Mahindra Mahindra Industry Analysis

8/22/2019 Mahindra Mahindra Industry Analysis

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Automotive Sector

Mahindra & Mahindra industry analysis

Group members

Sammer patil 79Mahendra pednekar 80Vijay sane 81Rohit sangade 82Kalpana shelharkar 83Ashitosh yadav 84

1


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CONTENTS Introduction Group Overview Milestones Vision & Mission Core Business Activities

Business Strategies Marketing Strategies Corporate Social Responsibilities Swot Analysis

Recent Ventures Conclusion


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INTRODUCTION Mahindra Mahindra Limited(BSE: 500520) is part of the Indian

Industrial Conglomerate Mahindra Group based in Mumbai.

The company was set up in 1945 in Ludhiana as Mahindra &Mohammed by brothers K.C. Mahindra and J.C. Mahindra alongwith Malik Ghulam Mohammed.

After India gained independence and Pakistan was formed; MalikGhulam Mohammed moved to Pakistan where he became thenation's first finance minister.

Now, with the Mahindra brothers as the whole sole of the company,its name was changed to Mahindra & Mahindra in 1948.


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Automotive Sector

J.C.MAHINDRA

K.C.MAHINDRA

G. MOHAMMAD

KESHUB MAHINDRA

ANAND MAHINDRA

FOU

NDERS

CHAIRMAN


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Initially set up to manufacture general-purpose utility vehicles,Mahindra & Mahindra (M&M) was first known for assemblyunder license of the iconic Willys Jeep in India.

M&M introduced Jeeps to India and in no time theyestablished themselves as the Jeep manufacturers of India.

The company later branched out into the manufacture of light

commercial vehicles (LCVs) and agricultural tractors, rapidlygrowing from being a manufacturer of army vehicles andtractors to an automobile major with a growing global marketpresence.

At present, M&M is the leader in the utility vehicle segment inIndia with its flagship UV Scorpio.


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It offers over 20 models including new generation multi-utilityvehicles like the Scorpio and the Bolero. It formerly had a jointventure with Ford called Ford India Private Limited to buildpassenger cars.

In recent times the company is engaged in spreading its reachbeyond its traditional markets.

They entered into the two-wheeler segment by taking over theKinetic Motors in India.

M&M also has controlling stake in REVA Electric CarCompany.

M&M has also been selected as the preferred bidder for theacquisition of South Korea's SsangYong Motor Company.


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Automotive Sector

Mahindra & Mahindra grew from being a maker of army vehiclesto a major automobile and tractor manufacturer.

It has acquired plants in China and the United Kingdom, andhas three assembly plants in the USA.

M&M has partnerships with international companies like

Renault SA, France and International Truck and EngineCorporation, USA.

M&M has a global presence and its products are exported toseveral countries.Its global subsidiaries include Mahindra EuropeSrl. based in Italy, Mahindra USA Inc., Mahindra South Africa andMahindra (China) Tractor Co. Ltd.


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M&M is one of the leading tractor brands in the world. It is also

the largest manufacturer of tractors in India with sustainedmarket leadership of over 25 years.

It designs, develops, manufactures and markets tractors as well

as farm implements. Mahindra Tractors(China) Co. Ltd.manufactures tractors for the growing Chinese market and is ahub for tractor exports to the USA and other nations.

M&M has a 100% subsidiary, Mahindra USA, which assemblesproducts for the American market.


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Automotive Sector

GROUP O VERVIEW Mahindra embarked on its journey in 1945 by assembling the

Willys Jeep in India and is now a US $7.1 billion Indianmultinational.

It employs over 1,00,000 people across the globe and enjoys aleadership position in utility vehicles, tractors and informationtechnology, with a significant and growing presence in financialservices, tourism, infrastructure development, trade andlogistics.

The Mahindra Group today is an embodiment of globalexcellence and enjoys a strong corporate brand image.


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Mahindra embarked on its journey in 1945 by assembling the

Willys Jeep in India and is now a US $7.1 billion Indianmultinational.

It employs over 1,00,000 people across the globe and enjoys a

leadership position in utility vehicles, tractors and informationtechnology, with a significant and growing presence in financialservices, tourism, infrastructure development, trade andlogistics.

The Mahindra Group today is an embodiment of globalexcellence and enjoys a strong corporate brand image.


