Mahindra N Mahindra

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Mahindra N Mahindra

  1. 1. Mahindra and Mahindra Limited Presented by: Ms Divya Handa Gandharva Gupta John Jacob Pranav Nagpurkar Ms Rashmi Shree Sagar Thutheja Shazer Askari
  2. 2. Content <ul><li>Market Overview </li></ul><ul><li>Mahindra and Mahindra </li></ul><ul><ul><ul><li>History </li></ul></ul></ul><ul><ul><ul><li>Product Line </li></ul></ul></ul><ul><ul><ul><li>Marketing & Business Strategy </li></ul></ul></ul><ul><ul><ul><li>Financial </li></ul></ul></ul><ul><ul><ul><li>CSR Initiatives </li></ul></ul></ul>
  3. 3. Growth drivers for the Indian automotive industry <ul><li>Contemporary products </li></ul><ul><li>Shorter life cycle </li></ul><ul><li>Growth in Income levels </li></ul><ul><li>Easier financing </li></ul>Government Policies New product launches Indian Automotive Industry Increasing consumer demand Cost Competitiveness <ul><li>Overall economic growth </li></ul><ul><li>Lower duties & taxes </li></ul><ul><li>Export Competitiveness </li></ul><ul><li>Reduced cost to consumer </li></ul><ul><li>India emerging as a manufacturing hub </li></ul>
  4. 4. Players: Indian auto industry Global OEM Indian OEM Indian Suppliers Global Suppliers Engineering & Development Companies Indian Auto Industry Global OEM GM Toyota Ford Hyundai Honda Skoda Volvo Mercedes Indian OEM Tata Motors Mahindra & Mahindra Bajaj Auto TVS Motors Hero Honda Bajaj Tempo Ashok Leyland Global Suppliers Delphi Visteon Bosch Denso Thyssen Krupp
  5. 5. Vehicle sales in INDIA
  6. 6. Auto components industry has also grown at a rapid pace ...
  7. 7. Exports are rising - India has the potential to become the global outsourcing hub
  8. 8. Indian Automotive Industry <ul><li>The industry has grown at a CAGR of 14% p.a over the last 5 years </li></ul><ul><li>With potential to emerge as one of the largest in the world. Presently, India is </li></ul><ul><ul><ul><li>2nd largest two wheeler market in the world </li></ul></ul></ul><ul><ul><ul><li>4th largest commercial vehicle market in the world </li></ul></ul></ul><ul><ul><ul><li>11th largest passenger car in the world and is expected to be the 7th largest market by 2016 </li></ul></ul></ul><ul><li>The industry has emerged as a key contributor to the Indian economy </li></ul>
  9. 9. HISTORY OF M&M
  10. 10. <ul><li>JC Mahindra KC Mahindra G.Mohammad </li></ul><ul><li>Keshub Mahindra Anand Mahindra </li></ul>Chairman-07 Vice Chairman,MD- 07
  11. 11. MILESTONES OF M&M <ul><li>M&M established its business connections in the USA through Mahindra Wallace. </li></ul><ul><li>It started steel trading on behalf of European suppliers </li></ul><ul><li>M&M was converted into a public limited company on June 15,1955 </li></ul><ul><li>Machine Tools division was started. </li></ul>
  12. 12. Contd ... <ul><li>Mahindra Engineering & Chemical Products Ltd. (MECP) was formed. </li></ul><ul><li>M&M became the market leader in the Indian tractor segment-1983 </li></ul><ul><li>Mahindra British Telecom (MBT) was formed as a joint venture with British Telecommunication plc (BT), UK-1986 </li></ul>
  13. 13. MISSION & VISION <ul><li>“ 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 </li></ul><ul><li>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. </li></ul>
  14. 14. CORE BUSINESS ACTIVITIES <ul><li>Automotive </li></ul><ul><li>Farm Equipment </li></ul><ul><li>Trade & Financial Services </li></ul><ul><li>Infrastructure Development </li></ul><ul><li>Information Technology </li></ul><ul><li>Systech </li></ul><ul><li>Specialty Businesses </li></ul>
  15. 15. M&M AUTOMOTIVE
  16. 17. COMPETITION
  17. 18. BUSINESS AND MARKETING STRATEGIES
  18. 19. BUSINESS STRATEGIES <ul><li>Restructuring of the company. </li></ul><ul><li>E-business Initiatives </li></ul><ul><li>Joint ventures. </li></ul><ul><li>Foreign competition. </li></ul>
  19. 20. MARKETING STRATEGIES <ul><li>USP – ruggedness and performance. </li></ul><ul><li>Products that redefined the market. </li></ul><ul><li>Network of dealers, sales offices, service stations etc. </li></ul><ul><li>Strong market base in the urban and semi-urban areas. </li></ul>
