Presented By:Wasim Akram
Vision & Mission
Board Of Directors
Group of Companies
Strategic Business Units (SBUs)
Corporate Social Responsibility (CSR)
Mergers & Acquisition
The company was set up in 1945 as a steel trading company in Ludhiana as Mahindra & Mohammed by brothers
K.C. Mahindra and J.C. Mahindra along with Malik Ghulam Mohammed.
After India gained independence and Pakistan was formed; Malik Ghulam Mohammed moved to Pakistan. This
led to the formation of Mahindra & Mahindra in 1948.
They entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads.
Over the years, they diversified into many new businesses in order to meet the needs of their customers.
They follow a unique business model of creating empowered companies that enjoy the best of entrepreneurial
independence and Group-wide synergies.
This principle has led their growth into a US $15.9 billion multinational group with more than 155,000
employees in over 100 countries across the globe.
Vision & Mission
Vision: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.
Mission:“We don’t have a group-wide mission statement. Our core purpose is what
makes all of us want to get up and come to work in the morning”
Strategic Business Units (SBUs)
• In 1994, the Mahindra & Mahindra management decided that, in order to bring about a focus in the company's
activities it was imperative to recast it in the SBU, or strategic business unit, mode.
• Earlier, the company was organised in functional departments that saw, for instance, a marketing person
selling jeeps in the morning and tractors in the evening.
• The reorganisation resulted in six core SBUs or sectors being identified. Each such division or SBU was to be put
under the charge of a sector president -- who would 'own' the sector and be entirely responsible for its
• In addition, a corporate centre was created, to include some of the company's brightest staffers, who would pool
their efforts to strengthen the work of the sector presidents.
Strategic Business Units (SBUs)
The six sectors are:
• Farm Equipment
• Trade and financial services sector
• Infrastructure development sector
• Information technology and telecom sector
• Automotive components sector
Mahindra is the market leader for utility vehicles in India and also exports to several countries in Europe, Africa, the
Americas, South Asia and the Middle East.
The automotive unit, backed by a cutting edge R&D lab staffed by more than 300 engineers, has a diverse product
portfolio ranging from mass transport solutions to sports utility vehicles like the Scorpio and Bolero and multi-utility
vehicles like the Xylo.
Just a few days back, Mahindra entered in motorcycle segment by launching Pantero and Centuro.
Mahindra Defense Systems.
Mahindra Renault Pvt. Ltd. (MRPL)
Mahindra Navistar Automotive Ltd. (MNAL)
Mahindra Navistar Engines Pvt. Ltd. (MNEPL)
1. Mahindra group give employment to over 110,000 employees
2. Excellent branding and advertising, and low after sales service cost
3. Sturdy SUV’s good for Indian roads and off-road terrain
1. Mahindra’s partnership with Renault did not live up to international quality standards through their brand Logan
2. 2-wheeler segment not performing well
1. Developing hybrid cars and fuel efficient cars for the future
2.Tapping emerging markets across the world and building a global brand
3.Fast growing automobile market
4.Growing in the market through electric car Reva
1. Government policies for the automobile sector across the world
2. Ever increasing fuel prices
3. Intense competition from global automobile brands
4. Substitute modes of public transport like buses, metro trains etc.
Farm Equipment Sector
The Mahindra Group’s Farm Equipment Sector is the largest producer of agricultural tractors in India. It has enjoyed
an unparalleled market leadership in the domestic market for the last 23 years. Over the past few years, the group has
expanded its much acclaimed tractor business overseas with acquisitions and collaborations with majors in USA,
China and Australia.
MAHINDRA FARMING EQUIPMENTS
JTC - Focus on Quality
Influence on manufacturing facilities from Ford & Isuzu who were
collaborated with JTC.
Restructuring of JTC.
head cost & surplus resources of JTC.
Lack of Efficiency in new plant layout.
Easy entry to Chinese market with support of local partner.