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Automotive Sector

MILESTONES OF M&M M&M established its business connections in the USA through

Mahindra Wallace.

It started steel trading on behalf of European suppliers M&M was converted into a public limited company on June 15,

1955. Machine Tools division was started. Mahindra Engineering & Chemical Products Ltd. (MECP) was

formed. M&M became the market leader in the Indian tractor segment-

1983 Mahindra British Telecom (MBT) was formed as a joint venture

with British Telecommunication plc (BT), UK-1986


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Automotive Sector

VISION A ND M ISSION VISION:

To create a fully collaborative environment in which suppliers candeliver exactly what the company needs, when it needs it, and at acompetitive cost.

We dont have a group-wide mission statement. Our core purpose

is what makes all of us want to get up and come to work in themorning -Anand Mahindra

MISSION:

To create India's largest automobile and automobile-related productsdistribution network by providing dealers and customers with thelargest choice of unique world-class products and services.


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Automotive Sector

ORGANISATIONAL STRUCTURECHAIRMAN & M.D

FARM EQUIPMENT

SECTOR

INTERNATIONALOPERATIONS

HUMAN CAPITAL

STRATEGIC SOURCING

AUTOMOTIVE SECTOR

CENTRALMANUFACTURING

ENGINEERING

R&D AND GLOBAL

PRODUCTDEVELOPMENT

FINANCE,ACCOUNTS

& IT

ENGINES

EXECUTIVE DIRECTOR

& CFO


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Manufacturing facilities.

KANDIVLINASIKZAHEERABADIGATPURIHARIDWAR


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CORE BUSINESS ACTIVITIES

Automotive Farm Equipment Systech Financial Services Information Technology Infrastructure Development

After-Market Two-wheelers Mahindra Partners Division Specialty Services


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Product chart.

GOODS

VEHICLES

LCVs

LOAD KING

SUPER

PICK UP

VANS

MAXX

PICKUP

BOLERO

PICK UP

3 WHEELERS

CHAMPION

ALFA

UTILITY

VEHICLES

SUVs

SCORPIO

BOLERO

SEDANS

LOGAN

MUVs

MAJOR

INVADER

MARSHALL

COMMANDER

FARM

EQUIPMENTS

TRACTORS

ARJUN

D3 TURBO

TRILLING

MACHINES

BACK HO

LOADER

i


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Automotive Sector

AutomotiveA)Commercial Vehicles

Alfa

Genio

Bolero Maxi Truck

MaxximoLoadking Tourister Buses

GioTrucks & buses

A i
http://www.mahindra.com/What-We-Do/Automotive/Products/Alfahttp://www.mahindra.com/What-We-Do/Automotive/Products/Geniohttp://www.mahindra.com/What-We-Do/Automotive/Products/Bolero-Maxi-Truckhttp://www.mahindra.com/What-We-Do/Automotive/Products/Maxximohttp://www.mahindra.com/What-We-Do/Automotive/Products/Loadkinghttp://www.mahindra.com/What-We-Do/Automotive/Products/Tourister-Buseshttp://www.mahindra.com/What-We-Do/Automotive/Products/Tourister-Buseshttp://www.mahindra.com/What-We-Do/Automotive/Products/Tourister-Buseshttp://www.mahindra.com/What-We-Do/Automotive/Products/Tourister-Buseshttp://www.mahindra.com/What-We-Do/Automotive/Products/Loadkinghttp://www.mahindra.com/What-We-Do/Automotive/Products/Maxximohttp://www.mahindra.com/What-We-Do/Automotive/Products/Bolero-Maxi-Truckhttp://www.mahindra.com/What-We-Do/Automotive/Products/Geniohttp://www.mahindra.com/What-We-Do/Automotive/Products/Alfa