  20. 21. M&M FINANCIALS
  21. 22. Current Financial Health <ul><li>August Sales </li></ul><ul><ul><ul><li>Total sales grew by over 30% over the corresponding period last year. </li></ul></ul></ul><ul><ul><ul><li>Domestic sales grew by 34% but exports declined by 21% </li></ul></ul></ul><ul><li>Q1 FY2008 results </li></ul><ul><ul><ul><li>M&M results: </li></ul></ul></ul><ul><li>Gross revenue grew by over 16% </li></ul><ul><li>PAT grew by 14% </li></ul><ul><ul><ul><li>Group results: </li></ul></ul></ul><ul><ul><li>Gross revenue grew by over 40% while PBT grew by over 11% </li></ul></ul>
  22. 23. Sector Performance <ul><li>Outgrew industry in UV sector </li></ul><ul><li>Registered a growth of 23.6% vs. industry 8.9% </li></ul><ul><li>Commands an UV market share of 50% as compared to 43.7% in the same period previous year. </li></ul><ul><li>Scorpio volumes grew by 16%, Bolero volumes grew by 35% </li></ul>
  23. 24. Contd... <ul><li>Large 3-wheeler segment industry volumes declined by 46%. M&M arrested slowdown to 37%, market share of 53% </li></ul><ul><li>Small 3-wheeler segment growth of 74% and market share of 18% </li></ul><ul><li>Exports grew by 83% over the corresponding period last year. </li></ul>
  24. 25. Important Financials Money figures in Rs. crore Particulars FY 2006 FY 2007 % variance Sales Income 9,347 11,363 21.56 Expenditure 8,380 10,100 20.5 Gross Profit 1089 1525 40 PAT 857 1068 24.65 GPM% 10.54 11.71 1.17
  25. 26. Important Financials <ul><li>Mahindra scrip trading at Rs 715 per share </li></ul><ul><li>EPS of 39.33 </li></ul><ul><li>P/E ratio of 18.22 </li></ul><ul><li>Market capitalization of Rs 17,431 crores </li></ul><ul><li>Slow down expected on blue-chip auto stocks due to increase on interest on auto loans and prices have gone up due to increase in raw material like steel, rubber, etc. </li></ul>
  26. 27. Key Investments <ul><li>Production plant in Chennai </li></ul><ul><ul><li>Signed MOU with Renault-Nissan </li></ul></ul><ul><ul><li>M&M holds 50% stake, the rest is shared between Renault and Nissan. </li></ul></ul><ul><ul><li>Earmarked $908 million for investment </li></ul></ul><ul><ul><li>Expected to begin production in early 2009. </li></ul></ul><ul><ul><li>Installed capacity of 400,000 units </li></ul></ul>
  27. 28. Contd... <ul><li>Acquisition of 67.9% stake in Jeco Holdings of Germany </li></ul><ul><ul><li>Jeco has production capacity of 100,000 tonnes of forged components across its 3 plants. </li></ul></ul><ul><ul><li>Jeco manufactures forgings for gear boxes, engines, axle parts, hubs, gears and piston heads. </li></ul></ul>
  28. 29. Corporate Social Responsibility
  29. 30. CSR <ul><li>“ CSR has always been an integral part of M&M group’s vision and the corner stone of our core value of good corporate citizenship” </li></ul><ul><li>– Keshub Mahindra </li></ul><ul><li>Education </li></ul><ul><li>Environment </li></ul><ul><li>Health </li></ul>
  30. 31. FUTURE PLANS <ul><li>Plans to enter US market. </li></ul><ul><li>Expand operations in Germany </li></ul><ul><li>New plant </li></ul><ul><li>Mahindra Axe </li></ul><ul><li>Marketing JV with Nissan </li></ul>
  31. 32. CONCLUSION <ul><li>Performance. </li></ul><ul><ul><ul><li>Both domestically and overseas </li></ul></ul></ul><ul><ul><ul><li>Ability to deliver as per consumer demands </li></ul></ul></ul><ul><ul><ul><li>JV in non expertise segments </li></ul></ul></ul><ul><li>Potential in the market </li></ul><ul><ul><ul><li>CAGR 19% </li></ul></ul></ul><ul><ul><ul><li>Potential buyers (300 million+ middle class) </li></ul></ul></ul><ul><li>Past performance and potential in the market implies the expected growth of the company </li></ul>
  32. 33. References <ul><li>www.mahindra.com </li></ul><ul><li>www.wikipedia.com </li></ul><ul><li>www.icfai.com </li></ul><ul><li>www.indiatimes.com </li></ul><ul><li>Strategy and Business (June 07) </li></ul><ul><li>The Hindu </li></ul><ul><li>Auto India </li></ul>
  33. 34. THANK-YOU

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