To export the Chinese tractors range to India & Indian tractor range to China to suit the demand
fulfill M&M’s goal to be global player.
If M&M provided after sales services they can be more competitive in Chinese market.
Distant location of the Manufacturing units from the city.
Trade & Finance Sector
• The Mahindra Group's entry into the trading space is a result of its trade in steel and related products, which over the years
evolved into Mahindra Inter trade Limited and its subsidiaries, with specialized domain knowledge in commodities, domestic
trading, and marketing and distribution services.
• As the trading arm of the company, Mahindra Intertrade’s portfolio includes Ferro alloys, technical and application-oriented
products and consumer products such as toys and apparel. It has a reach of over 300 customers with principals in over 15
• The necessity of a financial base for the groups' operations led to the foray into financial services through Mahindra Finance
and its subsidiaries. Together, a cluster of these companies forms the Trade and Financial Services Sector of the Mahindra
Mahindra & Mahindra Financial Services Ltd. (Mahindra Finance)
Mahindra Insurance Brokers.
Mahindra Rural Housing Finance Ltd. (MRHFL)
MAHINDRA TRADE AND FINANCIAL SERVICES
1. Mahindra Finance has advantage of brand name of Mahindra &Mahindra Group.
2. Mahindra Finance has large asset base of Rs.5000 crores.
3. It has large distribution channels with 350 branches all over the nation.
4. Company has large financial base as its IPO was subscribed 26.88 times.
1. Mahindra Finance provides advisory service and they do not have share broking facility which their competitors
2. Mahindra Finance is not known to the people.
3. Mahindra Finance does not make advertisement of its product.
1. Mahindra Finance has entered into mutual fund distribution which is growing as per Indian market development
2. Automobile sector in India is growing as foreign companies entering in India which is useful for Mahindra Finance as
it provides vehicle loans
3. Mahindra Finance helps individuals in making financial planning which is most profitable in as investment trend is
changing in India.
1. The biggest threat for Mahindra Finance in the market is new entry of foreign non-banking financial institutions.
2.In case of vehicle financing company has tough competition from large banks like State Bank of India, ICICI etc.
I.T. & Telecom Sector
The Mahindra Group's foray into Information Technology dates back to 1986 with a joint venture with British
Telecommunications PLC (BT), known today as Tech Mahindra Ltd.
Tech Mahindra specializes in solutions for the communications industry, and is the largest system integration and IT
solutions provider to global telecommunication operators from India.
Rated as the No.1 value creator in India, Tech Mahindra has been ranked in the Leaders Category in 'The 2009 Global
Outsourcing 100' (IAOP's Annual Listing of the World's Best Outsourcing Service Providers).
Mahindra Special Services Group. (MSSG)
MAHINDRA INFORMATION TECHNOLOGY AND TELECOM SECTOR
1. Reduced dependence on British telecom
2. Deals with Etisalat and Bharti Zain steady revenue is assured
3. Reduced dependence on European market
4. Has a strong workforce of over 40,000 employees working on over 30 countries
5. High brand recall and visibility being one of the top IT companies in India
1. Increased interest costs due to borrowings for Satyam acquisition.
2. High retention
1. Increased in demand for IT solution in telecom service provider
2.Acquization of Satyam telecom gives visibility in more verticals
1. Economic slowdown and uncertainty in USA and Europe respectively
2.Increasing presence of foreign IT player in that domain
3. Potential negative impact of Satyam related litigation
Infrastructure Development Sector
The Mahindra Group has a major presence in the Infrastructure Development Sector with operations in real
estate, special economic zones, the hospitality industry, infrastructure development, project engineering consultancy
Mahindra Holidays & Resorts.
Mahindra Life spaces.
Mahindra World City.
Mahindra Infrastructure Developers.
Mahindra Acres Consulting Engineers.