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AutomotivePersonal Vehicles

Bolero

Actyon

Verito

Chairman WActyon Sports Korando

e2o Scorpio

A i
http://www.mahindra.com/What-We-Do/Automotive/Products/Actyonhttp://www.mahindra.com/What-We-Do/Automotive/Products/Veritohttp://www.mahindra.com/What-We-Do/Automotive/Products/Chairman-Whttp://www.mahindra.com/What-We-Do/Automotive/Products/Actyon-Sportshttp://www.mahindra.com/What-We-Do/Automotive/Products/Korandohttp://www.mahindra.com/What-We-Do/Automotive/Products/e2ohttp://www.mahindra.com/What-We-Do/Automotive/Products/Scorpiohttp://www.mahindra.com/What-We-Do/Automotive/Products/Scorpiohttp://www.mahindra.com/What-We-Do/Automotive/Products/e2ohttp://www.mahindra.com/What-We-Do/Automotive/Products/Korandohttp://www.mahindra.com/What-We-Do/Automotive/Products/Actyon-Sportshttp://www.mahindra.com/What-We-Do/Automotive/Products/Actyon-Sportshttp://www.mahindra.com/What-We-Do/Automotive/Products/Actyon-Sportshttp://www.mahindra.com/What-We-Do/Automotive/Products/Chairman-Whttp://www.mahindra.com/What-We-Do/Automotive/Products/Veritohttp://www.mahindra.com/What-We-Do/Automotive/Products/Actyon


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AutomotivePersonal VehiclesKyron

Quanto

XUV 500Rexton Rodius
http://www.mahindra.com/What-We-Do/Automotive/Products/Kyronhttp://www.mahindra.com/What-We-Do/Automotive/Products/Quantohttp://www.mahindra.com/What-We-Do/Automotive/Products/XUV-500http://www.mahindra.com/What-We-Do/Automotive/Products/Rextonhttp://www.mahindra.com/What-We-Do/Automotive/Products/Rodiushttp://www.mahindra.com/What-We-Do/Automotive/Products/Rodiushttp://www.mahindra.com/What-We-Do/Automotive/Products/Rextonhttp://www.mahindra.com/What-We-Do/Automotive/Products/XUV-500http://www.mahindra.com/What-We-Do/Automotive/Products/Quantohttp://www.mahindra.com/What-We-Do/Automotive/Products/Kyron


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BU SINESS STRATER GIES Restructuring of the company.

For the group, organizational restructuring posed thegreatest challenge keeping in mind the changing dynamics inthe business especially the tractor and automotive division.In the last three years, the emphasis was development of thelong term strategy and fixing clear business goals.

E-business Initiatives Joint ventures. Foreign competition

Diversification in various sectors Equipments for different-different sectors i.e. Industrial

sector, Agriculture Sector, Tertiary Sector


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MA RKETING STRATERGIES USP ruggedness and performance. Products that redefined the market.

Network of dealers, sales offices, service stations etc. Strong market base in the urban and semi-urban areas. Research methodology Research design


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CO RPORA TE SOC IAL RESPON SIBILITIESCSR has always been an integral part of M&M groups vision

and the corner stone of our core value of good corporatecitizenship

Keshub Mahindra

EDUCATION ENVIRONMENT INITIATIVES

HEALTH & DISASTER RELIEF ART & CULTURE SPORTS NANHI KALI

ESOPS


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Automotive Sector

1.Education K. C. Mahindra Education Trust: Established by the late Mr. K. C. Mahindra in 1953, the K.

C. Mahindra Education Trust aims to Transform the lives ofpeople in India through education, by providing financialassistance and recognition to them, across age groups andacross income strata.

Mahindra Education Society:

As part of its Corporate Social Responsibility activities, theMahindra Group has established schools near its factoriesprimarily for children of its employees. At present, the Grouphas three schools that impart high standards of education -

Mahindra Academy at Malad in Mumbai, Mahindra Academy in Zaheerabad and a

school in Khopoli. Mahindra United World College


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2 . E nvironm en t In itiativesTowards making planet earth greener, the Group

has vowed to plant a One Million Trees across the Nationby October 2008 under the Ma hindra H ariyali initiative .3 . H ea lth A nd Disa ster R elief

The Mahindra Foundation has been set up with aspecific objective: to provide medical relief to the poor and

needy sections of society. The foundation has helpedpatients suffering from cancer, heart ailments as well asburn victims.

4. A rt CultureThe Mahindra Excellence in Theatre Awards

(META) is the latest in the Mahindra Groups efforts toencourage national theatre in two broad categories -Emerging theatre and Established theatre.


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Automotive Sector

5. SportsThe National Basketball Association (NBA) and the

Mahindra Group, one of Indias largest and most respected companies,today announced a partnership to launch a new multi-citycommunity-based recreational basketball league. The new league forboys and girls ages 14 and up will tip off in Bangalore, Ludhiana andMumbai, in collaboration with the Basketball Federation of India

(BFI).

