Case Study of Mahindra & Mahindra

1. CASE STUDY: Mahindra & Mahindra Ltd. – Farm Equipment Sector: Acquisition of Jiangling Tractor Company by N. KrishnaKumar Guide: Dr Abhijit Gangopadhyay Nivedit S. Mathur Bihag Shah Gowri Sundarmurthy Date:4 th June 2010

4. 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” - Anand Mahindra 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. Vision & Mission

9. CHINA MARKET – ENTRY STRATEGY Step 1: A team & tractors were sent to China from India to test the market opportunity. Step2: The team targeted a single province having large land holdings suitable for company’s 25 – 75 hp range of tractors. Step 3: Sold tractors at a price 20% higher than the rivals (John Deere), sending strong message of, “Superior Quality & Performance” . Step 4: Tie – up with a local partner

13. Feasibility Study of JV

14. MARKET EXTENSION Achieve higher sales/market share of existing products in new markets PRODUCT DEVELOPMENT Sell new products in existing markets DIVERSIFICATION Sell new products in new markets ANSOFF MATRIX ANALYSIS Existing PRODUCTS New INCREASING RISK INCREASING RISK Existing MARKETS New MARKET PENETRATION Sell more in existing Markets

17. Reasons for Going for JV 1) 20% turn over by 2009 2.5% in Chinese Market and 13% in <25hp category. 2) Product range Complementary to M&M’s range. 18-33hp of JTC – requirement of growing Indian Market and higher hp from India to China 3) Chinese Market entry “ Feng Shou” brand was popular already. 4) Management JTC – Straightforward and Cooperative Management. 5) Manufacturing facilities Influenced by Ford & Isuzu 6) Company focus Quality focus & Readiness to M&M’s quality practice. M&M Objective Fulfillment by JTC

19. M&M ACQUISITION OF JIANGLING TRACTOR COMPANY Mahindra officials with the JTC team. Mr. Anand Mahindra, VC & MD, M&M, visits the Chinese facility with JTC officials. Jiangling Tractor facility . Signing of the MOU in China.

20. JIANGLING TRACTOR COMPANY - CHINA The China Task Team. Scouting for a partner in China. Inside view of the JTC facility. Inside view of the JTC facility.