X = a/b
MAHINDRA FARM EQUIPMENT SECTOR
• Average Marginal Growth Rate (AMGR) = 18%
• Market share of Mahindra Group = 29% (Market Leader in India, 3rd in World)
• 2nd largest player is Tafe group
• Market share of Tafe group = 23%
• Relative Market Share (RMS) of Mahindra group = 1.26
Relative Market share
TRADITIONAL BCG MATRIX
Business growth Rate
FARM EQUIPMENT SECTOR (STAR)
Build capacity expansion (to further strengthen it’s position)
Increase investment (in Foreign markets to capture 1st or 2nd position)
Increase advertisement and promotion
Increase market reach
MAHINDRA AUTOMOBILE SECTOR
• AMGR = 8.7%
• Market Share of Mahindra group = 11.4 % (4th in India)
• RMS of Mahindra group = 0.3
Relative Market share
TRADITIONAL BCG MATRIX
Business growth Rate
AUTOMOBILE SECTOR (QUESTION MARK)
Exceptional case (4-wheeler and Utility vehicle division is doing good and 2-wheeler division is
Promotion and Value based approach
Try to build it and turn in to STAR (Long Term) and CASH COW (Short Term)
Invest intensively and sensibly
"Sustainability is a part of our 'rise' philosophy. You cannot rise if you take more from the community than you put
• Their motivation to give their best every day
Their products and services support their customers’ ambitions to improve their living standards
Their commitment to sustainable business is bringing green technology and awareness into the mainstream
through their products, services, and light-footprint manufacturing processes.
Their commitment to sustainability –
Economic (Profit), and
These are their core values.
These values are the compass that guides their actions, both personal and corporate. They are:
Good corporate citizenship.
Dignity of the individual.
Corporate Social Responsibility
Mahindra group see their role as a major corporation both in India and in the world as an incredible opportunity to lead
businesses towards sustainability.
By making every aspect of their business sustainable, from creating fuel-efficient automobiles in green facilities to
encouraging sustainable supply chain management to reducing office footprints, they affirm their commitment to a better
Beyond conducting business consciously and responsibly, they support their communities through many environmental and
They build schools and support educational programs for students of all ages.
Their environmental initiatives include building greener facilities and planting one million trees across India.
When people in need require medical help, Mahindra group provide health and disaster relief.
They also embrace culture and sport through our festivals and youth sports leagues.
“No matter what you need to rise, we are here to provide it.” – Mahindra Group
Corporate Social Responsibility
Programs run by Mahindra Group to achieve Sustainability are : Nanhi Kali - Educating A girl for a brighter tomorrow
Pride Schools – Empowerment through livelihood training
Green Facilities – Laying the foundation for a greener tomorrow
EMRI (Emergency Medical Research Institute)
META (Mahindra Excellence in Theatre Awards)
MIAAC (Mahindra Indo-American Arts Council)
IT Partership with FIFA – Bringing the game to you
• Received the Pegasus Award for CSR in 2007.
• Bombay Chamber Good Corporate Citizen Award for 2006-07
• Business world FICCI-SEDF Corporate Social Responsibility Award – 2007
• Mahindra Lifespace Developers Ltd. was honoured for their commitment to incorporating sustainability in their real estate
and infrastructure projects.
• Deming Prize
• Japan Quality Medal
• Qimpro Platinum Standard (Business) 2008 award for excellence in business practices.
• CNBC AWAAZ Travel Award for its Lakeview Resort, Munnar.
ICSI National Award for Excellence in Corporate Governance
'Brand Communicator of the Year' at the 9th Asia Pacific PR Award.
• IN NOVEMBER 2004, Mahindra & Mahindra had made its first overseas acquisition in the tractor sector. The company has
inked an MoU with Jiangling Motor Corporation of group of China to enter into a joint venture. The joint venture in turn
will acquire the tractor manufacturing assets from Jiangling Tractor Company (JTC), a subsidiary of JMCG.