6. Nanahi Kali

A project jointly managed by K. C.Mahindra and Naandi foundationfor the girl child.


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7. ESO PSEsops - What is commonly known as Employee Social Options has a

whole new meaning at the Mahindra Group -

Esops for the Mahindra-ites means sharing a part of yourself to help the lessfortunate. It implies looking beyond one-self. It means sharing ones skills tomake the society healthier, cleaner, greener, more literate and hence moresustainable.


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SWOT A NALYSIS1. Strength

Over the years the company has emerged as one of

the top players in the world in terms of number oftractors sold. This gives a clear indication that thecompany's market share is one of its biggeststrengths.The company's ability to introduce new productsin the market and to generate sales from those newproducts is a major strength.The reason being that this is very essential for anycompany, for its survival in the long run. The

company has established its brand name in othercountries of the world as well.This is evident from the 40% market share that itholds in the 30-40 HP tractors market in the US.


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2. W eaknessThe company is highly dependent on the rural sector, and the ruralsector in turn is highly dependent on the monsoons. As a result, if therehappen to be bad monsoons (less of rains) for two consecutive years it

could have an adverse impact on the demand of tractors for thecompany.

3. O pportunitiesThe government has been trying to strengthen the exports of

agricultural products. As a result, the quality of agricultural productsnecessarily has to be very high. For this, they need better rural andagricultural infrastructure. This might result in an increase in demandfor tractors.

In India, the penetration of tractors is 10 tractors per 1000 hectares ofcropped area, which is much below the world average of 19 tractors forthe same. Thus there is scope for the demand to increase.


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4. Threats

The company has a history of having invested in unrelateddiversifications such as telecom, holiday and resort inns, financial

services, etc. which it has hived off as subsidiaries from time to timewhen these turned unmanageable.

This is a cause for concern as such diversifications could divert thecompany's attention from its core business. It is a dangerous

tendency as it leads to destruction of shareholders value.

The entry of foreign players in the tractors segment could pose athreat to the company as these foreign players are technically morecompetitive than Mahindra & Mahindra.


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RECENT /CURRENT VENTURES Mahindra Navistar Automotives Ltd. (MNAL), the

commercial vehicle joint venture between Mahindra &

Mahindra Ltd. (M&M) and Navistar Inc. of USA, unveiledits 25 tonne and 31 tonne trucks for the Indian market.

Mahindra & Mahindra Ltd announced the launch of the

Maxximo, the worlds first mini-truck to be powered by a 2-cylinder CRDe engine with DOHC technology and 4 valvesper cylinder.


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Indias iconic SUV, the Mahindra Scorpio, took another step tostardom with the unveiling of a premium, special edition `ScorpioCoffee Table Book. Film actor Ajay Devgan - the Scorpios firstcustomer, and Anand Mahindra, Vice-Chairman and ManagingDirector, Mahindra Group, took special pride in unveiling thebook, which chronicles the journey of Indias best loved SUV sinceits launch in 2002. January 6.

Dubai, UAE, June 17, 2010:Mahindra & Mahindra Ltd. alongwith its subsidiary MOICML (Mahindra OverseasInvestment Company Mauritius Ltd.), Arabia Holdings andRas Al-Khaimah Transport Investments LLC have signed an

agreement to create a joint venture company in the Emirate of RasAl Khaimah in the UAE for armouring of vehicles.


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Porter 5 Forces Analysis Summary


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Competitors

Tata

Motors Honda Toyota Nissan Hyundai Mitsubishi

Maruti Ford


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Product life cycle stages

PEST A l i


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PEST AnalysisPolitical Taxation Policy Government Policy

Social Give good quality to their customers Providing offers to its retailer and customers Providing life style product Change the customer attitudes and opinionsEconomy

Launch low cost car in rural areasLaunch economy related brand

Launch power full car in the market so customers make good image

in their mind

TechnologicalProvide new innovative product to their customers

Provide the compete ting technology

Provide new technology to their worker

BCG Matrix


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BCG Matrix


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BCG Matrix

Stars (XUV 500)

Question marks(XYLO)

Cash cows (Bolero)

Dogs (Jeep)


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A t ti S t

Mahindra Mahindra Industry Analysis

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