2006 and based in Highveld SA
M&M LTD has a 51% stake in it
It was formed as a subsidiary of Mahindra & Mahindra LTD.
Infrastructure
Previously the port capacity Durban had one berth and 6500 parking bays
Now there are three berths and 14000 parking bays
This enables car unit to handle 500000 units a year.
Distribution
The company has dealers in all nine provinces of south Africa
Dealers are equipped with fully-fledged facilities
MSA also has a very powerful network It has have collaborated with Berco, a
renowned logistics and distribution company It has more then 40 dealers
Distribution
MSA has also expanded into other sub-Saharan countries.
Currently exporting vehicles to- Zimbabwe Zambia Botswana Swaziland Namibia
Mahindra SA is also well represented on the agricultural front with a range of tractors currently available in the country.
Since its establishment in October 2004, and since then, the company has sold a total of approximately 11 000 vehicles.
Distribution / Sales
New vehicles sales(excl.exports) - SA
Market Oct 2009 Nov 2009 Dec 2009
Passenger 20,828 19,304 16,075
Light CV < 3500 kg 9,198 9,194 9,430
Medium CV 3501 – 8500 kg
627 535 551
Heavy CV 8501 – 16500 kg
280 265 270
Extra Heavy CV > 16500 kg
566 517 413
Bus > 8500 kg 93 144 211
31,592 29,959 26,950
VEHICAL POPULATION IN SA ( END OF 2008)
Market Population at the end of 2008
Passenger 5,039,596
Light CV < 3500 kg 2,423,005
Medium CV 3501 – 8500 kg 135,874
Heavy CV 8501 – 16500 kg 83,658
Extra Heavy CV > 16500 kg 100,255
Bus > 8500 kg 14,896
7,797,284
COMPARITATIVE PASSENGER CAR SALES DATA
PASSENGER SALES YEAR SALES
Total Sales January 2010 23,768
Total Sales January 2009 20,618
Total Sales December 2009 16,075
Total Sales December 2008 19,653
TOYOTA VW (Audi & VW)
BMW GROUP MERCEDES-BENZ SA
FMCSA (Ford & Mazda)GMSA (Cadillac, Chevrolet, Hummer & Opel)
NISSAN HONDA
RENAULT JAGUAR LAND ROVER
CHRYSLER SA SUZUKI AUTO
PCSA (Puegot & Citreon)TATA
VOLVO CARS FIAT GROUP
SUBARU PORSCHE
MAHINDRA MASERATI
CHANA LAMBORGHINI
48364680
30573028
22031904
744606578
429366
293232218194187
1007528541
Comparative Passenger Car Sales (S.A)Jan 2010.
Passenger Car Sales – South Africa
(Dec ’09 – Jan ‘10)
SEGMENT VOLUME
SMALL CARS (CUBIC CAPACITY 1400CC OR LESS) 1595
MEDIUM CARS (CUBIC CAPACITY 1400CC - 2500CC) 549
LARGE CARS (CUBIC CAPACITY 2500CC OR GREATER) 154
4X4 RECREATIONAL/SUV 942
LIGHT COMMERCIAL VEHICLES 722
TOTAL 3962
SMALL CARS (CUBIC CAPACITY 1400CC OR LESS)
MEDIUM CARS (CUBIC CAPACITY 1400CC - 2500CC)
LARGE CARS (CUBIC CAPACITY 2500CC OR GREATER)
4X4 RECREATIONAL/SUV
LIGHT COMMERCIAL VEHICLES
0 200 400 600 800 1000 1200 1400 1600
1595
549
154
942
722
Daihatsu, Hyundai, Kia, SsangYong, Chery and Foton reported sales by major segment as follows -
New launch 2009
Mahindra launched Xylo in SA The range consist of two variants- The luxury model E8 The people model E2
Mahindra SA offers
VEHICAL SA PRICE (RAND)
RAND CONVERT TO INR
INR COVERT IN RAND
XYLO Rs 6,23,900 – Rs 8,33,500
BOLERO R89,995 Rs 5,45,304 Rs 5,38,989
SCORPIO R106900- R234900
Rs 6,47,736- Rs 14,23,322
Rs 7,91,560 - Rs 10,13,953
Future plans...
The company has robust plans to launch new products and business in SA
Mahindra are also looking into opportunities in various sectors in South Africa, through their subsidiaries.
Club Mahindra, a time-share company Tech Mahindra, which supplies
telecommunications software solutions
Mahindra Finance.
THANK YOU………!