• The deal had been struck at $10 million of which Mahindra & Mahindra invested $8 million. The Indian company in turn
acquired a 80% stake in the joint venture. M&M had said in a notice issued to the BSE, “The finalization of the transaction
is subject to certain conditions precedent and regulatory approvals, as may be required.”
• IN 2005 : M&M had signed a memorandum of understanding with the Saigal family of Pakistan for exporting tractors to
• M&M is in talk with the Japanese company Mitsubishi for a global strategic alliance to source farm equipment products
including tractors as it looks to expand presence in major markets at the international level.
• Distribution agreement with Mitsubishi and Tomyaang, to sell their tractors under the Mahindra brand name and distribution
• IN JULY 2008, M&M acquired an 80% stake in Kinetic Motors’ two wheeler business. the acquisition of the business assets
of Pune-based Kinetic Motor Company Ltd. (KMCL). The acquisition was done through a new company which is to be
formed and the consideration was Rs. 110 crore (subject to closing due diligence). M&M has 80 per cent stake in the new
company and Kinetic the balance.
• IN DECEMBER 2007: A wholly owned affiliate of Navistar international corp signed a joint venture agreement with
Mahindra & Mahindra ltd (M&M) of India to produce diesel engines for medium and heavy commercial trucks and buses in
• The joint venture, to be named Mahindra international engines ltd (miel), will be 51 percent owned by M&M and 49 percent
owned by Warrenville. The combined investment of the two companies will be $90 million over the next five years.
• This marks the second such joint venture with M&M, after a 2005 JV that now makes light, medium, and heavy commercial
vehicles for India and export markets. The new company's advanced diesel engines will power the full line of trucks and
buses produced by the preceding JV beginning in 2009. Engine components will be sourced locally, going up to 85 percent
within two years.
• Miel will build a new plant in India, with production start-up targeted for April 2009. Initial capacity of the greenfield site is
projected to be 25,000 units per year, ramping up to 40,000 per year within five years.
Mahindra & ITM Co.
• IN OCTOBER 2006, M&M announced its strategic entry into Iran with an alliance with ITM Co (Iran Tractor
Manufacturing Co.). Under the agreement, M&M will supply tractors through ITM Co.'s channel in Iran. The
6000 DI was the first model to be launched in Iran.
• M&M is the first Indian tractor company to enter into a strategic alliance of this nature in Iran, which is one of
the biggest tractor markets in the region after India, the USA and China.
• ITM Co is a government-owned company and is the largest tractor manufacturer in Iran. It holds 80% market
share in the country. The operations are slated to get off the ground in October.
• The larger intent, however, is to look at localization and development of tractors that are ideally suited for the
tough local conditions. Besides, ITM Co with its vast and well entrenched network, is fully equipped to handle
customer service support and spares.
JV with De’ Lage Landen
• IN JANUARY 2011: Mahindra & Mahindra Financial Services, the financial services arm of M&M, entered into a joint
venture agreement with US-based De Lage Landen Financial Services Inc. (DLLFS), to provide financing to US-based
tractor dealers there.
• De’ Lage Landen, a fully-owned subsidiary of Rabobank Group, specializes in asset-based financing programmes for
equipment manufacturers, dealers and distributors all over the world.
• DLLFS and Mahindra Finance have 51 per cent and 49 per cent stake in the JV, respectively.
• Christened Mahindra Finance USA LLC, the JV provides exclusive wholesale inventory financing to US-based tractor
dealers and retail financing to end-user customers on Mahindra tractors and implements or used products.
• The investment in this JV by both the partners is $10-million.
• IN AUGUST 2008,M&M made its second acquisition in under a month by stating that they are acquiring a 51% stake in a
China’s third largest tractor company for about $26 million.
• As per the agreement, China’s Jiangsu Yueda Yancheng Tractor Manufacturing Co (Yancheng Tractors), a state owned
enterprise, transferred its tractor manufacturing business to a new company where M&M is having a majority stake.
• Speaking from China, M&M’s president — farm equipment, Anjanikumar Choudhari said Yancheng Tractors is China’s
largest tractor exporter, having exported 8,000 of its 26,000 units manufactured last year.
• Mahindra & Mahindra (M&M) and Ssangyong Motor Company Limited (SYMC) of Korea signed a definitive agreement in
Seoul for M&M to acquire a 70 per cent stake in SYMC. The agreement was signed by Yooil Lee and Youngtae Park, Joint
Receivers of SYMC and Pawan Goenka, President, Automotive & Farm Equipment Sectors, M&M.
• A statement from M&M said the total cost of acquisition is $463 million with $378 million in new stock and $85 million in
• M&m completes purchase of Navistar International Corp’s stake in Mahindra Navistar Automotives Ltd (MNAL) and
Mahindra Navistar Engines Pvt. Ltd (MNEPL) for about Rs 175 crore.
• M&M holds a 51 per cent stake in both the companies, with the US-based Navistar holding the remaining 49 per cent stake.
Tech Mahindra- Satyam Deal
With more than 25000 employees, Tech Mahindra Ltd formerly known as Mahindra British Telecom (MBT) is
an Indian Information Technology service provider headquartered in Pune, India.
It is the 6th largest software exporter in India (Nasscoms, 2007) and 2nd largest Telecom Software Provider in
India (Voice & Data, 2007) and JV between Mahindra & Mahindra Limited (M&M) and British
Telecommunications plc. (BT).
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, with a
majority stake owned by Mahindra & Mahindra Limited, in partnership with British Telecommunications plc.
With total revenues of Rs 44,647 million in the year ended March 31, 2009, Tech Mahindra serves telecom
service providers, equipment manufacturers, software vendors and systems integrators.
Tech Mahindra- Satyam Deal
Satyam, India's No. 4 software services exporter, was founded in 1987 by its chairman B Ramalinga Raju, who was born
into a family of farmers. He started Satyam Computers with 20 employees and bagged multitude of IT projects from US
Satyam debuted on the Indian markets in 1991, followed by a listing in New York in 2001. In 2008, it launched a secondary
listing on Euronext Amsterdam under NYSE Euronext's new "fast path" process for cross listings in New York and Europe.
Satyam, based in the southern Indian city of Hyderabad, now has 52,865 employees.
Satyam Computers is a leading global business and information technology Services Company, which delivers consulting,
systems integration, and outsourcing solutions to clients in numerous industries across the globe.
Tech Mahindra- Satyam Deal
• After the scam, the condition of Satyam went from bad to worse. Hence, the Government seceded to appoint four directors
for Satyam till someone took over Satyam and made conditions better for Satyam. Later, the Government held a bid for the
takeover of Satyam Computers.
• However, the unexpected winner turned out to be Tech Mahindra, coming out from the blue and taking the bidding by storm.
Tech Mahindra had won the bid for Satyam Computer after bidding at Rs 58 per share. Tech Mahindra would pay Rs 1, 757
crore for a 31 per cent stake in Satyam. Satyam would operate as a special purpose vehicle until Tech Mahindra raises its
stake to 51%.
• Revenue for year 2012 was 69.23 billion Rs. (USD $1.26 Billion)
• Profit for year 2012 was 13.06 billion Rs. (USD $237.69 Million)
• No. of employees 36956 (Feb, 2013)
In all businesses today, aligning the business with strategy has become an important element to succeed. And Mahindra group is
no different. Organisational restructuring, managing key resource requirements, performance management systems, career and
succession planning have all been re-aligned to form synergy with the company’s overall business strategy.
A Choudhari, executive vice president, human resources & corporate services, Mahindra & Mahindra group told
“The re-alignment was necessitated by changing dynamics in the business environment.”
He said that the objective was to grow leadership positions in the UV and tractor market and developing successful businesses
in relatively new business areas like IT, financial services, realty and infrastructure development and also service industries like
Time share (Club Mahindra).
“Keeping in mind the new business objectives the challenge was to re-orient the human resource management towards these
objectives,” said Mr Choudhari.
Organisational Restructuring based on business needs
Organisational restructuring mostly happened because of the changing dynamics in the business especially the
tractor and automotive division.
In the past few years , the emphasis was development of the long term strategy and fixing clear business goals.
Taking the example of tractors, the long term goal was to be the largest manufacturer in the world. Thus the
process began by changing internal benchmarks of excellence to global standards.
Benchmarking all business processes from product development to customer care and commercial controls to
JUSA (Japanese Union of Scientists and Engineers) was implemented.
Mahindra & Mahindra began a full reassessment of organisation and management structure with the help of
consultants like Mckinsey’s Arthur Anderson and Korn Ferry.
• Clear roles and responsibilities were identified.
• The competency required for each role was mapped.
• The officers went through individual assessments of competencies against the requirement of each role.
• External consultants as well as internal assessors ran assessment centres and each individual was then placed based on
competency and role fitment.
• The restructuring also led to the pruning of the staff.
• In 2001, there were 3970 officers in 13 grades
• And these levels which was brought down to 3400 officers in five responsibilities namely
strategic, executive, department/unit head, managerial and operational in 2003.
• The same strategy was later extended in the other businesses in the group.
• For example, Mahindra Engineering services has recently been established by combining key engineering and design
resources from the Tractors and Automotive division.
Managing Key Resource Requirements
A reassessment of organisational requirements brought in gaps in terms of management resources.
Many of the roles were filled through internal promotions and parallel moves.
For certain roles, the company began inducting senior management resources from diverse companies like Xerox, Marico,
Enron, Hindustan lever Ltd as well as from engineering, tractor and automobile sectors.
A talent pool with rich background which was suitable to the changing business requirements of the group was created.
Also to have young bloods in the company for long term benefit, they started a Management Trainee Scheme by hiring
young talents from campus recruitment.
The group has put in place a Mentoring system, where each management trainee has a senior executive who plays the role of
Reviews were done after every 2-3 months and proper guidance and counselling was done if it was required.
Further in order to encourage existing management resources to seek internal opportunities beyond their immediate business
group, a formal internal advertisement has been established, which puts up vacancies on the Mahindra intranet.
Management Development (house management development programme)
Need to enhance internal talent and leadership potential was felt at middle and senior management levels.
This objective was being met through a series of initiatives at all levels including the top management, where the emphasis
is on strategy, leadership and change.
A three tier approach was in place to develop the capabilities of the management and it was structured to meet the needs at
each responsibility band of management.
So, if the emphasis in the top management is on strategy, leadership and change.
For the strategic and executive management band, the focus is on team building, people skills, understanding and managing
technology and financial and marketing orientation.
For department and unit head management band, the emphasis is on general management skills, managerial and personal
effectiveness and multi functional understanding.
Apart from the in house management development programme, the group also utilises selective outside programmes for
high potential managers.
These include management programmes run by Harvard Business School, London Business School and India School of
Business – Hyderabad.
The idea is to take the management development programme to the lowest level of the hierarchy to bring out the leadership
potential, which is extremely crucial for the company’s growth as it moves ahead.
Managing Career and Succession
The objective of career and succession planning was to taps both the strengths and weaknesses and aspiration of each
The detailed career planning also leads to identification of incumbents as successor to a specific responsibility.
What they try to do, through their succession planning is the early identification of potential successors and both formally
and informally, begin to provide expanded responsibilities so that there is an on-the-job development of a larger perspective
Group Suggestions: Future Plans
• Launch of Hybrid cars and Green cars.
• Product up-gradation in Farm Equipment and other Sectors.
• Growing the Agri business.
• Cost management initiatives.
• Invest in the IT sector in Punjab and other Agri-related states.
• Focus on the agri business in Punjab under the Mahindra Shubh Labh project.
• Start a car services business.
- A.E. Henry
- V.S.P. Rao